This is a description-based case. The primary source of data for Loftin Distribution was information provided by the company’s officials; the main source of data for the other companies was annual filings with the Securities and Exchange Commission. The name “Loftin Distribution” was a fictional name to disguise the actual name of the business. The rest of the information is authentic. Loftin Distribution, an industrial distribution company, specialized in materials handling components and related parts and services. Loftin operated in a mature industry, which was sensitive to economic downturns. Financial and non-financial information is given for Loftin Distribution, a partnership, and Applied Industrial Technologies, a corporation and one of Loftin’s chief competitors. Students are asked to analyze each company’s performance, using trend analysis, ratio analysis and common-sized statements. They are asked to consider how the difference in the form of organization might impact their analyses, and what adaptations they might make to the ratios to make them comparable. Students are asked to express an opinion regarding usefulness of the income statement compared to the cash flow statement in assessing a company’s performance. Additionally, students are asked to consider the usefulness of segment information provided by Motion Industries, another competitor of Loftin. Students are required to draw a conclusion regarding whether Loftin or Applied Industrial Technologies fared better in the recession and express an opinion regarding Loftin’s business model.