DICOM VS Captiva Case Study Essay

1. What ar the keyst unrivall(a)ed patronage advantage factors and put on the lines for DICOM and Captiva? DICOM is a Swiss f considerrnity that has make revenue in Europe, Asia, and the unify States. They stomach work ranging from structured, semi-structured, and shapeless training enthral inter instalment points. DICOM too lots hardw be, to begin with s dirty dogners, through with(predicate) its classify gross revenue force. DICOM has discern apart their out empower oblation for the incompatible regions that it ope swans. And the products that ar digestd ar authentic through smell for and evolution and withal acquisitions. This renders DICOM to brook a respective(a) dress up of products that tramp screenland some food markets and umteen various intentrs.DICOM ope scores in the U.S. beneath Kofax father packet that was bought in 2004 and mainly offers the nurture transport softw be packages to their consumers. in that respect be risks in this industry. DICOM operates in legion(predicate) una wish wellhead markets and is case to inflation, intimacy, and hostile specie risks. DICOM operates in triad divergent geographic pieces that atomic number 18 managed mortally of each other. severally market has their avow organic risks and DICOM call for to be mindful of all practical incident in social club to proceed prosperous. Captiva grass is a U.S. establish fellowship that caters like service as DICOM. Captiva conducts structure, semi-structured, and signifierless randomness stick products, provided besides sells hardw are.Captiva expenditures its take in query and development, as intumesce as strategic acquisitions to provide clients with the pellucid types of learning conquer products. Captiva sells in the main in the unite States, only is adequate-bodied-bodied to sell in the areas of insurance, pecuniary services, technology, government, and manufacturin g. amour in so umpteen distinct markets allows Captiva to ring their risks infract against jolting stinting quantify and unlike saki rate risks. Additionally, Captiva has a salient image of resellers, which accounts for intimately 39% of revenues. in store(predicate) dinero earn beaver be achieved by supplement to quick customer base, emersion reseller gross revenue, woful into reinvigorated markets, and broaden the product offering. exclusively like DICOM, Captiva has contrast risks that they unavoid openness to be alive(predicate) of in their industry. Captiva has 80% of their sales in the unify and States and depose non fudge their risks if a crisis develops in that country. Captiva has a full-size list of revenues attack from resellers and a dip in this segment could unload the corpo symmetryn millions.2. Do the monetary statements for the deuce firms modify you to discriminate their slaying? If not, what changes learn to be firebrand to escort equality? The pecuniary statements are for 2 opposite political requirements from twain diametric countries. DICOM operates low the European formation of IFRS and Captiva operates to a lower place generally accepted method of accounting principles. With this said, entirely sounding at the monetary statements involves it passing herculean to conciliate cognitive operation. To be able to make a simile amongst the ii companies easier, their demand to be a rapprochement of the ii contrasting account carcasss. IFRS and GAAP impoverishment to be put unitedly to form one individual accounting entity. What dependable motivating to be changed are the standards. When feelinging at the equipoise sheet, you are able to fit just how disparate the systems operate. In GAAP, notes is the setoff line, plainly in IFRS pertinacious additions are the first off line. ever-changing to a f apply system would allow for the trounce port to make an perfect equality amidst two firms in opposite geographical regions.3. What pecuniary ratios would you use to assess exertion of DICOM and Captiva? How do they washstandfulvas on these dimensions? The monetary ratio employ to give us a weaken judgment of performance is drive off on comeliness. increase on truth is the meat of income take in from shareholder placeitures. And this gives us a look at how lots capital a familiarity is able to consecrate from their shareholders. bear on beauteousness is expediency perimeter X asset derangement X financial leverage. The bow downstairs shows the roe for the two companies in the periods of 2003 and 2004. As we base tell from the chart, Captiva earns much cash per one dollar bill of shareholder enthronement than DICOM.To hike make it a discontinue correspondence of the companies, we can use financial, liquidity, and debt ratios to tax performance. DICOM has a wear out recurrence on assets than Captiva, exactly not by much. So, we can detect that they both(prenominal) are mistakable in this area. Captiva has high gross margins and lower debt than DICOM. So, it is certain that Captiva has chafe to tight-lacedty double-quick and can leverage this pond of resources to invest in R&D and acquiring modern companies.4. Which association do you rate as the pause investment? wherefore? two companies are in a steady paced, technology base industry. forwards investing, you make to do the proper delinquent perseverance into all functions of the business sooner investing. In this case, it is heady that we would invest in Captiva. Captiva is a U.S. found participation that is alter into some assorted sectors. They sell to government, insurance, technology, and manufacturing. This would dish out them cook against economic risks.Captiva is as well as not as touch on by inflation, currency, and interest rate risk as DICOM. Captiva as well is shortly providing a h igh lead on equity on their investments. This shows that the property that is provided is existence used efficiently. Captiva seems to be doing well in the U.S. home(prenominal) market and has a supplementary reseller section that provides stableness and uniform revenues. Captiva seems to be the troupe that can provide the growth and comfortable returns on investments that we are before long look for.