I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year. A high rate of turnover indicates easiness in selling inventory; a low rate indicates difficulty. In 2011, the inventory turnover was 6.1. By 2012 the ratio decreased to 5.2. The decrease may be due to a slow ability to turn around merchandise in sales and potentially due to paying a higher cost for goods.
Walmart sells many items at ridiculously low prices. They are able to offer low prices on their items due to an incredible mark-up on imported products. Especially in today's economy, the buck is the big winner. Everyone wants to save money, and they can do that by shopping at Walmart, where many items are the lowest price in town, even if it's only by a few pennies. But consumers aren't helping their fellow countryman earn his own living by buying these imported items.
Total asset turnover for SciTronics in 2008 can be calculated by dividing $ 244,000 into $ 159,000. The turnover deteriorated from 1.58 times in 2005 to 1.53 times in 2008. 2. SciTronics had $ 66,000 in accounts receivables at year/end 2008. Its average sales per day were $ 668.49 during 2008 and its average collection period was 99 days.
Net oncome does not tell the full story, nor does it truly represent the overall stability. In reviewing The Home Depot’s balance sheet the first item to present itself is the company´s reduction in present and long-term liabilities. The second thing is the almost six fold increase in the current installments of long-term debt. The company has eliminated nearly $1.7 billion in short-term debt, as well as successfully reducing the amount of payable income by nearly a billion dollars. This action will help the company down the road as fewer liabilities will result in less cash outflow, and place the company in a position to manage through the construction downturn.
2. Liquidity ratios for Reed’s Clothier compared to the industry ratios: Current ratio for Reed’s 1400/740 = 1.9 and the industry is 2.7. Reed’s clothier is less than the industry ratio so it shows that they cannot meet their current obligations. Quick ratio = (1400-790) / 740 = 610 / 740 = 0.8 for Reed’s and 1.6 for the industry. A quick ratio of 1 or higher is accepted by most creditors and Reed’s only have a quick ratio of 0.8 so creditors will hesitate on the company.
As shown in Source E, the people with more income are for getting rid of the penny, while the more poor people are against the abolishment. This is probably because the more upper class people do not have to pay for simple things with the pennies they find on the streets. Poorer people who make less than $25,000 a year obviously don’t have good jobs, probably not full coverage health insurance, and a lot of the time, have more children to take care of. Due to the insurance they have, their prescriptions and doctor co pays are very expensive. Penny pinching may be these deprived people’s only option in paying bills.
The median per capita income is about $16,000.00 less than the national average and less that 50 percent of the adults over 25 have graduated high school” (413). Mr. Robinson works a part time job to make an extra dollar (415) which in turn leads to less time with his daughters and therefore the habits that they all have learned about eating can’t be addressed as a family. The circumstances leading to this way of life for the Robinson family play a major role in the outcome. An individual who lacks the income necessary to purchase healthy food may turn to cheaper, unhealthy food. Haygood‘s essay implies the financial burden of purchasing more expensive foods limits the ability to choose a healthy lifestyle.
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt.
How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that present a clear picture of Aurora’s financial condition. Exhibit 1 shows Income statement of Aurora Textile Company for the fiscal years 1999-2000. As mentioned in the introduction, Aurora had remained main efficient plants by reducing inefficient operations, but its sales show downward trend and in 2002, it decreased about 40% to compare performance in 1999. Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets.
The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million. This decrease in operational cash flow was largely attributed to a significant increase in inventories to 164.41 million from 43.63 million. In addition, Tiffany posted operational losses of 12.03 million and increased prepaid expenses of 16.34 million in 2006. However, the company effectively managed its accounts payables for the year at 17.79 million, a significant change from the prior year. In addition, Tiffany increased ‘other non-cash’ items within its operations to 67.01 million.