SciTronics’ profit as a percentage of sales in 2008 was 5.7 %. 2. This represented an increase from 3.4 % in 2005. 3. SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
We can consider three metrics to analyze it: long-term debt, revenue and book value. More than double the company’s long-term debt. The new expansion debt of $57.8 million (at 7.75% per annum) would add to the existing long-term debt. According to the revenue of the current operations and the revenue that the expansion will provide to the company, the new investment will increase the revenue by 21%. Similarly, the new investment will increase the book value of Hansson by up to 15%.
For the year 2007 the ratio was less than 1 meaning it needed to liquidated it marketing securities in that year, to pay bills. In year 2008, the ratio increased over one and hence there was not a need to liquidate its securities. * Acc receivable turnover ratio = Net credit Sales/ Average accounts receivable Acc receivable turnover 2008 = $875,250/ (($84,120+$128,420)/2) =8.24 times Average collection period = 360days/ 8.24 = 44 days We would need to know the credit policy of the company to determine if this collection period is reasonable. * Inventory turnover = Cost of goods sold/ Average inventory Inventory turnover 2008 = $542,750/ (($96,780+$135,850) = 4.67
Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth. Revenue Growth Year | Revenue | 2010 | $35.119 billion | 2009 | $30.990 billion | 2008 | $31.944 billion | 2007 | $28.857 billion | 2006 | $24.088 billion
In fiscal year 2008, the return on invested capital of continuing operations was 9.5% compared to fiscal year 2007’s 13.9%. The decrease reflects the decrease in operating profit that also impacts the rationalization charges. If the rationalization charges are excluded the return on invested capital for continuing operations would have been 11.4% (Phillips, Libby, Libby, 2011). The cash flow statement shows the movement of cash within a company. The cash flow statement is split into three categories: operating activities, investing activities, and financing activities.
TIFFANY & COMPANY – CASH FLOW ANALYSIS Cash Flows from Operations -Fiscal 2005 (ending 1/31/06) to Fiscal 2006 (ending 1/31/07) In 2005, Tiffany & Company’s net cash reserves increased 205.93 million or 119.7% from the prior year. Tiffany’s reported net cash and cash equivalents of 393.6 million in fiscal 2005 from 187.7 million in fiscal 2004. In addition, net cash from operations in 2005 were 262.7 million, an increase of 100.76% from the prior year. Operating Gains and Decreased Inventories in 2005 Specifically, the components from operating cash flows that contributed to this increase were operating gains and decreases in inventories from the prior year. Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004.
The overall costs of assets required for operating expenses has reduced as a percent of revenue. The financial health of the company is strong without a large reliance on long-term debt. As Coke has grown it has lost some efficiency in converting the assets into revenue, but has still managed to significantly increase income and retained earnings overall. Coke has established a good cash flow and has the ability to cover liabilities satisfactorily. In 1996 Coke did not have strong working capital.
Exhibit 7: By a raising current ratio, we can see that Krispy Kreme is much more able to pay debt within the next year. This is good because even though there are a lot of equity issues going on in the business, they are not going to go bankrupt. Exhibit 9: One thing that really stands out in this exhibit is the miniscule amount of debt Krispy Kreme uses. I think they should leverage themselves to somewhat close to the industry average (around 35% current debt, and 42% long-term debt) to build some organic growth and get away from the business model that is bound to slow down. Financial ratios are a good indicator of a company’s health because they compare certain numbers to other related numbers.
The opportunity is attractive for Jim and his investors in the following ways: * American Printing Inc.’s business forms division has high market share and also high sales revenue. In 1983, it recorded sales worth $43 million which is approximately 35% of entire America's overall revenue. * The company is also the market leader in its Authentic Insurance Documents business which recorded $12.9 million sales in the same year which comprised 50% share of the entire market. * There was a positive projection for the sales in the year 1985-86 which was expected to grow by $800,000 to $1,600,000 due to certain changes in the policy language. * The company was insulated from shocks of the general industry.