Fortune Names Rim Fastest Growing Company in the World

Business Data Analysis

Tabel 1.0: data concerning the 30 fastest -- growing companies as listed on March 16, 2005, on the Fortune magazine website

Rank

Company

EPS Growth

Revenue Growth

Total Return

InVision Technologies

eResearch Technology

New Century Financial

Central European Distribution

eBay

National Medical Health Card Sys

Countrywide Financial

Neoware Systems

Friedman Billing Ramsey Group

Bradley Pharmaceuticals

Middleby

Hovnanian Enterprises

Websense

Sanders Morris Harris Group

Career Education

American Healthways

United PanAm Financial

FTI Consulting

Jarden

Par Pharmaceutical

Capital Title Group

Advanced Neuromodulation

46%

24%

Possis Medical

76%

38%

42%

Symantec

85%

30%

59%

25

33%

32%

Chico's FAS

47%

43%

66%

Rewards Network

29%

38%

Fidelity National Financial

64%

38%

38%

NetBank

60%

-1%

Electronic Arts

32%

24%

Source: Fortune magazine website

1. Develop a stem-and-leaf display of the revenue growth percentages for the 30 fastest-growing companies and describe the shape of the distribution.

Stem

Leaf

9

13

8

77

7

6

5

4

0334689

3

02335889

Stem-and-Leaf Display

Revenue growth percentages for the fastest growing companies show that most firms clustered in the 30% to 40% range. The remaining firms were fairly evenly distributed across the next three bands at 50%, 60%, and 70%. There is a nice short tail in the 80% to 90% bands. Only two firms performed below the median, in the 20% range. [See link for examples of many ways to construct a stem and leaf plot http://www.mrexcel.com/pc16.shtml ].

1. Develop a frequency distribution and a frequency histogram of the EPS (earnings per share) growth percentage. Then describe the shape of the distribution.

Frequency Bar-Chart

This frequency distribution is positively skewed with a long tail of moderate EPS percentages for approximately two-thirds of the companies analyzed. Of the higher performing one-third of companies in this group, three clearly had superior EPS gains.

Frequency Histogram

1. Construct a percent frequency polygon of the total return percentages and then describe the shape of the distribution.

Frequency Polygon for Total Returns by Percentage Group

Equidistant grouping for total returns percentages shows how few companies were in the highest bands for earnings, and illustrates the clustering that occurred in the mid-range. The one company with a negative total returns percentage substantively skews the charting.

1. Construct cumulative frequency and cumulative frequency distributions of the EPS (earnings per share) growth percentages. Then construct a relative frequency ogive of these percentages.

Cumulative Frequency of EPS Ogive

Cummulative Frequency Distribution of EPS.

1. Calculate and provide a clear interpretation of the price/earnings ratio for each of the companies, provide a dot plot and describe the distribution of the P/E ratios.

AP/E ratio cannot be calculated without the current share price. This information was not provided, and looking it up on Yahoo!Finance would not be likely to produce 2005 data which makes the entire exercise moot.

1. Construct a dot plot of the total return percentages for the 30 fastest-growing companies and describe the distribution of return percentages.

Total Return Dot Plot (and Scatter Plot)

The majority of firms in this set of 30 fastest growing companies cluster horizontally within a band that that represents 0% to 50% total returns. A second tier of firms appears in the band that represents 50% to 100% total returns. And a third tier of firms shows truly superior total returns in a band that represents 100% to 150%. Finally, there is one stellar company with total returns in the 200% to 250% band.