Case study 3 Lafarge-Aget Heracles Case a. Use Exhibits H and I, estimate and evaluate ratios for ROI, Profitability, liquidity, and financial strength. ROI is 5.18 in 2003 and 5.42 in 2004. It is slightly increase. The investment gains high profit to investment cost. Compared to 2003, the net income also growth 4.6 percent in 2004 since the mainly part is interest deduction. The sale revenue decreases 3,344 EURO, but the cost has a higher reduction by 4,400 EURO. Thus, its profitability essentially unchanged but still strong. Aget’s quick ratio is 2.4 in 2004 and 1.64 in 2003. Current ratio is 2.97 in 2004 and 2.07 in 2003. From the quick ratio and current ratio, Aget’s liquidity is very good. In 2003, it is nearly the ideal, but in …show more content…
How might such an increase affect price competitiveness? Aget can reduce its price since its cost decrease and other companies do not have such cost efficiencies. Thus, Aget’s price must lower than its competitors. Cement or concrete buyers enjoy guaranteed low price, so they will buy more commodities from Aget since it has lower price, which means Aget has stronger competitiveness than other companies. 4. Assuming that Aget’s sales by 2008 will have grown at the forecasted global market rate increase of 22.6% over those of 2004, what will be its production and utilization rate? From the Exhibit D and E, in 2008, the sum of non-residential and non-building of total market is 71.96 mmt. If Aget’s sales by 2008 will have increased 22.6 percent over the 2004, the total market share of Aget is 34.2 percent. Thus, the sum of Aget could be around 24.6mmt. But in Exhibit E, the sum of non-residential and non-building of Aget is only 9.37mmt. So if the growth of 22.6 is true, its utilization rate will be 2.63. c. If Aget does capture 20% market share in the markets of Lebanon, Kuwait and UAC, as estimated, at what sales – units and revenues, will it break-even? What is the B/E market share? If Aget capture 20 percent market share in the Lebanon, Kuwait and UAC, it will sell 1.94mmt cement. In the reading, its expected investment will be $6.3 million, which means if its price is equal to $3.25 per ton, Aget will
1. Describe bone physiology and the bone remodeling cycle. Be sure to emphasize the two types of bone tissue and the roles of osteoblasts and osteoclasts.
1. What was Chem-Med 's rate of sales growth in 2003? What is it forecasted to be in 2004, 2005, and 2006?
* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:
Also current ratio of the company during 1988-1990 (exhibit 3) indicates that liquidity position of the company is deteriorating as ratio is falling from 1.80% in 1998, to 1.59% in 1989 and finally reaching 1.45% in 1990. Similar trends are seen in the quick ratio as it has descended from 0.88% in 1988 to 0.67% in 1990 (exhibit 3). Days sales outstanding represent the number of day’s sales remains outstanding it has shown a substantial increase for 36.78 days in 1988 to 42.95 days in 1999 (exhibit 3), giving signals that the company is fueling its growth from cash crunch.
• 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%.
After careful review and analysis of the situation and the facts surrounding the company Brinkerhoff International Incorporated (BII), our team has been able to develop a viable course of action to efficiently improve productivity and relations within the organization.
- Lafarge-Aget can also change its approach of dealing with its customers: most of deals are transactional and based essentially on the price. The company could also develop a partnership approach by training its salespeople to offer deals in longer periods with more services such as advices for choosing
A teaching case study is defined as a narrative that describes a specific event within the school environment that allows professionals to investigate critical issues that impact the learning of students. Creating a case study can be seen as a form of professional development, educators learning from real examples. A case study is a powerful way for educators to reflect on the actions of other professionals. “Case studies force individuals and groups to think somewhat differently then they have before (Taylor & Whittaker, pg. 70).” The case study of Jim Peterson is multifaceted. Different teaching philosophies and beliefs in student expectations are critical issues which are discussed in this teaching case study.
4. How useful are the ratios in evaluating the current performance of each of the two companies?
In year 2012 Axiata with fixed asset ratio 0.55 which has the highest ratio compare with the following year. With the highest ratio in the year 2012, Axiata is doing an effective job of generating sales with a relatively small amount of fixed assets and selling off excess fixed asset capacity. After 2012, decline in the ratio can indicate Axiata over interested in fixed asset such as equipment or machine. The possible cause to help increase lower ratio such as provide new products or services that require more than traditional. The concept of the fixed asset turnover ratio is more valuable to an outside participant, who wants to know how well a Axiata is employing its assets to generate
B. How can we forecast before entering or in early stages of the evolution of the market, the level of market potential and industry sales?
• Align its property cycle (ordinarily 10-20 years) to its business cycle (less than 3 years), therefore
9,000 8,000 7,000 6,000 S$ m 5,000 4,000 3,000 2,000 1,000 0 FY05 FY06 FY07 3,369 4,361 CAGR: 34.0 % 5,456
12 Land supply for one round auction for kebele 01 and 10 in 2005 and 2006 respectively
Question- 3: comment on trends revealed by the ratios calculated in (2) above. Use the headings Profitability, Efficiency, Short term solvency, Long term solvency and market based. Where possible, relate the changes observed in these ratios to events in the business environment in general as discussed in (4) below.