He believes that the premoney valuation of the company should be at least $10 million based on the potential profitability of the company and the successful efforts to date in lining up several key sponsorships with national retailers. You have been hired by Chapin as a consultant to advice on the valuation and how to negotiate with Biddle. Please use the following topics as a GUIDELINE ONLY: 1. How good an investment opportunity is Mindersoft? What are the key strengths and weaknesses of the opportunity and business plan?
Comparative Ratio Analysis of Tootsie Roll Industries and Hershey Comapny A company’s general financial picture can be determined through a ratio analysis. Financial ratios have proved to be a useful tool for management, investors and creditors. Management uses financial ratios to develop ways to improve operating efficiency strategies for future growth and see how they stack up against the competition in their industry. Creditors and investors analyze ratios to determine a company’s financial strength and operating effectiveness in order to loan money or invest in them. Financial ratios have more impact when compared over several years to help identify trends.
Compare your company’s profitability ratios with the peer company profitability ratios. 10. Compare the profitability ratios for four competitors. I. Chapter 9 Required 1. Review the earnings per share forecasts.
Our company reported a net loss of $30,000 due mainly to operating expenses and product costs that exceeded our projections. We are currently working on several initiatives that we believe will significantly reduce our costs relative to our sales. Despite negative net income which reflected a negative free cash flow, our company was able to generate $420,000 through investing activities from supporters such as you. This allowed us to make necessary purchases of essential equipment and fixtures that will be used to create a production line that will allow us the needed production capacity to support our anticipated increased sales. Corporate Actions We have successfully completed the initial set-up of our company and can now focus on achieving profitable operations and sustainable growth.
* Business strategy for the last 10 years * Ensuring customers’ needs are met with respect to their heat transfer requirements. * Designing and research gave them competitive advantage with respect to making new customized heat transfer products. * Current situation * Sales revenue – $25M. * Has more than 10,000 employees’ worldwide. Basic Issues: 1.
Financial Statement Paper The financial statements are prepared to show the financial performance of business organizations in respect of their operations, asset bases and profitability capacities, among other attributes (Alvarez & Fridson, 2011). The four major financial statements prepared by different entities are: The balance sheet It is prepared to highlight the financial position of a particular firm at a specific point in time mostly at the end of its financial/trading period (Taparia, 2004). The income statement This statement shows the profits or loss realized by a business entity in the course of purporting its operations at the end of its financial year (Taparia, 2004). Cash flow statement A cash flow statement reflects
Look at your pricing policy and make changes appropriately. You should compare your own hire prices to those of your competitors, check can you afford a rise in your prices without losing custom? You can use the trading, profit & loss forecast to monitor your spending throughout the year. Keep an eye on your monthly expenses to ensure they do not creep up higher than what you are expecting, as this will affect your overall profit at the end of the year. Use the figures in both forecasts to make appropriate decisions to ensure the survival and success of your
Financial Statement Analysis Project FI504 Accounting and Finance: Managerial Use Date: 06/12/2011 Table of Contents Executive Summary…………………………………………………………..3 Brief Background of HP……………………………………………………...4 Environmental Scanning – SWOT Analysis………………………………...5 Major Competitor IBM……………………………………………………..7 Financial Ratio……………………………………………………………….9 Liquidity Ratio……………………………………………………......9 Activity Ratio…………………………………………………….……9 Solvency Ratio…………………………………………….…...……..10 Profitability………………………………………………………...…11 Overall Analysis and Recommendation……………………………...……..12 Recomendation..……………………………………………..……………….13 References……………………………………………………………….……14 I. Executive Summary: This report stands from the point of view of Hewlett-Packard (HP), and discusses about its business condition. In order to put up a clear picture of HP’s business level, a comparison in finance is made between HP and one of its biggest competitors, International Business Machines (IBM). The main criteria of this paper are financial analysis which is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. The evaluation is done by focusing on the income statement, balance sheet, and cash flow statement.
[pic] ADIDAS IN 2008: HAS CORPORATE RESTRUCTURING INCREASED SHAREHOLDER VALUE? WRITTEN CASE REPORT Subject: BUAD 340 – Strategic Management I Submitted to: xxx, Senior Partner Submitted by: xxx, President/CEO xxx, VP Finance xxx, VP Marketing xxx, VP Operations xxx, VP HR Date Submitted: March 29, 2011 Executive Summary Jinka Consulting has conducted a thorough analysis of Adidas AG and has defined the problem and the consequences of the main strategic issues Adidas is facing. The main issue that Jinka Consulting is addressing is how to remain competitive with Nike, who is currently outperforming Adidas, and how to eventually overtake the number one spot by gaining and maintaining market share. There are a number of internal and external factors that are affecting the operations of Adidas, such as gaining market share over Nike, and capitalizing on international expansion opportunities and acquisitions. Adidas also needs to address their decreasing liquidity to ensure that the working capital is available to act upon any opportunities.
Exxon: * Superior project execution capabilities – strategic objective * Positive free cash flow of 3.9B – financial objective * Drive down costs &improve efficiency resulting in a 30% cost reduction – financial objective * Pursue high-quality resources – strategic objective Pfizer * Targeted cash flow of 17.5B – financial objective * Targeted total revenue of 50.2B – financial objective * Improve shareholder return over 3 year performance period – financial objective * Expand access of medicine to underpriviledged patients in 69 of the world’s poorest countries – strategic objective Intel * Expand platforms into adjacent market segments – strategic objective * Reduce environmental footprint – strategic objective * Pursue Moore’s Law to extend manufacturing technology leadership – strategic objective * Integrate Intel technology across compute continuum – strategic objective 2. American Airlines’ Chapter 11 reorganization plan filed in 2012 involved the company reducing operating expenses by $2 billion, while increasing revenues by $1 billion. The company’s strategy to increase revenues included expanding the number of international flights and destinations and increasing daily departures for its five largest markets by 20 percent. The company also intended to upgrade its fleet by spending $2 billion to purchase new aircraft and refurbish the first-class cabins for planes not replaced. A final component of the restructuring plan included a merger with US Airways to