MYSTERY CORPORATIONS USA
CASE STUDY SOLUTION
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SYNOPSIS
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The exercise provides students with common size balance sheet data and financial ratios for companies in
distinctive industries and asks them to identify the appropriate industry based solely on the data.
The purpose of this exercise is to provide students with exposure to how company financial statements and ratios
differ based on the industry. Students can use their understanding of various financial statement line items and
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ratios in conjunction with common knowledge about the business operations of companies in different industries.
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For example, a capital intensive business, such as the railway industry, should have a higher percentage of
property, plant, and equipment (PPE) in their balance sheet compared with a consulting company.
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OBJECTIVES
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• Increase students’ understanding of financial ratios and balance sheet composition of companies in
distinct industries.
• Increase students’ understanding of the inputs to basic financial ratios.
• Expose students to the financial information of prominent American companies.
The Case Solution Starts From page 3
, ANALYSIS
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# Industry Company Name
1 Railway Services Union Pacific Railway (UNP) B
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2 Meat Product Processor Tyson Foods (TSN)
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In this exercise, the key is for students to identify the few financial metrics that set apart the different
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industries/companies. Identifiers are listed below in order of difficulty:
Easy: Students should be able to narrow down B and F, with relative ease, to the railway industry services
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and technology consulting industry, respectively, because of their lack of inventory. To further identify the
two industries, students should be able to identify that the railway industry company should have a higher
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number describing its percentage of PPE. If students are familiar with the consulting industry, the higher
percentage of accounts receivable should also be an indicator.
Medium:
Hard:
The Case Solution Starts From page 3
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
The exercise provides students with common size balance sheet data and financial ratios for companies in
distinctive industries and asks them to identify the appropriate industry based solely on the data.
The purpose of this exercise is to provide students with exposure to how company financial statements and ratios
differ based on the industry. Students can use their understanding of various financial statement line items and
n
ratios in conjunction with common knowledge about the business operations of companies in different industries.
tio
For example, a capital intensive business, such as the railway industry, should have a higher percentage of
property, plant, and equipment (PPE) in their balance sheet compared with a consulting company.
lu
OBJECTIVES
So
• Increase students’ understanding of financial ratios and balance sheet composition of companies in
distinct industries.
• Increase students’ understanding of the inputs to basic financial ratios.
• Expose students to the financial information of prominent American companies.
The Case Solution Starts From page 3
, ANALYSIS
e
pl
# Industry Company Name
1 Railway Services Union Pacific Railway (UNP) B
m
2 Meat Product Processor Tyson Foods (TSN)
3
Sa
4
5
6
7
n
In this exercise, the key is for students to identify the few financial metrics that set apart the different
tio
industries/companies. Identifiers are listed below in order of difficulty:
Easy: Students should be able to narrow down B and F, with relative ease, to the railway industry services
lu
and technology consulting industry, respectively, because of their lack of inventory. To further identify the
two industries, students should be able to identify that the railway industry company should have a higher
So
number describing its percentage of PPE. If students are familiar with the consulting industry, the higher
percentage of accounts receivable should also be an indicator.
Medium:
Hard:
The Case Solution Starts From page 3
