FIL 440 - The Ratio Analyst Case

• The company descriptions (also repeated on each industry page)
• The financial data
• How to use this site

Steps in the Case Analysis

For the "Ratio Analyst" case, your group will be responsible for reporting your analysis to the rest of the class.  Outside of what you post to this web site, there will be no other formal requirements for the case analysis.   Grades are based on your assigned industry analysis as well as comments posted on other industries.

Here is the assignment.

1. Using the data and description of each industry from the case, try to match the description of the companies with the financial profile presented in ratios.  To do this, focus on how the described strategies of the different companies would likely lead to wide differences in their financial data.  The short discussion of the companies included in the case will likely point you to one or two major differences between the companies. Then, try to tell a consistent story as to why there are MAJOR differences in their financial data, given the little information you have.  No need to focus on minor differences in the financials since it doesn't help identify the companies.
2. See the "Sidebar" at the right where each of the industries in the case have separate page links.  For each industry, I've assigned one group to post their analysis of that industry.  The names of the people in the group are listed on each industry's page.  I would like the assigned group to post approximately one page (maybe 500 words or so) presenting their analysis of the industry.  Post your analysis on the appropriate industry page, preferably by Saturday, December 12th. 
3. Start commenting on other analyses on Sunday, December 13th.  While your group is responsible for posting the entire analysis for only one industry, you should also share your thoughts on other industries after reading the original group's posted analysis.  If you made different assumptions or interpretations of the data, be sure to post comments to the appropriate industry page. Do not "edit" directly on the industry pages, but instead, go to the comments section of the industry page.
4. The case is from real reported financial data of companies.  Try to identify the actual company being described.  While additional analysis could confirm your guess, most of the companies are likely to be predicted without any extra research.  Since identifying the company is secondary, don't get carried away with this part...
5. The purpose of this case is to demonstrate how financial performance (as measured by ratios) is influenced by:

   (a) the nature of the industry - e.g., some industries are more asset intensive (lower turnover), others have much higher profit margins, etc.

   (b) the strategy of the company - even companies within the same industry may have different operating philosophies and this is reflected in their financial data