Glossary

Term

Balance Sheet

Capital Intensity

Cash & Short-Term Investments

Accounts Receivable

Inventory

Fixed Assets

Long-Term Investments

Intangibles
Short-Term Debt

Accounts Payable

Income Tax Payable

Long-Term Debt

Shareholder's Funds

Return on Equity %

Return on Assets %

Asset Turnover Ratio

Definition

The Balance Sheet displays a company’s total assets, and how these assets are financed, via either equity or debt. This rela
the balance sheet: Assets = Liabilities + Equity.

Capital intensity reflects the amount of capital required that a business requires to generate revenue.

The amount of cash and short-term investments that a business holds. Short-term investments are defined as marketable

The amount of money owed to a company by its debtors (i.e. those who they have invoiced but yet to receive payment fro

The value of all raw materials, work-in-progress, and finished goods that a company has accumulated, but not yet sold.

Also known as Property, Plant and Equipment (PP&E), fixed assets refers to long-term tangible (i.e. physical) assets that ar
useful life of more than a year and are capable of providing long-term financial benefits.

Long-Term Investments represents a company's investments including stocks, bonds, etc, where the company intends to h

Intangible assets are assets that are non-physical in nature. To be classified as an intangible asset, the asset must be expec
company. Examples include patents, trademarks, goodwill, etc.
Financial obligation to repay money to a lender within one year.

The amount of money the company owes to its creditors (i.e. those who have sent invoices to the company, but the comp

The accrued amount of tax payable to the tax authorities but has yet to be paid.

Financial obligation to repay money to a lender in greater than one year.

Also known as Equity, this is the value attributable to the owners of the business. It is typically calculated as the difference
private company. For publicly listed companies, it is based on the current share price that is determined by the public capi

Also known as ROE, this is a measure of a company's annual profit divided by the value of its shareholder's funds. It is typic
compare a company to its peers. An increasing or relatively high ROE reflects a company is effective in reinvesting profits i
A decreasing or relatively low ROE reflects management is reinvesting profits in unproductive assets.

Also known as ROA, this is a measure of a company's profitability in relation to its total assets (profit divided by total asset
comparing the profit generated to the value of total assets. A high ROA suggests a company is efficient in utilising its resou
company is inefficient in generating profit with its assets.

Measures the efficiency with which a company uses its assets to produce sales. The asset turnover ratio is equal to sales d
asset turnover ratio is said to operate more efficiently, than a company with a low asset turnover ratio.
 Company Information

In Part (i), you are required to match the companies #1-6 with the companies A-F based on the financial metrics below

* Descriptions

1 A major tech company

2 An international gaming & entertainment resorts firm
3 A global pharma company
4 A global gaming company
5 An electric car manufacturer
6 A major water works company

* Financial Metrics

Company A B

ASSETS %
Cash & Short-Term Investments 20% 39%
Accounts Receivable 1% 7%
Inventory 0% -
Other Current Assets 1% 1%
Fixed Assets 65% 35%
Long-Term Investments - 4%
Intangibles 3% 12%
Other Non-Current Assets 10% 2%

LIABILITIES & EQUITY %

Short-Term Debt 1% 1%
Accounts Payable 0% 2%
Income Tax Payable 0% 1%
Other Current Liabilities 11% 6%
Long-Term Debt 66% 6%
Other Long-Term Liabilities 1% 4%
Shareholder's Funds 20% 81%

METRICS %
Return on Equity % 16.4% 23.4%
Return on Assets % 4.1% 19.9%
Asset Turnover 0.63 0.57
e financial metrics below, then output your findings within the PPT Template. Refer to the Reading Guide for more information.

C D E

38% 2% 8%
4% 2% 5%
8% 0% 5%
2% 3% 5%
45% 77% 10%
1% 1% 13%
1% 6% 51%
2% 9% 4%

5% 6% 2%
12% 1% 3%
2% 0% 1%
10% 4% 11%
21% 36% 25%
6% 28% 17%
45% 25% 41%

4.8% 9.8% 19.5%

1.6% 2.6% 7.5%
0.73 0.16 0.30
g Guide for more information.

38%
5%
-
3%
2%
-
45%
7%

0%
1%
0%
11%
17%
5%
65%

12.0%
7.1%
0.38