You are the new finance manager of FD Group a holding company with diverse investments in different industries. The Board of Director is asking you for your opinion / analysis of the following holdings with their concerns.
[Note: Assuming market is efficient; therefore, market multiples have high predictive power]
Task 1 Health Industry A vs B. Which firm has higher/lower/same market growth potential? Why? Which firm has higher financial strength to support growth and why?
Task 2: Beer Industry C vs D. According to Porters Business Strategy Volume (or low cost) / Niche / Differentiation. What strategy do you think C and D are pursuing?
Task 3: Identify the top 2 Cashcow firms as measured by FCF i.e., able to generate the highest FCF and why?
Task 4: Identify the top Dog (as in BCG model) among the firms (A to P)
All 50 words
EXHIBIT 1 | Common-Sized Financial Data and Ratios 1 Assets A B C D E F G H I 1 J K L M N 0 P 7.6 8.8 Cash & Short-Term Investments - Receivables Inventories Current Assets-Other Current Assels-Total Net Fixed Assets Assets-Otter Intangibles Investments & Advances Assots-Total Liabilities & Equity 24.2 12.8 7.0 7.2 51.2 19.6 6.9 22.2 0.1 100.0 16.1 B.1 5.4 2.5 32.1 14.9 3.8 46.1 3.1 133.0 1.4 4.3 4.3 1.3 11.2 54.7 7.2 7.4 2.9 100.0 55.6 11.9 11.7 2.4 81.7 16.0 1.0 1.3 0.0 100.0 42.2 19.0 2.0 9.5 72.8 7.3 1.3 0.0 18.6 100.0 67.9 13.0 1.3 5.5 87.6 8.8 2.4 ..2 0.0 100.0 54.9 nimni 14.9 8.6 78.2 7.6 9.3 4.4 0.0 100.0 16.2 2.3 38.6 2.6 59.7 24.4 4.9 11.1 0.0 100.0 7.9 3.0 27.2 50.8 5.4 14.6 0.0 100.0 5.9 10.9 14.4 1.4 32.6 62.5 3.1 1.9 0.C 100.0 9.3 18.9 17.8 7.0 52.9 3.6 - 1.8 21.4 0.0 100.0 6.5 23.7 14.9 6.9 52.1 13.7 8.9 22.3 3.0 100.0 1.6 1,4 24.5 1.5 32.0 57.0 2.0 9.0 0.0 100.0 7.0 17.0 16.7 2.5 43.1 52.2 4.0 0.6 0.6 4.6 0.B 0.7 6.8 14.1 0.1 76.B 0.7 100.3 1. 9.9 0.6 3.8 15.5 34.6 7.2 37.1 0.0 100.0 100.0 1.4 0.B 0.3 Accounts Payable Debt in Current Liabilities Income Taxos Payable Current Liabilties Other Current Liabilties-Total Li Debt Delerred Taxes Liabilities-Other Liabilities-Total Stockholders' Ecuity Total Liabilities & Equity 9.8 0.5 2.8 13.0 26.1 4.8 0.3 8.6 40.3 59.7 100.0 2.2 9.1 1.6 8.5 21.4 5.9 19.2 7.3 44.8 55.2 100.0 7.4 0.0 0.9 3.8 12.2 51.2 10.7 9.5 83,5 16.5 100.0 9.1 0.0 1.7 13.7 24.4 0.0 1.9 0.7 27.1 72.9 100.0 38.3 0.C 0.0 22.6 60.5 2.2 0.0 8.9 72.1 27.9 100.0 18.0 0.0 0.0 15.3 33.3 0.0 0.0 3.7 36.9 63.1 100.0 35.1 0.1 0.0 14.7 49.9 56.9 nim 0.2 107.0 (7.0) 100.0 22.6 0.0 0.0 17.6 40.2 7.4 5.9 11.0 64.7 35.3 100.0 6.7 1.5 0.0 6.1 14.2 41.3 5.0 10.9 75.9 24.1 100.0 85 0.0 1.2 7.1 16.7 18.3 120 12,4 59.5 40.5 100.0 8.4 3.5 0.9 19.5 32.4 21.7 3.1 -4.6 71.8 28.2 100.0 8.5 5.6 1.0 14.4 29.4 8.9 3.3 8.9 51.5 48.5 100.0 18.0 6.5 1.1 10.1 35.7 19.7 nimi 2.5 58.9 41.1 100.0 17.9 1.6 0.9 5.1 25.5 28.0 3.0 3.2 59.7 40.3 100.0 5.1 7.5 14.4 15.2 0.7 37,5 62.5 100.0 4.B 14.9 nm: 6.7 28.3 11.9 3.3 17.5 64.5 35.5 100.0 Income/Expenses 100.0 40.5 59.5 39.7 Sales-Net Cost of Goods Sold Gross Profit SG&A Expense Depreciation Earnings Before Interest & Taxes Nonoperating Income (Expense) Interest Income (Expense) Special Items- r.come (Expense) Pretax Income Income Taxes-Total Net Income (Loss) 100.0 23.9 76.1 44.5 4.5 27.2 0.7 (0.7) (0.0) 27.1 9.1 18.0 100.0 11.1 88.9 46.7 9.7 32.5 1.1 0.7 (6.3) 26.7 5.1 21.6 100.0 53.9 46.1 17.3 6.2 22.5 2.9 2.9 0.2 22.8 7.8 15.0 100.0 38.5 61.5 50.5 2.0 90 0.3 0.0 0.0 9.2 3.5 5.8 100.0 81.0 19.0 9.7 0.7 8.6 0.4 0.0 0.0 9.0 100.0 70.9 29.1 23.1 1.8 4.2 0.7 0.0 (0.3) ( 4.6 1.3 3.3 100.0 75.2 24.2 16.9 1.1 6.2 0.3 1,5 0.1 5.1 100.0 69.5 30.5 21,8 3.7 5.3 0.1 0.3 100.0 75.3 24.7 12.0 6.1 6.6 0.4 3.3 (0.8) 2.9 0.8 (0.1) ) 100.0 82.9 17.1 7.3 5.8 4.0 1.1 1.0 0.0 3.1 1,2 2.0 100.0 61.0 39.0 24.2 2.5 11.7 0.6 1.1 0.0 11.2 3.0 9.4 100.0 51.8 48.4 38.9 2.5 6.9 0.1 1.0 (1.0) () 5.1 1.6 3.4 100.0 75.3 24.7 17.9 1.5 5.3 0.8 2.5 0.0 5.6 2.0 3.6 100.0 67.1 32.9 22.5 2.7 7.7 0.0 1.0 (0.2 6.5 2.4 6.8 100.0 49.7 50.3 23.0 7.0 20,2 1.3 1.9 0.0 19.7 7.1 12.6 15.6 0.4 1.6 (0.1) 14.4 5.6 3.9 4.5 1,9 2.9 6.2 8.5 EXHIBIT 1 Common-Sized Financial Data and Ratios (Continued) Market Data B D E F G H 1 J K L M N O P Beta Price/Earnings Price to Book Dividend Payout 0.65 22.29 5.93 38.21 0.85 22.32 3.08 46.28 0.55 16.85 13.99 33.16 0.60 19.73 2.56 0.00 1.20 30.48 17.46 0.00 1.05 41.85 5.13 0.00 1.70 27.32 nmf 0.00 0.51 21.63 2.36 0.00 1.15 30.97 1.91 101.46 1.10 33.78 1.80 86.16 1.00 13.64 4.65 15.30 1.00 23.01 1.85 70.62 0.85 18.97 4.23 21.56 1.10 24.19 3.64 14.85 0.85 20.54 2.07 37.53 0.90 13.29 3.09 30.81 Liquidity Current Ratio Quick Ratio 3.35 1.96 1.42 1.50 1.13 0.92 0.47 1.20 1.01 2.63 2.43 1.57 nmf 2.77 1.49 0.46 1.91 1.15 1.69 1.94 1.00 1.63 0.87 1.77 1.03 0.90 0.17 0.88 0.69 0.55 0.39 0.94 Asset Management Inventory Turnover Receivables Turnover Fixed Assets Turnover 3.08 7:06 4.67 0.93 5.47 2.86 12.60 21.87 1.72 7.44 18.68 12.67 67.96 12.23 30.68 74.78 8.28 12.03 13.56 nmf 29.42 2.42 72.11 6.54 6.75 8.68 1.43 7.11 11.64 1.86 3.89 5.82 7.63 3.59 4.42 7.50 7.69 192.73 4.50 5.86 8.31 2.77 33.35 10.98 3.43 43.48 8.50 2.59 Debt Management Total Debt Total Assets LT Debt/Shareholders' Equity Interest Coverage After Tax 5.34 8.06 27.34 14.99 51.19 10.66 310.28 32.57 6.25 0.00 2.18 0.00 7.79 nmf 191.19 0.00 0.00 93.00 56.94 nmt 6.49 7.42 21.01 9.52 42.78 171.21 1.56 18.36 45.32 2.98 25.21 77.03 8.62 14.45 18.29 4.55 26.16 47.92 8.86 29.54 69.34 4.92 15.22 23.04 7.83 26.81 33.66 6.69 DuPont Analysis Net Profit Margin Asset Turnover Return on Equity 17.97 0.93 26.75 21.58 0.44 16.64 15.00 0.97 83.97 5.76 2.23 15.95 6.18 2.31 46.92 3.33 1.11 5.44 8.50 2,56 nmf 2.53 1.43 10.58 1.87 0.73 5.79 1.96 1.20 5.71 8.17 1.11 28.30 3.39 1.09 7.36 3.59 2.54 20.79 4.02 1.47 14.47 12.65 0.48 9.86 8.86 0.85 20.89 EXHIBIT 1 | Common-Sized Financial Data and Ratios 1 Assets A B C D E F G H I 1 J K L M N 0 P 7.6 8.8 Cash & Short-Term Investments - Receivables Inventories Current Assets-Other Current Assels-Total Net Fixed Assets Assets-Otter Intangibles Investments & Advances Assots-Total Liabilities & Equity 24.2 12.8 7.0 7.2 51.2 19.6 6.9 22.2 0.1 100.0 16.1 B.1 5.4 2.5 32.1 14.9 3.8 46.1 3.1 133.0 1.4 4.3 4.3 1.3 11.2 54.7 7.2 7.4 2.9 100.0 55.6 11.9 11.7 2.4 81.7 16.0 1.0 1.3 0.0 100.0 42.2 19.0 2.0 9.5 72.8 7.3 1.3 0.0 18.6 100.0 67.9 13.0 1.3 5.5 87.6 8.8 2.4 ..2 0.0 100.0 54.9 nimni 14.9 8.6 78.2 7.6 9.3 4.4 0.0 100.0 16.2 2.3 38.6 2.6 59.7 24.4 4.9 11.1 0.0 100.0 7.9 3.0 27.2 50.8 5.4 14.6 0.0 100.0 5.9 10.9 14.4 1.4 32.6 62.5 3.1 1.9 0.C 100.0 9.3 18.9 17.8 7.0 52.9 3.6 - 1.8 21.4 0.0 100.0 6.5 23.7 14.9 6.9 52.1 13.7 8.9 22.3 3.0 100.0 1.6 1,4 24.5 1.5 32.0 57.0 2.0 9.0 0.0 100.0 7.0 17.0 16.7 2.5 43.1 52.2 4.0 0.6 0.6 4.6 0.B 0.7 6.8 14.1 0.1 76.B 0.7 100.3 1. 9.9 0.6 3.8 15.5 34.6 7.2 37.1 0.0 100.0 100.0 1.4 0.B 0.3 Accounts Payable Debt in Current Liabilities Income Taxos Payable Current Liabilties Other Current Liabilties-Total Li Debt Delerred Taxes Liabilities-Other Liabilities-Total Stockholders' Ecuity Total Liabilities & Equity 9.8 0.5 2.8 13.0 26.1 4.8 0.3 8.6 40.3 59.7 100.0 2.2 9.1 1.6 8.5 21.4 5.9 19.2 7.3 44.8 55.2 100.0 7.4 0.0 0.9 3.8 12.2 51.2 10.7 9.5 83,5 16.5 100.0 9.1 0.0 1.7 13.7 24.4 0.0 1.9 0.7 27.1 72.9 100.0 38.3 0.C 0.0 22.6 60.5 2.2 0.0 8.9 72.1 27.9 100.0 18.0 0.0 0.0 15.3 33.3 0.0 0.0 3.7 36.9 63.1 100.0 35.1 0.1 0.0 14.7 49.9 56.9 nim 0.2 107.0 (7.0) 100.0 22.6 0.0 0.0 17.6 40.2 7.4 5.9 11.0 64.7 35.3 100.0 6.7 1.5 0.0 6.1 14.2 41.3 5.0 10.9 75.9 24.1 100.0 85 0.0 1.2 7.1 16.7 18.3 120 12,4 59.5 40.5 100.0 8.4 3.5 0.9 19.5 32.4 21.7 3.1 -4.6 71.8 28.2 100.0 8.5 5.6 1.0 14.4 29.4 8.9 3.3 8.9 51.5 48.5 100.0 18.0 6.5 1.1 10.1 35.7 19.7 nimi 2.5 58.9 41.1 100.0 17.9 1.6 0.9 5.1 25.5 28.0 3.0 3.2 59.7 40.3 100.0 5.1 7.5 14.4 15.2 0.7 37,5 62.5 100.0 4.B 14.9 nm: 6.7 28.3 11.9 3.3 17.5 64.5 35.5 100.0 Income/Expenses 100.0 40.5 59.5 39.7 Sales-Net Cost of Goods Sold Gross Profit SG&A Expense Depreciation Earnings Before Interest & Taxes Nonoperating Income (Expense) Interest Income (Expense) Special Items- r.come (Expense) Pretax Income Income Taxes-Total Net Income (Loss) 100.0 23.9 76.1 44.5 4.5 27.2 0.7 (0.7) (0.0) 27.1 9.1 18.0 100.0 11.1 88.9 46.7 9.7 32.5 1.1 0.7 (6.3) 26.7 5.1 21.6 100.0 53.9 46.1 17.3 6.2 22.5 2.9 2.9 0.2 22.8 7.8 15.0 100.0 38.5 61.5 50.5 2.0 90 0.3 0.0 0.0 9.2 3.5 5.8 100.0 81.0 19.0 9.7 0.7 8.6 0.4 0.0 0.0 9.0 100.0 70.9 29.1 23.1 1.8 4.2 0.7 0.0 (0.3) ( 4.6 1.3 3.3 100.0 75.2 24.2 16.9 1.1 6.2 0.3 1,5 0.1 5.1 100.0 69.5 30.5 21,8 3.7 5.3 0.1 0.3 100.0 75.3 24.7 12.0 6.1 6.6 0.4 3.3 (0.8) 2.9 0.8 (0.1) ) 100.0 82.9 17.1 7.3 5.8 4.0 1.1 1.0 0.0 3.1 1,2 2.0 100.0 61.0 39.0 24.2 2.5 11.7 0.6 1.1 0.0 11.2 3.0 9.4 100.0 51.8 48.4 38.9 2.5 6.9 0.1 1.0 (1.0) () 5.1 1.6 3.4 100.0 75.3 24.7 17.9 1.5 5.3 0.8 2.5 0.0 5.6 2.0 3.6 100.0 67.1 32.9 22.5 2.7 7.7 0.0 1.0 (0.2 6.5 2.4 6.8 100.0 49.7 50.3 23.0 7.0 20,2 1.3 1.9 0.0 19.7 7.1 12.6 15.6 0.4 1.6 (0.1) 14.4 5.6 3.9 4.5 1,9 2.9 6.2 8.5 EXHIBIT 1 Common-Sized Financial Data and Ratios (Continued) Market Data B D E F G H 1 J K L M N O P Beta Price/Earnings Price to Book Dividend Payout 0.65 22.29 5.93 38.21 0.85 22.32 3.08 46.28 0.55 16.85 13.99 33.16 0.60 19.73 2.56 0.00 1.20 30.48 17.46 0.00 1.05 41.85 5.13 0.00 1.70 27.32 nmf 0.00 0.51 21.63 2.36 0.00 1.15 30.97 1.91 101.46 1.10 33.78 1.80 86.16 1.00 13.64 4.65 15.30 1.00 23.01 1.85 70.62 0.85 18.97 4.23 21.56 1.10 24.19 3.64 14.85 0.85 20.54 2.07 37.53 0.90 13.29 3.09 30.81 Liquidity Current Ratio Quick Ratio 3.35 1.96 1.42 1.50 1.13 0.92 0.47 1.20 1.01 2.63 2.43 1.57 nmf 2.77 1.49 0.46 1.91 1.15 1.69 1.94 1.00 1.63 0.87 1.77 1.03 0.90 0.17 0.88 0.69 0.55 0.39 0.94 Asset Management Inventory Turnover Receivables Turnover Fixed Assets Turnover 3.08 7:06 4.67 0.93 5.47 2.86 12.60 21.87 1.72 7.44 18.68 12.67 67.96 12.23 30.68 74.78 8.28 12.03 13.56 nmf 29.42 2.42 72.11 6.54 6.75 8.68 1.43 7.11 11.64 1.86 3.89 5.82 7.63 3.59 4.42 7.50 7.69 192.73 4.50 5.86 8.31 2.77 33.35 10.98 3.43 43.48 8.50 2.59 Debt Management Total Debt Total Assets LT Debt/Shareholders' Equity Interest Coverage After Tax 5.34 8.06 27.34 14.99 51.19 10.66 310.28 32.57 6.25 0.00 2.18 0.00 7.79 nmf 191.19 0.00 0.00 93.00 56.94 nmt 6.49 7.42 21.01 9.52 42.78 171.21 1.56 18.36 45.32 2.98 25.21 77.03 8.62 14.45 18.29 4.55 26.16 47.92 8.86 29.54 69.34 4.92 15.22 23.04 7.83 26.81 33.66 6.69 DuPont Analysis Net Profit Margin Asset Turnover Return on Equity 17.97 0.93 26.75 21.58 0.44 16.64 15.00 0.97 83.97 5.76 2.23 15.95 6.18 2.31 46.92 3.33 1.11 5.44 8.50 2,56 nmf 2.53 1.43 10.58 1.87 0.73 5.79 1.96 1.20 5.71 8.17 1.11 28.30 3.39 1.09 7.36 3.59 2.54 20.79 4.02 1.47 14.47 12.65 0.48 9.86 8.86 0.85 20.89
