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What Is Core Logic Case Analysis

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By an initial view of the Core Logic’s ratio results and the industry’s one can presume that Core Logic is suffering in multiple categories however these figures are deceiving. The greatest ratio deficit between Core Logic and the rest of the industry is the return on equity ratio. The average industry percentage was 102% while Core Logic sits at 2.8%, however that is because one competitor specifically has a percentage of 1200, which lifts the industry average up. If we subtracted that group the industry average would be 18.8%. However Core Logic is still on the lower end of the Industry. Another ratio Core Logic is lower than the industry average is the Profit Margin. Here, the average is 10.8% where Core Logic is at 7.3%, this
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In regards to the return on assets Core Logic again falls short with a .8% to the industry average 7%, here the industry shows about half are well above 10% while the other half are below 6%. The Current Ratio of Core Logic is 0.97 while the Industry is at 1.15, here Core Logic is closer to meeting the Industry average than the previous ratios. The same figures would be used for the quick ratio since both Core Logic and the industry don’t have inventory and because they don’t have inventory there are no inventory turnover ratios that apply. The company’s asset turnover ratio is at .40 whereas the industry average is at .77, in this category they’re tied for the lowest turnover rate, which shows their lack of performance in terms of revenue production. The last ratio comparison is the receivables turnover, where Core Logic has a turnover rate of 5.87 while the industry average is at 6.77. This could be suggesting that the company’s total sales…show more content…
Core Logic is lacking in its Net Income, which is why their percentage is so much lower than the other companies in the industry. If we were to increase their net income (change the numerator) their Return on equity would be higher and would make investors happier with a faster and higher return rate. Profit Margin’s for the data and information’s industry aren’t very high on average however Core Logic is 3% lower which suggests in theory that they’re missing three cents of profit for every dollar of revenue which in the long term hurts the company . I would recommend figuring out a way of increasing the company’s Net Income (Numerator of fraction) to increase the company’s profit margin; but by doing that it will affect both the return on assets and return on equity positively. By increasing the net income it will directly increase the ratio figures for each group, which is a positive effect since it helps those values close in on the industry average. Another area the company is lacking is in terms of their return on assets, they’re just above the positive percentage threshold, the return on assets shows the value of the company based on it assets and
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