Represented Industries Complete the chart.
Airlines are extremely advanced with most of their assets invested in PP&E net. Also has one of the highest return on common equity and low profit margins.
Has high receivables for possible loans given to customers. No inventories and high accounts payable and receivables for transactions for the bank to operate. No inventories also due to the types of products offered. It also has a slightly high amount for “other current liabilities” that may be for other types of deposits.
Low inventory with an extensive inventory turnover that may be due to the required process to age its brews.
Due to a department store’s size, it may maintain higher inventories to accommodate for its customers. Also has average PP&E and its inventory days are average to high.
On the other hand, discount retailers have lower inventories for their target population searching lower prices. There is also lower margin since products are low-priced.
Fast Food Retailer/Franchiser
Most of its assets are spent in PP&E. Also, it has the highest inventory turnover and lower inventory due to its inventory (food) being consumable and having an expiration day. Also has long-term debt.
Food Products Manufacturer
Since its products are less consumable than those of fast food franchises, it has the second lowest inventory days, yet closely resembling turnover of fast food retailers.
It does not have any inventories and has a very high liability for possible losses for claims and investment assets for invested premiums. Also they provide a service, not a product.
Has intangible assets. Sales are mostly online with credit cards so there will be high receivables turnover with elevated inventory to meet customers’ demands...