Finance

The common size financial statements indicate the inherent characteristics of the firms and the industry where they belong. Likewise, the comparative data illustrates historical developments of certain firms which created specific impact on the presented financial highlights a compared with companies that did have similar or unique histories.

In terms of liquid assets, the health, computer and the books and music sectors dominate considering their high demand and turnover of business conducted through cash and card purchases. Computers and tools register the highest among credit grantors. In terms of fixed assets, the retail and the paper firms registered the highest considering their comparative investments in plants and buildings used in the production and store areas. In the intangibles area, it is understandable for health products, tools and newspaper to register high investments in intangibles acquired through years of acquisition and mergers carrying large numbers of patents and property rights.

Along liability positions, the computers, retail and paper industries indicate their heavy reliance on suppliers credit for their revenue generation efforts. Heavy equity infusion and capitalization are likewise evident in the health, retail and newspaper areas due to listing and ROI-prospects of the sectors. On one hand, the cost ratio is greater in highly competitive sectors such as computers, paper and retail considering their high turnover and demand characters. Profitability is paramount among the health, tools and newspaper due to their high-demand and apparent cost efficient active management systems. In terms of net profitability, the health sector is considered more consistent because of its high demand critical character while the rest of the sectors have varying and contrasting net profitability presumably to different degrees of production efficiencies. (Anthony  Govindarajan, 2003)