Finan Analysis

Analysis of Financial Data:

A.Health Products

Company A

is the manufacturer of a broad line of name-brand toiletries, non-prescription drugs and consumerand baby-care products primarily because of a largermarket, which comprises of 165 decentralizedsubsidiaries; there is a presence of a higher grossmargin which accounts for 63.1% of the total revenue.

Company B

is the manufacturer of pharmaceuticals and avariety of low-margin hospital supplies which weremarketed primarily through direct sales to doctors andhospitals because of the presence of a lower grossmargin of 36.0%. In addition, its “other assets”comprise a large percentage of its total assets(40.6%) , which can attributed to the goodwillstemming from acquiring a large hospital supplycompany.

B.Household Appliances

Company C

is the marketer of high quality washers,dryers, dishwashers and refrigerators under its ownname, primarily because of a presence of lower cost ofgoods sold (72.8%) which infers that manufacturing andselling under one brand name entails a lower cost. Inaddition, its sales to assets ratio is much higher(223.0%) which says that they are much concentrated inutilizing their assets to generate more sales.

Company D

is the marketer of the same products, butunder 3 different brand names. The presence of ahigher cost of goods sold (79.3%) infer thatmanufacturing and selling under different brand nameswould require higher cost.

C.Computers

Company E

is the manufacturer of large mainframecomputers which also provides financial and insuranceservices. Receivables comprise 18.7 percent of totalassets which is significant in financing type ofbusiness. In addition, when a company offers financialservices, it generates other income in the form of

10

interest, which can be seen in their income statement(2.7%).

Company F

is the manufacturer of supercomputer systemsfor scientific applications. Its output may be small,but its price tag is the highest in the industry,which is why they...