School of Management and Entrepreneurship
Management Consulting
(STM 653)
MBA 2019-21
Instructor: Prof. Arup Mazumdar
RATIOS TELL A STORY
GROUP ASSIGNMENT 4 Submitted by:
Group 3
Ashutosh Chaudhary (1910120007)
Jyoti Negi (1910120015)
Nikita Nirula (1910120025)
Ritika Sharma (1910120028)
Atul Mishra (1910120135)
Anuj Yadav (1910120163)
CLIENT LOGO
RATIO-1
Represents Electric Utility
Has highest Net PPE, as electric utility
needs greater number of equipments
FIRM LOGO
CLIENT LOGO
RATIO-2
Represents Grocery Store Chain Industry
High Inventory
Very small ROS which means company can
sell convenience products due to presence of
competitors in the market
FIRM LOGO
CLIENT LOGO
RATIO-3
Represents Software Application Development
No inventory in their assets and the second
highest R&D ratio.
Also have a high gross margin meaning they
don’t put in much tangible assets to get
money
Has the least accounts payable among all
the other industries
FIRM LOGO
CLIENT LOGO
RATIO-4
Represents Discount General-Merchandise Retail
Low receivable collection period
Decent Net PP&E ratio due to the higher
number of stores
FIRM LOGO
CLIENT LOGO
RATIO-5
Represents Advertising Agency Services
High Receivable collection period
High percentage of goodwill
FIRM LOGO
CLIENT LOGO
RATIO-6
Represents Railway Industry
Highest net PP&E value, as most of their
assets would be in the railroad lines the
company owns
It also has nonexistent values for inventory
turnover and gross margin which would make
sense for a railroad industry because it is a
service industry
FIRM LOGO
CLIENT LOGO
RATIO-7
Represents Wholesale Food Distribution
High Inventory
Low ROS and ROA
FIRM LOGO
CLIENT LOGO
RATIO-8
Represents Internet Retailing Industry
High accounts receivable and high inventory means
they are selling products but not for cash
High Gross Margins
FIRM LOGO
CLIENT LOGO
RATIO-9
Represents Consumer Electronics
High Inventory Turnover
High Cash possession as assets
FIRM LOGO
CLIENT LOGO
RATIO-10
Represents Drug Manufacturing-major Industry
Highest R&D ratio
R&D ratio suggests that the company is
creating new, aged and ever improving products
that can be sold for a lot more than they are to
make.
Highest intangibles percentage which likely
include the numerous patents, copyrights,
trademarks that a typical drug manufacturing
FIRM LOGO company has
CLIENT LOGO
RATIO-11
Represents Restaurant (Fast-food) Chain
High inventory means that there is a lot of
product to be sold as well as a lot of potential
selling locations.
Decent inventory turnover suggest they are
quickly selling the inventory they have
Low accounts receivable
FIRM LOGO
CLIENT LOGO
RATIO-12
Represents Commercial Banking-regional
Extremely high accounts receivable and
accounts payable as compared to other
industries
No inventory
Almost all their assets and liabilities are in
accounts payable and receivable, which
comes from giving and taking loans
FIRM LOGO
CLIENT LOGO
RATIO-13
Represents Airline Industry
Extremely highest total liabilities
Most of its debt is long term as opposed to
short term
Negative ROE, since it is related to energy
industry
FIRM LOGO
THANK
YOU
