Comparison FactorCDGoodwill & Intangibles70.0%1.0%LT Debt32.0%0.0%COGS39.0%48.0%Minority Int. in Earnings4.0%0.0%Dividend Payout88.2%0.0%Total Debt/Total Assets66.0%28.5%Debt/Shareholders' Equity95.2%0.1%Property, Plant, and Equipment14.0%64.0%Upon looking at financials for these breweries I was able to determine that company C is the national mass-market brewer. It is quite obvious due to the massive number of goodwill & intangibles that they have compared to company D.This tells me that Cis the company that has acquired several other large brewers around the globe. The dividend payout difference is also a big indicator in this case along with COGS. Company Dhas a higher COGS because they are
producing higher quality/higher cost beers that are driving up their costs. The rest of company D’s financials also point towards them taking a more financially conservative approach to their business.ComputersThe third industry that we are asked to compare is two computer sellers. The first company sells “supercomputers” to government agencies, universities, and commercial businesses. They are rapidly growing and are financially conservative. The second company sells personal computers, handheld devices, and software. They have created their own OS and new innovative designs. They sell their products across the globe and at a premium price. This company is able to save on costs by owning their own chip manufacturers and retail stores. Comparison FactorEFR&D3.0%13.0%Dividend Payout21.8%0.0%Cash & ST Investments14.0%41.0%Quick Ratio0.9%2.5%LT Marketable Securities56.0%0.0%Inventory1.0%16.0%Net Income23.0%4.0%Net Profit Margin22.8%3.8%COGS60.0%69.0%I determined that company E is the personal computer and handheld device company. Since they are so different and innovative, they are capable of charging premium prices, thus increasing their profit margin. I would compare this company to Apple because of the innovationand differentiation of their products. This leaves company Fto be the “supercomputer” company. They spend much more money on R&D because of their high-performance and complex products. They also don’t have
a consumer customer base, just government agencies, universities, and commercial businesses. Causing their profit margins to be much lower. HospitalityNext is the hospitality industry. The first company manages and franchises hotels and residential complexes. Their monthly revenue is from the contracts that they have with hotel owners. Their growth is inorganic, and they frequently buy the rights to other hotel chains. They also bought back a large percentage of their own common stock.
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- Spring '19