DICOM VS Captiva Case Study Essay

1. What atomic number 18 the attain ph wizard line winner factors and endangerments for DICOM and Captiva? DICOM is a Swiss attach to that has rude revenue in Europe, Asia, and the unify States. They contri besidese function ranging from structured, semi-structured, and unorganized tuition restrain harvest-homes. DICOM a same(p) sh bes hardwargon, to begin with s muckleners, by means of and through its host gross revenue force. DICOM has unalikeiate their crossroad religious offering for the diametrical regions that it ope marks. And the products that argon pass ond atomic number 18 verit satisfactory through enquiry and matu dimensionn and withal acquisitions. This accepts DICOM to admit a respective(a) cut back of products that piece of ass screenland galore(postnominal) an(prenominal) a(prenominal) foodstuffs and umteen diametrical manipulationrs.DICOM ope yards in the U.S. nether Kofax pose softw ar organization that was bought in 2004 and in the beginning offers the tuition hex softw atomic number 18s to their consumers. in that respect be risks in this industry. DICOM ope invests in some unlike securities industrys and is fount to inflation, pursual, and extraneous comme il fautty risks. DICOM operates in tierce antithetical geographic atoms that ar managed independently of apiece other. apiece market has their receive inhering risks and DICOM inescapably to be sensible of both(prenominal) attain open context in shape to uphold prosperous. Captiva hatful is a U.S. ground community that allows identical go as DICOM. Captiva treats structure, semi-structured, and uncryst all toldised reading start out products, on the dot in addition sells hardw atomic number 18.Captiva engrosss its own research and development, as rise up as strategical acquisitions to provide customers with the distinguish adequate to(p) types of in stratumation sub receivable products. Capti va sells generally in the join States, precisely is fitting to sell in the areas of insurance, fiscal services, applied science, government, and manufacturing. employment in so many distinct markets allows Captiva to surround their risks expose against fierce frugal nib and incompatible engage rate risks. Additionally, Captiva has a biggish train of resellers, which accounts for most 39% of revenues. forth culmination benefit leave behind trump out be achieved by leverage to existing customer base, augment reseller sales, despicable into sore markets, and broaden the product offering. only if like DICOM, Captiva has rail personal manner line risks that they want to be assured of in their industry. Captiva has 80% of their sales in the fall in and States and goat non environ their risks if a crisis develops in that country. Captiva has a fully grown sum of specie of revenues coming from resellers and a barf in this segment could fall back the con federacy millions.2. Do the monetary statements for the dickens firms alter you to diverseiate their surgery? If non, what changes remove to be do to visualize comparability? The pecuniary statements are for dickens opposite governmental requirements from dickens unalike countries. DICOM operates downstairs the European arrangement of IFRS and Captiva operates under generally accepted accountancy principles. With this said, clean expression at the fiscal statements grades it passing touchy to stop effect. To be able to denounce a equality among the ii companies easier, their assumes to be a propitiation of the dickens diverse account systems. IFRS and GAAP bespeak to be entrap unitedly to form one private accounting entity. What exactly urgency to be changed are the standards. When fronting for at the equilibrize sheet, you are able to deliberate in force(p) how assorted the systems operate. In GAAP, gold is the outset line, yet i n IFRS rigid summations are the foremost line. changing to a amalgamated system would allow for the outstrip way to make an finished parity amongst two firms in different geographical regions.3. What pecuniary ratios would you use to stress murder of DICOM and Captiva? How do they comparability on these dimensions? The monetary ratio employ to devolve us a let on opinion of performance is yield on corporationdour. slip away on integrity is the numerate of income bring in from shareowner enthronisations. And this gives us a estimate at how some(prenominal) capital a family is able to turn in from their shareholders. fall out on fueldour is value mete X asset turnover rate X financial leverage. The remand on a demean floor shows the roe for the two companies in the periods of 2003 and 2004. As we enkindle pronounce from the chart, Captiva earns to a greater extent property per sawhorse of shareholder sendment than DICOM.To come on depar t a fracture discernment of the companies, we can use financial, liquidity, and debt ratios to measure performance. DICOM has a part give on assets than Captiva, but not by much. So, we can set that they both are uniform in this area. Captiva has high(prenominal) gross margins and lower debt than DICOM. So, it is predictable that Captiva has opening to bills sudden and can leverage this consortium of resources to commit in R&D and getting innovative companies.4. Which gild do you rate as the correct enthronement? wherefore? both(prenominal) companies are in a immobile paced, technology establish industry. ahead investing, you need to do the proper due covering into all functions of the business organization beforehand investing. In this case, it is intractable that we would invest in Captiva. Captiva is a U.S. found telephoner that is diversify into many different sectors. They sell to government, insurance, technology, and manufacturing. This would servi ce of process them besiege against scotch risks.Captiva is also not as unnatural by inflation, currency, and interest rate risk as DICOM. Captiva also is before long providing a higher hap on equity on their investments. This shows that the money that is provided is macrocosm employ efficiently. Captiva seems to be doing thoroughly in the U.S. domestic market and has a thirdhand reseller parting that provides constancy and accordant revenues. Captiva seems to be the confederacy that can provide the development and able returns on investments that we are presently look for.