| Company | Code | Industry | Rationale |
| 12 | A | Airline | Very high PP&E, low inventory |
| 14 | B | Bank | Lot of cash, no inventory |
| 7 | C | Brewery | High margins, pretty even assets, buy mostly PP&E |
| 10 | D | Department Store | High PP&E, inventory and receivables |
| 4 | E | Discount Retailer | process of elimination, last option |
| 11 | F | Fast Food Retailer/Franchisee | Most assets are PP&E and invetory, low receivables, low margins |
| 5 | G | Food Products Manufacturer | High PP&E |
| 9 | H | Insurance Company | No inventory, high receivables and investments |
| 8 | I | Internet Retailer | Low PP&E, high days inventory |
| 3 | J | Internet Service Provider | No inventory, high PP&E |
| 6 | K | Oil Company | Biggest asset is PP&E, high gross margin |
| 2 | L | Pharmaceutical Manufacturer | High PP&E, high gross margin |
| 1 | M | Securities Brokerage | High investments, no inventory |
| 13 | N | Software Manufacturer | Highest intangible assets |
| I started this process with studying the PP&E and inventory amounts. Eliminating the industries with no or very little inventory was a good start. Then I went by what industries require the greatest amounts of PP&E to operate. A few industries stood out on just one ratio. The industry with the highest percentage of investments I matched with securities brokerage. The highest percentage of intangible assets I matched with software manufacturer. Most others fell into place by process of elimination. The line items I focused on were receivables, PP&E, inventory, quick ratio and the margins. |
Ken.S
IdentifytheIndustries.xlsx
