The book value per share of Alamo group is lower than its market share showing that the shares are overvalued. Though there is a consistent growth in the company’s book value showing that its future is good. There is consistent growth in the earnings per share of the company. This shows that even in the increase of its shareholders there is low dilution of its earnings meaning that they are increasing. There is an increase in the consistent growth in the sales though the increase is low in the fourth year this shows stability.
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. Moreover, Timberland can reach their global growth potential, take big brands and make them bigger while maintaining each brand's unique rugged outdoor positioning. It will perfectly complement the premium, technical positioning of The North Face brand. Lastly, VF provides Timberland a major opportunity of sales in China for expanding. Timberland is expected to begin adding to VF’s earnings by 45 cents a share this year and 90 cents next year, excluding
These reforms led to China’s integration into the global economy, which promoted growth and development. Since the integration of China to the global economy, its annual growth of real GDP has averaged 10% between 2004 and 2008, which is very high. However, due to the Global Financial Crisis (GFC), this rate of growth in real GDP slowed down to 8.7% in 2009. China’s government, suspecting this, implemented a US$586b fiscal stimulus package in November 2008 to maintain a growth of 8% between 2009 and 2012. This stimulus package did greatly for China’s growth as its real GDP was at 10% in 2010 and 9.2% in 2011.
Current Ratio: Current Assets 2011 206,593 = 2.72 Current Liabilities 75,840 2010 159,011 = 2.55 62,376 2008 123,995 = 3.13 39,558 2007 146,605 = 2.50 58,865 From current Ratio, we can see that basically, it increased gradually from 2.50, in 2007, to 2.72, in 2011, except in 2008, 3.13. It performed very well in these years, more than 2.0, and its tendency was going better and better from 2007 to 2011. The year of 2008 is very special, because of the financial crisis, therefore, it should not be considered very seriously. The current ratio also showed the cooperation run very solidly, there was no any fluctuation. Quick Ratio Current Assets-Inventories 2011 206,593-5,246 = 2.65 Current Liabilities 75,840 2010 159,011- 2,154 = 2.51 62,376 2008
Jones sustainable growth rate: g*=RT*ROA, so compare with actual sales growth, we can make the conclusion Jones well managed its growth through year of 2004 to 2007. As Jones doing low margin business, so should avoid high financial leverage ratio as interest burden will be heavy. First Quarter 2004 2005 2006 2007 Sales increase 18% 17% ROE 7.6% 13.6% 12.3% 2.0% Sustainable growth rate 7.6% 13.6% 12.3% 2.0% Profit Margin 0.9% 1.5% 1.34% 0.8% Assets turnover 2.76 2.88 2.86 0.70 financial leverage 3.20 3.12 3.23 3.49 Shareholder’s equity 31% 32% 31% 29% 2.Why had this profitable company had to borrow more and more from the bank in the past and why does it need a new bank loan? From above table we can find out Jones collection period increased step by step and this will need more cash support that, payables period exceed 10 days from 2006, this will lost 2% discount from suppliers. As Jones sales growth rate is high than sustainable rate, so its net earning could not support increased account receivable and inventory.
The current ratio was 3.6 on February 29, 1988which mean that it has plenty of cash to cover any of its current liabilities. Moreover, Interco’s capitalized leases were 19.3%. The company was financially “overcapitalized”. When looking at the company collectively, Interco also looks healthy, with sales increasing 4.04% in 1987 and 13.4% in 1988.Growth in earnings moved Interco further toward its goal of a 14-15% return on equity: 1988’s ROE of 11.7% was up from 9.7% in fiscal 1987. However, if closer examination is undertaken, it is clear to see that the general retail and apparel businesses are struggling while footwear and furniture have been flourishing.
It is much less expensive for manufacturers of the products to pay to have the products tested than to have a defective product and incur a large loss. The growth of this market was enormous between 1978 and 1984, with sales increasing from $359 million in 1978 to $1.6 billion in 1984. As with most products in the technology field, obsolescence is a constant concern. Further, the products in this industry have a short life cycle due to the continued technological advances. Because of this research and development is very important and an absolute necessity to stay ahead of the competition.
Over the course of Jones's leadership (not forget that this guy also was voted as CEO of the year), which began in 1973, revenue had grown at an average annual rate of 12 percent, and earnings had grown at 16 percent, not much different from Welch’s 20-year-performance. In my opinion, the challenge for Welch was to spot trouble before it occurred, to take preventative measures, and to make the most of GE's (and stock markets’) tremendous momentum. The challenge for Welch was to keep the earnings growth at a high pace as the numbers of the company (assets, revenues, etc) get bigger. For a huge elephant as GE, it was getting highly risky not to implement a change that makes a turnaround on its bureaucratic business model. In some ways, Welch was able to implement his sweeping agenda of change in GE because he created a sense of crisis within the organization.
On Britvic’s liquidity ratios, the most visible trend is that the lines on current and quick ratio are always working in accordance with each other. As liquidity ratios express the ability that a company has to repay its short-term financial obligations, its almost impossible to talk about Britvic’s liquidity ratios without mentioning the world economical crisis. In 2007, just before the economic crisis, Britvic’s liquidity ratios were one of the highest recorded, current ratios t 3.1:1 and quick ratios at 2.9:1. In 2008, due to the
After academic research documented superior performance by value stocks in a multitude of countries, DFA began to create a variety of international value-stock and small-stock investment funds. The company was highly successful, despite missing out on the great 1990s growth-stock boom. DFA's assets under management grew from $8 billion to $40 billion between 1991 and 2002. With value stocks having performed well in the first two years of the new decade, DFA is experiencing continued growth of its investor base and is now seeking new areas in which it can add value for investors while continuing to claim to have no special "stock-picking" ability. Dimensional Fund Advisors Case 1.