However, the company was not able to sustain the growth in sales between years 7 and 8, which resulted in a decrease in net sales of -15% or $897,000. The company’s loss in net sales in year 8 is a weakness due to overall sales being down. Cost of goods sold (COGS) between years 6 and 7 show an increase of 31.8% or $1,048M. The increase in COGS corresponds closely with the increase in net sales for the same time period, which illustrates the company’s ability to effectively control its inventory levels and material costs. For years 7 and 8, the cost of goods sold decreased by -14.5% or $630,400, which again corresponds to the change in net sales for the same period.
Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit. Also, the Return on Capital Employed had an even more significant decline – from 15.6% in Year 12 to (29.9%) in Year 14. This indicates very poor performance for FBN. In order for FBN to become profitable (efficiently, that is) ROCE should be higher than the rate at which the company borrows. In FBN’s case, their long-term debt ratios alone are 55.7% and 81.5% in years 12 and 13, respectively (and they’ve incurred interest rate increases); and ROCE in the same two years is 15.6% and 6.4%.
In 2011 the current ratio was 1.86. By 2012, it decreased to 1.77 rating in the lower second quartile group in the industry. That said, Company G’s ability to repay its debt is consistent with showing a weakness from year to year based on the industry’s quartiles of 3.1 with a strong ability to cover liabilities 2.1 at the median to 1.4 stating a weakness. As such, this is an area of concern. 2.
Current macroeconomic issues 2.1 Steady growth GDP can be seen as “the total annual output of goods and services on which aggregate demand is spent” (Sloman, 2008, p.277); it can be calculated as the sum of consumer spending, investments, government spending and balance of import and export. 2.1.1 Current issue UK has a fluctuant GDP since 2009. There is both positive and negative growth in the recent years (Trading Economics, 2013). GDP of UK shrank by 0.3% at the end of 2012, which is mainly attributed to drop in mining and quarrying industry, after maintenance delays at North Sea oil field. Manufacturing is another sector that causes the negative growth in GDP; it has decreased by 1.5% than the year before.
While gas grills were seeing a 8 percent increase since the previous year charcoal grills had dropped by 3 percent. Charcoal grill penetration was trending down since 1997 and gas grill penetration was trending up. Another contributing factor may have been a increase in price by stores to their private label brands as well as their main competitor (who also produced these stores private brands) increase their price as well. Kingsford had kept the prices the same though some stores had increased the prices on their own. Kingsford had also reduced their media presences since 1996 (because of a decrease in media spending), a direct from the text by Warren explains " The charcoal category was now paying the price for the several years of reduced advertising".
Sperry Van Ness isn’t just a firm that sells houses. This firm sells and deals with billions of dollars and has a reputation of being one of the best real estate brokerage firms in America. They have numerous projects going throughout the United States. These projects range from retail, industrial, office, multi-family, and selling land. What this company does, is helping business expand, marketing, and bring in investors.
CFO is larger than net income each year due to the noncash charges of depreciation and amortization. In 2008, net income is negative, but CFO is still positive as $1,879 million due to the one time goodwill impairment charges. Inventory has decreased from 2006 to 2008, after its acquisition of May in 2005. Receivables also decreased each year, which maybe a sign that the company’s receivable quality has improved. Macy’s decreased its purchase of inventory and property and equipment and decrease disposition of property and equipment year by year.
Competition? Misguided strategies?) Princessa’s decline in sales was caused by a variety of reasons: - Canada was sliding into recession, following the economy crisis in the United States. 90% of Pricessa’s customers earned less than $45,000 annually and about half of these earned less than $25,000 annually. These low income people are likely to be affected severely by the recession, thus they would cut off their
Sadly, this company had a lot of factors working against them when the quarter came to an end. The reason that companies budget is to help ensure that money is being spent properly and to help track where future profits and losses may occur. The unexpected decrease in revenue can be factored into many different areas. One main factor of loss is due to the internet being down for 7 days causing the company to potentially have lost 7.7 percent of it’s customers and an estimated $10,00 in profit for this quarter. Factor number two is the company offering free shipping to orders over $100.
Though oil prices recovered somewhat in the second quarter of 2009, energy exports continued to fall as decreased demand outweighed supply.16 Canada’s automotive and industrial goods industries also experienced substantial declines in exports. In 2009, automotive exports (predominantly to the U.S) slumped by 19% and earnings in the industrial goods and materials sector fell by $11.7 billion over the last three quarters. More than half of the losses in the latter sector resulted from decreased Chinese demand (one of the largest importers of earth materials) and deflated metal ore and alloy prices. Nickel ore experienced the largest and most rapid decline in value; prices fell by 75% (almost $1 billion). In addition, copper and aluminum fell by 50% whereas gold incurred a small loss in the second quarter.