Data Detective Simulation PDF

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data detective stimulation.. project done in the year 2020/2021...

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Data Detective Simulation First Round: Target: I am very confident with this decision. The reason being is based on the 22.2% of inventory whereas the rest of the accounts have 0.0% of inventory. Also, it has the most property, plant, equipment with 64.2% which is understandable considering this company sells furniture and other items related to this category. Lastly, I was convinced that Target fit into this data set because it is the only row that shows a number for both inventory and days inventory held. Spotify: I was second most confident about this company based on a few reasons. First off, it made sense to me that Spotify would be the least likely to have property, plant, and equipment. For this category, Spotify maintained a 0.8% which was in fact the lowest out of all companies. Secondly, the cost of goods sold was 0.0% which means that Spotify does not sell goods which is understandable. The part that confused me a little is how Spotify has the highest net income out of all companies. After thinking about it, I thought this could be true as Spotify is a very popular platform in today's society and does not have a lot of expenses they need to apply. Marriott: The first category that drew my attention about Marriott was the selling, general, and administrative expenses at 47.0%. This was the highest out of each company. I think this makes sense because Marriott would be likely to spend extra money on these sorts of expenses to gain customer attraction. After analyzing this category, I moved towards cash to see they had 23.4%. I think this is appropriate as they are a hotel industry that would likely gain a lot of cash in their business processes. Lastly, to confirm that this company fits in this spot, I looked at the accounts receivable to see that it had 8.8%. This was one of the highest which makes sense as customers often reserve their hotel room and pay at a later date. Wells Fargo: Wells Fargo and The New York Times were the final companies, so I chose Wells Fargo for this row. After putting Wells Fargo here, I went to look at ROE ratio which was 30.20%. I believed this to make sense as ROE represents the amount of money shareholders invest into a business. With this, considering Wells Fargo is a financial institution, I think there would be a relatively high percentage of ROE. Wells Fargo also has the lowest general, selling, and administrative expenses which I would believe to make sense because a financial institution would not require a lot of these sort of expenses. The New York Times: For this company, it was the last spot to be filled. I started with R&D seeing how it involved the most at 9.7%. With this, the others maintained 0.0%. I think with a newspaper company, it would involve a lot of research and development expenses as it involves the news and researching about various different topics and developing headlines. Next, my attention was greatly brought towards the -30.30% net income. I was not completely certain as to why this would be in the negatives but comparing it to the other companies, I think this company would be the most likely to do the poorest in terms of income considering they are a newspaper company and would not bring in a lot of income. 

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Second round: American Express: (First one I chose) To begin, I wanted to start with the service type companies in which American Express stuck out to me. I proceeded to look towards the inventory where there was 0.0% which is true for any service company. Afterwards, I analyzed the accounts receivable and noted that for a credit card company, this would likely be high considering people always owe money on their credit cards. Chipotle: (Fifth one I chose) My attention was drawn to this row next as I observed a very high inventory turnover of 256.5x. This would be true as food chains would turnover their food often since it can go bad quickly. Relating to this, I think it would be applicable to note how the inventory is also low at 0.1% as their food would be quickly in and quickly out by selling to customers. Toyota: (Seventh one I chose) For the last two, it was between Toyota and Marriott. I chose Toyota for this row because it has a high property, plant, and equipment, and I think this would be much higher for a car company rather than a hotel company. I also observed that the days sales outstanding was 3.3 which likely means they sell mostly to individuals which makes sense in this case as a lot of individuals buy cars. Salesforce.com: (Second one I chose) Secondly, I proceeded to work with Salesforce.com as it is also a service company. My attention was brought to this one after American Express as it has 0.0% inventory as well. What was very notable here was the cash being the lowest out of each company which was difficult for me to understand, but my guess is that the cash they receive from customers would be immediately put into their technologies in order to keep them updated. Southwest: (Fourth one I chose) Although I suspected that Southwest would have 0.0% inventory, I was faced with the challenge of trying to analyze the three other service companies and attempt to guess where each one fits best. Furthermore, I decided that Southwest would have to fit this row which was majorly based on the fact that it had the highest property, plant, and equipment. Considering airlines have plenty of airplanes and other related equipment, I think this made sense. Although this is a service company and it should barely have inventory, I thought the 1.7% here could represent inventory such as food-related items on board, bags on the airplane, magazines, cups, etc. General Motors: (Sixth one I chose) The last three were stragglers for me. I decided to put General Motors here as they have a high inventory. I think this would fit here because they would have lots of different parts on hand at all times. I also noticed that the inventory turnover is low which makes sense as they would not have to turnover their inventory quickly as the automobile parts and related items would not go bad.

Thomson Reuters: (Third one I chose) This is when things began to get a little tough for me as I knew Thomson Reuters was a service company in order to fit the last row with 0.0% inventory, but then looked towards Southwest and realized they were also a service company and would likely have 0.0% inventory as well. Furthermore, I decided to choose this one to fit this particular spot because of the accounts receivables being 0.0%. The reason I think this is appropriate is because it is a news agency and customers of Thomson Reuters would not owe money as they buy/pay for their subscriptions right away. Marriott: (Eighth one I chose) This was the last company left. I am very unsure with this one as a few different accounts do not make sense such as goodwill being 0.0%- because I would expect a hotel business to have high customer loyalty. But the days inventory is held is high at 38.1 which suits Marriott as they would not have to turnover their inventory very often as they have permanent items such as beds, desks, lamps, phones, bed sheets, etc. 

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