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Essay / Research Paper Abstract
This 6 page paper looks at three companies in different industries; the service industry, manufacturing industry and the retail industry. A range of ratios are presented in compared by considering the difference in terms of industries as well as potential differences in accounting regimes. The 3 companies chosen are Disney Corporation, Lindsay Manufacturing and Tesco. The bibliography cites 5 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEratiodistes.rtf
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Unformatted sample text from the term paper:
are realised, likewise industries in different locations may also see similarities and differences. Looking at three companies in different areas these similarities and differences may be assessed. Disney Corporation,
the well known entrainment company, producer of visual entertainment as well as direct and indirect interests in a number of theme parks, placing them in the service sector, Lindsay Manufacturing
Company manufactures and sells a range of irrigation systems and the replacement parts, placing it in the manufacturing sector, and for the retail sector a company from the UK will
be used, Tesco PLC are the largest supermarket retailer in the UK with a dominant position. Before looking at the similarities and differences the different ratios, all of which are
taken from the most recent set of available accounts. Table 1 Ratio comparison Ratio Disney Corp Lindsay Manufacturing Company Tesco Plc Operating profit1 margin 15.76% 6.67% 6.07% Net profit
margin (EBT2) 14.4% 6.11% 5.6% Current ratio 1.33 3.2 0.7 Quick ratio 0.93 2.18 0.5 Asset utilization3 5.27% 4.36% 5.08% Financial leverage 1.87 1.48 3.13 Du Pont ratio4 0.167 0.10
0.21 There are some clear differences that may be considered n terms of the type of operations for each firm and the
inherent in each of the industries and the condition in which they operate. Looking first at the operating profit it is notable that Disney, the service firm, has the
higher figure. Where there are primary operations based on the provision of physical goods, either manufacturing or retailing, then the cost of goods is likely to be higher, as services
do not have the same focus on the physical goods, but are likely to have a higher level of labor input, which can add t the indirect costs. The
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