The firms’ Industry (Accounting, Finance, SPSS Essay)

The firms’ Industry
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The firms’ Industry
Firm 1 is most likely a retail chain retaining a high level of slow-moving finished goods inventories for sale that represent 12.02% of the total value of the total assets. The firm keeps low levels of low materials such that their percentage to total assets falls below 0% (-0.24%). No work in progress was accounted for, a probable pointer to the fact that they do not engage in any processing/manufacturing but rather buy merchandise for resale. The firm's payables stand at 15.26 as a percentage of total liabilities & net worth, a likely indicator of credit purchases of merchandise.
Firm 2 may be a capital firm or investment bank evidenced by the high value of marketable securities and receivables that stand at 20.51% and 45.93% as a percentage of total assets in that order. The high ratio of receivables likely indicates long collection periods of interest receivable from other firms holding the marketable securities. It could even mean near-bad-debts due to non-performing loans. On the liabilities side, they have large proportions of accounts payable at 50% of total liabilities & net worth that is a likely indicator of slow payment of creditors in the form of interest payable mainly on customer deposits.
Firm 3 is most likely a small or medium-size manufacturing firm with high inventory turnover as indicated by a slightly high proportion of cash (10.47%) indicating a stringent credit policy. Also, they most likely sell a significant proportion of their goods on a cash basis. It has moderate levels of raw materials, work in progress, and finished goods in the order of 11.13%, 3.88...