3.1 Health Products Analysis of Financial data for Company A and B Company A is a diversified pharmaceuticals manufacturer that deal with the counter drugs, health, beauty aids and medical devices while Company B is the company that develop, manufacture and markets patented pharmaceuticals products. The major differences in terms of strategic wise (product mix and customer focus) is that Company A sells many of their products directly to the customer while Company B sells almost exclusively to institutions and doctors. The financial analysis of both companies are divided into few aspects. Firstly, is about intangibles percentage. Company B has the highest intangible than Company A which may reflect the investment of research and development in company B is obvious. The ownership of patents and investments in licensing arrangements also contribute to the higher intangibles percentage. Secondly, gross margin from Company B has about 12% more than Company A. This explain the higher input costs for medical diagnosis, devices products from Company A. Thirdly, the inventory turnover from Company A is more than Company B. This reason due to Company A markets its consumer products to retailers which have higher turnover orientations while Company B sells almost exclusively all their products to institutions and pharmacies (take longer time to exhaust their supplies). Fourthly is about the net profit margin. The products from Company A are branded consumer products while the products from Company B are patented products which consider have protection prescription and safe policy from research and development efforts. Thus Company B has the highest net profit margin than Company A. Recommendation Company A should continue to penetrate its market in order to sustain the margin percentage. However, cost-benefit considerations should also be considered such that if maintaining its market would entail more cost and will provide less benefits, it would be advisable to reduce the number of its subsidiaries. For an example, Company A should establish their own research and development team to increase their net margin percentage. Company B should expand its market. It can be achieved by having advertising projects aimed to mass market their product in an effort to attract more consumers and generate larger revenue. 3.2 Beer Analysis of Financial data for Company C and D Company C is a company that produced and market numbers of mass-market beers nationally while Company D is a company that produced a seasonal, year-round beer with small production volume and higher prices. The investigation of financial analysis for both company explained into few aspects. Firstly, in terms of cash and short-term investments percentage, Company D has higher proportion of cash, where the cash equivalents demonstrate the company high conservative approach to its financial management. Secondly, the net fixed assets for Company C is higher than Company D due to other holdings such as theme park. Thirdly, gross profit versus net profit aspect where Company D has the higher gross profit compared to Company C due to premium pricing of its brews versus the mass marketing approach. Company C has the highest net profit margin due to the larger scale achieved in the economics scale of Company C. Fourthly, the current ratio for Company D is three times higher than Company C which illustrate a good financial approach. Fifthly is about debt to assets and equity. Company D has less debt financing which demonstrates the commitment of company to financial conservative policies. Sixth is about inventory turnover where Company C has the highest compared to Company D. Recommendations Company C should implement proper financial approach by considering the debt financing from the other holdings as an example. The company also need to continue to penetrate its market in order to sustain the margin percentage. Company D need to expand their products into the market as a daily basis product not a seasonal product to expand opportunities to sell products more. Since Company D has a good financial management, thus there is no problem for the company to continue to expand their market more as daily basis.