Ch.

4 Case Study
CSI Financial Statenebts 2014 Using Financial Ratios to Identify Companies

1. Clothing Retailer / Department Store Nordstrom Company L (High value for

inventory and gross margin better than most of the rests; Also annual report 2014 shows
35% gross profit on net sales).

2. Internet Technology Yahoo Company I (Average profits and gross profits after
getting big competitions from Google & Microsoft then selling shares to Alibaba Group
made better impact on companys assets and share value).

3. Grocery Store Kroger Company A (Kroger actual total sales earnings for fiscal year
2014 were about 15% and 22 % Gross Profit earned)

4. Airline Singapore Airlines (Singapore) Company F (Singapore airlines had 1.9 %

return on total assets and 2.7 % return on equity for 2014 Annual Report)

5. Steel Manufacturing Kobe Steel (Japan) Company B (Kobe Steel annual report
2014 shows 8.5 % Net sales increment)

6. Electronics Manufacturing Siemens (Germany)Company C (Electronic sector

invests huge money in R&D sector about 25 % here).

7. Pharmaceutical Eli Lilly Company K. (Very high value of R&D about 25 % and
160 % profit margin occurs only in pharmaceuticals sector).

8. Electric Utility Duke Energy Company J. (No R&D with substantial assets of about
58 % can be a utility company which require huge infrastructure to run).
9. Computer Software (Microsoft) Company G (this is because has low inventories,
high gross profit margin, operating margin, profit margin and highest sales; Only
Software giant which comes in Top 5 companies in world can have figures like this)

10. Consumer Products Coca Cola Company D(High gross profits, operating margin
and profit margin based on annual report 2014).

11. Commercial Bank Deutche Bank (Germany) Company M (Long term debt for
2014 Annual report was 9 %).

12. Computer Technology and Consulting IBM Company H (Inventory and Intangibles
were very low for IBM however Goodwill is always high for IBM).

13. Computer Networks and Software CISCO Company E (CISCO profit margin is 16
% for FY 2014 as per annual reports)