You have been given descriptions for six companies. You have also been given financial ratios and common sized financial statements for the same companies. However, the companies have not been identified.
Your assignment is to match the company number with the company letter / description and provide at least three reasons explaining your decision. Support the reasons by referencing specific numbers / ratios / analyses from the individual companies.
Please select from the following company descriptions:
- Company A Wireless Technology Company
- Company B Manufacturer of Consumer Foods
- Company C Retail grocery Store
- Company D Restaurant Owner and Operator
- Company E Drug Manufacturer
- Company F Healthcare Services Company
Deliverable: Provide the following information in word or excel.
| COMPANY NUMBER | COMPANY LETTER / DESCRIPTION | RATIONALE MATCHING FINANCIAL RESULTS WITH COMPANY NAME |
| 1 | | |
| 2 | | |
| 3 | | |
| 4 | | |
| 5 | | |
| 6 | | |
Company A - Wireless Technology Company
Company A is a wireless technology company. The Company is engaged in the development, launch and expansion of technologies like fifth generation (5G). Its offered technologies, including licensed technologies, and products are used in mobile devices and other wireless products, including network equipment, broadband gateway equipment, consumer electronic devices and other connected devices. Its technologies and products are also used in industry segments and applications beyond mobile, including automotive, computing, Internet of Things (IoT) and networking. The Company delivers large orders to a relatively small number of customers. The Company has also been acquisitive.
Company B - Manufacturer of Consumer Foods
Company B is a manufacturer and marketer of branded consumer foods and pet food products sold through retail stores. The Company is a supplier of branded and unbranded consumer food products to the North American foodservice and commercial baking industries. The Company has four segments: U.S. Retail, International, Pet operating, and Convenience Stores and Foodservice. The Company has also been acquisitive.
Company C - Retail Grocery Store
Company C is engaged principally in the retail sale of food in the East Coast. The Company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products. It operates approximately 204 retail food stores. The company owns about one half of its store properties; the other half are leased.
Company D - Restaurant Owner and Operator
Company D together with its subsidiaries, operates specialty ethnic cuisine restaurants located in strip malls. The Company operates 2,198 restaurants throughout the United States, as well as 29 international restaurants, and it also has 23 restaurants in operation in other concepts. The Company sells gift cards, which do not have an expiration date.
Company E - Drug Manufacturer
Company E is a drug manufacturing company. The Company discovers, develops, manufactures, and markets products in a human pharmaceutical product segment. The Company manufactures and distributes its products through facilities in the United States, Puerto Rico, and 8 other countries. Its products are sold in approximately 120 countries. The Company has also been acquisitive.
Company F - Healthcare Services Company
Company F is a multi-national healthcare company. The Company provides services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. It also provides education and outreach programs to inform and assist members in accessing appropriate healthcare services. It operates through two segments: Managed Care and Specialty Services. It provides a range of healthcare products and services, primarily through Medicaid, Medicare, and commercial products. The Company has also been acquisitive.
Company Ratios Financial Ratios Current Ratio Quick Ratio Company 1 1.804 0.945 Company 2 1.399 0.85 Company 3 1.084 1.023 Company 4 0.696 0.38 Company 5 2.135 1.755 Company 6 1.727 1.286 Total Debt Ratio Debt to Equity Ratio Times Interest Earned 0.371 0.59 0.875 7.006 16.831 0.623 1.655 4.234 0.693 2.258 7.295 0.829 4.857 10.39 0.662 1.962 Average Collection Period Days COGS in Inventory 5.058 32.598 103.06 264.946 31.85 0 33.002 56.911 62.092 102.46 6.404 1.831 3.778 Fixed Asset Turnover Total Asset Turnover 4.451 2.26 2.827 0.526 40.056 1.617 5.026 0.569 6.341 0.661 Return on Assets Return on Equity 6.5% 10.4% 13.3% 106.3% 2.6% 7.0% 7.3% 23.9% 14.6% 85.5% 6.0% 17.6% Company Ratios Common Sized Balance Sheet Cash & Equivalents Accounts Receivable Inventory Prepaid Expenses & Other Current Assets Total Current Assets Company 1 14.9% 3.1% 14.8% 1.6% 34.4% Company 2 7.9% 14.9% 8.5% 6.2% 37.4% Company 3 18.0% 14.1% 0.0% 1.9% 34.0% Company 4 4.7 % 5.1 % 5.7% 2.5% 18.1% Company 5 31.5% 11.2% 7.3% 2.0% 52.0% Company 6 15.9% 1.8% 0.4% 5.6% 23.7% Property & Equipment, net Lease Assets Goodwill & Intangible Assets Other Assets Total Assets 50.8% 11.0% 3.8% 0.0% 100.0% 18.6% 0.0% 24.1% 19.9% 100.0% 4.0% 0.0% 39.3% 22.6% 100.0% 11.3% 0.0% 66.6% 4.0% 100.0% 10.4% 0.0% 22.4% 15.1 % 100.0% 26.5% 46.2% 1.0% 2.6% 100.0% Accounts Payable & Accrued Expenses Deferred Revenue Short-Term Debt Other Current Liabilities Total Current Liabilities 14.9% 0.6% 0.0% 3.5% 19.1% 5.6% 0.0% 0.0% 21.2% 26.8% 28.4% 0.8% 0.1% 2.1% 31.4% 11.5% 0.0% 8.9% 5.6% 26.0% 9.3% 1.6% 1.4% 12.1% 24.4% 8.2% 2.1% 0.0% 3.4% 13.7% Long-Term Debt Other Liabilities Total Liabilities 0.0% 18.0% 37.1% 35.6% 25.2% 87.5% 24.3% 6.6% 62.3% 30.7% 12.6% 69.3% 42.8% 15.8% 82.9% 0.0% 52.5% 66.2% Common Stock & Additional Paid in Capital Treasury Stock Retained Earnings & Other Total Stockholders' Equity 0.5% -8.3% 70.7% 62.9% 15.8% -0.1% -3.2% 12.5% 28.3% -1.2% 10.5% 37.7% 4.5% -20.8% 46.9% 30.7% 1.6% 0.0% 15.4% 17.1% 25.9% -46.8% 54.7% 33.8% Total Liabilities & Stockholders' Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Company Ratios Common Sized Income Statement Revenue Cost of Revenue Gross Profit Company 1 100.0% 73.2% 26.8% Company 2 100.0% 22.3% 77.7% Company 3 100.0% 87.6% 12.4% Company 4 100.0% 64.4% 35.6% Company 5 100.0% 39.3% 60.7% Company 6 100.0% 86.6% 13.4% Research & Development Sales, General & Administrative Restructuring & Other Total Operating Expenses 0.0% 22.8% 0.0% 22.8% 27.5% 24.9% 0.5% 53.0% 0.0% 8.9% 0.7% 9.6% 0.0% 17.0% 1.2% 18.2% 25.4% 8.8% -0.1% 34.1% 0.0% 7.8% 0.8% 8.6% Operating Income /(Loss) 4.0% 24.7% 2.8% 17.3% 26.6% 4.8% Interest (Expense) Interest & Other Income 0.0% 0.0% -1.5% 6.2% -0.7% 0.4% -2.4% 0.8% -2.6% 0.3% 0.0% 0.1% Profit Before Taxes Income Taxes Net Income - Continuing Operations 4.0% 1.1% 2.9% 29.5% 4.2% 25.2% 2.5% 0.9% 1.6% 15.8% 2.9% 12.9% 24.3% 2.2% 22.1% 4.9% -1.0% 5.9% Company Ratios Financial Ratios Current Ratio Quick Ratio Company 1 1.804 0.945 Company 2 1.399 0.85 Company 3 1.084 1.023 Company 4 0.696 0.38 Company 5 2.135 1.755 Company 6 1.727 1.286 Total Debt Ratio Debt to Equity Ratio Times Interest Earned 0.371 0.59 0.875 7.006 16.831 0.623 1.655 4.234 0.693 2.258 7.295 0.829 4.857 10.39 0.662 1.962 Average Collection Period Days COGS in Inventory 5.058 32.598 103.06 264.946 31.85 0 33.002 56.911 62.092 102.46 6.404 1.831 3.778 Fixed Asset Turnover Total Asset Turnover 4.451 2.26 2.827 0.526 40.056 1.617 5.026 0.569 6.341 0.661 Return on Assets Return on Equity 6.5% 10.4% 13.3% 106.3% 2.6% 7.0% 7.3% 23.9% 14.6% 85.5% 6.0% 17.6% Company Ratios Common Sized Balance Sheet Cash & Equivalents Accounts Receivable Inventory Prepaid Expenses & Other Current Assets Total Current Assets Company 1 14.9% 3.1% 14.8% 1.6% 34.4% Company 2 7.9% 14.9% 8.5% 6.2% 37.4% Company 3 18.0% 14.1% 0.0% 1.9% 34.0% Company 4 4.7 % 5.1 % 5.7% 2.5% 18.1% Company 5 31.5% 11.2% 7.3% 2.0% 52.0% Company 6 15.9% 1.8% 0.4% 5.6% 23.7% Property & Equipment, net Lease Assets Goodwill & Intangible Assets Other Assets Total Assets 50.8% 11.0% 3.8% 0.0% 100.0% 18.6% 0.0% 24.1% 19.9% 100.0% 4.0% 0.0% 39.3% 22.6% 100.0% 11.3% 0.0% 66.6% 4.0% 100.0% 10.4% 0.0% 22.4% 15.1 % 100.0% 26.5% 46.2% 1.0% 2.6% 100.0% Accounts Payable & Accrued Expenses Deferred Revenue Short-Term Debt Other Current Liabilities Total Current Liabilities 14.9% 0.6% 0.0% 3.5% 19.1% 5.6% 0.0% 0.0% 21.2% 26.8% 28.4% 0.8% 0.1% 2.1% 31.4% 11.5% 0.0% 8.9% 5.6% 26.0% 9.3% 1.6% 1.4% 12.1% 24.4% 8.2% 2.1% 0.0% 3.4% 13.7% Long-Term Debt Other Liabilities Total Liabilities 0.0% 18.0% 37.1% 35.6% 25.2% 87.5% 24.3% 6.6% 62.3% 30.7% 12.6% 69.3% 42.8% 15.8% 82.9% 0.0% 52.5% 66.2% Common Stock & Additional Paid in Capital Treasury Stock Retained Earnings & Other Total Stockholders' Equity 0.5% -8.3% 70.7% 62.9% 15.8% -0.1% -3.2% 12.5% 28.3% -1.2% 10.5% 37.7% 4.5% -20.8% 46.9% 30.7% 1.6% 0.0% 15.4% 17.1% 25.9% -46.8% 54.7% 33.8% Total Liabilities & Stockholders' Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Company Ratios Common Sized Income Statement Revenue Cost of Revenue Gross Profit Company 1 100.0% 73.2% 26.8% Company 2 100.0% 22.3% 77.7% Company 3 100.0% 87.6% 12.4% Company 4 100.0% 64.4% 35.6% Company 5 100.0% 39.3% 60.7% Company 6 100.0% 86.6% 13.4% Research & Development Sales, General & Administrative Restructuring & Other Total Operating Expenses 0.0% 22.8% 0.0% 22.8% 27.5% 24.9% 0.5% 53.0% 0.0% 8.9% 0.7% 9.6% 0.0% 17.0% 1.2% 18.2% 25.4% 8.8% -0.1% 34.1% 0.0% 7.8% 0.8% 8.6% Operating Income /(Loss) 4.0% 24.7% 2.8% 17.3% 26.6% 4.8% Interest (Expense) Interest & Other Income 0.0% 0.0% -1.5% 6.2% -0.7% 0.4% -2.4% 0.8% -2.6% 0.3% 0.0% 0.1% Profit Before Taxes Income Taxes Net Income - Continuing Operations 4.0% 1.1% 2.9% 29.5% 4.2% 25.2% 2.5% 0.9% 1.6% 15.8% 2.9% 12.9% 24.3% 2.2% 22.1% 4.9% -1.0% 5.9%
