At the end of 2011, PepsiCo’s working capital was ($713) million, while Coca-Cola’s working capital was $1,214 million. This indicates that Coca-Cola had enough short-term assets to cover its short-term debt, while PepsiCo did not. PepsiCo is not working as efficiently as Coca-Cola is, causing slower collection. (c) What is the most significant difference in the asset structure of the two companies? What causes this difference?
Situational Analysis As shown in Appendix 1; in 2011, Livoria generated 53% contribution margin which is almost 10% higher than the industry average. However, its operating income was only $4,797 in 2011 - more than 18% lower than the industry average.
Which company was the more profitable in 2004? Safeway has superior ROE (14.1%) and ROA (6.4%) in 2004 when compared to Kroger (-2.7% and 5.5%, respectively). 4. Both companies have EBI/Sales margins that hover around 2%. What aspect of the retail grocery industry contributes to such low margins?
It showed that 2011 figure was increased by 7.3%. Coco-Cola is one of the largest and well-known beverage company all-over the world as Coca-Cola sells beverages to more than 200 countries. Coco-Cola could make a long-term investment at the current price, the valuation given the ratios to be margin in a safe way. Revenue Growth: 8.5%. Cash flow Growth: 8%.
The long-term objective for Second Cup is to achieve a consistent sales growth of 10 to 15% in the next three to five years. This would be an increase of $40,000 in annual sales, selling approximately 50 more cups of regular coffee a day. The short-term goal is to increase the sales by 5%. This increase in sales is possible because there is already a loyal clientele base at the café, and the Second Cup premium coffee selection will attract coffee connoisseurs. It is also situated in an area known for its abundant salon and spa businesses which bring costumers in.
So where did the other sales go if its full-line stores’ sales dropped? Well part of it is due to an increase in sales in its Rack stores due to the increase in amount of customers bargaining for prices due to post-recession behavior. But most of it is due to its 30% online sales jump which enabled Nordstrom’s total revenue to increase in the year of 2013. Unlike some of its counterparts, Nordstrom adapted to new shopping behaviors. Online shopping is definitely the newest and boldest trend for retailers.
Search engines are the driving source for online shopping. When consumers can type in a name of a product and click search hundreds of stores come up with pricing of the product. People like choices, and would rather search through the web for the best product and pricing. Associability plays key role in the success of companies. Companies have to pay a huge price to have their store front at the top of the search list.
Increase monthly net profits goal was achieve by strategically increase the rental price in cities with high demand and growing market share. Orlando was the city with highest growing demand by volume. Demand for rental cars grew from 1.51M to 2.55M during that fiscal year. I took advantage of this high demand to gradually increase the price for rentals from $41 to $69 during weekdays and from $34 to $60 during the weekends. By the end of the fiscal year, net profits in Orlando grew from 9.2M (initial fiscal year) to 21.1M in September.
Express has a slight decline of 2% since the year 2012. Macys however has kept a steady 40% since 2012. This informs us that Express has had a decreasing retain of each dollar of sales while Macys has not increased but maintained their direct cost of goods and services sold. This same trend has taken place with the profit margin of both companies since the year of 2012. Express has a slower decline of 1% but a decline nonetheless beginning at 7% in 2012 ending at 5% in 2014.
The business continued to grow organically until 2002 when it acquired nearly 200 further stores with the acquisition of Business A from the business B Group. Nearly all of the stores retained from this acquired portfolio have subsequently been converted to the Company X fascia. In 2005, COMPANY X also purchased over 70 stores from the Administrators of Business C Limited thereby further consolidating its position as the leading UK retailer of fashionable sports and casual wear. COMPANY X operates in both the UK and Republic of Ireland. The Group also has a significant branded fashion offering, following the acquisition of Scotts in December 2004 and Bank Fashion in December 2007.