As Jones sales growth rate is high than sustainable rate, so its net earning could not support increased account receivable and inventory. Then the company need bank loan to finance the increase business. 2004 2005 2006 First Quarter 2007 collection period 42.0 days 44.0 days 43.0 days 43.9 days payables period 10.1 days 10.0 days 24.1 days 37.4 days 3.Is Nelson Jones’s estimate that a $350,000 line of credit is sufficient for 2007 accurate? What will happen to Jones’s financing needs beyond 2007? Jones currently has $203,000 of accounts payable.
Wal-Mart - Strategic Audit I. Current Situation A. Current Performance In the past year Wal-Mart’s performances in market share, profitability, and return on investment have had significant changes compared to past years performance. * Return on investment now compared to previous years: they are paying out $63.079 billion to their shareholders compared to last years $58.763 billion and an average of $3.09 earnings per share of the 4.068 billion shares out. * Market share today: Out of 2,000 big companies Wal-Mart is at 17 with 201.36 billion in market value and in its industry of retail, Wal-Mart is ranked #1 with Home Depot and Target behind.
a) What is the contribution per case? Ans: $ 4.86 b) At an introductory fixed cost of $630,000, how many cases would be required to break-even? Ans: 129,630 cases Break-even in units = F.C. /C.M.U. =630,000/4.86 =129,630cases Break-even in dollar = $2,006,369 c) What is the break-even share of the Boston supermarket wet segment?
With a growing market in non disposable razors and refill cartridges, Clean Edge would have a good chance of capturing some of that growth. Non Disposable razors increased 19% from 2005 to 2006, but by 2007 they decreased almost 13% from $212 million in 2006 to $188 million in sales. This could be due to the financial crisis that
Table 1 Top Ten U.S. Bank Credit Card Issuers, Third Quarter 2004 Rank Company Market Share 1 JPM Chase 19.1% 2 Citigroup 16.3 3 MBNA 11.8 4 Amer. Exp. 9.3 5 Bank of America 8.0 6 Discover 7.2 7 Capital One 6.8 8 HSBC 2.9 9 Providian 2.6 10 Wells Fargo 1.2 (Cardweb, 2007) Financial Ratios 2004 Reported Metrics ROA .03 ROE .21 Profit Margin .06 Current Ratio 5.58 Quick Ratio 1.61 Debt to Assets .18 Debt to Equity 1.15 Ratio Analysis Capital One’s return on equity is 21%. This is higher than the average of 12 – 15%. The company has a 6% profit margin.
Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General. Some argue that part of the reason Dollar General has been so successful as of late is attributed to the economic crisis the United States experience during the second half of the 2000s. Economist believe that consumers will not shop at the Dollar General as much as the economy improves. In an effort to retain their existing customers and recruit new ones as the economy strengthens, Dollar General has begun to stock name brand items. Some analysts also believe that even when the economy improves, your average consumer will still look for ways to save money and continue to frequent the dollar discount stores.
The move has since been labelled "sneaky" by a consumer group and Treasurer Wayne Swan has labelled Westpac "a serial offender". The banking giant - which posted a 33 per cent rise in first-quarter cash profit last month to $1.6 billion - claims the new charges would cost its average customers only an extra 67 cents a month. But Choice spokesman Christopher Zinn said the move would allow the bank to pocket "huge money". Advertisement "The practice falls into the sneaky part of the equation," he said. "They try to claim it's only 67 cents a month ... but if
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