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.
Although Wal-Mart does not appear to be overburdened with debt, the company should pay attention to its borrowing additional money. (http://www.linkshop.com.cn/web/oversea_show.aspx?ArticleId=163358) Debt to net worth ratio Wal-Mart’s debt net worth ratio is about 0.69: 1. That means Wal-Mart owes creditors $0.69 for every $1 of equity that it owns. The tangible net worth ratio is about 148584 million dollars, and its total debt is 102326 million dollars as is mentioned above. Learning about other companies this ratio, Wal-Mart’s debt to net worth ratio is not an exorbitant amount of debt, the company’s borrowing capacity is not bad, it is associated with a higher level of financial security, giving the business greater borrowing potential.
This shows Targets improvement over time to pay its current liabilities based on available cash, short term investments, and receivables. Some items that may have impacted the quick ratio were a major increase in cash & equivalents as well as a generous increase in receivables from 2007 to 2008. Target’s quick ratio was higher than Wal-Mart’s quick ratio. This is an important comparison as Target’s ratio was higher than Wal-Mart’s regardless of the fact that Wal-Mart is a larger company that has traditionally outperformed
Walmart Stores Walmart operates various formats of discount department stores under 53 different banners in 15 countries, including Walmart, Sam’s Club, & Asda, and is the largest retailer in the world. As of Jul 31, 2011 the company operated 9,667 total stores including 3,822 Walmart U.S., 609 Sam’s Club, and 5.236 International locations. Demand Since the Price elasticity of demand for the type of walmart’s products is very high, Walmart always succeed to be an attractive substitute store by having the lower price. This allows it to have a shift of the demand to right. Annual Sales Data | | 2011 | 2010 | 2009 | 2008 | 2007 | Net Sales (1,000′s) | $ 418,952,000 | $ 405,132,000 | $ 401,087,000 | $ 373,321,000 | $ 344,759,000 | YoY % Chg | 3.4% | 1.0% | 7.4% | 8.3% | 11.6% | Same-Store Sales Chg | -0.6% | -0.8% | 3.5% | 1.6% | 2.0% | | Walmart reported net income of $3.80 billion ($1.09 Diluted EPS) for the second quarter ended Jul 31, a 6% increase from a year ago.
The elimination of short-term debt shows that Home Depot, Incorporated is not using such debt to meet short-term cash requirements. The cause of the elimination of short term debt may be caused by the improved cash position and the economy. Home Depot, Incorporated’s financial position and ratios look good. In fiscal year 2008, the long-term debt-to-equity ratio was 54.4% compared to fiscal year 2007’s 64.3%. In fiscal year 2008, the return on invested capital of continuing operations was 9.5% compared to fiscal year 2007’s 13.9%.
I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year. A high rate of turnover indicates easiness in selling inventory; a low rate indicates difficulty. In 2011, the inventory turnover was 6.1. By 2012 the ratio decreased to 5.2. The decrease may be due to a slow ability to turn around merchandise in sales and potentially due to paying a higher cost for goods.
Overall and yearly conclusions were drawn at the end of the report. Some reasonable suggestions for investing activities were also raised for people who are interested in Kroger. In this report, descriptive statistics were used to analyze the stability of the company. Other analysis techniques were used through the report including correlation, confidence intervals, hypothesis test and regression analysis. Company Overview Founded in 1883 and incorporated in 1902, The Kroger Co. (NYSE:KR) is one of the world's largest grocery retailers based on annual sales, holding the #23 ranking on the Fortune 100 list with fiscal 2013 sales of $98.4 billion.
Financial Ratio Analysis of Dr. Pepper Snapple Group Liquidity ratios for a company help whomever is analyzing the data determine the company’s liquidity. When a company has good liquidity they are able to pay off their short term debt without having to take out any additional financing. We will look at Dr. Pepper Snapple Group’s current ratio for 2009 and 2010. The current ratio is calculated by taking the company’s current assets and dividing it by the current liabilities. It shows how many times the current assets can cover the current liabilities.
Home Depot´s balance sheet shows that they reduce their existing liabilities and long-term liabilities. By eliminated up to $1.7 billion in short term debt, Home Depot efficaciously condensed the amounts of payable income just short of a billion dollars. By effectively doing that moving forward Home depot will have less liability hence creating less expenses which is less turmoil for the company to get through trying times. Additionally, Home Depot when at a substantial point when net earnings drop recorded a $63 million dollar upsurge in stock holder´s
Hilary Butsch November 22, 2010 Personal Investing During the pre-investment process I completed a couple tests that calculate my risk tolerance and my investor profile. After analyzing the information, I determine that I could put about 40 per cent of my investments into stocks and the remaining 60 per cent into bonds and money markets. The purpose of investing in bonds is to ensure a growth of your money. Bonds are much safer than stocks. In stocks you buy partial ownership of the company so depending on their success your money will either increase or decrease; whereas, bonds you are loaning your money to companies and when the bond matures you get your money back--all the while collecting interest on your loaned money.