Identify the Industries

Retail grocery stores. Specialty retailer Industry
Commercial banking. Commercial banks Industry

Pharmaceutical preparations. Pharmaceuticals Industry
Commercial airline. Aerospace and Defense Industry
Computer software. Network & other comm. Equip. Industry
IT service provider. Internet services and retailing Industry
Liquor producer and distributor. Beverages Industry
Integrated oil and gas. Mining and oil production Industry
Mobile phone service provider. Telecommunications Industry
Semiconductor manufacturer. Motor vehicles and parts Industry

The procedure to find the answers: (Just compare the data of the exhibit 4 in the ITI with the data on page 12 of the “An overview of financial statement analysis: the mechanics”).

Industry 1 has the lowest Return on Sales, this is Retail grocery stores. ?
Industry 2 has the lowest Asset turnover rate, so it is a Commercial bank.
Industry 5 has the highest ROA, which Network & other comm. Equip usually has, thus it is Computer software.
Industry 8 has the highest Return on Sales, so it is the Industry of Oil production.
Industry 9’s Return on Sales, Return on Assets, Return on Equity, Asset turnover, and Leverage are all the same as the Telecommunications line’s data, thus it is a Mobile phone service provider.
Industry 10 has a negative Return on Sales, Return on Assets, hence it is a semiconductor manufacturer.

We’ve figured out the industries of 1,2,5,8,9, and 10 already. The 3,4,6, and 7 are left. Compare the data of the industries 3,4,6 and 7. We found that the Asset turnover of industry 4 is extremely high, thus it is the commercial airline. The Inventory in industry 6 is the lowest among industry 3,6, and 7. So it is an IT service provider. Compare Industry 3 and 7, 7’s Return on Assets, Return on Equity are lower, Leverage is higher. So Industry 7 is Liquor producer, and Industry 3 is the Pharmaceutical Industry.