It is a growth company but not consistently. First, from Exhibit 4 we can see that analysts highly recommend buying at the beginning, but the percentage decrease sharply from 2004. Second, from Exhibit 5 we can see that the EPS increasing constantly from $ 0.38 to $ 1.00, but after that it start decreasing. Last, from the Exhibit 6, from Apr-01 to Aug-03, when the S&P 500 composite index decreasing the stock price of Krispy Kreme increasing as a whole. It grew faster than the overall market.
The next question was if they decreased price by 105 and increased sale tickets to 14,000, if there income would increase. After solving this, in exhibit 5, I found that this would not of helped in 2006. They would be in more debt if they had done this, they would have lost $379,197. With the price reduced the break-even points for units and for dollars would have increased due to the contribution margin per unit changing. Next they wanted to see what would happen if they took away sales commission
Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004. However, more importantly, Tiffany & Co. decreased inventories in fiscal 2005 from 175.4 million to 43.6 million. This significant reduction in inventory expense within its cash flow operations aided in Tiffany’s substantial increase in cash reserves for fiscal 2005. Increased Inventories and Operating Losses in 2006 In comparison, Tiffany’s net cash reserves in 2006 decreased to 176.5 million from 393.6 in the prior year. The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million.
Boston Beer also entered into a $14 million line of credit with Fleet Bank, allowing borrowing at an interest rate equal to 8.75%. However, on the unused portion of the line, a fee of 0.15 percent was chargeable. All this debt is good however in the attempt to increase capital. The company consisted of a limited partnership that was to be dissolved in the month of November 1995 before the public stock offering, however, in mid-October, Boston Beer had not received approval from the sec; a process that can generally take from 1-6 months so they were face with a big problem. The regression analysis (shown above) resulted in a derived value of .817 for V and
Can we see why this ratio fell so sharply? Actually, it's not as bad as it seems. Turnover increased by 59% but fixed assets increased by 295% and current assets by 84%. Here we have one of those cases where a ratio is falling in value but the underlying changes might not be so bad. That is, the Carphone Warehouse has made major investments in its assets that have yet to generate their previous level of sales: 1.56 times versus 2.57 times.
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.
Cash from investing activities has declined by almost 315% from Jan 2000 to May 2002. The company is not able to generate enough cash flows to fund the expansion Previously Krispy kreme had strong cash flows and most expansion was funded internally. The company also did not break out pre operating costs for new stores and had Partially included in GOGS and SGA . Also we cannot analyze the economics of new stores and all funding are speculative Ratio Analysis: ROE: For year 2002 , ROE is 4.45% ( net income= 8861 and equity= 198733) which is significantly lower and cost of debt is much higher for the company . Asset Turnover for year From exhibit 2 we can calculate the ratio
I don’t think Immelt’s past pay packages constructed to truly pay for performance. From Exhibit 2, we can find that the stock price of GE fluctuated and experienced a downward trend since 2007. In the first quarter of 2009, the stock price fell below 10 dollar. Despite such a loss in value, Immelt has been paid about $90 million in salary, cash and pension benefits. This amount does not include the $5.8 million cash bonus he was “awarded” in 2009, or the bonus he skipped in 2008.
Rationale In the United States, the deep-discount warehouse industry has seen 25 years of rapid growth. However, domestic sales growth finally peaked in 2008 and ensued on a downwards trend in 2009, suggesting that perhaps the American market has been exhausted. Domestic market fatigue has been particularly tasking for Costco, resulting in the greatest sales percentage decline among the big 3 warehouse retailers. Costco’s sales plummeted over 1.5% in 2009 from its pinnacle in 2008. If historic trends are any indication of future performance, Costco must react proactively and remedy this matter immediately.
Shortterm debt increased from 0.3 percent in 1984 to 16.8 percent in 1987. Accrued expenses went from 16.6 percent in 1984 to 1.9 percent in 1987. In addition, the inventory turnover decreased from 4.6 in 1984 to 3.2 in 1987 while the age of inventory increased from 79.7 days in 1984 to 113.2 days in 1987. This is a miserable sign because the electronics innovate day by day but Crazy Eddie needed more time to sell the products. The accounts receivable turnover decreased from 135.4 in 1984 to 53.9 in 1987 while the age of accounts receivable increased from 2.7 days in 1984 to 6.8 days in 1987 indicate that Crazy Eddie had some problems on realizing accounts receivable.