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%.
PREMIER INVESTMENTS 3.0 Profitability These ratios measure Premier Investments capability to generate profit. If these ratios are the same or greater than the previous period, higher relative to a competitor’s ratio, or similar to industry ratios, it shows that the company is performing well. Return on Equity The profit or loss earned in utilizing the investment of owners. Over this two year time period, Premier Investments watched their return drop 4.89% from 9.24 to only 4.35%. This had a very negative effect on Premier Investments and their shareholders as they received a very little percentage of return in 2011.
Costco is doing great job in making sure that revenues constantly grow as shown below while maintaining a proportional amount of expenses to keep the profits the same or a little high from the previous year. Keeping these numbers high during a recessionary period is a very impressive feat by the management of Costco. One number to point out is that 2009 was a down year for Costco, all of the above ratios were lower than in 2008, but they bounced back in 2010 and in 2011. The 2009 year is merely an Outlier in Costco’s financial analysis because of the recession which was at a high in 2009. As the economy bounced back, so did Costco and its bottom line.
Analysis of Financial Position of Berry’s Bug Abstract The purpose it to analyze financial position of the company for the year ended 2008 as compared to year ended 2007. The techniques of horizontal, vertical and ratio analysis have been used for this purpose. Ratios Analysis The liquidity ratios shows that the company ability to pay off its current liabilities in the year 2008 is better than 2007. As current ratio increased by 2.42 and acid test ratio increased by 2.31 times in 2008 as compared to 2007. However, the account receivable turnover and inventory turnover ratios went down in 2008 as compared to 2007.
Example Plan for James Hardie Student: Company: James Hardie Date: Introduction: Purpose: evaluate James Hardie in terms of ethical behavior/financial performance Definition: ethical investment - integration of ethics and investment (De George 2006, p.23). Name & description of company: * James Hardie – manufacture construction materials (James Hardie 2011a). * employed 2,500 people and in 2011 (James Hardie 2011a). * earned US$1.2 billion in 2011 (James Hardie 2011a). Evaluation of Ethical performance: Issue: Respect for customer rights Par 1 * JH largest producer of asbestos products in Aust - dangerous to health (Cadwell 2004, para 2).
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,
Target is #38 on the Fortune 500’s annual ranking of America’s largest corporations. While Target Corporation is the second-largest discount retailer in the United States behind Wal-Mart it still does pretty well for itself. Chairman, President, and CEO Gregg Steinhafel expressed how well they were doing and continuing to grow in his letter to Target’s shareholders in the 2011 annual report. Steinhafel discusses their differentiated product assortment, ambitious store remodel program, increased investment, and their fun and aspirational marketing approach. Steinhafel goes on to say that they have set goals for the future.
Pinnacle brands are leaders in many of their respective categories, holding the #1 or #2 market share position in 10 of the 12 major product categories they compete in. They have strong household penetration and can be found in approximately 85% of US households (nasdaq.com). For more detailed financial information see Appendix A. As food companies shift their focus to meet consumer demands, the industry is growing at a phenomenal pace. In 2011 the Packaged Food industry ranked number one out of the sixteen industries annually measured by Standard & Poor’s.
This provided for marketer finance and also the ability to require advantage of early payment discounts that additional reduced operational prices. As a testament to the success of this business model, from 2008 through 2011, Costco was able to increase the amount of warehouses by 15.6%, revenues by 22.6%, and earnings by 14.0%. 2. What are the chief elements of Costco’s current strategy and is it effective? Costco’s key
: A. making short-run decisions to increase profits that are not in the company's best long-run interests B. creating budgetary slack C. decreasing profits when actual profits are significantly exceeding the profit target D. all of these answers are correct Question 7 An example of a favorable variance is _____. A. actual revenues are less than expected B. actual expenses are less than expected C. material prices are greater than expected D. expected labor costs are less than actual costs Question 8 Differences between the static budget and the flexible budget are due to _____. A. problems of cost control B. poor usage of material and labor C. a combination of price and material variances D. actual activity differing from expected activity levels Question 9 The type of budget that serves as the original benchmark for evaluating performance is called a _____ budget. A. balanced B. cost C. flexible D. static Question 10 Activity-level variances plus flexible-budget variances