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. In terms of cash and short-term investments, the cash and restricted cash account for 44.8 percent in 1985 and 3.2 percent in 1987. This change was related to the short-term investments, a drastically increase occurred from zero to 41.4 percent in 1987. This might resulted from the big explosion of opening branches. The convertible subordinated debentures increased
Profitability ratios are one of the most frequently used in the financial ration analysis. We will use profitability ratios to determine Berry‟s Bug Blasters‟ bottom line, efficiency, and performance. This is done through analyzing asset turnovers, profit margin, Return on Assets, and Return on common stockholders‟ equity. Asset Ratio: determined by dividing sales revenue by total assets. In 2008, for every dollar of assets owned by Berry‟s Bug Blasters, they sold $1.68 worth of goods and services.
In the case of Marriot International, Ernst & Young LLP audited and reports their opinion on Marriot International’s 10-K report. “In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Marriot International, Inc. at December 30, 2011 and December 31, 2010, and the consolidated results of its operations and its cash flows for each of the three fiscal years in the period ended December 30, 2011, in conformity with U.S. generally accepted accounting practices.” References Marriot International, Inc. (2012). Report of independent registered public accounting firms. Retrieved from http://investor.shareholder.com/MAR/marriottAR11/financials/ipafreports_1.html 6) Of what use, if any, are the notes to the financial statements? The notes to the financial statements provide basic details about the statements, on the Marriot International, Inc’s 10-K provided detailed & extensive notes.
Two measures for evaluating a business's short-term liquidity are working capital and the current ratio. Working capital is the dollar amount of a company’s current assets less current liabilities as shown below: Working capital = Current assets - Current liabilities An excess of the current assets over the current liabilities implies that the company is able to pay its current liabilities. If the current liabilities are greater than the current assets, the company may not be able to pay its debts and continue in business. The current ratio is another means of expressing the relationship between current assets and current liabilities. The current ratio is computed by dividing current assets by current liabilities, as shown below.
Having a ratio below one likely means they had to take out some sort of financing to cover their obligations for the year without some sort of financing. Seeing a current ratio of below one is a scare for many investors because, a ratio of below 1 raises issues with the company’s financial well-being. Debt Management Ratios Debt management ratios show to what extent a company uses borrowed funds to finance its operations. These ratios are important to a company because creditors use them to determine the riskiness of the company’s financial position. Using the debt ratio we can determine how much of Dr. Pepper Snapple Group’s assets are provided through debt.
In this approach, the economic value of the assets of a company is the result of a multiple of its earnings: operating profit multiple or multiple of EBITDA. The multiple can be considered a multiple or a multiple stock transaction. It comes from the observation of the value of similar businesses. To obtain the value of equity, we subtract the value of the bank debt and net financial and possibly other elements.
Second, This was an all-cash buyout of $52 Billion. This would mean that the loan that was taken out by InBev needs to be repaid before a certain date. Most good businesses treat loan re-payment as one of the most important priorities. This is why Anheuser-Busch InBev paid the loan back before the expected date of repayment. Anheuser-Busch InBev would be making an annual revenue of $36 Billion, which still would leave the company with a little over 2 years for the break even point.
Target’s performance was affected by the global financial crisis that hit the world during that time. The crisis caused a fall in GDP and massive unemployment. This affected the buying habits of customers who then preferred to buy from Wal-Mart due to their legacy as a low-cost discounting store. Wal-Mart, Target’s main competitor, was attracting more customers because of its low-cost selling strategy. Consumption patterns were all of a sudden frugal; this made Target lose many customers since it was perceived as a luxury store.
They use assumptions to estimate the amount of the benefits that employees earn while working as well as the present value of the benefits. At the end of 2007, PepsiCo reported pension expenses of $256 million in the U.S. plans. (2) Calculate the relevant rates that were used by Coca-Cola and PepsiCo in computing their pension amounts. The components of the net periodic benefit costs for the Coca-Cola Company are: Service Cost $123(in millions) Interest Cost
The test market numbers given in Table 1 shows a loss of $1,204,150, which is mostly attributable to the high market expenses. But if we look at the projected numbers in Table 1, we see that by introducing to a larger market the initial sales are enough to combat the expenses by the residual effect of repeat customers. Total sales increase 20 times while expenses only increase 4 times. This gives Zoecon a profit of $1,088,422. Market Share Potential – Table 2 shows the breakdown of the market in terms of the 19 city distribution next year.