Unidentified Industries: Australia 2014 Case Study Solution
Jeffrey Grossest Wines (Vintgner) with Firm E (Distiller & Vintner)
Since this is a steady business, an increase in the sales is there in over the 3 years’ time. With the increase in the consumer awareness and business growth opportunities. A solid tactics of the business and management expertise and knowledge of the business partners can give them enhanced boost over the sales.
As the firm E has huge amount of inventory in stores and raw material for the manufacturing. And also it has some machinery in order to convert their raw material into finished products.And also it needs cash for daily operations. And also does the business on credit that is why a wine shop is suitable as they need significant amount of cash for running the business.
As by seeing its sales growth it shows continuous improvement from 25 % to 43 %. It shows the current assets 85%. And long term assets are 34%. One thing this company has to improve that is its liability which is 60%. Its inventory turnover is also very good 10 days. That means in 10 days it is able to convert its inventory to product. Return on equity is 36% that is quite satisfying. And one thing this company should focus that is to improve the collection period.
And it C.R is also very good 2.62 as compare to 1.64 of firm E, that means it has more assets then the liabilities and this is a very good sign form the JeffreyGrosset wines,
BHP Group Metals with Firm F (Diversified Metals and Mining)
BHP is the producer of iron core in Australia and all over the world. It claims and works the Chichester Hub that comprises of the Cloud break and Christmas Creek mines situated in the Chichester Ranges in the Pilbara, Western Australia; and the Solomon Hub containing the Firetail and Kings Valley mines situated in the Hamersley Ranges in the Pilbara, Western Australia.
As firms G has huge 58% as the property plant & Equipment that is why I selected BHP metals group as they have huge property and plants of metals as they don’t need much inventory because they just order the finished products, based on that I selected the BHP metals Group
For the first six months. BHP sales has increased to 44% to 9.3b. Net gain expanded 66% to $4.08B. Incomes reflect China fragment increment of 40% to $8.62B, Iron Ore, Average Price per unit, Total increment of 42% to $114 per metric ton, Iron Ore Production, Total increment of 2% to 90.7M metric tons. Overall gain profited by Interest cost on borrowings and last diminishing of 28% to $79M (cost). And it is 1.42 current ratio clearly shows it is in a better condition than the firm F whose current ratio is 0.73
Alinta Energy with Firm G (Electric and Gas Utility, Mostly Electricity)
Alinta energy is international owned company, generating revenues and sales from the development and the power creation assets. And also the wholesaler and retailer of electricity. Alinta Energy also operates in Australia and New Zealand mainly. It has 660 employees working for them. It is eventually by Hong Kong based limited company.
As firm G has 0.90% as the Account Receivables they just deal in cash that is why I have selected the Alinta Energy. With 13% as the current liabilities that would suggest that they monthly rent and salaries of their employees.
Their long term assets are 49% which include Land, property. It trade receivables is not that good,because it shows 43 days approx. which is generally not that good. It should be good it shows the current assets of 1.5 that is satisfactory.
As it’s current ratio is 2.62% which if better in comparison to the firm G which is 1.64%.
Oliver Wyman (Consulting) with Firm H (Engineering & Consulting Services)
Oliver Wyman ispiece of (MMC), an overseas network of paid services with related brands and partners in more than 100 countries of the world. The largest part of the Oliver Wyman category is Oliver Wyman, a care advising organization with more than 3,000 experts which work in offices in 50 cities spread across 30 countries.
In consulting business the firms mostly deal in cash as they provide services, that is why their cash percentage is higher which 54%. And as they need initial wear house system for the business.
Advising the services with companies include divisions, which further include:connection, energy.Investments services, planning and a good position.
The company’s return on equity is 11% as compared to the other H industry, which shows -23%.
Coles group with-firm I (Food Retail, mainly supermarkets)
Coles Group Limited is probably the largest retailer in more than 2,500 stores throughout Australia. Coles has more than 120000 workers in its restaurants, wines stores, hotels, shops and lodges and also offers web-based purchases and financial management. Coles Group Limited is listed on the Australian Securities Exchange under COL code.
As firm I has18.30% as in inventory in order to fill their shelves of their stores as well a 30% of assets as the property plant and equipment in order to run their business successfully and 37% in Long-term assets that will profit the company for more so many years other assets such as long-term investments, patents , trademarks.
Soul Hotels: Coles Group Limited has a half interest in a joint endeavor with Australian Venue Co. Pty Ltd which works Spirit Hotels and a related retail alcohol business.
And by looking at its ROE which is 40%, which is far better than I firm which is 11%.
Baskins Robbins with Firm J(Online Retailer of Designer Clothing (this firm completed an initial public offering, IPO, in 2014)
In 2017, American-based restaurant service (QSR) chain Baskin-Robbins generated approximately $ 50 m in the U.S and $ 113.38 m in its overseas locations in 2018. This figure has remained stable over the years.
Firm J has 57% and 15% as the long term assets that will benefit the company and protect it’s rights and profits.
Long-term assets may include fixed assets such as company assets, equipment, and equipment, but may also include intangible, intangible assets such as long-term investments or the company's trademark. As with 17.40% in cash that means the firm need cash to operate the business. And 4.80% of account receivables that some of the payments are y yet to be received.......................
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