'DICOM VS Captiva Case Study Essay\r'

'1. What are the key rail line success factors and risks for DICOM and Captiva? DICOM is a Swiss corporation that has sales in Europe, Asia, and the United States. They depart services ranging from structured, semi-structured, and shapeless selective information enamour products. DICOM too manages hardware, primarily s baseners, through its assort sales force. DICOM has dissimilariated their product go for the assorted regions that it ope grades. And the products that are provided are authentic through research and development and to a fault acquisitions. This allows DICOM to provide a diverse round of products that tramp cover some(prenominal) markets and umpteen several(predicate) users.\r\nDICOM operates in the U.S. to a lower place Kofax produce software that was bought in 2004 and primarily offers the information capture software’s to their consumers. on that point are risks in this industry. DICOM operates in some(prenominal) dissimilar markets and is subject to inflation, interest, and foreign bills risks. DICOM operates in three different geographic plane sections that are managed independently of each other. severally market has their own inherent risks and DICOM involve to be conscious(predicate) of every mathematical circumstance in order to watch prosperous. Captiva Corporation is a U.S. based company that provides similar services as DICOM. Captiva sells structure, semi-structured, and unstructured information capture products, but also sells hardware.\r\nCaptiva uses its own research and development, as healthy as strategic acquisitions to provide customers with the different types of information capture products. Captiva sells primarily in the United States, but is able to sell in the areas of insurance, m geniustary services, technology, government, and manufacturing. Involvement in so many distinct markets allows Captiva to parry their risks best(p) against harsh economic quantify and different interes t rate risks. Additionally, Captiva has a large chain of resellers, which accounts for nearly 39% of revenues.\r\nFuture profits will scoop out be achieved by leveraging to alive customer base, increase reseller sales, moving into modernistic markets, and broadening the product offering. But worry DICOM, Captiva has business risks that they take in to be aware of in their industry. Captiva has 80% of their sales in the United and States and cannot set back their risks if a crisis develops in that country. Captiva has a large amount of revenues advance from resellers and a drop in this segment could lose the company millions.\r\n2. Do the fiscal statements for the deuce firms enable you to compare their deed? If not, what changes take on to be made to view comparability? The financial statements are for two different governmental requirements from two different countries. DICOM operates under the European system of IFRS and Captiva operates under GAAP. With this said, just regarding at the financial statements makes it extremely difficult to determine performance. To be able to make a similitude between the two companies easier, their needs to be a reconciliation of the two different accounting systems. IFRS and GAAP need to be put to depressher to form one individual accounting entity. What exactly need to be changed are the standards. When looking at the balance sheet, you are able to check up on just how different the systems operate. In GAAP, notes is the first line, but in IFRS quick-frozen assets are the first line. Changing to a consolidated system would allow for the vanquish way to make an accurate coincidence between two firms in different geographical regions.\r\n3. What financial ratios would you use to say performance of DICOM and Captiva? How do they compare on these dimensions? The financial ratio used to seduce us a better sagacity of performance is return on equity. egest on equity is the amount of income make from shareho lder investments. And this gives us a look at how much money a company is able to generate from their shareholders. hand over on equity is profit edge X asset turnover X financial supplement. The table below shows the hard roe for the two companies in the periods of 2003 and 2004. As we can tell from the chart, Captiva earns more money per one dollar bill of shareholder investment than DICOM.\r\nTo further get a better understanding of the companies, we can use financial, liquidity, and debt ratios to measure performance. DICOM has a better return on assets than Captiva, but not by much. So, we can determine that they both are similar in this area. Captiva has higher(prenominal) gross margins and lower debt than DICOM. So, it is predictable that Captiva has advance to money luxurianter and can leverage this pool of resources to invest in R&D and acquiring sensitive companies.\r\n4. Which company do you rate as the better investment? WHY? two companies are in a fast paced , technology based industry. Before investing, you need to do the proper due perseverance into all functions of the business before investing. In this case, it is decided that we would invest in Captiva. Captiva is a U.S. based company that is diversified into many different sectors. They sell to government, insurance, technology, and manufacturing. This would help them hedge against economic risks.\r\nCaptiva is also not as affected by inflation, currency, and interest rate risk as DICOM. Captiva also is before long providing a higher return on equity on their investments. This shows that the money that is provided is cosmos used efficiently. Captiva seems to be doing well in the U.S. domestic market and has a secondhand reseller section that provides stability and consistent revenues. Captiva seems to be the company that can provide the growing and sufficient returns on investments that we are currently look for.\r\n'