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. Appendix 4 showed the comparative balance sheet statements. Cash rose significantly from 22% in 2008 to 105% in 2009 and fell off again in 2010 at 50%. During that period, it was noted that the collection of accounts receivable contributed
In B&L’s 1993 annual report, it stated that “contact lens revenues rose 13% over 1992 and finished the year strongly”. Furthermore, although market demand for conventional lenses went down in 1993 (shown in Exhibit 6), B&L still successfully reduced its inventory by 1.8 million pairs. B. However, based on the information above, we can observe that B&L’s new sales strategy was to make distributors absorb inventory and improperly recognize it as revenues, which actually polished its financial report of 1993. 2.
BP's total debt has increased over the past five years. The company reported a five-year low of $31.045 billion in 2007, and a five-year high in 2010 at $45.336 billion. In 2011, the company reported a total debt of $44.213 billion, which was an increase of 42.42% over 2007. (2012.02)”Financial Performance”. While BP is based in London, and Exxon in the US.
3. It is concerning that Administrative Salaries and Executive Compensation remains the same as 2007 even though there was a significant decrease in sales in 2008. The 2009 sales budget standard is the less than the actual sales of 2007 yet Administrative Salaries and Executive Compensation remains the same for 2009. 4. Utilities expenses increased by $15,000 when comparing Year 2007 to Year 2008.
1. Does the Audi division of Volkswagen appear to be achieving economies of scale, constant economies of scale, or diseconomies of scale? At first glance it would appear that Audi is experiencing diseconomies of scale. As diseconomies of scale occurs when a company experiences an increase in marginal cost when output is increased. 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.
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).
Also, it can be seen the earnings per share were down by 12% and the return on average capital was down by 10%. However, net sales were up by 2%, and share holder’s equity was up by 25%. (About PPG, 2013) PPG Industries For The Year 2012 2011 2010 In Millions Except for per shares Current Assets $7,702 $6,694 $7,058
National Health Care Spending in the U.S. Cornelia R. McCoy HCS440 January 3, 2011 Kristina Gray National Health Care Spending in the U.S. Health care costs have been rising for several years. Expenditures in the United States on health care surpassed $2.3 trillion in 2008, more than three times the $714 billion spent in 1990, and over eight times the $253 billion spent in 1980 (Blumenthal, 2001). Decreasing this growth has become a major priority, while employers, consumers, as well as the government are challenged to keep up with health care expenditures. Dealing with this challenge will be very hard under any circumstances. So far, it has been proven impossible unless the circumstances that prevent poor and uninsured people from getting medical care are addressed concurrently.
It includes consumer debt and mortgage loans.” (Canocchi 2014) The UK and the US have similar patterns of consumer spending and borrowing and subsequently similar patterns of household indebtedness. In the UK, the average household debt has more than “quadrupled since 1990, despite the interest rates being at historic lows”. (Canocchi 2014) In 1990, total household debt in the UK stood at £347billion, but it rocketed by 314 per cent to £1,437billion in 2013. (Canocchi 2014) The US has similar shocking statistics in relation to their much larger population. In the April-June quarter 2014 the total household indebtedness in the US (including mortgages, student loans, car loans, credit cards and home-equity lines) was estimated at $11.63 trillion dollars according to The Federal Reserve Bank of New York.
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.