Case Study

ABMF 5345 Case Study

Group Member : Hor Mun Fai (09WBA10240)

Kuek Chia Chyi (09WBA09231)

Lim Chun Hui (09WBA09230)

Tan Tee Kiat (09WBA09849)

Tan Wei Ting (09WBA09234)

Tutorial Class : 2 AFI1

Tutor : Mr. Samuel Lim

TABLE OF CONTENTS

Item Page

Part A. Analyze and examine the financial ratio 2 - 12

I. Healthcare Product Industry

II. Beer Industry

III. Computers Industry

IV. Books and Music Industry

V. Paper Industry

VI. Hardware and Tools Industry

VII. Retailing Industry

VIII. Newspaper Industry

Part B. Explain the differences in financial results across industries 13 – 16

Conclusion 17

Bibliography 18

Part A: Analyze and examine the financial ratio

I. Healthcare Product Industry

We found that the first company described refers to company B. This is because Company B has intangibles doubled to the amount of Company A’s intangibles. This exactly matches with the characteristic of the first company which is the world’s largest prescription-pharmaceutical company. Next, Company B has lower fixed assets even though it is the largest pharmaceutical company is due to the company has divested several of its non-pharmaceutical businesses in recent years. In addition, the company B incurred high cost in SG & A expenses driven by its huge amount invested in robust research and development budget. Upon the analysis, we propose that the Company B denoted to Pfizer Inc.

Pfizer Inc. has incurred significantly larger amount of deferred tax liability compared to company A. This is mainly due to their aggressive acquisition of Pharmacia. Besides that, Pfizer Inc. matches with the description that it has come to seen...