Question 10:
A. Carnival Corporation: Owns and operates cruise ships.
=> high COGS, luxury, nhiều LTD loại trừ đi 5 vs 7 thì đây là số 2
B. Citigroup: Offers a wide range of financial services in the commercial banking,
insurance, and securities business. Operating expenses represent the compensation of
employees.
=> Nhìn vào mục cash and marketable secur số rất lớn (1000-2000%) => Financial
institution,=> chỉ có số 1 và 8 nhưng thằng này operate in a wider range =>có nhiều
receivables=> đây là số 8
C. Goldman Sachs: Offers brokerage and investment banking services. Operating
expenses represent the compensation of employees.
=> nhìn vào mục cash and marketable secur số rất lớn => Financial institution mà thằng
số 8 là citigroup r nên đây sẽ là số 1
D. MGM Mirage: Owns and operates hotels, casinos, and golf courses.
=> Đây sẽ là số 7 vì Có nhiều Long term debt khi có nhiều asset warranty hơn như hotel
- Other assets nhiều hơn (2): theo GAAP thì những mục như công viên giả trí, casinos
được record other assets chứ kphai PPE
- Nhiều selling &admin expenses hơn >=có nhiều marketing hơn do Hotel sẽ cạnh tranh
nhiều hơn cruise |
E. Verizon: Maintains a telecommunications network and offers telecommunications
serv- ices. Operating expenses represent the compensation of employees. Verizon
has made minority investments in other cellular and wireless providers.
=> Đây là số 5 vì Có accumulated dep cao nhất so với (2) và (7) →có thể là do tài sản
mang tính chất công nghệ sẽ khấu hao nhanh hơn
- Intangible assets cao nhất: do cnghe cần sở hữu trí tuệ, license.
- Selling &admin highest nhưng COGS lowest =labor-intensive: ngành service. Đồng thi
selling &admin cao hơn (2) và (7) vì ngành này không thuộc luxury = low barriers of
entry và cạnh tranh nhiều hơn nên sẽ cần chi phí marketing nhiều hơn
Question 11:
CFO
Direct method:
(1) Cash collected from sales = + sale - Acc receivable + unearned revenue
= 100k- (10k-9k) +0= 99k
(2) Cash paid to supplier = - COGS - inventory + Acc payable
= -40k – (-2k) + (9k-5k)= -34k
(3) Cash paid to employees = - wage exp + wage payable – prepaid wage
= -5k + (4,5k-8k)- 0 = -8,500
(4) Cash paid for interest= - Interest exp + interest payable
= -500+ (3500-30000= 0
(5) Cash paid for taxes = - tax exp + tax payable + DTL - prepaid tax
= -20k+ (5k-4k) + (20k-15k) -0= -14,000
CFO = 42,500
Indirect method:
Net inc 37,500
(+) Non cash exp (dep)-> k chi tiền ra=> cộng 7,000
(-) Non cash revenue-> hàng đổi hàng k có tiền (0)
(-) Gain from sale fixed asset (-gain/+ loss) (10,000)
(+) DTL 20k-15k= 5000
(-) inventory (-2,000)
(-) A/R (1,000)
(+) A/P 4,000
(+) Wage pâyble -3,500
(+) Interest 500
(+) tax 1,000
CFO 42,500
CFI
(1) Cash from land= - land + Gain from land (+gain/- loss)
= - (35k-40k) + 10k= 15k
(2) Cash fromm PPE = - net PPE + gain/ - loss – Dep
= - (69k-51k)+ 0 -7k= -25,000
CFI- -10,000
CFF
(1) Cash from debts= + DTL + Short term debt + current portion= 0
(2) Cash from bond= + bond= 15k-10k= 5k
(3) Cash from share = + stock = 40k-50k= -10k
(4) Cash from dividend= - dividend declared- prepaid div+ div payable
= -8,500 - 0 + (6,000-1,000) = -3,500
CFF= -8,500
Question 12
Selected data for DHG (a medical manufacturer which is known for the development of
specialized device supporting for special treatments) and PLC Energy (an international
manufacturer and marketer of transportation fuels, other petrochemical products and
powers). Please complete the table below and use the Dupont analysis and the strategy
analysis to explain the differences in the profitability (ROA, ROE) of these 2 companies
to the deepest levels available given the data provided. Amounts are in millions
Items DHG PLC
Sales 5,790 54,830
Interest expense 72 480
Net income 1,070 1,960
Average total assets 6,850 18,300
Average shareholders’s equity 3,500 3,660
ROA = NI/ Average A = 15.6% = 10.7%
ROE = NI / Average E = 30.6% = 53.5%
Net profit margin = NI/Sales = 1,070/5,790 = 0.03
= 0.18
Asset turnover = Sales/Average A = 5,790 / =3
6,850
= 0.85
Debt ratio =1 - 1/E multiplier = 1 - 1/1.95 = 0.8
= 0.48
Equity multiplier = A/E = 6,850 / =5
3,500
= 1.95
DHG, a medical manufacturer specializing in specialized devices, likely enjoys higher
profit margins compared to PLC, which operates in the competitive energy sector. PLC's
higher asset turnover suggests it generates more revenue per asset unit, possibly due to its
global scale. However, PLC's reliance on debt financing, reflected in its higher leverage
ratio, poses higher financial risk but can amplify returns during profitable periods. DHG's
superior cost control and niche market focus drive its higher net profit margins, indicating
better pricing strategies
