FINANCIAL DETECTIVE CASE

Syndicate 4 –YP 60A

Aulia Akbar Akmal 29118429
Henni Rahman 29118380
Yoga Aditia Nugroho 29118441
FINANCIAL DETECTIVE

• 2 companies are not the same on financial statement

• Each industries, has a financial norm around which companies within the
industry operate.
• Same companies have different financial characteristics because of the varied of
strategies each company.
 HEALTH PRODUCTS (A & B)
Company A Company B
 Nationally mass-marketed a broad line of  Manufactured pharmaceuticals and a
name brand toiletries, non-prescription variety of low margin hospital supplies.
drugs and consumer and baby care
products, through 165 decentralized  The firm had recently acquired a large
subsidiaries. hospital supply company and therefore
had significant goodwill on its books.

Based on the financial data, COGS of company B is higher than company A which is 64% and 26,9% respectively. So in the statement from the case, we can say that
company B is the firm that recently acquired a large hospital supply company. In addition the R and D expenses of company A is higher than company B which is 7,7 and 3,2
respectively. From the statement, it says that a firm is nationally mass-marketed a broad line of name brand toiletries, non-prescription drugs, etc so it match with company
A as the products is wide and of course the expenses of R and D will be high too.
 HOUSEHOLD APPLIANCES (C & D)

Company C Company D
 Focused on marketing high quality  Company attempted to segment the
washers, dryers, dishwashers and market for the same products by selling
refrigerators under its own name under its own name and under three
other brand names
 Had a contract to sell one brand solely as
a private label item trough a large
department store chain

Based on financial data, company C is lower than company D in cash and equivalents. Because they focus on marketing. So most of their cash will go to marketing expenses.
Meanwhile company D has lower percentage in inventory. It suits with the statement that says the company attempted to segment the market for the same products by
selling under its own name and under three other names. Which means they only have on product so the inventory won’t as big as company C that has many products.
 COMPUTERS (E & F)
Company E Company F
 The other firm manufactured large main-  One had a highly focused product line :
frame computers & had an emerging supercomputer systems for scientific
position in the supercomputer segment; it applications. Most of these computers
also developed & marketed related software were used for physical research such as
& provided financial & insurance service as that related to weather, energy, &
well defence.
 Computer and software sales were  Although the output of these units was
responsible for about two-thirds of the relatively small, the price tag was the
company highest in the industry.

From exhibit 1, the R&D expenses has a significant differences between company E & F. Company F has 15,4% while company E is in Nav. It suits with the statement
that one had highly focused product line for scientific applications. Also the statement that said price tag was the highest in industry is in match with the net income from
company F is higher than company E. in addition the data of equity also in match with the statement above.
RETAILING (G & H)

Company G Company H
 One company was a large, national chain of  The other firm was a rapidly growing
department stores that sold largely on credit chain of discount department stored a
everything from automotive equipment and wholesale clubs that owned a large
services to clothing and household items, trough
its (primarily) leased properties. portion of its outlets. As a discounter, it
provided little or no credit to customers.
 Marketed the product trough a catalogue and
provided a variety of financial services.
 Merchandise sales were responsible for about
60% of revenue and insurance sales for about
32%

Based on the statement, one firm is still a growing company. So it means that the firm still has a big liabilities. Also they provided little or no credit to customers
that means they prefer cash. Both of the information suit with the data that company H have which is high in liability and cash. Meanwhile another firm was a
large, national chain of department stores. If we look on the net property, plant, and equipment from exhibit 1 it supports the statement that company G has higher
percentage whish is 41,8%.
ELECTRONICS (I & J)

Company I Company J
 One specialized in their manufacture  The other firm was financially
and also produced small desk-top and conservative.
hand-held computing equipment.  It specialized in radio and television
About half its electronic components equipment and made semiconductors
were sold to the defense industry. as a secondary, but increasingly
important, line of business (over 30 % of
revenues)

As the statement said that one firm was financially conservative, it means that the company has a plan for what they would do with their money. So they can
make their expenses is low as in the beginning they have planned everything. It fits with the financial data of company J that their interest expense and other
expense is below company I. Also from the COGS data, as company J has a wide range of products, the value of COGS is greater than company I.
HOTELS (K &L)

Company K Company L
 Operated a worldwide chain of high-  Owned one of the largest food-
quality hotels and motels in addition service contractors in the country, a
to a smaller line of casinos. large chain of family restaurants, and
a large-chain of fast-foods
restaurants.
From exhibit 1, COGS from company K is below company L. Because company K only provide services while company L provides a product such as food and beverages. If we look at
long-term debt/equity, company L has a greater value as it manages 3 business. The long-term debt/equity is high in order to keep the business run and develop. In addition the
inventory of company L and K has a significant difference. While company K has nav in inventory and company L has 3,5%. As company L has a business in food area, then surely they
have inventory. in terms of equity, as company K is a high quality hotels, they have a bigger value in equity than company L which is 54,3% and 15,1% respectively.
NEWSPAPER (M & N)

Company M Company N
 Owned a umber of small newspapers  One had a large flagship newspaper
throughout Mid-West. Broadcasting that was sold around the country and
was its secondary line of business. around the world.
 This company had a significant  This company was centered largely
amount of goodwill stemming from around one product.
acquisition.
Net property, plant, and equipment for company N is larger than company M. So we can concluded that company M has a large flagship newspaper. In addition it
has a larger inventory too. Meanwhile for company M, it has a greater amount of other assets which is 61,7% and only 25,2% for company N. it fits with the
statement that the company had a significant amount of goodwill.
TRANSPORTATION (O & P)

Company O Company P
 One was a large, national trucking  The other was primarily a railroad,
and freight forwarding company. although 20 percent of its revenues
were derived from real estate and
exploitation of natural resources.
The COGS of company P is larger than company O as its has a product that they will sell . Meanwhile for company O, the COGS is nav as they only provide
services as their product. In addition, other expense (income) for company P is greater than company O. Because company P has many business such as real
estate, exploitation, and railroad. Whereas company O just a service company that doesn’t produce or issue any product.
THANK YOU