Health Products

Health Products

For the Health Products industry, there were a few data figures that really stood out when Companies A and B are put side by side. I will show why Company A is the “world’s largest prescription pharmaceutical company” and why Company B is not. The figures used to support this claim are: Intangibles, Cost of Goods Sold, Inventories, Inventory Turnover.

First, since the first company mentioned is, “supported by a robust research and development budget,” once could conclude that its intangibles would be higher than a company than the other company. With this in mind, Company B has more than double the amount of Intangibles that Company A has.

Another key differentiator is in the area of Cost of Goods Sold. Since the second company mentioned, “manufactures and mass markets a broad line of pharmaceutical products,” it can be concluded that their COG’s will be higher than a company that does more licensing of the products. When looking at the numbers, Company A more than doubles in the COGS category.

Next, given that Company A has a mass market and production strategy, this would mean their inventories would be more than company that does not have that same focus. Company B has nearly twice the amount of inventory as Company B. When comparing the Inventory Turnover, Company B’s is three times less than that of Company A because Company B has a significant less amount of inventory.

With the Financial Data and Ratio’s provided, it can be concluded that Company B is definitely the first mentioned company in the paragraph due to its high amount of Intangibles, low COGs (in comparison with Company A), low Inventories and low Inventory Turnover.

Beer

The companies mentioned in the Beer industry are pretty different than one another. One company is a large manufacturer with lots of investments in other types of businesses and strategies, whereas the other “produces seasonal and year round beers with smaller production volume and higher prices. Given the