Advanced Medical Technology Corporation Essay

Partners Healthcare is considering the introduction of real assets into the organization’s portfolio. The analysis will demonstrate the effects of having one risky asset and one risk-free asset in a portfolio. Our analysis will also show that the introduction of real assets can decrease the risk of the hospital’s portfolio. Each hospital in the healthcare system can determine the appropriate portfolio mix based on their desired expected level of return and risk they are willing to accept.

Although the company seems to be profitable, it has faced shortage of cash. It happened due to increase in Accounts Receivable as well as Inventories. On the other hand, Accounts Payable does not increase that rapidly and difficulties regarding cash collection become evident. Furthermore, the cash collection cycle becomes larger (59 days in year 2003, while more than 70 in year 2006).

The significant decline in fixed asset turnover could be attributed to the declining sales figures, but overall further exemplifies the company’s lack of efficiency. Continuing to evaluate the operations of the company, the company is having trouble collecting payments, with an average collection period ranging between 53 and 78 days. Because the company’s sales are 25% installment plans, Haefren Baum seems to be offering extremely loose credit terms, which would explain the increase in average collection period. Days inventory held is also on the increase, which shows that it takes too much time for the company to turn inventory into profit. One hundred thirty days is unacceptable in business. However, it should be noted that for a high quality home furnishing retailer a high inventory days might be quite normal.

J reflects department store chain. This industry is a retail business; therefore, there is a large amount of inventories. This industry also has high accounts receivable because usually customers pay with credit cards which are billed at the end of the month. However, sometimes, customers forget to pay their bills on time, and the bills are brought to next month. Therefore, the collection period is approximately 2 months.

The debt-to-assets ratio indicates the percentage of assets financed by debt as a sign of the company’s financing threat. This analysis shows that the company has increased its debt financing from 27.2% in 2009 to 29.4% in 2010. Analysts probably would decrease their estimates of Radio Shack’s ability to repay lenders because the company increased its relative reliance on debt financing, thus causing Radio Shack to be more

Extraordinary sales growth for AMT of 30% annually is resulting in major operating losses, and external funds are necessary to be able to continue with this rapid expansion. The net operating losses from 1983-1985 were $1,289,000 in 1983; $1,176,000 in 1984; and $1,487,000 in 1985. The bulk of these losses were a direct result of both

For the past eighteen months, Jayar corporations has had an exceptional financial stability. Fortunately, our corporation did not go bankrupt throughout the year and a half in existence. For each quarter, our company strategized in competition by looking at the best way to change and refurnish our products to exceed other companies. Our most competitive strategy in selling microcomputers was to make sure we surpassed the exceptional price for the buyers. The prices for our products were by far the number one best prices from the other four companies. While with marketing and manufacturing Jayar corporations was always comparing the favorite ads by buyers and the best manufactured computers; Every quarter we consistently

• Cash as a percent of sales is set at 7.5%. Going forward, and assuming 7.5% ratio, which is very similar to the industry upper quartile in 1985, cash balances at AMT will remains solid going forward. Note that the industry’s cash to sales ratio is not given directly but can be deducted by taking the Cash to Assets ratio of 16.3% (1985) and Assets to Sales ratio of 45.3% (Upper Quartile in 1985). Reshuffling these figures yields the industry’s Cash to Sales of 7.4%.

Nonetheless, an improvement in age of receivables for a single company over multiple periods suggests a company is becoming more efficient or effective at managing its receivables (Bujaki & Durocher, 2012; Gibson, 2011).

Does Clarkson Lumber have excess funds tied up in the business in 1995 that could be released to alleviate her cash squeeze? For example, suppose that Clarkson Lumber could return to the 1993 DOH levels. Calculate the funds released from achieving these new (or really old!) targets?

As the creditors’ view, they prefer the high current ratio. The current ratio provides the best single indicator of the extent, which assets that are expected to be converted to cash fairly quickly cover the claims of short-term creditors. However, consider the current ratio from the perspective of a shareholder. A high current ratio could mean that the company has a lot of money tied up in nonproductive assets.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. However, marl-mart huge size requires much more debts to finance it operations. Wal-Mart’s 0.89 is not the best financial position, because the company with huge warehouse of inventory and other current asset has a longer inventory turnover than Target.

Long term creditors and shareholders are interested in this part of ratios and very carefully to deal with it. It evaluates how the company is using or managing its debt. Debt asset ratio and times interest earned and times interest earned will be calculated in

Marketing: The top product in the low-tech segment with the highest market share was Eat. Their market share was 11%. We saw a 1% decrease for Eat with 100% customer awareness, and a 1% increase for Eme with 100% customer awareness. Our promo budget for Eat stayed consistent at $1,400, and we spent 2,000 on Eat’s sales budget that year. We stayed aggressive and continued to put money on our promo budget to increase our customer awareness. We managed to increase Eme’s customer accessibility from 86% to 90% and customer awareness from 86% to 100%. We felt it was necessary to keep promoting our products in order to be the market leader in the

2. To evaluate the credit quality of Aero-Strip’s accounts receivables portfolio, we turn to their average collection period (ACP) and aging of accounts receivable. Knowing the ACP enables the firm to determine whether there is a general problem with the accounts receivable. The firm has credit terms of 2/10, net 30 so it would expect its ACP to equal about 30 days. Calculating the ACP of the