Question.3041 - This is Straightforward assignment, conduct a financial analysis of Boston Scientific (BSX) and compare it to one of its competitors of your choice, and to the industry. Most of the ratios can be found on at www.reuters.com. Select Markets/Stocks and type in the ticker. If you need any financial statement information not available on Reuters, you will find it onwww.finance.yahoo.com. Enter the ticker symbol and then click on Income Statement or Balance Sheet under the Financials heading on the left for the financial statements themselves. You probably won’t be able to find Lease Payments or Debt Payments, so you don’t need to calculate the ratios that depend on those numbers. I would like a 2-page (and no longer, please!) writeup of your comparison. Since space is short, please don’t try to list the ratios and their differences. Rather, I’d like your qualitative assessment of BSX’s position relative to the industry and the competitor, with the ratios as supporting. You may have a table at the end listing the ratios if needed. You don’t need to define any of them. For example, here is a bad way to describe the two companies: “…Company X’s days sales outstanding ratio is 35 while Company Y’s DSO is 45. Company X’s times interest earned ratio is 2.7 while Company Y’s TIE is 1.2….” Rather, I’d like for you to decide what the ratios mean and use them to illustrate your point. Something like the following is better: “Company X is managing its supply chain better than Company Y and better than the industry. Company X’s inventory turnover is 15x per year while Company Y only manages 10x per year and the industry average is 11x. This efficiency is also reflected in Company X’s total asset turnover of 6x versus Company Y’s TATO of 5x and the industry average of 4x. …” So look over the ratios, draw some conclusions in your mind about the two companies and the industry, formulate carefully your thoughts, and then tell me about them.
Answer Below:
Ratio xxxxxxxxxx One xx the xxxxx competitors xx Boston xxxxxxxxxx Corporation xxx is xxxxxxx and xxxxxxx JNJ x Ratio xxxxxxxx of xxx with xxx and xxx industry xx done xxxxx Starting xxxx the xxxxxxxxx ratio xxxxxxx of xxxxxxx rsquo x short xxxx liquidity xxxxxxxx the xxxxx ratio xxxxxxxxxx as xxx best xxxxxxx for xxxxxxxxx of xxx i x stands xxxx as xxxxxxxx to xxx competitor xxx as xxxx as xxx industry xxxx the xxxxxxx ratio xx the xxxxxxx is xxxxx than xxx competitor xxx though xx is xxxxx to xxx industry xxxx primarily xxxxxxxxx the xxxxxxx does xxx enjoy xxx liquidity xxxxxxx in xxx market xxx is xxx holding xxxx of xxxx in xxx books xx is xxxxxx large xxxxxxx of xxxxxxxx payable xx the xxxxxxxx as xxxxxxxx to xxx industry xxxxxx forward xx the xxxxxxxxxxxxx ratios xxxxx measures xxx company xxxxx s xxxxxxx to xxxxxxxx earnings xxxxxxxx to xxxxx assets xxx equity xx terms xx gross xxxxxx ratio xxx was xxxxxx to xxx competitor xxx but xxx better xxxx the xxxxxxxx standards xxxx indicates xxx company xxxxx s xxxxxxx to xxx goods xx better xxxxxxx from xxxxx supplier xx getting xx better xxxxxx as x result xx which xxx cost xx goods xxxx is xxxxx and xxxxx margin xxxxxx Unfortunately xxx operating xxxxxx margin xxx of xxx BSX xxxxxx incomparable xx JNJ xxx industry xx BSX xxx is xxxxxxxx while xxxx of xxxx is xxxxxxxx This xxx be xxx to xxxx higher xxxxxxx and xxxxxxxxxxxxxx expenses xxxxxxxx and xxxxxxxxxxx expenses xxx which xxxxxxxx into xxxxxxxxx loss xxx BSX xxxxxxx one xxxx further xxx operating xxxxxxxx of xxx stood xx of xxx revenues xxxxxxx same xxxx at xx the xxxxxxx for xxx calculated xxxx source xxx yahoo xxxxxxx com xxx needs xx control xxx expenses xx the xxxxx mentioned xxxxxx As x result xx the xxxxx expenses xxx net xxxxxx margin xx BSX x is xxxx into xxxxxxxxx Talking xxxxx the xxxxxxxxxx part xx the xxxxxxx the xxxxxxx per xxxxxxxx of xxx stands xxx below xxxx the xxxxxxxxxx and xxx industry xxxx ratio xxxxx supports xxx conclusion xxxxx above xxxx the xxxxxxx operates xx higher xxxxxxxx costs xx compared xx industry xx needs xxxx number xx employees xxxxxx administrative xxxxx to xxxxxxxx the xxxxxxx amount xx sales xx the xxxxxxxx Our xxxxxxxx is xxxxxxx confirmed xx the xxx receivable xxxxxxxx inventory xxxxxxxx and xxxxx turnover xxxxxx All xxx above xxxxxxxxx ratios xxx lower xxxx the xxxxxxxxxx and xxx industry xxxxxx in xxxx of xxxxxxxxxx turnover xxxxx is xxxxxx than xxx industry xxxx The xxx ratios xxxxx BSX xxxxx to xxxxxxxxx its xxxxxx policies xx order xx ensure xxx timely xxxxxxxxxx of xxxxxxxx credit xxxx is xxx earning xxxxxxxx for xxx firm xxx lower xxxxxxxxx turnovers xxxx imply xxxx products xx the xxxxxxx tend xx stay xx the xxxxxxxxx for xxxxxx as xxxxxxxx to xxxxxxxx Lastly xxxxxxx on xxx debt xxxx of xxx company xxx interest xxxxxxxx ratio xx BSX xx much xxxxx than xxx and xxx industry xxxx indicates xxx inability xx pay xxx interest xxxx on xxx debt xxxxxxxx It xxxxx s x point xx concern xx this xxxxx come xx a xxxxxxxxx when xxx company xxxxxxx plans xx raise xxxxx Below xx a xxxxx briefly xxxxxxxxxx the xxxxxx as xxxxxxxx to xxx and xxxxxxxx Ratio xxx JNJ xxxxxxxx Current xxxxx Interest xxxxxxxx Gross xxxxxx Operating xxxxxx - x Rev xxxxxxxx Receivable xxxxxxxxMore Articles From Finance
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