California Choppers Case

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Comment: The Gross profit margin is relatively high which is also not a good or a bad indicator about the company because it’s all determined by comparing with other companies.

A more tell tale sign is the quick ratio, or acid test, which has increased year after year. Debt to total assets has decreased over 5% since 2001, indicating less financing of current and long term debt and more company assets. Their cash debt coverage far surpasses the ideal 20%, indicating a high level of solvency with sufficient funds and assets to satisfy all debtors. Asset turnover has more or less maintained at right around 1.6, signifying a turnover rate of just less than 180 times per year.

The 5 year average for Operating Margins is 15.61% over the industry average of (-2.22%). I would once again reference that the operating margins are high because of HD’s foot hold in their industry which is also echoed in their Net Profit margin ratio of 7.86% over the industry comparison of (-0.48%). Comparisons for Pre-Tax Margin Ratios are 12.5% to the industries (-0.46%). This is a good indication

To evaluate whether the company can clear debts within one year from turning assets into cash, we need to check the current ratio of the company. A ratio which is less than one is often creates a concern. As we can see the current ratio of Costco (Exhibit 8) is 1.05 which is more than one and considered to be standard ratio, so Costco will not have any issues with liquidity

There has not been much change in their cost of capital or capital structure over the past two years. CVS has maintained a level of liquidity which is sufficient to cover cash needs in the short-term. Over the long-term

When a company is growing so fast, it is a good idea to look at how it is paying for the growth. A good way to do that is by looking at the current ratio because it shows assets compared to liabilities. CMG’s current ratio over this time period has varied a good bit: 2013 = 3.34, 2014 = 3.5, and 2015 = 2.91. What stands out in that is the decrease in 2015 which could indicate issues with the company. However, after looking more in depth, it can be seen that this decrease is most likely related to the company’s fast growth in that year and its need to finance the growth. In addition, CMG’s

While CMC does not have a personal banker, they enjoy excellent credit and healthy Debt to Equity ratio. This ratio is calculated by dividing total liabilities by stockholders equity. CMC enjoys a .3097:1 ratio, this indicates that for every dollar in liabilities there is $3.10 supplied by the owner. This low ratio proves their responsibility in keeping their debt low.

Both CZR and the Industry operating profit margin is .12. The net profit margin of CZR is 130% as the Industry is 19% showing that CZR is reliable and consistent with their profit margins. So, this indicates that for every dollar generated by CZR their shareholder obtains $1.30 which is a benefit to them. Their return on assets for 2015 is 50% as to where the Industry is 1% showing that CZR can efficiently be generating earning as its using assets. Return of equity for CZR ratio is 6.13 as to where the Industry is .43; CZR attributes 5.7 more to shareholders than the Industry against the investment that shareholders had put into the firm. Both CZR and the Industry’s return on capital employed is 6%, which shows the efficiency of the company may generate profits from their used money. So, this indicates that for every dollar invested in the capital employed that both CZR and Industry made six cents of benefits. CZR’s financial strength, profitability, and competitive position will attract potential investors as it demonstrations Caesars Entertainment Corporations long-term survivability.

As we can observe from the chart above, we notice that Caterpillar is having issues with its Debt to equity ratio, because it has more debt for earnings than the industrial average, even though, is the biggest company on this sector and the leader, the decrease on its revenues due the low oil prices and the little growth on the world economy.

This memo will analyze profitability, liquidity, leverage, cash flow and investment valuation of Harley Davidson through various financial ratios and give a recommendation. Profitability was analyzed through profit margin analysis, ROE and ROA based on financial statements of the fiscal year of 2013. Gross profit margin and operating profit margin were 44.1% and 21%, respectively and also the net profit margin was at 13.6%. From the numbers stated above we can infer that in every sales dollar for Harley Davidson in 2013, there are roughly 0.44, 0.21 and 0.14 cents of gross, operating and net profit, respectively. ROE and ROA were 26.4% and 8.4% for the end of 2013 Q4, respectively.

CMG reported total assets account of grew between 2011 and 2013. In 2012 total assets was $243,359 more than in 2011 or a 17% change. Total current liabilities also increased steadily over the period with 2012 current debts amounting to $186,852 a 12% debt increase over 2011. However, total current liabilities for the same year totaled $422,741, a 19% increase or 29,399 dollar value increase over 2011. Despite the increase in liabilities CMG had a 41% increase change in retained earnings for the 2012 fiscal year. CMG current ratio for 2012 remained above 1 regardless of being lower than 2011. However, the changes in 2012 spread through to 2013 where the liquidity power of the company was increased. Overall, based on the above information CMG has the financial capability to implement

California Pizza Kitchen is known worldwide for its high quality menu and ingredients, with budget friendly prices. They collect their revenues from three different sources. Sales from company owned restaurants, royalties from franchised restaurants and royalties from a partnership with Kraft to sell CPK branded frozen pizza in grocery stores. CPK has a "dedication to guest satisfaction and menu innovation and sustainable culture of service." CPK has the lowest average bill cost of any other casual dining restaurant, of $13.30 per guest. Their menu has very few choices, but the choices that are offered are of high quality and nothing less. Their goal is to extend their franchises to Mexico and

The first point is the about the level of leverage which has being increasing along the years and the underperforming of the interest cover ratio, it means that the company may have a high level of interest debt.