Review of Warren Buffet’s historical investment success might explain the increase in share price for Berkshire Hathaway at the announcement. Given that he has had a good track record, it is expected that shareholders respond positively. In 1977, the price of Berkshire Hathaway was $89 closing at $25,400 by 1995, an unparalleled annual growth of 37.7%. In comparison, the growth rate of the S&P 500 over the same period was 14.3%. Warren Buffet’s formidable investment performance was also demonstrated when Berkshire Hathaway acquired Scott & Fetzer.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt.
Current Ratio 2011 = Current Assets / Current liabilities Gaps Current Ratio = 4,309 / 2,128 = 2.0249 This means that The Gap Inc. is capable of paying its short-term liabilities two times by selling its current assets. What was the current ratio for 2010? How did the current ratio change? Current Ratio 2010 = 3,926 / 2,095 = 1.8739 The current Ratio for The Gap Inc. Increase from 1.8739 to 2.0249 What is the implication of that change? The current ratio increased because there was a considerable increase in Cash and other current assets.
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.
I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year. A high rate of turnover indicates easiness in selling inventory; a low rate indicates difficulty. In 2011, the inventory turnover was 6.1. By 2012 the ratio decreased to 5.2. The decrease may be due to a slow ability to turn around merchandise in sales and potentially due to paying a higher cost for goods.
In 2000, it was at 15%, and has decreased in 2008 to 11%, which is actually an increase over prior year. Costco is in need of an aggressive strategy to increase these key financial components, to remain profitable and competitive in the market. Table 1.1 Column1 | Column2 | 2000 | 2007 | 2008 | 2007 vs 2008 | 2000 vs 2008 | Gross Profit Margin | | 12% | 12% | 12% | 0% | 0% | | | | | | | | Operating profit margin (return on sales) | 3% | 2% | 3% | 0% | -1% | | | | | | | | Net profit margin (net return on sales) | 2% | 2% | 2% | 0% | 0% | | | | | | | | Total return on Assets | 7% | 6% | 6% | 0% | -1% |
This shows Targets improvement over time to pay its current liabilities based on available cash, short term investments, and receivables. Some items that may have impacted the quick ratio were a major increase in cash & equivalents as well as a generous increase in receivables from 2007 to 2008. Target’s quick ratio was higher than Wal-Mart’s quick ratio. This is an important comparison as Target’s ratio was higher than Wal-Mart’s regardless of the fact that Wal-Mart is a larger company that has traditionally outperformed
For example, last quarter, the company had produced 298,818 ounces of gold, 5% more than the year-ago quarter. Coming to the sales figure, the company had sold 292,181 ounces in the last quarter, up 15% from the prior year quarter. This means that the company needs to enhance its production at a stronger pace as sales are outpacing the output. But, the more important thing for investors to note is that Yamana is being able to increase its production and reduce costs at the same time. Once costs are in control, Yamana’s margins will see a positive impact.
To put this into perspective, according to Hinojosa-Ojeda's The Economic Benefits of Comprehensive Immigration Reform, "the budget of the U.S Border Patrol has increased by 714 percent, from $326 million to $2.7 billion in 2009." Moreover, "the cost ratio of Border Patrol apprehensions has increased by 1,041 percent, from $272 in 1992 to $3,102 in 2009." In addition, "the number of Border Patrol agents has grown by 390 percent, from 3,555 in 1992 to 17,415 in 2009" (Immigration Reform). The statistics are showing that as the U.S increases spending on immigration enforcement, the cost of capturing an illegal immigrant sky rockets while the number of agents America hires blows up the charts. As a result, the "budget for U.S. Customs and Border Protection has in total increased by 92 percent from $6.0 billion in 2003 to $11.3 billion in 2009" (Immigration Reform).