Selected ratios for three different companies that operate in three different industries (pharmaceuticals, utilities and...
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Accounting
Selected ratios for three different companies that operate in three different industries (pharmaceuticals, utilities and merchandizing) are reported in the table below:
Ratio Company A Company B Company C
Gross profit margin 18% 53% n/a
Net profit margin 2% 14% 8%
Research & Dev. to sales 0% 17% 0.1%
Advertising to sales 7% 4% 0.1%
Return on assets 11% 12% 7%
A/R turnover 95 times 5 times 11 times
Long term debt to equity 64% 45% 89%
Required:
Identify the industry that each of the companies, A, B, and C, operate. Give at least two reasons supporting each of your selections
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