Its average sales per day were $ 668.49 during 2008 and its average collection period was 99 days. This represented an improvement from the average collection period of 105 days in 2005. 3. SciTronics apparently needed $ 29,000 of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $ 74,000.
The profit percentage of assets varies by industry, but in general, the higher the ROA the better. We can see a good trend over years in the company. Comments: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. The formula for ROE is: ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital.
The device is assembled by the Taiwanese firm Inventec Corporation in Mainland China. The analysis by Linden, Kraemer, and Dedrick indicates that out of a suggested retail price of $299, the cost of all components of the iPod is $144. Of the $155 price difference, $80 accrues to Apple and $75 to the distributor and retailer. Apple’s value is the single largest component and is larger than that associated with the most expensive physical component, Toshiba’s hard drive. This value of Apple represents the company’s considerable competitive advantage in product conception, design, and marketing.
The current ratio increased because there was a considerable increase in Cash and other current assets. Meanwhile, current liabilities remained unchanged. 3. What was the Net Sales in 2011, 2010, and 2009? How does Net Sales change during these three years?
Fin 517 Ch. 15 Notes Debt and Taxes 15.1 The Interest Tax Deduction 1. interest tax shield – additional amount that a firm would have paid in taxes if it did not have leverage. Interest tax shield = corporate tax return X interest payments 2. because interest expense is tax deductible, leverage increases the total amount of income available to all investors 15.2 Valuing the Interest Tax Shield 1. when a firm uses debt, the interest tax shield provides a corporate tax benefit each year. 2. Because the cash flows of the levered firm are equal to the sum of the cash flows from the unlevered firm plus the interest tax shield, by the Law of One Price the same must be true for the present values of these cash flows.
In quite stark contrast to their liquidity and profitably, Elker has shown to be quite adept in managing their inventory and collecting receivables. Their days-in-inventory ratio is almost five days under the industry average. This formula is used to determine how quickly a company is converting their inventory into sales. A slower turnaround on sales may be a warning sign that there are problems internally, such as brand image or the product, or externally, such as an industry downturn or the overall economy. The fact that they are significantly under the industry average indicates that Elker is more effectively converting their inventory into profit.
* It is the third largest mobile phone manufacturer following Samsung mobile and Nokia. * Apple went public in 1980 and by 1982 it hit $1 billion in sales becoming the first manufacturer of personal computers to make such revenue. * With over 13,500 employees all over the world, the labor policies of this giant have been the source of much complains and criticism. * All over the world, apple distributes and sells products via a channel of online stores, sales offices, authorized dealers and using
Apple Inc: Performance in a Zero-Sum World Economy Introduction On November 1st, 2010 – John Tarpey, Senior Financial Analyst was hired for full 2010 financial analysis of Apple Inc. The basic questions he deemed worthy of investigating were how Apple’s performance is continuing to be outstanding, while the world and U.S. economy was flat to negative, and whether Apple will be able to sustain this high level of performance and major innovation Apple Inc.’s Company Background The main information regarding Apple Inc. is as it is shown on the table below: Company History * The Founders Build a Company: 1976-1984: The company was founded on April 1, 1976 by Steve Jobs and Steve Wozniak in Steve Job’s garage with a seed money earned from the sale of Job’s minivan. * Professional Managers Fail to Extend the Company: 1985-1997: Jobs wanted to take the company in a risky direction, but no one was on board 14 year leave of Jobs resulted in company struggles and high turnover in top management. * Jobs Leads Apple “Back to the Future”: 1998-2001: Apple introduced the iPod; thus creating a new market and re-opened Apple retail stores. Jobs takes his 1st leave from the company in 2009.
[pic] An Attempt to understand the Case Study on Creativity at Apple Abstract Apple is known for their innovative products such as the Macintosh computer, ipod, ipads and the first legal, digital music store for downloading songs- iTunes. Apple Inc. is a multinational corporation which was previously known as the Apple Computer Inc. for its first 30 years of operations. But Throughout the past two decades, Apple is gradually losing market share in the Personal Computer market. Their market position has dropped from 1st to 9th position within 2 decades in largest Personal Computer (PC) firms. Their level of profitability has also significantly decreased from 20% to merely 0.4%.
This paper will try to shed some light on the matter thru past and recent articles from analysts and insiders that has attempt to decipher Apple’s recipe for success. Apple is a computer and software manufacturer that also sells digital content as: books, music, operating systems and software applications (Apple.com, 2013, p. 1). The 2013 Fortune 500 global company list ranks Apple as #17 (Money.cnn.com, 2013). According to Badenhausen from Forbes (2013), Apple is the most valuable brand in the world, “Apple is the most valuable brand in the world for a third straight time at $104.3 billion, up 20% over last year. It is worth nearly twice as much as any other brand on the planet by our count.” (para.