Financial detective

Багийн гишүүд: З. Балжинням Э. Номинзул Г. Анударь

Airlines:
If you compare companies A & B , you will notice that in terms of
1) Liquidity : Company B is better than A because it has better quick ratio and
current ratio as compared to company A which means that it has sufficient resources
to take care of any short term obligation
2) Asset management: Company B is better than company A in managing its assets
as it has higher inventory and receivable turnover ratio which means that it is able to
turn around its inventory into finished goods and its receivables into cash quicker
than Company A.
3) Debt management: Company B is better than company A as it has lower debt /
total asset ratio and lower long term debt/ shareholder equity.
Above factors show us how the companies in the same industry can have different
financial metrics. From the description, it has been mentioned that company owned
fuel company to provide its jet fuel. Therefore, it was merged with one of the largest
carriers in the United states. These led company A tend to have its liquidity lower.
Company B has much more stuffs to buy accidentally such as fuels, aircrafts and
route permission. When we consider asset management, A is a major airline
company that flies domestically and internationally also provide services like travel
packages and airplane repair. This tells A diversified its income sources. In airline
industry, inventory is city and country pairs, available seats also distribution of
channels where company sale its flight seats. On debt management, A has a huge
scope of operation so they have to collect capital using debt or equity, but either way
they need to get financed.
Beers:
If you compare companies C & D, you will notice that in terms of
1) Liquidity : Company D is better than C because it has better current ratio
2) Asset management: Company D is better than company C in managing its assets
as it has higher inventory and receivable turnover ratio which means that it is able to
turn around its inventory into finished goods and its receivables into cash quicker
than Company C. Inventory, receivable and fixed assets turnover all asset
management ratios were outnumbered by company D.
3) Debt management: Company D is better than company C as it has lower debt /
total asset ratio and lower long term debt/ shareholder equity.
If we consider liquidity ratios, company C is the brewer and mass-market consumer
beer manufacturing company. Moreover company D is craft beer manufacturer but
production is at a lower volume and beers carry premium prices. And it was written
that D is financially conservative. Company D needs to watch every single financial
decisions to make. So this condition forces company D to keep its liquidity higher.
On asset management, company D has less volume, which leads to have lower
inventory. In the other hand they might have high cost of goods. Moreover, debt
management, as I mentioned company D has less volume that they need to get
financed less than company C.
Computers:
If you compare companies E & F, you will notice that in terms of
1) Liquidity: Company F is better than E because it has better current ratio
2) Asset management: Company E is better than company F in managing its assets
as it has higher inventory and receivable turnover ratio which means that it is able to
turn around its inventory into finished goods and its receivables into cash quicker
than Company F. Inventory, receivable and fixed assets turnover all asset
management ratios were outnumbered by company E.
3) Debt management: Company F is better than company E as it has lower debt /
total asset ratio and lower long term debt/ shareholder equity.
When we talk about liquidity ratios, company F sells personal and handheld
computers. Not all of americans can afford supercomputers, eventhough they do not
need these high performance computers. So customer base is definitely huge for
company F. They owned chip company which is essential for electronic devices also
bought retail stores. On the other hand, company E has different story. They sell
high performance, powerful computers to some group of segments which include
obviously less consumers compared to mass people.
Hospitality
Companies G and H are both in the hospitality business.
Company G owns and operates several chains of upscale, full service hotels and
resorts. The firm’s strategy is to maintain market presence by owning all of its
properties, which contributes to the high recognition of its industry leading brands.
● The stockholder’s equity is 53% of the total liability which shows that company G
owns most of its hotel properties.
● P/E ratio at 59.8 which indicates investors confidence in the company's future
results.
● Current ratio at 1.02 which is relatively better than other company. Current ratio
indicates the extent to which current liabilities are covered by those assets expected
to be converted to cash in the near future.
● Inventory turnover ratio at 109.7. High levels of inventory which leads to lower
stock prices.
● Total debt/Total assets ratio at 47.4% which means 47.4% debt a company carries
compared to the value of the assets it owns.
Company H operates hotels and residential complexes. Rather than owning the
hotels, this firm chooses to manage or franchise its hotels. The company receives its
revenues each month based on long-term contracts with the hotel owners, who pay
a percentage of the hotel revenues as a management fee or franchise fee.
● Goodwill and Intangibles at 39% of the assets shows company H operates as a
hotel franchise, recognizing the importance of its brand name as both goodwill and
intangible assets.
● Long- term debt at 63% primarily because it does not fully own its properties.
● The company's stockholders' equity is at a negative 59%, signaling that the
liabilities surpass the assets and the company is converting its intangible assets into
cash. Furthermore, company H has been actively repurchasing a large portion of its
own common stock.
● Higher SG&A expenses are a result of advertising costs of franchisees. SG&A
expenses at 23%.
● Debt ratio at 159%. It's the result of long-term debt. This may lead to creditors may
be reluctant to lend the firm more money because a high debt ratio is associated
with a greater risk of bankruptcy.
Newspapers
Companies I and J are newspaper companies.
Company I was founded in 1851, the other company is renowned for its highly
circulated newspaper offered both in print and online formats. This paper is sold and
distributed domestically as well as around the world. Because the company is
focused largely on one product, it has strong central controls that have allowed it to
remain profitable despite the fierce competition for subscribers and advertising
revenues.
● This company has managed to maintain profitability, as evidenced by its positive
net profit margin of 4%. ● SG&A expenses at 45%. Because this newspaper is
available for purchase and distribution both within the country and internationally.
● Dividend payout rate at 41.8%. Due to its positive earnings, the company I have
been able to pay dividends.
● Current ratio at 1.53. Which indicates that the company has $1.53 of current
assets for every $1 of current liabilities.
● Debt ratio at 65.7%. Due to its ability to generate positive net income, the
company is more likely to receive loans from debtors.
Company J owns and operates two newspapers in the southwestern United States.
Due to the transition of customer preference from print to digital, the company has
begun offering marketing and digital-advertising services and acquiring firms in more
profitable industries. The company has introduced cost controls to address cost-
structure issues such as personnel expenses.
● Goodwill and Intangibles at 19%. The company has begun offering marketing and
digital-advertising services and acquiring firms in more profitable industries.
● Higher COGS at -101%. This is the reason why this company has introduced cost
controls.
● Dividend payout rate -39.4%.Due to the company's negative net profit margin, its
dividend payout ratio is also negative.
● Net profit margin at -6.6%. In general the company is not making any profit.
● SG&A expenses at 0%. Because they are implementing measures to control
costs.
Pharmaceuticals
Companies K and L manufacture and market pharmaceuticals.
Company L is a diversified company that sells both human pharmaceuticals as well
as health products for animals. This company’s strategy is to stay ahead of the
competition by investing in the discovery and development of new and innovative
drugs.
● Research and development expenses at 24%. Because they are investing in new
and innovative drugs.
● Net property, plant and equipment at 23%. This is relatively higher than other
company. As a result of the need to manufacture two distinct items, namely human
pharmaceuticals and animal health products.
● Interest coverage rate at 23.2%. A higher interest coverage ratio means that a
company is earning sufficient money in order to pay off the interest due on long term
loans, which indicates that there is a very less chance of a financial default.
 ● Higher Net profit margin at 12.1%. It is good because this company is operating
profitably.
Company K focuses on generic pharmaceuticals and medical devices. Most of this
company’s growth has been inorganic - the growth strategy has been to engage in
highly leveraged acquisitions, and it has participated in more than 100 during the
past eight years. The goal of acquiring new businesses is to enhance the value of
the proven drugs in the company’s portfolio rather than gamble on discoveries of
new drugs for the future.
● Goodwill and Intangibles at 85%. To engage in highly leveraged acquisitions, and it
has participated in more than 100 during the past eight years.
● Long-term debt 62%. Due to funding their purchases.
● Net profit margin at -2.8%. They are not making any profit.
Power
Liquidity - N компанийн хөрвөх чадварын харьцаа нь М компаниас харьцангуй
их байна. Энэ нь N компани уламжлалт буюу нүүрсээр ажилдаг томоохон
цахилгаан станц бөгөөд засгийн газартай хамтарч ажилладаг, томоохон зах
зээлтэй/олон хэрэглэгчтэй тул эргэлтийн хөрөнгө их байгаа нь хөрвөх чадварыг
нэмэгдүүлдж байна.
Asset management - Бараа материалын эргэцийн хувьд N компани М
компаниас 3.8 дахин их байгаа нь нарны эрчим хүчинд суурилсан учраас
борлуулсан бүтээгдэхүүний өртөг өндөр, бараа материал бага байгаатай
холбоотой. N компаний авлагын эргэц М-с өндөр байгаа нь зээлээр худалдан
авсан харилцагчдаас мөнгөө хурдан цуглуулж байгааг илэрхийлж байна. Үндсэн
хөрөнгийн эргэц нь М-ээс өндөр байгаа нь үндсэн хөрөнгөө илүү үр ашигтай
ашиглаж байгааг илэрхийлнэ.
Debt management – М компани нь N компаниас бага өрийн дарамттай, өрийн
удирдлагын илүү сайтай байна.
Нийт өр/Нийт хөрөнгө: Бага харьцаа нь компанийн өрийн санхүүжилтийн эзлэх
хувь бага байгааг илтгэнэ. Харин N компани өрийн санхүүжилтээс илүү
хамааралтай болохыг харуулж байна.
Урт хугацаат өр/Эзний өмч: Бага харьцаа нь хувьцаа эзэмшигчдийн компанид
оруулсан хөрөнгө оруулалттай харьцуулахад бага хэмжээний өртэй болохыг
харуулж байна. М компани илүү консерватив хөрөнгийн бүтэцтэй гэж үзэж болно.
Хүү төлөх чадварын харьцаа: уг харьцаа өндөр байх нь хүүгийн төлбөрийг чадвар
сайтайг илэрхийлнэ. М компанийн харьцаа 74.1 байгаа нь N компанийн 1.9
харьцаатай харьцуулахад нэлээд өндөр байна. Энэ нь М компани хүүгийн зардлаа
төлөх бүрэм чадамжтайг нотолж байна.
 Dupont analysis
Цэвэр ашгийн хэмжээ:
Компани М: 2.0% - Орлогын доллар бүрийн багахан хэсэг нь цэвэр ашиг болж
хувирдаг болохыг харуулж байна.
Компани N: 15.3% - N нь орлогыг ашиг болгон хувиргахад илүү үр дүнтэй болохыг
харуулж байна.
Хөрөнгийн эргэц:
М компани өөрийн эзэмшдэг 1 долларын хөрөнгө тутамд 0.40 долларын орлого
олдог ба энэ нь нарны хавтанг үйлдвэрлэхтэй холбоотой өндөр өртөгтэй холбоотой
байж болно. N нь M-тэй харьцуулахад нэг доллараас 0.50 доллох буюу арай илүү
орлого олдог болохыг харуулж байна. Энэ нь N-ийн хөрөнгө нь цахилгаан станцууд
учраас нарны зайнаас илүү тасралтгүй орлого олох боломжтой байж болох юм.
Өөрийн хөрөнгийн өгөөж (ROE) :
Цэвэр ашгийн хэмжээ бага ч M нь харьцангуй өндөр ROE-тэй байна. Энэ нь өөрийн
үйл ажиллагаагаа санхүүжүүлэхийн тулд ихээхэн хэмжээний өрийг ашиглаж
байгааг илэрхийлж байна. N нь цэвэр ашгийн хэмжээ хамаагүй өндөр байсан ч M-
ээс бага ROE-тэй. N нь өрийн санхүүжилтэд бага найддаг нь харагдаж байна.

Retail
Liquidity
Эргэлтийн харьцаа: Хоёр компанийн эргэлтийн харьцаа 1-тэй ойролцоо байгаа нь
богино хугацаат өр төлбөрөө нөхөх хангалттай эргэлтийн хөрөнгөтэй байгааг
харуулж байна. О нь хөрвөх чадварын хувьд бага зэрэг давуу талтай.
ТТГЧ − ын харьцаа: O-ийн хурдан харьцаа (0.77) нь P-ээс (0.30) хамаагүй өндөр
байна. Энэ нь О-д хөрвөх чадвартай хөрөнг их байгааг харуулж байна.

Asset management
Бараа материалын эргэлт: О нь P (4.9)-тай харьцуулахад бараа материалын
эргэлт (7.7) өндөр байна. Энэ нь O нь бараа материалаа илүү хурдан борлуулдаг
гэсэн үг.
Авлагын эргэц: О нь мөн P (11.7)-тай харьцуулахад авлагын эргэлт (17.8) өндөр
байна. Энэ нь О үйлчлүүлэгчдээс төлбөрийг хурдан цуглуулж, мөнгөн гүйлгээний
менежментийг сайн хийдэг..
Үндсэн хөрөнгийн эргэц: Хоёр компани хоёулаа ойролцоо үндсэн хөрөнгийн
эргэлтийн харьцаатай байгаа нь үндсэн хөрөнгөөс борлуулалт хийхдээ ижил үр
ашигтай байж болохыг харуулж байна.

Debt management
Нийт өр төлбөр/нийт хөрөнгө: P нь өрийн харьцаа нэлээд өндөр байгаа нь өрийн
санхүүжилтанд найдах хандлагатайг илэрхийлж байна.
Урт хугацаат өр/өөрийн хөрөнгө: P-ийн урт хугацаат өр болон өөрийн хөрөнгийн
харьцаа (320.9%) нь О (61.5%)-аас хамаагүй өндөр байна. Энэ нь P нь зээлийн
санхүүжилтэд ихээхэн найддаг гэсэн үг бөгөөд хэрэв тэд хүүгийн төлбөрөө төлж
чадахгүй болох эрсдэлтэй тулах магадлалтай.
Хүү төлөх чадварын харьцаа: Өрийн дарамт их байгаа хэдий ч P нь O (4.9)-тай
харьцуулахад (10.2) өндөр байна. Энэ нь P нь хүүгийн зардлаа нөхөхийн тулд хүү,
татварын өмнөх орлого (EBIT) бий болгодог гэсэн үг юм.

Dupont analysis

Цэвэр ашгийн хэмжээ: P нь O (0.6%)-тай харьцуулахад цэвэр ашгийн хэмжээ

(4.2%) хамаагүй өндөр байна. Энэ нь P нь борлуулалтыг ашиг болгон хувиргахад
илүү үр дүнтэй болохыг харуулж байна.
Хөрөнгийн эргэц : Хоёр компани хоёулаа хөрөнгийн эргэлтийн харьцаа харьцангуй
бага байна (O: 1.8, P: 1.7). Энэ хөрөнгийн нэг доллараас орлого бага олж байгааг
харуулж байна.
ROE: P нь O (4.9%)-тай харьцуулахад ROE (36.2%) хамаагүй өндөр байна. Энэ нь
P-ийн өрийн санхүүжилтээс ихээхэн хамааралтай байсан ч өндөр ашигт
ажиллагаатай холбоотой юм.

Хоёр компани хоёулаа давуу болон сул талуудтай. O нь хөрвөх чадвар, бараа
материалын менежмент, цахим худалдаагаар ирээдүйд өсөх боломжтой. Гэсэн
хэдий ч түүний ашиг орлого бага байна.
P нь ашгийн өндөр түвшинтэй боловч өрийн дарамттай тул үр ашгийг дээшлүүлэх
шаардлагатай байж магадгүй юм.