Fuel expenses grew at a faster rate than sales, fuel costs although seeing a fall off in 2009 by 20.52% rose by 29% in 2010. These costs continue to a major challenge for the company as referenced in the 2010’s annual report. Likewise, generation expenses will also increase when fuel increases as oil is the largest expense in that process. Due to efficiencies in the generating plant, the increases in costs were lower than that of fuel. Distribution expenses rose significantly in 2010 by 10.12% from 1.18% in 2009.This was as a result of Hurricane Tomas in 2010 as the distribution network was significantly impacted when several power lies were damaged.
First problem we encountered were the current and quick ratios were unusually high due to the amount of cash, receivables and short term investments that Krispy Kreme held. This is an indication that the company was not investing in other projects and remained conservative with regards to the treatment of current assets from 2001 to 2004. The net sales, receivables and inventory turnover were much lower compared to the industry, but ultimately the profit margin and return on equity remained consistent which we considered questionable. The leverage ratios were lower than the industry; the company used debt to make payments and took a line of credit. Although cash reserves were high and debt was very low, the cash ratio was lower
Overall, numbers have increased over the last 50 years, however, by 2000, the trend line started to become level. One reason for an increase of natural disasters could be because of much stronger hurricanes due to global warming, or because of there has been an increase in media coverage. There has actually been an increase in hydro metrological hazards (floods and windstorms) for the last 20 years, however, geo-physical hazards have remained the more or less the same. The total number of people reported killed by natural disasters has decreased since 1960, but there was a slight rise since 2003, however, between 1924 and 1936, the number of people reported dead was at its highest (0.8 millions of people). On the other hand, the total number of people reported affected by natural disasters has increased from 0, to 250 millions over the last 50 years.
According to "Trends In The Global Beer Markets" (2008), (Consumption patterns). In the countries experiencing the most beer growth there is also evidence that beer has been gaining a larger portion of the overall commercial alcohol market in the area. Beer consumption had an increase of 6% from 2000 to 2010 from 34% of the commercial alcohol market to 40%. The global beer market is expected to continue to grow especially in Asia, Africa and Latin America. Forecasts beyond 2012 predict the fastest growth in China but anticipate growth in Vietnam, Brazil, Ukraine, Nigeria, India and Peru.
This indicator is increasing dramatically by almost 11 days in two years, because of increase of Collection and Inventory days by 16 and minor increase of Payables days by 5 (Exhibit 2 and 3). The change in Working Capital (Exhibit 4) very clearly presents the greater increase of receivables than payables, which means that the company pays faster than its customers pays to the company. Therefore, additional source of financing should be found. Further, it is worth mentioning that debt-to-equity ratio increased in this period from 0.82 to 2.65. As a result, it is very easy to understand that the main source of financing the operations of the company are loans and other type of debts (Exhibit 5 and 6).
The city is constantly transforming due to its growth, development, future trends and ecological sustainability. Growth Population growth is an important issue in Sydney. In 1788 Sydney’s population was less than 1000. Within ten years it grew to 2953 due to white settlement. For each decade since 1961, the population has increased by more than 250,000.
The increase was 17.25%. This is quite high gearing and has gone higher in last year. The total debt for 2007/8 rose about 39% which increased the gearing. Company’s huge capital expenditure is a reason for this. 3.
China sustained an average annual rate of growth in real GDP of 10.1% between 2003 and 2009. Investment and international trade have been the source of China’s industrialisation and consequently its rapid growth. This economic growth has lead to economic development with its citizens enjoying rising per capita incomes, growing by an average of 8.2% per annum between 1975 and 2005, and improvements in quality of life, rising from a HDI of 0.530 in 1975 to 0.777 in 2005. The World Bank estimates that over the last 25 year poverty
Audi's global sales rose 8.3% to 1.58 million vehicles in 2013 however despite the increase in revenue, the net profit fell 7.7% ($5.57billion) and the operating profit margin fell to 10.1% from 11% the previous year. Based on this one could assume Audi is experiencing diseconomy of scale. But when you dig deeper into their situation the reasons for a lower net profit is not because of a “per-unit” cost of production which would truly mean they are operating as a diseconomies of scale. The true reasons appear to be because of their expansion investments. As per the article Audi “warned that profit would be hit by investment in new models and tougher climate regulation”.
Average annual gas prices climbed from a low of $1.03 in 1998 all the way to $3.53 in 2011 — an astronomical 243 percent rise in under 15 years (Avro, 2012). The result of increased gas prices caused a change in transportation. The law of demand, other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls (McConnell, Brue, & Flynn, 2009). This could cause a surplus. In short, there is a negative or inverse relationship between price and quantity demanded.