Industrial Grinders N.V.

Industrial grinders N.V.

I found four of industries have zero inventory(E, G, M, N) which means they just provide services to customers instead of selling goods. These industries are advertising agency, airline, commercial bank, health maintenance organization.

We can see from M that plant&equipment stand for a large percentage, is 66%. It would be airline because it has a lot of airplanes.

N , the percentage of account receivable is 90% in current assets and the receivables collection period is 4071 days. It is really a long time. N should be commercial bank, because many people borrow money from it and return money in several years.

Distinguishing E from G, there are a big difference in receivables collection period, is 201 days and 89 days, respectively. I suppose advertising agency needs to spend a long time to do an advertisement, so its receivable collection period will take a longer time, so E is advertising agency. G is health maintenance organization, because G has a high percentage of accounts receivable and most people pay their medical bills with account instead of cash in health maintenance organization.

I divide the rest of ten industries in two groups by the percentage of inventory. The industries in the first group are C, D, F, H, L, which have low inventories. The second group includes A, B, I, J, K, which has higher inventories. I will analysis the rest industries one by one.

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Bookstore chain. Books are easy to store, so they should have a higher percentage of inventory. Bookstore chain would be in the second group. It is a retail shop, so it has a high plant&equipment percentage. The inventory turnover would be low because only a few people buy books in the bookstore nowadays. B is bookstore chain.

Computer software developer is a high speed updating industry, so it has a low percentage of inventory, it should be in the firt group. The company develop software just in computers, so the percentage of plant&equipment will be...