Also, this increase can be attributed to the competition in the market. For every dollar of sales the company keeps the earning of 5.06%, which is a .16% increase compared to last year. Tire City’s Gross profit margin has been favorably steady through the years with a 42.09% in 1995. This might be due to an increase in selling prices, or a decrease in cost. The long term debt to capital shows that the company has an unfavorable decrease over the past years with a 13% of the debt to capital ratio.
The 33% increase showed the strength of the company, but the huge drop in sales demonstrated how Competition Bikes, Inc. (CB) struggled to attain a surge in its revenue which is the result of the 15% decline in sales caused by economic situations. The rise of cost of goods sold (COGS) by almost 32% contributed to the rise in net sales for Years 6 and 7. During Year 7 and 8, CB had an almost 15% drop in COGS which resulted in a bad year for the company. However, COGS remained less than the company’s net sales which is always a financial plus. Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7.
In measuring the company’s cash and cash equivalent, it was clearly seen that their entire assets decreased by 24% in 2003 and almost 20% in 2004. The total debt structure of Lucent Technologies significantly decreased between 2003 and 2004. Lucent Technologies current liability decreased from 25.6% in 2003 to 24.3% in 2004, but their debt could be thought to be more as long term because these debts rose from 23% of total liabilities to 26.4% a year later. When considering the equity section of Lucent Technologies, it was shown that they had a negative representation of their shareholder equity and total liabilities in 2003 when compared to the numbers in 2004; this makes their company look more like a deficit; although it is likely that improvements will happen and the company’s current situation can improve and become less of an issue as the years progress. After evaluating Lucent Technologies balance sheet, it’s more than likely that the creditors and investors would more than likely be concerned that even though the cash and cash equivalents are decreasing, the assets are accelerating steadily.
All profitability ratios are showing decline in the year 2008 as compared to 2007. The assets turnover went down by 1.92 times, the profit margin went down by 4.58%, the return on assets turnover went down by 46.57% and return on shareholders’ equity went down by 67.09%, they all went down due to decline in revenues in 2008 as compared to 2007. The solvency ratio has shown improvement in the year 2008 as it down to 15.88% from 24.47% in 2007, which shows a decline of 8.59%. It shows that company has less relied on debt financing against its total assets in 2008 as compared to 2007. Horizontal Analysis The net income in the year 2008 went down by around 35.87%; it was due to decline in revenues by 16.53%.
Another way of saying that is that the Carphone Warehouse was able to generate sales of £1.56 for every £1 of assets it owned and used for the year ended 31 March 2001. For the year ended 25 March 2000, it was even higher at 2.57 times. The Total Asset turnover ratio has worsened a lot over the two years. If 2.57 times was good, then 1.56 times is definitely worse. Can we see why this ratio fell so sharply?
Net used in investing activities 2006: ($14,183) million When comparing the $13,063 million to the ($14,183) million, it appears that there is an increase in Wal-Mart’s investments in its operations. Q3: How well is the company doing in its operations? Ans3: net income 2004, 2005, 2006 (in millions): 9054, 10267, 11231 Cash flow from operating activities for 2004, 2005, 2006 (in millions): 15996, 15044, 17633. Despite the drop in cash flow from operating activities in 2005, the overall difference when comparing the three years is 1637 million from 2004 to 2006. Considering this increase in cash flow from operating activities along with the increase of net income from 2004 through 2006, it is observed that Wal-Mart’s operations are doing well.
Rationale In the United States, the deep-discount warehouse industry has seen 25 years of rapid growth. However, domestic sales growth finally peaked in 2008 and ensued on a downwards trend in 2009, suggesting that perhaps the American market has been exhausted. Domestic market fatigue has been particularly tasking for Costco, resulting in the greatest sales percentage decline among the big 3 warehouse retailers. Costco’s sales plummeted over 1.5% in 2009 from its pinnacle in 2008. If historic trends are any indication of future performance, Costco must react proactively and remedy this matter immediately.
EXECUTIVE SUMMARY Nucor is a very strong company referring to the strengths of internal environment. On the external environment, current government protection on import quota gives Nucor some security. Furthermore Nucor is market leader in innovative mini mill and scrap steel recycling thus having a competitive advantage in this segment. However the greatest strength lies within Nucor; its egalitarian organisational culture that gives Nucor the employees’ undivided loyalty. However in order to generate greater revenue for its stakeholders and employees, Nucor should take a planned approach in formulating its future growth and business strategy.
The three competitors were also positioned differently in the product space from Inditex’s chains. Inditex employed 26,724 people, 10,919 of them outside Spain. Capital expenditures had been split roughly 80% on new-store openings, 10% on refurbishing, and 10% on logistics / maintenance, roughly in line with capital employed. Operating working capital was negative at most yearend, although it registered higher at other times due to the seasonality of apparel sales. Plans for 2002 called continued tight management of working capital and €510- 560 million of capital expenditures, mostly on opening of 230-275 new stores.
In 2007, the labor department recorded their largest increase in membership in 25 years, since 1979. Many of the recent memberships have been in the service industry and there has been a decline in the manufacturing industry. In the 1940s, union density statistics were as follows: Public employees represented by unions – 9.8%, 33.9% in the private/non-agricultural section. In the last 10 years, the percentages have flipped to: 36% of the public sector represented by unions and 6.89% of the private sector represented by the unions. In 2007, the private sector density rose to 7.7%, but declined in 2009 to a low of