However, the account receivable turnover and inventory turnover ratios went down in 2008 as compared to 2007. They went down by 3.71 and 6.7 times respectively, in the year 2008 as compared to 2007. The account receivable turnover went down due to decline in revenues and increase in account receivable in 2008; it shows that the company generated fewer revenues in 2008 against its account receivable in 2008 as compared to 2007. The inventory turnover ratio was also down due to no change in inventory but the revenues went down. All profitability ratios are showing decline in the year 2008 as compared to 2007.
Target’s balance sheet may be applied to my everyday life by showing me how the company is doing business wise and if my purchases are making a contribution towards their overall profit. The balance sheet can be used to help me see the ways that I have made financial decisions in my life. Their balance sheet shows that over the last 3 years their total assets have dropped by $401,000 which means that they have been selling a lot of merchandise. Their liabilities have dropped by $240,000 which means that they are not in as much debt. I do like the fact that from year 2009 to 2010 their liabilities dropped by $1,208,000 and their current assets went up by $936,000.
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.
Also, this increase can be attributed to the competition in the market. For every dollar of sales the company keeps the earning of 5.06%, which is a .16% increase compared to last year. Tire City’s Gross profit margin has been favorably steady through the years with a 42.09% in 1995. This might be due to an increase in selling prices, or a decrease in cost. The long term debt to capital shows that the company has an unfavorable decrease over the past years with a 13% of the debt to capital ratio.
The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent. c. The dollar value of savings increased at 3 percent, and the value of savings measured in goods increased at 2 percent. d. The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent. 4. If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, then the real interest rate is a.
Financial Analysis| Competition Bikes, Inc.| RJET Task 1| C.Smith 3/25 This report details the results of a review of Competitive Bikes, Inc. operation from December 31, Year 6 to December 31, Year 8. A1a. Horizontal Analysis Horizontal Analysis is the comparison of ratios or line items on a company’s financial statements over a particular period of time. A horizontal analysis sets the standard at a given date for instance, the beginning of the year (Horizontal analysis, n.d.). An integral part in performing a horizontal analysis is the ability to see the variation from one period to the next which are called trends (Horizontal analysis, n.d.).
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.
If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues? Answer This will cause a decrease in total revenue because: 1. The advertising elasticity presents a low coefficient which is interpreted as the markets not being as receptive to the products that would be needed to boost sales. 2. When the company decides to increase price, total revenues are affected because of a decrease in demand (decrease in the
Year over year, General Motors Company has seen net income shrink from $9.2B USD to $6.2B USD despite relatively flat revenues. A key factor has been an increase in the percentage of sales
General Cost of goods sold was higher and gross profits fell from 28.7 million to 25.8 million. The gross profit margin for Dollar General deceased