Many customers are currently insisting on betas and the sales are cutting into Apex’s stigones sales at a rate of 10% per year. B-227 would be Apex’s first product in the beta segment which is very competitive. There are currently three strong competitors in the market and six others selling commodity based or off-brand betas. The oxidizer market accounts for 25%
Professor P. Savor Intermediate Corporate Finance 3504 Section 002 Case Analysis#1 Alliance Concrete Alliance Concrete is a ready-mix concrete producer who has had tremendous success and revenue growth in its previous years of operation. Potential economic slowdown, overdue capital improvements, and debt repayment obligations pose serious threats to the financial health of this firm. Despite Alliance Concrete’s success and growth the economy in which Alliance Concrete operates may undergo an economic slowdown, which will decrease demand for its services and products. Alliance’s industry costs for materials are steadily increasing by 2.3% and are projected in 2006 to increase on average by 9%. In 2004, delays and stoppages to the firm’s production due to the collapse of equipment cost Alliance $2.6 million in repairs and a two-week shutdown.
There are several parallels that lead us to believe that history may be repeating itself. Today’s U.S. economy is producing 2.2% more goods output then before the economic recession started in the late 2000’s, but with 3.8% fewer workers. This can be attributed to our modern day recession stimulating huge productivity and efficiency gains as business let mediocre employees go to save on labor costs. They have learned to do more with less. Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs.
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. The financial state of Amazon at this point of review, as some concerns with common stock outstanding, this led to the period in which the income statement shows a $-39 million dollar on net income. In 2012 sales did increase only due to more electronic transactions, new innovative Internet transactions and the rise in shipping costs, due to this there was a significant rise in prices of the products that Amazon sells. In 2013 Amazon must increase net income and retained earnings in order to continue to be a successful corporation.
Financial ratios, especially when listed for multiple years in a row, can really expand what you are seeing on the financial statements with just a glance. The asset turnover ratio was decreasing towards 1 from 2000-04. As Krispy Kreme expanded assets were likely increasing. The fact that the ratio pushed from 2.1 to 1.01 in just four years shows those sales were not increasing proportionately with all the growth the company was experiencing. Exhibit 7: By a raising current ratio, we can see that Krispy Kreme is much more able to pay debt within the next year.
Nike, Adidas, and Columbia Sportswear are all frontrunners against Under Armour in the industry. The first section of this report will cover an overview of the trends in, economics, political/legal, social/cultural-global, technology, and demographics. Economics Under Armour Company has been growing substantially. In 2008 its gross profit was $353,041, in 2009 it was $410,125, and in 2010 it only rose higher to $530,507. Its new income from operating expenses went up as well.
Swisher Mower and Machine Company Pros uce mowers Cannot take advantage of excess capacity Will not broaden their area of sales Will loose potential to make additional 8,200 units But to make them at 2.55% profit margin is not worth it Alternative B ( accept the private-label offer) Pros Additional introduction of 8200 mowers per year Almost triple the production of recent years , and misc. cost increased COGS increases by 7.5%/unit Added financing charge (appendix A3) Very limited bargaining position Alternative C (Increase Advertisement expense by $25/unit) Pros Will increase sales Increases awareness for all mowers not just Ride King Will be able to s For 1997 Cons We will reach people that are not interested
The $50 million project, although would double the company’s debt, but would also greatly increase its customer concentration. Q2. HPL had not initiated a project of such ($50 million) magnitude in over a decade. The expansion of the business will have a significant impact in the company. We can consider three metrics to analyze it: long-term debt, revenue and book value.
April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets. PepsiCo’s sales rose to $11.9 billion, compared with the $11.8 billion average of estimates compiled by Bloomberg. Excluding items such as integration costs and hedges, profit was 74 cents, compared with the 73-cent analyst average. PepsiCo, led by Chief Executive Officer Indra Nooyi, has developed new flavors to appeal to markets internationally, relying on chip sales overseas to make up for slower beverage sales volumes in North America. Volume in the South American foods business climbed 2 percent.
Although BKI is a successful company, the CEO is being challenged with the decision to implement a new capital structure that would be best for the family company. Currently, they have no debt. Only twice in the past has the firm borrowed a substantial amount of money; both times, BKI paid off the debt as quickly as possible. The plan being proposed is to use $209 million of cash and $50 million in new interest-bearing debt at the rate of 6.75% to repurchase 14 million shares at a price of $18.50 per share. Under the proposed capital structure change, the value of the firm would increase, which would also increase shareholders’ value.