9 -2 1 9 -0 4 6

DECEMBER 20, 2018

MIHIR A. DESAI

WILLIAM E. FRUHAN, JR.

LEANNE FAN

ADIL BHATIA

The Case of the Unidentified Industries—2018

Exhibit 1 presents the balance sheets (in percentage form) and other selected financial data for 14
firms drawn from 14 different industries. While there are clear differences in the financial structures of
different firms within a single industry, the firms selected have figures that are broadly typical of those
in the industry.

Try to match the 14 firms operating in the 14 industries named below with the 14 sets of financial
data presented in Exhibit 1. Use any approach you find helpful.

1. Aircraft manufacturer 8. IT hardware and storage provider

2. Airline 9. Online retailer

3. Bookstore chain 10. Parcel delivery service

4. Commercial bank 11. Pharmaceutical company

5. Computer software developer 12. Retail grocery chain

6. Department store chain 13. Software as a service provider for

customer relationship management
7. Electric and gas utility
14. Social networking service

Why does each of the industries have the patterns of assets use revealed in Exhibit 1? The sources
of financing? The profitability? The inventory turnover? The accounts receivable collection period?

Professor William E. Fruhan, Jr. prepared the original version of this case, “The Case of the Unidentified Industries—1995,” HBS No. 296-049. This
version was prepared by Professor Mihir A. Desai, Research Associate Leanne Fan, and independent researcher Adil Bhatia. This case was
developed from published sources. Funding for the development of this case was provided by Harvard Business School and not by the company.
HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or
illustrations of effective or ineffective management.

Copyright © 2018 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied,
or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.

This document is authorized for use only in Dr. Narender Vunyale's Financial Statement Analysis - Trim IV at Narsee Monjee Institute of Management Studies (NMIMS) from Jun 2023 to Dec
2023.
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Exhibit 1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries

Line A B C D E F G H I J K L M N
Balance Sheet Percentages
1. Cash and Marketable Securities 12 6 31 1 52 1 15 13 4 49 15 11 4 22
2. Accounts Receivable 5 16 10 5 10 4 2 9 61 7 3 11 4 19
3. Inventories 4 0 14 1 1 55 25 2 0 0 0 48 18 0
4. Other Current Assets 3 3 0 3 3 4 2 7 24 1 2 0 4 4
5. Property, Plant, and Equipment 8 54 35 64 11 15 49 4 1 16 59 14 57 9
6. Other Assets 68 21 10 26 23 23 8 64 10 26 22 16 13 47
7. Total Assetsa 100 100 100 100 100 100 100 100 100 100 100 100 100 100
8. Notes Payable 6 3 0 3 2 0 1 6 75 0 3 1 10 5
9. Accounts Payable 3 6 30 3 3 26 17 15 0 NM 1 13 16 NM
10. Accrued Items 1 10 16 2 2 15 7 6 0 3 12 17 3 6
11. Other Current Liabilities 8 0 6 2 15 18 15 10 4 1 9 30 10 37
12. Long-term Debt 20 29 9 28 28 9 33 36 7 0 21 11 32 3
13. Other Liabilities 21 15 15 35 18 8 14 14 4 8 19 28 11 4
14. Total Liabilities 58 63 77 72 68 76 88 87 89 12 65 100 81 55

2023.
15. Retained Earnings + Accumulated Loss 44 46 5 10 37 -12 56 -7 11 42 38 35 44 -2
16. Treasury Stock -52 -15 -2 -1 -32 -64 -79 -1 -4 -2 -5 -47 -39 0
17. Other Equity Accounts 50 6 21 18 28 100 35 21 3 48 2 13 14 46
18. Total Equity 42 37 23 28 32 24 12 13 11 88 35 0 19 45
19. Total Liabilities and Equitya 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Selected Financial Data

20. Current Assets/Current Liabilities 1.4 1.4 1.0 1.1 2.9 1.1 1.1 0.8 1.1 12.9 0.8 1.2 0.8 0.9
21. Cash, MS, AR/Current Liabilities 0.9 1.2 0.8 0.6 2.7 0.1 0.4 0.6 0.8 12.6 0.7 0.4 0.2 0.8
22. Inventory Turnover (X) 1.5 N/A 7.7 8.5 14.4 2.7 4.9 21.9 N/A N/A N/A 1.5 14.6 N/A
23. Receivables Collection Period (days) 57 47 22 60 88 6 3 52 4678 52 16 41 5 136
24. Total Debt/Total Assets 0.25 0.32 0.09 0.30 0.29 0.09 0.34 0.42 0.82 0.00 0.24 0.12 0.42 0.08
25. Payables Period (days) 151 41 105 92 82 66 52 114 N/A 25 13 65 22 10
26. Revenue/Total Assets 0.31 1.25 1.63 0.29 0.43 2.09 1.91 0.64 0.05 0.48 0.74 1.01 3.30 0.50
27. Net Profit/Revenue 23% 7% 2% 11% 33% -3% 3% -5% 29% 39% 13% 9% 2% 1%
28. Net Profit/Total Assets 7% 9% 3% 3% 14% -7% 5% -3% 1% 19% 10% 9% 5% 1%
29. Total Assets/Equity 2.4 2.7 4.3 3.6 3.1 4.2 8.3 8.0 9.3 1.1 2.9 224.1 5.4 2.2
30. Net Profit/Equity 17% 24% 12% 12% 44% -30% 45% -25% 13% 21% 28% 1990% 28% 1%
31. EBIT/Interest Expense 9.7 8.7 8.6 2.8 12.8 2.2 6.8 -1.4 3.5 N/A 12.2 28.6 3.5 2.7
32. EBITDA/Revenue 35% 12% 9% 24% 41% 3% 10% 7% 36% 57% 21% 13% 4% 10%

Source: Compiled from company annual reports.

Note: N/A = Not applicable; NM = Not meaningful, negligible amount. aColumn totals may not add to 100 due to rounding.

This document is authorized for use only in Dr. Narender Vunyale's Financial Statement Analysis - Trim IV at Narsee Monjee Institute of Management Studies (NMIMS) from Jun 2023 to Dec