Company G deals mostly in selling books in a large retail setting, however they implement a concept that is more community-based. Company H deals in a variety of media, including books, music, and video along with electronics and other varieties of merchandise. Not only does Company H differ in merchandise variety, but it also differs from Company G in that it is internet-based only and is highly interested in further corporate acquisitions—very different from Company G’s “community store concept”. Bruner, Eades, & Schill, 2010, pp. 96-97).
Since Company H has a variety of merchandise to sell, along with its interest in acquisitions; it has a significantly higher level of net fixed assets than that of Company G. Acquisitions will always increase the level of net fixed assets. Since Company G tends to implement a strategy that does not favor large acquisitions, its level is lower at a level of 7. 6 versus 24. 4 in Company H.
Company H also exceeds Company G in most of the liabilities section, which automatically gives Company H a leg up in being able to take on more liabilities such as credits and loans. However, Company G comes out winning in terms of income and expenses, with a net income of 8. 5%. Company H’s net income ended at 2. 9%. This also relates to lowered percentage of SG&A expenses on Company G’s side, higher interest income, special items income, and its lower percentage of income taxes.
The Essay on Foreign Companies Chinese Market Level
China has a lot of promises to honor after entry the WTO, such as lowering the tariff level, canceling 400 import quotas, and allowing foreign companies investing into our telecommunications, banking, insurance, and tourism sectors. The Chinese government will also relieve the red tap for both the Chinese and foreign companies to do business in China. The first challenge is the sharp competition ...
Company G is also considered to be more liquid than Company G, with a current ratio of 1. 57 versus Company H’s 1. 49. This indicates that while Company G has more liabilities, it is better-able to pay its short-term liabilities than Company H. It is understandable why Company H keeps its liabilities slightly lower so that they do not become overwhelmed with short-terms loans and notes that it will not be able to pay back on time.
