Operations and Supply Chain Hw 1 Funda

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Company Name

Tangible Common Equity Ratio

KKR

40.93%

BLK

7.94%

BX

-1.25%

Which company is most efficient in its use of credit?

In order to determine this one would have to look at the receivable turnover ratio which represents the efficiency of a company’s collection and credit policies. All three firms have a receivable turnover ratio well above the industry average. However, KKR has the highest receivable turnover ratio which would makes its collection methods the most efficient among these three companies.

Which company makes the best use of its facility and equipment assets?

In order to answer this, one needs to look at the asset turnover ratio. Only BLK is currently below the average asset turnover ratio for the industry. BX has the highest asset turnover ratio and therefore makes the best use of its facility and equipment assets.

What insights can you draw from your analysis? What could your companies learn from benchmarking each other?

It is interesting to see some differences that stand out in the data. For example, as stated above KKR has the lowest overall revenue but overall highest efficiency. BLK and BX could definitely learn from benchmarking KKR. BLK has ten times as many employees than KKR, but the revenue difference is not that much if you look at it form a broad scope. Benchmarking will allow the firms to identify their weaknesses and areas which need the most improvement. It will allow the firm to identify where exactly efficiency can be increased and if there are any different ways to do things.

Website used for Data Collection: www.marketwatch.com and www.cismarket.com