Kroger has greater ROA performance at 6.4% in comparison to 6.0%. However they do have a weaker profit margin at 2.0% vs. 2.4%. Kroger overpowers this profit margin weakness by displaying quicker asset turnover at 3.171 (Kroger) vs. 2.509 (Safeway). 3. Which company was the more profitable in 2004?
Southwest State Bank’s lower Expense Ratio is a result of lower interest expense and non-interest expense. The first factor on better controlling expense is interest expense. The total interest expense of Southwest State Bank is 0.24% lower versus peers, which include the interest on CD’s over $100M (0.83% less), Total deposits (1.14% less) and so on. But the most important parts are the source of funds from Money market deposit accounts and Time deposits under $100M. Money market deposit accounts which need to pay only a little interest to our depositors are 20.40% higher than peers, but Time deposits which need pay a lot interest are 14.84% lower than our peers.
MARKETING ASSIGNMENT – 3 Case: BARCO PROJECTION SYSTEM (A) GROUP – 5 Date: 31/8/2015 PROBLEM STATEMENT (Max 100 words) Barco is a small company that focuses on differentiable products and R&D. It has established itself as a master in the niche because of its scan rate. However, it might lose 75% of its forecast 1990 profits because of Sony’s 1270. The projector 1270 is better than Barco’s BD and BG projector and also costs lower. Sony is also merging both the graphics and data segment which threatens Barco’s market segmentation.
The same holds true for Han. If Coa chooses to charge limit prices, Han can earn $3 billion rather than $2 billion by charging limit prices. If Coa chooses to charge monopoly prices, Han can earn $4 billion rather than $3 billion by charging limit prices. Irrespective of the pricing strategy chosen by Coa, Han is better off charging limit prices. Limit pricing is a dominant strategy for Han.
Therefore the intrinsic value expected has to be significantly higher than the market value calculated by the multiples for comparable regulated utilities. Q4. Due to a diversification in their investment portfolio, BH has successfully engaged in multiple industries with the highest earnings and the revenues in their insurance companies. Despite recommendations of other investors, WB did not split up the holding shares of BH. Besides its investments in multinational companies, BH also owns several smaller businesses that generate a total of $3bn in revenues.
I would make an investment in the company’s 5% convertible bonds. Sepracor’s ROA and ROE is above the average and showing that it is profitable; however, the company’s debt to asset ratio is above 1, which means that most of its assets are financed through debt instead of equity. Sepracor would be in trouble if its creditors were to start demanding repayment. C.) To make valid comparisons between Sepracor and Bayer, you would have to compare the rules for fair value under the U.S GAAP and iGAAP. Under IFRS, convertible bonds are separately recorded as liabilities and stockholder’s equities.
Financial Analysis * The tax rate is approximately 30% 5.618.8=29.79% 5.418.1=29.83% 5.418=30% * Based on the industry average, a sports store of similar size should be making around $21000 or 67% more profitable than Rhodes’ store. * Assuming the lots are of the same size and bear the same tax burden, if the unused lot is sold off property taxes would be reduced by $6000 at the 2008 rate. All else being equal, this would increase net profit by 6000×0.30=$1800, for a total of $14400. Profit as a percentage of sales would increase from 2.1% to 2.4%. * Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest.
In other words, the return on equity ratio shows how much profit each dollar of common stockholders' equity generates. Based on Nike, Inc.’s ROA of 14.4%, it can be determined that Nike, Inc. is may be more efficient in managing the utilization of its asset base versus Under Armour, whose ROA is 11.1%. The higher the ratio the better profit gain the company produces. Financial Leverage Percentage | 2012 | Under Armour | 4.7% | Nike, Inc. | 7% | The financial leverage percentage measures the advantage or disadvantage that occurs when a company’s return on equity differs from its return on assets. Under Armour’s financial leverage ratio (4.7%) is lower because it utilizes less debt in its capital structure and it is not earning as high on its assets, compared to Nike, Inc. (7%).
As the technology grows more complex, suppliers have become more concentrated, with just three equipment suppliers; as a result, DRAM producers face upward pressure on raw material prices. Suppliers do reward their high purchasing customers with a 5% discount; yet, new market entrants are less likely than incumbents to be able to capture these discounts. 4) Buyers are also an unfavorable force. In contrast to suppliers, buyers are more fragmented, but these companies still have massive negotiating power and are hyper-sensitive to both price and reliability issues (putting downward pressure on memory producers). 5) Competition is unfavorable.
Also, the price for PlayStation Plus is $10 cheaper than Xbox Live; $49.99- PlayStation 12 moth membership (Target); $59.99- Xbox Live 12 month membership (Best Buy). The hardware and specifications of the PS4 are better all around. The max resolution on the PS4 is 1080p at 30 or 60 fps (frames per second) vs. the Xbox One at a max of 720p at 30/60 fps (Swider). Certain games like Assassins Creed, The Witcher 2, Thief, and Tomb Raider: Definitive Edition has 60 fps on the PS4, but only 30 fps on the Xbox One (Swider). This is to only name a few advantages the PS4 has on the Xbox One in the hardware aspect.