THE CASE OF THE UNDEFİNED INDUSTRIES STUDY SOLUTION
İn this study we tried to match 14 different firm to 14 different Industries by using the
datas about their “source of financing, the profitability, the inventory turnover and the
account receivable collection period….
Company A should be an Online Retailer. Because, it has high inventory turnover. high
cash and large account payables. On the other hand while its current liabilities are high,
long term debt is relatively less than average. More and more , the number of plants and
equipments are lower than the other retail business that has a physical store.
Company B should be The Book Store Chain. Therefore Book are not an everyday need ,
this company has a very low inventory turnover (which shows us how often the company
sells and replaces its inventory) although it has a high inventory, also has low
profit/revenue which helps support the findings. And account receivable is too low. More
and more plants and equipment rate is a little bit height.
Company C should be the Online Direct Factory To Customer Personal Computer Vendor.
Because, it has the highest inventory turnover and a very low plant and equipment ratio. It
also has a highest accounts receivable (nearby the half of the sales) too. More and more it
has very low inventory. Due to the firm’s work is meeting the manufacturer and customer
directly, it does not need large plant and equipments as seen in the table.
Company D should be the Pharmaceutical Manufacturer. Because, This company has
