Try to match the 12 firms operating in the 12 industries listed below with the 12 sets of financial data presented in Exhibit 1. Use any approach that you find useful. The financial ratios used in Exhibit 1 are defined in Exhibit 2.
1) Airline
2) Commercial Bank (fitted into the most nearly comparable balance sheet and ratio categories used for the other nonfinancial companies)
3) Computer and Electronics Retailer
4) Department Store
5) Distiller & Vintner
6) Diversified Metals and Mining
7) Electric and Gas Utility (mostly electricity)
8) Engineering & Consulting Services
9) Food Retail (mainly supermarkets)
10) Online Retailer of Designer Clothing
11) Restaurant Chain
12) Transportation Services
216-014 -3- Exhibit1 Balance Sheet Percentages and Selected Financial Ratios for Unidentified Industries Firm A Firm B Firm C Firm D Firm E Firm F Firm G Firm Firm Firm Firm K Firm L 7.2% 41.2% Assets Cash & ST Investments Accounts/Trade Receivable Inventory Other Current Assets Net Property, Plant & Equip. Other Long-term Assets Total Assets 3.2% 13.5% 1.4% 6.1% 44.1% 31.7% 100.0% 20.0% 67.4% NA 1.9% 0.3% 10.4% 100.0% 5.8% 4.7% 4.0% 0.3% 71.8% 13.4% 100.0% 8.8% 0.2% 1.2% 0.5% 17.2% 72.1% 100.0% 5.2% 8.2% 53.3% 0.4% 21.1% 11.6% 100.0% 8.0% 15.1% 0.3% 9.3% 58.7% 8.6% 100.0% 3.8% 0.9% 19.5% 0.7% 26.0% 49.1% 100.0% 54.1% 4.0% 9.0% 11.2% 2.3% 19.5% 100.0% 1.3% 11.2% 18.3% 0.7% 30.8% 37.7% 100.0% 17.4% 4.8% 0.8% 3.4% 57.8% 3.8% 2.5% 19.4% 3.9% 39.7% 30.7% 100.0% NA 2.4% 15.9% 2.3% 47.0% 100.0% 100.0% 10 Liabilities Accounts/Trade Payable Accrued Expenses Other Current Liabilities Other Long-term Liabilities Total Debt Total Equity Total Liabilities & Equity 11 7.8% 0.6% 6.4% 4.8% 26.7% 53.7% 100.0% 63.9% 0.5% 7.6% 0.5% 21.1% 6.4% 100.0% 4.6% 1.2% 3.4% 12.3% 22.1% 56.4% 100.0% 9.3% 0.9% 4.0% 0.8% 39.4% 45.5% 100.0% 28.4% 6.1% 6.4% 3.9% 20.9% 34.3% 100.0% 10.5% 3.8% 5.8% 2.5% 41.0% 36.4% 100.0% 10.5% 4.0% 13.0% 4.3% 22.0% 46.2% 100.0% 13.7% 2.5% 20.0% 2.3% 1.0% 60.5% 100.0% 4.1% 1.0% 10.0% 4.3% 6.9% 73.8% 100.0% 13.0% 2.6% 17.7% 3.2% 41.1% 22.4% 100.0% 19.2% 8.5% 2.2% 7.5% 19.0% 43.5% 100.0% 9.5% 19.3% 7.5% 3.2% 17.2% 43.3% 100.0% 13 NA 22.2% 5.5% 4.0% 7.5% 38.2% 0.9% 14.8% 78.5% 20.6% 9.1% 16.2% 52.3% 3.2% 3.3% 7.3% 21.7% 3.7% 14.9% 43.6% 16.6% -8.3% -9.9% -27.3% 46.9% 3.6% 5.1% 11.0% 26.9% -26.1% -40.9% -67.6% 32.4% -5.6% -2.6% -3.5% 18.5% -8.3% -7.6% 33.9% 27.0% 4.0% 10.1% 23.3% 6.4% 2.6% 4.9% 11.4% NA NA Profitability Ratios Gross Margin (%) 16 Return on Sales (ROS) 17 Return on Assets (ROA) 18 Return on Equity (ROE) Activity Ratios Days of Receivables Days of Inventory Days of Payables Asset Turnover hventory Turnover Liquidity Ratio 24 Current Ratio Leverage (Gearing) Ratios Fin. Leverage (Assets / Equity) Debt / Equity Debt / Total Capital 28 Interest Coverage 64.0 8.6 49.6 0.74 42.6 NA 25.1 152.0 176.3 0.44 0.5 8.5 68.3 1.05 42.7 2.5 61.4 32.7 4.05 46.1 1.3 38.5 1.20 288.4 0.6 94.5 51.0 1.42 3.3 28.5 43.7 1.57 12.8 74.0 213.4 47.4 0.46 1.7 13.4 3.8 63.4 0.92 97.1 1.5 38.5 38.2 2.52 9.5 71.9 NA 19.6 1.89 NA 0.02 NA 24 5.9 3.9 1.57 0.26 1.23 0.73 1.64 1.50 0.91 2.10 2.09 0.64 0.95 1.40 2.20 1.36 26 2.16 0.48 0.87 27 1.86 0.50 33% 5.10 0.09 15.67 3.31 77% NA 1.77 0.41 29% 35.24 2.92 0.61 38% 21.59 2.75 1.21 55% 0.82 1.65 0.02 2% - 15.85 32% 9% 4.46 1.86 65% -2.31 2.30 0.44 30% 13.96 2.31 0.40 29% 6.69 46% 4.83 6.71 7.54 Source: Standard & Poor's Capital IQ, accessed 8/31/15. 216-014 -3- Exhibit1 Balance Sheet Percentages and Selected Financial Ratios for Unidentified Industries Firm A Firm B Firm C Firm D Firm E Firm F Firm G Firm Firm Firm Firm K Firm L 7.2% 41.2% Assets Cash & ST Investments Accounts/Trade Receivable Inventory Other Current Assets Net Property, Plant & Equip. Other Long-term Assets Total Assets 3.2% 13.5% 1.4% 6.1% 44.1% 31.7% 100.0% 20.0% 67.4% NA 1.9% 0.3% 10.4% 100.0% 5.8% 4.7% 4.0% 0.3% 71.8% 13.4% 100.0% 8.8% 0.2% 1.2% 0.5% 17.2% 72.1% 100.0% 5.2% 8.2% 53.3% 0.4% 21.1% 11.6% 100.0% 8.0% 15.1% 0.3% 9.3% 58.7% 8.6% 100.0% 3.8% 0.9% 19.5% 0.7% 26.0% 49.1% 100.0% 54.1% 4.0% 9.0% 11.2% 2.3% 19.5% 100.0% 1.3% 11.2% 18.3% 0.7% 30.8% 37.7% 100.0% 17.4% 4.8% 0.8% 3.4% 57.8% 3.8% 2.5% 19.4% 3.9% 39.7% 30.7% 100.0% NA 2.4% 15.9% 2.3% 47.0% 100.0% 100.0% 10 Liabilities Accounts/Trade Payable Accrued Expenses Other Current Liabilities Other Long-term Liabilities Total Debt Total Equity Total Liabilities & Equity 11 7.8% 0.6% 6.4% 4.8% 26.7% 53.7% 100.0% 63.9% 0.5% 7.6% 0.5% 21.1% 6.4% 100.0% 4.6% 1.2% 3.4% 12.3% 22.1% 56.4% 100.0% 9.3% 0.9% 4.0% 0.8% 39.4% 45.5% 100.0% 28.4% 6.1% 6.4% 3.9% 20.9% 34.3% 100.0% 10.5% 3.8% 5.8% 2.5% 41.0% 36.4% 100.0% 10.5% 4.0% 13.0% 4.3% 22.0% 46.2% 100.0% 13.7% 2.5% 20.0% 2.3% 1.0% 60.5% 100.0% 4.1% 1.0% 10.0% 4.3% 6.9% 73.8% 100.0% 13.0% 2.6% 17.7% 3.2% 41.1% 22.4% 100.0% 19.2% 8.5% 2.2% 7.5% 19.0% 43.5% 100.0% 9.5% 19.3% 7.5% 3.2% 17.2% 43.3% 100.0% 13 NA 22.2% 5.5% 4.0% 7.5% 38.2% 0.9% 14.8% 78.5% 20.6% 9.1% 16.2% 52.3% 3.2% 3.3% 7.3% 21.7% 3.7% 14.9% 43.6% 16.6% -8.3% -9.9% -27.3% 46.9% 3.6% 5.1% 11.0% 26.9% -26.1% -40.9% -67.6% 32.4% -5.6% -2.6% -3.5% 18.5% -8.3% -7.6% 33.9% 27.0% 4.0% 10.1% 23.3% 6.4% 2.6% 4.9% 11.4% NA NA Profitability Ratios Gross Margin (%) 16 Return on Sales (ROS) 17 Return on Assets (ROA) 18 Return on Equity (ROE) Activity Ratios Days of Receivables Days of Inventory Days of Payables Asset Turnover hventory Turnover Liquidity Ratio 24 Current Ratio Leverage (Gearing) Ratios Fin. Leverage (Assets / Equity) Debt / Equity Debt / Total Capital 28 Interest Coverage 64.0 8.6 49.6 0.74 42.6 NA 25.1 152.0 176.3 0.44 0.5 8.5 68.3 1.05 42.7 2.5 61.4 32.7 4.05 46.1 1.3 38.5 1.20 288.4 0.6 94.5 51.0 1.42 3.3 28.5 43.7 1.57 12.8 74.0 213.4 47.4 0.46 1.7 13.4 3.8 63.4 0.92 97.1 1.5 38.5 38.2 2.52 9.5 71.9 NA 19.6 1.89 NA 0.02 NA 24 5.9 3.9 1.57 0.26 1.23 0.73 1.64 1.50 0.91 2.10 2.09 0.64 0.95 1.40 2.20 1.36 26 2.16 0.48 0.87 27 1.86 0.50 33% 5.10 0.09 15.67 3.31 77% NA 1.77 0.41 29% 35.24 2.92 0.61 38% 21.59 2.75 1.21 55% 0.82 1.65 0.02 2% - 15.85 32% 9% 4.46 1.86 65% -2.31 2.30 0.44 30% 13.96 2.31 0.40 29% 6.69 46% 4.83 6.71 7.54 Source: Standard & Poor's Capital IQ, accessed 8/31/15
