Financial Analysis and Performance Evaluation: Company Report

This report provides a detailed financial analysis of several companies, focusing on key financial metrics and ratios. The analysis includes a classification of companies into primary, secondary, and tertiary sectors, with a specific emphasis on the secondary sector. Key financial indicators such as gross profit, asset turnover ratio, and days inventory are calculated and analyzed for each company. The report also includes a comparison of the financial performance of different companies within the same sector, offering insights into their operational efficiency and financial health. This report is designed to provide a comprehensive understanding of the financial performance of the selected companies, using the provided data to assess their strengths and weaknesses. Desklib provides a comprehensive platform for students to access past papers, solved assignments and other resources for academic success.

INTRODUCTION
First of all these 10 companies will be classified into primary, secondary, and tertiary activities.
Primary Secondary Tertiary
Integrated oil and gas Commercial airline
Liquor producer and distributor Commercial banking
Pharmaceutical preparations Computer software
Retail grocery stores IT service provider
Semiconductor manufacturer Mobile phone service provider
In the above table, there is equal distribution of 10 companies among secondary and
tertiary industries. One of the main features of tertiary industry is, it doesn’t contain any cost of
goods sold. Hence, after matching exhibit 2; it was found that each and every company has cost
of goods sold. This indicates that industries in exhibit 2, 3 and 4 are associated with secondary
sector only, which is manufacturing sector. Therefore, all the companies’ lies under tertiary
sector will be eliminated, and only secondary activities companies will be further considered.
Integrated oil and gas:
Commercial airline:
 Gross profit = 0.89
 High asset turnover ratio = 0.07
 Days inventory = DIV/0
Liquor producer and distributor:
 Gross profit = 0.63
 High asset turnover ratio = 0.78
 Days inventory = 260.56
Commercial banking
 Gross profit = 0.50
 High asset turnover ratio = 1.63
 Days inventory = 21.55
Pharmaceutical preparations
 Gross profit = 0.47
 High asset turnover ratio = 1.01
 Days inventory = DIV/0
Computer software
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 Gross profit = 0.56
 High asset turnover ratio = 0.75
 Days inventory = 76.73
Retail grocery stores
 Gross profit = 0.77
 High asset turnover ratio = 0.62
 Days inventory = 230.14
IT service provider
 Gross profit = 0.83
 High asset turnover ratio = 0.53
 Days inventory = 40.77
Semiconductor manufacturer
 Gross profit = 0.32
 High asset turnover ratio = 0.59
 Days inventory = 10.79
Mobile phone service provider
 Gross profit = 0.42
 High asset turnover ratio = 0.21
 Days inventory = 8.37
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