They could be making more money per unit if they would tighten up their processes. They make two types of anchors. The bell type and the snag hook type. They have to stop production when they get an order for the opposite type of anchor and this down time for set up is very inefficient and costs a great deal. It takes about 36 hours to make the switch.
Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit. Also, the Return on Capital Employed had an even more significant decline – from 15.6% in Year 12 to (29.9%) in Year 14. This indicates very poor performance for FBN. In order for FBN to become profitable (efficiently, that is) ROCE should be higher than the rate at which the company borrows. In FBN’s case, their long-term debt ratios alone are 55.7% and 81.5% in years 12 and 13, respectively (and they’ve incurred interest rate increases); and ROCE in the same two years is 15.6% and 6.4%.
Christopher R Meier SCM 401 Prof. LaPoint February 16, 2014 Case Study 1: Crouse Hinds, Inc. Problem Statement The main problem for Crouse Hinds, Inc. and more importantly Carol Quinn, VP of Operations, is that the current PPV or purchase price variance for Crouse Hinds three main suppliers is to high and trending in the wrong direction. Also, Crouse Hinds currently isn’t using their manufacturing locations especially the Montebello, CA facility properly in order to cut down on LTL (less than truckload) shipments to the distribution center in Roanoke, VA. Analysis The current situation for Crouse Hinds, Inc. is that most of their US sales come from products that are shipped to California. This number totaled 3,700 LTL shipments last year with an annual freight cost of $2,500,000 and a total weight of 1,800,000 lbs.
Character (5/10) The sole proprietor for Lawsons is Paul Mackay, a well versed Englishman who moved to Canada in 1998 and opened his own business. Mackay has had some serious issues in the past with repaying loans, as he was not generating enough profit to be able to. Lawsons currently has a substantial amount of loan penalties accumulated from not paying their loans on time, and this could cause issues for the Commercial Bank of Ontario if Patrick grants them the line of credit and they are unable to keep up with the payments. Capacity to Repay (4/10) It is apparent that Lawsons is not in a position to repay debt without many changes occurring both internally and externally. Jackie should not give the current loan request a chance, but instead try and encourage Mackay to make a lesser request and then go from there.
This ratio shows that the average collection period in the year was approximately 24 days. This would indicate the effectiveness of Huffman’s collection policies promote rapid repayment. The calculations computed to determine these liquidity ratios of financial information are key components in examining Huffman’s ability to pay off short term debt. This information is necessary in deciding whether it is worth the risk to remain as a creditor of investor of this company. In the case of Huffman Trucking, these ratios impact their customer base, including their contracts with the United States Government and various automotive parts suppliers.
Economic Advisement Paper ECO372 Economic Advisement Paper In wake of the recent downturn of the Unites States economy many major elements in the economy have suffered. Unemployment rates are still at unsatisfactory levels, expectations remain low among consumers, and consumer income is also lower than satisfactory. Although, current interest rates remain low it is believed that more needs to be done to ensure an economic rebound remains within grasp. The following represents recommended changes needed to ensure United States Citizens do not suffer more than they already have. The economy is considered to be very unstable at the current time, and it is the duty of the United States government to do everything in their power to once again stabilize the once booming economy for the sake of the entire country and its citizens.
The new development had great impact on production such that it was delayed thus delaying delivery of the product by 30 percent. The management had no option but rather to outsource services for its assembly process from China. This called for comprehensive analysis of the situation leading hiring of consultancy services from Grunwald and Vogel. The intention of hiring Grunwald and Vogel was to help the company address the issue of late delivery that affected production. Based on the case study, risk factors that affected outsourcing process included ethical concern, quality and patent protection.
No proper tracking and accounting of inventory is possible. Early payment discounts are also missed. The lack of documentation for the items picked up is not helping the departments to stay within budget. Corners are being cut with the way the system works. Two micrometers are lost because the expeditor most likely has picked up them up at the receiving dock and has taken them directly to the engineers.
The ideal answer for | | |current liabilities | |this ratio is 1:1, Tesco is way under this ideal ratio which means they’re in a poor position to | | | | |pay short term debuts because they have four times as many debuts than they have current assets. | | | |
The balance sheet does not show what the company worth. It is essentially a snapshot of a company's financial condition at a single point in so it is an important consideration about that company (Sutton, 2000). The strength of a company's balance sheet can be evaluated by three main ratios below: Current and quick ratios Current ratio illustrates a company's ability to pay its short-term obligations from its current assets. Quick ratio deducts inventory from current assets because inventory turns over extremely slowly in some industries. (Walton & Aerts, 2009) Sainsbury | 2008 | 2009 | 2010 | 2011 | Current ratio | 0.65 | 0.55 | 0.64 | 0.60 | Quick ratio | 0.39 | 0.31 | 0.39 | 0.32 | (Onesource - Global Business Browser, 2011) The current ratio was approximately the same in 2008 and 2010.