Advertising Agency Ratios

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1. Advertising agency service

Account receivables: They are working on the credit system of postpaid and long term advertisements of the company and periodic payments.

The need ppe to advertise the companies’ advertisement. I-e billboards, digital sign boards, etc.

Receivables collection: it shows the days in which amount should be collected of receivables.

1. Fast food restaurants

• Account payable: suppliers involved for their daily supplies.
• Net ppe: for making the foods place plants and equipments required.
• Account receivables: receivables from the customers or loyal potential customers
• Inventory turnover: major amount from turnover source of earning.

1. Computer software development  

Good will: the good will plays a role for market and sale a product through their good will this will help to earn premium amount.

Inventory: the industry is managing fewer inventories because they are manufacturing on daily basis and supplying in the market in very efficient manner so there is minute need of inventory of finished goods.

Account payable:  the industry is manufacturing and developing the software’s on their own plants and equipments and they are getting margin on their products so there is dire or short need of accounts to be paid in future.  That’s why there account payable head have a lesser percentage.

R&D: research and development in the computer and software industry plays a vital role in order to get the competitive edge and cope with the newest technology in the world, it is a essential part of the tech industry so they are using 17.99%.

1. Wholesale food distribution

The need lesser ppe because of wholesale stores and needed lesser shelves or marketing to advertise the product they are involved the product selling in bulk quantity.

1. Commercial banking

Account receivables: working on the receivables and collections of funds in order to rolling the money for generating their revenues, the major source of income the banks

Liabilities: the liabilities, banks have to pay out the customers either long term or short term, deposited in the banks.

1. Discount general merchandise retail

Ppe: They need more property plant and equipments because they are selling from their shelves to the customer.

Inventories: the quarter chunk of the inventory is required in order fulfill the demand of the customers when the supplies are out of stock or did not supply on time.

Inventory turnover: their inventory turnover will be in lesser than other industry because they set fewer margins on the single product so they can earn on the turnover on the products. That how much time the product is sold to the customers. It varies.

Account payable: Although they are merchants and work on a supplier relationship for long term in terms of payment of the supplies.

1. Pharmaceuticals

Ppe: the pharmaceutical industry is involved in manufacturing business of drugs, so they need 50 – 60% of plants and equipments in order to making the drugs.

R&D: the research and development also needed for the new innovative ideas and research work on medicines or formulas.

1. Wireless communication hardware, software, and services

Ppe: working on the manufacturing and services providers, they need more equipments and plants to manufacture the hardware or outsource the materials.

1. Airline

Inventory: in airline industry there is no need of inventory rather than supplies because it’s an service industry, and services cannot be stored for the future usage.