the requirement is in identify the industry,and the data needed is in identify+the+industry-2,What' more,the part1 of the assignment,the financial characteristic means this industry emphasizes most on which two or three of the indicator,such as cash,solds of the goods etc

Part 1 (25pts): Identify Financial Characteristics of Each Industry Group: Retail : Banking : High Technology: Business and Consumer Services : Manufacturing/Other Capital Intensive Industries : Part 2 (25pts): Group each of the 10 industries below into one of the five industry groups in Part 1. Grocery Stores : IT Consulting Services : Semiconductor : Computer Software: Integrated Oil & Gas: Commercial Banking: Liquor Producer & Wholesale Distributor: retail Commercial Airline: Pharmaceutical Mobile Phone Service Provider: Part 3 (50pts total, 5pts each): Match 10 companies to the 10 different industries in Part 2. TB0069 August 9, 2007 Graeme Rankine Financial Statement Analysis Identify the Industry Since opportunities and constraints tend to be different across industries, companies in different industries tend to make different investment, dividend, and financing decisions. Thus, firms in different industries exhibit different financial characteristics, and, hence, report different financial ratios. For example, \"old economy\" businesses with large amounts of tangible assets may have higher leverage ratios. Service or trading firms may have large amounts of intangible assets such as knowledge assets or a large and loyal customer base, and, hence, have low leverage ratios because \"growth options\" can evaporate. On the other hand, companies within the same industry tend to exhibit similar financial characteristics, as measured by financial ratios. With some knowledge of the different operating, investing, and financing decisions across industries, financial ratios can be used to identify an industry (see Exhibit 1 for the definition of ratios used). Balance sheets and income statements for the most recent three years are provided for 10 companies from 10 different industries. Common-sized balance sheets (all items scaled by total assets), common-sized income statements (all items scaled by net sales), and selected financial ratios for the most recent three years are also provided. Since unusual deviation from target values may occur in any given year, the values for the items were averaged over three years. The three-year average common-sized balance sheet, common-sized income statement, and financial ratios are reported in Exhibits 2, 3, and 4, respectively. The 10 companies are drawn from the following 10 different industries: Commercial airline Commercial banking (items fitted into the same categories as the non-financial firms) Computer software Integrated oil and gas IT service provider Liquor producer and distributor Mobile phone service provider Pharmaceutical preparations Retail grocery stores Semiconductor manufacturer Assignment Using the financial statement data provided in Exhibits 2, 3, and 4, match the companies with their industry. Copyright 2007 Thunderbird School of Global Management. All rights reserved. This case was prepared by Professor Graeme Rankine for the purpose of classroom discussion only, and not to indicate either effective or ineffective management. Purchased by Brendan Mallee (bm2115@columbia.edu) on April 09, 2012 Exhibit 1 Definitions of Some Key Financial Ratios LIQUIDITY RATIOS: Cash & Marketable Securities To Total Assets Acid Test Ratio Current ratio 1. = = = (Cash + Market Securities) / Total Assets (Cash + Market Securities + Receivables) / Current Liabilities Current Assets / Current Liabilities ASSET MANAGEMENT Day's Receivables Day's Inventory Asset Turnover = = = 365/ (Sales / Receivables) 365/ (Cost of Sales / Inventory) Sales / Total Assets FINANCIAL LEVERAGE Long-term Debt to Total Assets = Long-term Debt to Stockholders' Equity = Coverage Ratio = (Convertible Debt + Long-term Debt + Non-current Capital Leases + Non-current Long-term Debt) / Total Assets (Convertible Debt + Long-term Debt + Non-current Capital Leases + Non-current Long-term Debt) / Stockholders' Equity (Income Before Tax + Interest Expense) / Interest Expense = = = = = Gross Profit / Sales Net Income / Sales Net Income / Total Assets (Net Income + Interest Expense) / Total Assets Net Income / Stockholders' Equity = = Return on Sales * Asset Turnover * Leverage (Net Income / Sales) x (Sales / Assets) x (Assets / Stockholders' Equity) PROFITABILITY Gross Margin Ratio Return on Sales Return on Assets (1) Return on Assets (2) Return on Equity DUPONT ANALYSIS Return on Equity 2 TB0069 Purchased by Brendan Mallee (bm2115@columbia.edu) on April 09, 2012 TB0069 3 Purchased by Brendan Mallee (bm2115@columbia.edu) on April 09, 2012 Source: Thomson Banker One-Analytics 1 100.00 79.32 20.68 0.00 19.38 1.30 0.00 0.64 1.67 0.27 (0.09) 0.04 0.00 0.10 0.41 0.35 0.76 2 100.00 11.11 88.89 0.00 20.17 68.72 1.18 (19.23) 18.33 29.98 9.98 0.00 0.00 0.00 20.00 0.00 20.00 3 100.00 36.62 63.38 0.00 39.91 23.47 0.00 1.98 0.99 24.47 7.72 0.00 0.00 0.00 16.75 (1.85) 14.90 4 100.00 49.78 50.22 0.32 25.13 24.77 3.11 (5.09) 0.18 16.39 6.53 0.00 0.00 0.00 9.86 0.00 9.86 5 100.00 52.77 47.23 0.00 14.54 32.69 4.50 1.84 0.00 30.04 4.18 0.07 0.21 (0.21) 25.78 0.21 25.99 Common-Size Income Statement (percentage; averaged over three years) NET SALES COST OF GOODS GROSS PROFIT R & D EXPENDITURES SELL GEN & ADMIN EXP INC BEF DEP & AMORT DEPRECIATION & AMORT NON-OPERATING INC INTEREST EXPENSE INCOME BEFORE TAX PROV FOR INC TAXES MINORITY INT (INC) INVEST GAINS/LOSSES OTHER INCOME NET INC BEF EX ITEMS EX ITEMS & DISC OPS NET INCOME Exhibit 2 6 100.00 43.81 56.19 14.61 16.01 25.58 0.00 2.15 0.09 27.64 8.12 0.00 0.00 0.00 19.51 0.00 19.51 7 100.00 23.20 76.80 20.01 35.77 21.03 0.00 0.37 0.87 20.52 5.96 0.00 0.00 0.00 14.57 (0.05) 14.52 8 100.00 17.03 82.97 17.18 33.02 32.77 0.00 5.94 0.00 38.71 11.57 0.00 0.00 0.00 27.14 0.00 27.14 9 100.00 68.43 31.57 0.00 15.56 16.01 4.26 (1.61) 0.90 9.24 3.40 0.00 0.00 0.00 5.84 0.00 5.84 10 100.00 58.46 41.54 0.00 57.69 (16.14) 16.72 22.45 2.37 (12.78) 8.17 0.99 0.00 0.00 (21.94) (3.83) (25.78) 4 TB0069 Purchased by Brendan Mallee (bm2115@columbia.edu) on April 09, 2012 2.88 15.26 4.57 0.38 6.70 0.01 5.34 35.15 0.18 1.33 1.31 25.09 6.93 6.83 76.82 0.31 2.28 1.81 63.20 (44.84) 0.00 0.42 22.87 100.00 NOTES PAYABLE ACCOUNTS PAYABLE CUR LONG TERM DEBT CUR PORT CAP LEASES ACCRUED EXPENSES INCOME TAXES OTHER CURRENT LIAB TOTAL CURRENT LIAB MORTGAGES DEFERRED CHARGES/INC CONVERTIBLE DEBT LONG TERM DEBT NON-CUR CAP LEASES OTHER LONG TERM LIAB TOTAL LIABILITIES MINORITY INT (LIAB) PREFERRED STOCK COMMON STOCK NET CAPITAL SURPLUS RETAINED EARNINGS TREASURY STOCK OTHER EQUITIES SHAREHOLDER EQUITY TOT LIAB & NET WORTH Source: Thomson Banker One-Analytics 1 6.01 0.00 10.16 11.78 (0.24) 0.00 12.02 0.00 12.50 40.44 37.33 0.00 37.33 5.29 0.29 3.13 12.98 0.54 100.00 23.36 50.78 0.68 0.00 3.03 0.00 0.00 77.86 0.00 0.00 0.00 8.17 0.00 5.26 91.28 0.00 0.08 3.81 0.00 5.31 0.00 (0.48) 8.72 100.00 2 2.66 20.51 45.93 16.49 0.00 0.00 0.00 0.00 0.00 85.59 0.64 0.00 0.64 0.08 0.00 0.00 4.66 9.03 100.00 3.45 3.38 3.51 0.00 7.32 1.79 0.70 20.16 0.00 5.18 0.00 17.54 0.00 6.17 49.06 0.00 0.00 0.74 1.37 54.55 5.60 (0.11) 50.94 100.00 3 10.47 1.96 12.61 20.12 11.13 3.88 5.10 0.00 6.25 51.41 33.72 15.99 17.73 0.63 0.00 1.66 20.87 7.70 100.00 0.85 11.68 0.26 0.00 2.51 4.04 2.85 22.18 0.00 11.86 0.00 2.74 0.13 8.79 45.69 1.82 0.00 2.51 0.00 78.79 28.07 (0.74) 52.49 100.00 4 14.27 0.00 13.13 4.74 0.73 0.00 4.01 0.00 1.43 33.57 119.29 66.32 52.97 9.45 0.00 0.74 0.00 3.27 100.00 0.00 0.09 0.00 0.00 8.86 5.44 12.55 26.94 0.00 0.00 0.00 0.00 0.00 0.00 26.94 0.24 1.07 1.38 12.93 57.19 0.00 0.25 72.82 100.00 5 35.47 0.00 19.77 0.00 0.00 0.00 0.00 0.00 6.81 62.05 21.80 0.00 21.80 14.83 0.00 0.71 0.61 0.00 100.00 0.44 4.45 0.04 0.00 8.19 3.40 1.26 17.78 0.00 1.26 4.37 (1.16) 0.00 0.74 23.00 0.00 0.00 0.01 13.94 62.90 0.00 0.15 77.00 100.00 6 15.42 12.17 6.64 6.94 0.97 3.54 2.44 0.00 2.69 43.88 90.48 55.62 34.85 8.50 0.00 0.23 9.41 3.13 100.00 2.25 3.13 1.79 0.00 2.30 4.46 11.73 25.65 0.00 1.87 0.00 19.14 0.00 7.39 54.06 0.00 0.00 2.98 14.11 43.22 0.43 (13.94) 45.94 100.00 7 15.99 6.75 11.26 9.07 0.59 5.90 2.58 0.00 3.50 46.56 55.18 21.95 33.23 4.03 0.00 3.02 0.53 12.62 100.00 Common-Size Balance Sheet (percentage; averaged over three years) CASH MRKTABLE SECURITIES RECEIVABLES INVENTORIES RAW MATERIALS WORK IN PROGRESS FINISHED GOODS NOTES RECEIVABLE OTHER CURRENT ASSETS TOTAL CURRENT ASSETS PROP, PLANT & EQUIP ACCUMULATED DEP NET PROP & EQUIP INVEST & ADV TO SUBS OTHER NON-CUR ASSETS DEFERRED CHARGES INTANGIBLES DEPOSITS & OTH ASSET TOTAL ASSETS Exhibit 3 0.00 2.98 0.00 0.00 3.46 2.93 14.61 23.98 0.00 2.22 0.00 0.00 0.00 5.52 31.71 0.00 0.00 76.62 0.00 (9.99) 0.00 1.66 68.29 100.00 8 3.10 52.44 9.92 1.09 0.31 0.00 0.78 0.00 4.80 71.34 8.75 5.37 3.38 13.91 0.00 3.05 5.20 3.11 100.00 0.00 4.06 2.07 0.07 9.24 1.98 5.06 22.47 2.83 15.45 0.00 8.82 0.50 2.07 52.14 0.00 0.00 6.20 4.70 33.37 1.17 4.76 47.86 100.00 9 11.87 3.17 1.93 1.20 1.20 0.00 0.00 0.00 3.14 21.31 99.65 26.90 72.75 1.56 0.00 0.00 0.16 4.21 100.00 0.02 1.93 1.79 0.01 6.11 0.00 0.93 10.79 0.00 3.41 0.00 9.66 0.08 1.42 25.36 0.62 0.43 3.04 86.45 (36.41) 3.56 24.08 74.02 100.00 10 2.90 0.00 3.60 0.28 0.00 0.00 0.28 0.00 0.31 7.09 11.64 0.00 11.64 16.70 0.05 0.30 61.39 2.83 100.00 TB0069 5 Purchased by Brendan Mallee (bm2115@columbia.edu) on April 09, 2012 0.21 0.01 0.02 0.05 0.07 0.07 0.01 2.24 4.43 PROFITABILITY Gross Margin Ratio Return on Sales Return on Assets (1) Return on Assets (2) Return on Equity DUPONT ANALYSIS Return on Equity = Return on Sales * Asset Turnover * Leverage Source: Thomson Banker One-Analytics 1.01 4.05 1.71 0.76 0.15 0.20 0.07 11.53 0.89 0.20 0.01 0.03 0.15 0.09 2,540.75 #DIV/0! 0.07 0.38 16.66 24.18 2.24 0.23 0.89 1.10 2 FINANCIAL LEVERAGE Long-term Debt to Total Assets Long-term Debt to Stockholders' Equity Coverage Ratio ASSET MANAGEMENT Day's Receivable Day's Inventory Asset Turnover 0.06 0.47 1.15 1 0.22 0.15 0.78 1.98 0.63 0.15 0.11 0.12 0.22 0.43 23.92 0.21 59.22 260.56 0.78 0.12 1.25 2.61 3 Selected Financial Ratios (averaged over three years) LIQUIDITY RATIOS Cash & Market Sec to Total Assets Acid Test Ratio Current Ratio Exhibit 4 0.31 0.10 1.63 1.91 0.50 0.10 0.16 0.16 0.31 0.06 134.15 0.03 29.54 21.55 1.63 0.14 1.24 1.51 4 0.36 0.26 1.01 1.38 0.47 0.26 0.26 0.26 0.36 0.00 #DIV/0! 0.00 71.39 #DIV/0! 1.01 0.35 2.13 2.40 5 0.19 0.20 0.75 1.30 0.56 0.20 0.15 0.15 0.19 0.04 358.14 0.03 32.25 76.73 0.75 0.28 1.94 2.48 6 0.20 0.15 0.62 2.18 0.77 0.15 0.09 0.10 0.20 0.46 35.70 0.21 66.25 230.14 0.62 0.23 1.33 1.83 7 0.23 0.27 0.53 1.49 0.83 0.27 0.15 0.15 0.23 0.00 #DIV/0! 0.00 67.01 40.77 0.53 0.56 3.01 3.26 8 0.07 0.06 0.59 2.09 0.32 0.06 0.03 0.04 0.07 0.24 18.15 0.11 11.99 10.79 0.59 0.15 0.76 0.95 9 (0.09) (0.26) 0.21 1.36 0.42 (0.26) (0.06) (0.06) (0.09) 0.16 (6.49) 0.12 62.12 8.37 0.21 0.03 0.61 0.67 10