Company/Industry | Matching Data | Airline | 3 | Railroad | 5 | Pharmaceutical | 9 | Commercial Banking | 11 | Computer and office equipment production and servicing | 10 | Discount general-merchandise retail | | Electric utility | 8 | Fast food restaurant chain | 6 | Wholesale food distribution | 7 | Supermarket chain | 1 | Internet retailing | 12 | Tax preparation and diversified financial service | 4 | Computer software development | 2 |
FINA 3301 Section 5
Prof. Gary Osmond
Zheng Liu
09/19/14

Ratios Tell A Story

* The airline industry matches data 3, because it has the negative ROE, since it is related to energy industry, and the liability is extremely high.

* Railroad matches data 5, because of the highest net PP&E and lowest liability.

* There are two industries with the highest R&D ratios are pharmaceutical and software development. The one with no inventory is software development as number 2 and pharmaceutical matches with number 9.

* Number 11 has the highest AP, AR, Liabilities, but no inventory, so it should match the commercial banking industry

* Number 1 and number 6 have the lowest receivable collection and relatively low AR, and the one with higher inventory should be supermarket, and the other one should be fast food restaurant

* According to industry summary on Yahoo, the wholesale industry barely has dividend payout, so the wholesale food distribution matches number 7.

* Computer and office equipment production and servicing has the highest inventory because technology related equipment updates very fast, that means, large amount of old equipment couldn’t be sold.

Citation:

Industry Browser - Yahoo! Finance - Full Industry List. (n.d.). Retrieved September 19, 2014, from https://biz.yahoo.com/p/sum_conameu.html