Financial planning can give a company an idea of what their future sales and financial needs will be. Martin, Keown, and Titman (2014) state that “having some idea about the firm’s financial requirements will be before the need arises allows the firm’s management to seek out financing with the most advantageous terms possible” (pg 550). Maintaining a strong information technology system is a crucial component of Nike operations and one of the company’s highest priorities in their financial planning process. According to Nike.Inc’s 2013 Annual Report, the company “use information technology systems to process financial information and results of operations for internal reporting purposes and to comply with regulatory financial reporting, legal, and tax requirements” (pg 13). The report goes on to say that damage to the company’s IT system can lead to financial reporting delays, resulting in revenue and profit loss.
Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively. However, only one of these alternatives can be implemented next year because of issue of management time. As a financial analyst, I will analyze quantitative and qualitative factors of the three alternatives and compare pros and cons among them. “Introduce a new product”
Depreciation affects cash flow by reducing the amount of cash a business must pay in income taxes. 3. Calculate the current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? AS the current and quick ratios both went down over the past year, I am concerned that the company liabilities may be rising faster than assets and we may not be able to liquidate assets quickly enough to cover debt, if necessary.
P/E Ratio Model and Future Price Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? C. $80.20 Pn = (P/e) * E0 * (1+g)n P5 = (14.22) * 3.13 * (1+.125)5 = 80.2059 7. Expected Return The Buckle (BKE) recently paid a $0.90 dividend.
SciTronics’ profit as a percentage of sales in 2008 was 5.7 %. 2. This represented an increase from 3.4 % in 2005. 3. SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg.
Microsoft is an organization spread throughout multiple countries and the sell software related products for computers and similar devices – personal and business. However, for this particular paper I will be looking in-depth at how Microsoft has implemented the following organizational concepts and if they were successful, if they were not why – organizational structure, organizational culture, and their human resource practices. Have these concepts helped Microsoft in achieving their successes, not just small successes either. One company representative, in Microsoft’s flash presentation on their website contributed their successes to four factors, “…passion, long-term approach, the expectation of great results, and the expectation of individual excellence” (Microsoft, 2008). Will my research agree?
The management of the company has decided to introduce changes to the business processes. The business process of the company would be enhanced through the use of latest technology. The goal of the management is to increase the sales revenue for the company by focusing more on the customer relationship management initiatives. Furthermore, the company also wants to analyze the analytical customer relationship management program. However, the final decision for the implementation of this analytical CRM project depends on the return on investment and the adequate payback period.
Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth. Revenue Growth Year | Revenue | 2010 | $35.119 billion | 2009 | $30.990 billion | 2008 | $31.944 billion | 2007 | $28.857 billion | 2006 | $24.088 billion
The return on equity for 2012 was at -1.81% compared to a 32% return on a wedding in 2011. (http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual) Amazon had a downward trend on their return which could be an unhealthy position to be in if the trend continues into the year ending December 2013. Amazon did improve day’s receivable on average collection period. In 2012 days receivable was 81.2 days which was a decrease in time compared to 2011 for which day’s receivable was 87 days. As seen on the income statement by accounts receivable and annual credit sales Amazon was able to decrease the amount of days it took to collect on accounts receivable.
In fact, it examines emerging business opportunities, undertakes issue-specific work (partnering with general managers on defined strategies applicable to particular geos or lines of business), and finally, looks at the overall strategy for the corporation (What is IBM’s strategy October 2008, side article). The four key Stategies of execution for IBM. See below Table 1.0 IBM Four Key Stratgies (IBM Corporation 2009, slide 3) Before jumping straight into the External Environment we need to