Analyzing Performance of Like Games Inc. and Our Play Inc.
Analysis of Company Performance:
Days of Sales Outstanding (DSO): The DSO is a measure of how quickly a company is able to collect cash from its customers. A lower DSO indicates a more efficient credit and collection policy. Like Games has a DSO of 9.9 days, while Our Play has a DSO of 14.2 days, both higher than the industry average of 5.5 days. This shows that both companies can improve their credit and collection policies to collect cash more swiftly.
Fixed Assets Turnover Ratio: Our Play's fixed assets turnover ratio is lower than Like Games, indicating that Our Play is not generating as much revenue from its fixed assets as Like Games. This could be due to Our Play being a new company with higher acquisition costs for fixed assets compared to the recorded cost of Like Games' net fixed assets. Our Play may need to optimize the utilization of its fixed assets to improve this ratio.
Total Assets Turnover Ratio: Like Games' total assets turnover ratio of 1.05 is lower than the industry average of 1.09. This suggests that Like Games is not generating as much revenue from its total assets compared to industry peers. Like Games may need to assess its asset management strategies to improve efficiency and increase revenue generated from its total assets.