Subject category:
Finance, Accounting and Control
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 3 May 2022
Length: 4 pages
Data source: Published sources
Abstract
This case explores a way to identify an industry by simply examining a set of financial ratios. Certain industries have unique financial statement items and, hence, unique financial ratios. Some, on the other hand, have a few financial ratios that are consistently high or low. Students will grapple with practical questions on the identification of various industries simply by analyzing sets of financial ratios. In a practical context at school or workplace, students will then be able to reverse the process, ie, to identify and apply financial ratios to certain significant industries, such as a stock exchange, banking, insurance, oil and gas, IT consultancy, e-Commerce, and pharmaceutical.
About
Abstract
This case explores a way to identify an industry by simply examining a set of financial ratios. Certain industries have unique financial statement items and, hence, unique financial ratios. Some, on the other hand, have a few financial ratios that are consistently high or low. Students will grapple with practical questions on the identification of various industries simply by analyzing sets of financial ratios. In a practical context at school or workplace, students will then be able to reverse the process, ie, to identify and apply financial ratios to certain significant industries, such as a stock exchange, banking, insurance, oil and gas, IT consultancy, e-Commerce, and pharmaceutical.