The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
The Income Statement. It shows a business’s sources of income as well as the expenses it has incurred over a given time period that is being examined. The difference between the total incomes of the business and its expenses gives its net profit. The main aim of a business is to maximize its profit. The importance of an income statement therefore is to help in making an analysis of how the different decisions the business makes affect its level of profitability.
There will be half as many paychecks that have to be prepared per year now. Money is also saved by the interest earned on the yet to be paid out funds and the cutback in bank fees. Also with the change in pay periods, we have totally changed the way the deductions are calculated, resulting in a more precise system as a whole. This project took around a year from start to finish, and it, alone, would be satisfactory to justify increase in my salary on
By using the information, manager can use cost of capital for restructure the market price and earning per share in order to bring advantage for company. By extension, it can help determine the decision whether to cancel or invest in project. Moreover, the cost of capital can help investors to determine the performance of the top management. With the intention of compare the ability of financial managers based on evaluation between the
The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher
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.
Net working capital is important because it shows a business’ ability to expand and grow. Debt ratio is total debt divided by total assets and debt to equity ratio is debt divided by stockholders equity. All of these are important when evaluating a company’s future success against others in the market. Financial ratios on the balance sheet can be helpful in comparing information. The current ratio for a company shows the relationship between current assets and current liabilities.
Capital expenditure of $155,000 was incurred during last 2 years. Increase in invested capital reduced both IGR and SGR. As sales growth rate was higher than IGR and SGR, firm had to rely on trade credits and trade notes, besides internal accruals and bank notes to finance its cash outflows. Projections for 1996 are based on information provided and other assumptions described in excel sheets viz. all trade notes will be fully paid and trade credit of 10 days is for additional purchases made from April 1, 1996.
These benefits are often referred to as arising from synergy which accrues to the shareholders of the target as well as to those of the bidder. VF Corporation is offered something in excess of what they perceive to be the current value of those shares. In spite of the eurozone financial crisis, VF’s revenues rose by 20 per cent in constant dollar terms in Europe, while sales in Asia surged 43 per cent. This is the right time to take the Timberland to the next level, with expected 2011 revenues of $1.6bn, over half of which are generated internationally. For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis.
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).