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Overview
While companies may differ in their strategic objectives, financing mixes, and management
approaches, they, nevertheless, share common characteristics with other firms in their industry.
These characteristics result from the operational realities of a companys industry, and as such
can be used as benchmarks in evaluating a companys financial position.
The attached exhibits contain selected balance sheet data, financial ratios, and a list of industry
groups for 14 companies. The financial data were gathered from the companies 1998 10-K
filings as reported by Compustat.
Directions
Match each companys data set (Exhibit 1, pp. 2 and 3) with the industry (Exhibit 2, p. 4) in
which that company operates. Be sure to keep track of the rationale you employ in forming each
match.
Page 1 of 4
3
%
0.11
0.06
0.00
0.64
0.03
0.03
0.10
100%
0.01
0.00
0.14
0.00
0.17
0.12
0.02
0.00
0.26
71%
0.01
0.28
29%
4
%
0.58
0.00
0.05
0.05
0.00
0.00
0.33
100%
0.00
0.00
0.17
0.00
0.07
0.54
0.00
0.00
0.00
79%
0.00
0.21
21%
5
%
0.02
0.10
0.06
0.70
0.00
0.02
0.08
100%
0.01
0.04
0.09
0.01
0.06
0.05
0.14
0.02
0.11
53%
0.00
0.47
47%
11.85
11.85
1.43
1.00
0.73
0.56
2.63
2.31
0.91
0.57
2.88
NC
0.00
0.31
15.13
9.97
36.09
1.32
15.03
NC
0.00
1.03
NC
24.25
14.85
1.53
9.96
14.27
25.23
1.07
12.20
2.85
13.55
9.93
44.30
13.09
250.92
53.79
10.35
9.48
12.73
3.76
19.11
19.05
3.57
4.64
8.75
45.09
7.08
6.78
24.61
18.06
(20.42)
(19.21)
(89.77)
23.53
6.40
6.94
14.70
21.41
Page 2 of 4
6
%
0.03
0.14
0.09
0.57
0.08
0.00
0.10
100%
0.00
0.12
0.08
0.01
0.13
0.32
0.05
0.00
0.11
82%
0.00
0.18
18%
7
%
0.20
0.22
0.12
0.39
0.01
0.01
0.03
100%
0.00
0.14
0.03
0.08
0.19
0.19
0.00
0.01
0.07
71%
0.00
0.29
29%
8
%
0.24
0.34
0.36
0.01
0.02
0.03
0.01
100%
0.05
0.47
0.22
0.00
0.00
0.16
0.00
0.00
0.08
96%
0.00
0.04
4%
9
%
0.13
0.59
0.00
0.01
0.01
0.19
0.07
100%
0.00
0.15
0.62
0.00
0.00
0.09
0.00
0.00
0.06
92%
0.00
0.08
8%
10
%
0.08
0.19
0.24
0.44
0.00
0.00
0.06
100%
0.02
0.03
0.11
0.00
0.09
0.26
0.00
0.00
0.07
57%
0.00
0.43
43%
11
%
0.04
0.02
0.34
0.52
0.05
0.00
0.03
100%
0.02
0.00
0.21
0.01
0.10
0.19
0.00
0.04
0.01
57%
0.00
0.43
43%
12
%
0.09
0.05
0.01
0.70
0.03
0.07
0.05
100%
0.00
0.00
0.06
0.00
0.08
0.24
0.03
0.00
0.01
42%
0.00
0.58
58%
13
%
0.29
0.09
0.00
0.16
0.17
0.21
0.08
100%
0.00
0.00
0.04
0.00
0.36
0.17
0.00
0.00
0.16
73%
0.00
0.27
27%
14
%
0.62
0.07
0.00
0.07
0.00
0.00
0.24
100%
0.00
0.00
0.03
0.04
0.18
0.00
0.00
0.00
0.00
26%
0.04
0.70
74%
0.87
0.48
1.33
0.96
1.27
0.78
0.93
0.93
2.19
1.08
1.26
0.18
1.26
1.02
1.04
0.93
2.77
2.69
10.56
6.78
53.06
1.36
4.22
1.54
233.54
0.92
0.40
0.13
2718.66
0.12
0.21
NC
2.94
0.13
8.21
4.02
89.65
1.72
131.46
6.37
56.56
2.89
22.22
73.17
4.92
1.03
18.09
NC
0.00
1.70
11.87
NC
0.00
0.79
181.45
44.26
66.78
33.40
478.79
67.41
109.46
23.86
61.13
30.40
45.50
21.23
41.76
24.56
62.21
16.80
0.00
0.00
7.43
9.95
56.48
55.57
22.52
19.65
67.96
81.05
3.53
0.41
12.57
60.21
12.82
1.18
15.19
60.48
4.03
6.64
15.70
38.37
3.22
8.86
20.98
22.36
6.33
6.71
11.55
26.95
3.54
4.16
15.38
38.12
31.00
19.96
28.52
95.38
Page 3 of 4
Exhibit 2
Represented Industries
Complete the chart.
Company
Number
Code
Industry
Airline
Bank
Brewery
Department Store
Discount Retailer
Insurance Company
Internet Retailer
Pharmaceutical Manufacturer
Securities Brokerage
Software Manufacturer
Rationale
Page 4 of 4