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.
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. Tire City has a current ratio of 2 which shows that the company can cover its debt. In addition, the company is doing well by converting its investment into a profit with a 13.25% ROA. The company is earning more money on its’ investments which is very good for the future of the company. In 1993, the company had a19.92% on return on total capital and by 1994 it had increased to 21.36%.
The shareowner’s deficit has decreased over the year substantially. This is very good news for shareholders because they do not want to be in a deficit but in a surplus so that they can being receiving dividend payouts. Concerns that investors and creditors may have just by looking at this statement are that it only shows one year of information. They may require more information to see a real trend over a period of time. Although from 2003 to 2004 was a positive year, before that there could have been negative trends.
Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7. In reviewing Competition Bikes total selling expense, it was able to ascertain a huge 33% increase from Years 6 and 7 then managed to decrease that spending in Years 7 and 8 for about 14.9% (approximately $59,000) which is a strength for CB because they were managing their spending. For the Total General and Admin Expenses, Years 6 and 7 had a 20.4 % increase while the following years, 7
However, this data does not tell the whole story. Labour, while admittedly on a large decline from 1951 to 2011 (856 000 to 193 000), it has experienced a gain in 17 000 members since 2008. Furthermore, this data does not reflect the fairly recent rise in minor parties such as UKIP or Green Party, where many members of major parties have defected to, especially in recent years. This would account for the decline in
However, even with this change in values, the company is still under its breakeven point. The new breakeven point, with a 10% decrease in average prices and an increase in units sold to 14000, would be equal to 14,945 units and $10,297,105. 3) Gretchen’s idea to eliminate sales commissions, morally, may not be the correct decision because it works in a way to motivate the sales people. Without this commission, in the
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.
These two lines were seeing declining revenues and operating margins,except in 2006, when both lines increased their margins. Divesting the snackbusiness was a correct decision, since it was only producing net profits of $3 million,which would not help the business to increase its shareholders’ wealth. Plus, thecompany received a $70 million after-tax gain, more than 22 times the current netprofit. Selling its direct sales business was not a good decision, since it was stilldrawing a 27% profit margin and income of $54 million. The business compliments its current household and body care line within Sara Lee International.
However, in early Sept. 2008, the sales volume and gross revenue of FFD had both found a shortfall, almost 4% behind the plan, and even the market margin, which was the key metric for evaluating business at GCP, was 4.1% under plan. And the shortfall in FFD would certainly impact GCP’s financial stature. To increase the revenues, Byron Flatt,
Harmeling Enterprises experienced a decline in net operating profit after taxes (NOPAT). Which of the following definitely cannot help explain this decline? a. Sales revenues decreased. b.