Current Profitability Of Pirelli & Co

Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user’s decisions.

Premier Padmini, founded in 1964, was the true competitor to the brand Ambassador and Fiat was the leading product from this brand. Fiat was at its peak during 1970-80’s and was popular among youngsters, celebrities and women. Later on it was mostly being used as taxi and in 2000 it stopped production.

| * OrotonGroup’s has moderate level of informativeness compared to Pacific Brands Group (PBG). In Oroton’s Chairman and CEO statement, they disclose the management commentary on the current performance and provide strategy for improvement. They also stated their business strategic analysis. In the notes, they justify the key accounting analysis, financial instruments, critical accounting judgements, estimations and assumptions and so forth. Furthermore, they also disclose several key ratios and critical shareholders information which indicates transparency to investors. * However, OrotonGroup’s financial statement is too aggregated compared to PBG since there is no segregation in each of Oroton’s business segment. PBG gives more information regarding its division of their products and its corporate and social responsibility (CSR) while Oroton does not.

Because they have faced cash shortage trouble. Their profitability has grown for 1993 ~ 1995 period, as we can see from their I/S (e.g. Sales and Net Income, etc.). However, as its business size grows, their A/R increased, which means that it is getting difficult to collect cash. On the other hand, A/P decreased for the same period, which means that the company paid cash for A/P, resulting in critical cash shortage. Furthermore, the A/P payment period is shorter than A/R collection periods, the company’s cash problem happens to be accelerated.

The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.

By using the consolidated income statements, balance sheet and cash flow statement, we can assess the company’s financial position. On the income statement, the company’s operation revenue increased by 4.5% ($393.4 million) from year 2006 while its operating income decreased by $65.1 million in the same period. Without considering the net-cash settlement feature expense recorded in 2007, operating income increased $103.6 million. Even though including the net-cash settlement feature

The reason is that the company’s expenses exceeded the revenue. Company’s assets have been increasing compared to last year total assets. There hasn’t been a dramtic change in liabilities because the company doesn’t have enough cash to pay its debt.

Absence in the two and three wheeler tire segments is one of the weaknesses of Apollo as it will affect the company competitiveness. (Market line, 2015) Unfortunately, rivals of the company which included CEAT and MRF are providing tires for customers in two wheeler product segment. (Market line, 2015) An intense development recently has been observed in the Indian two wheeler market. (Market line, 2015) Based on industry forecast, in the year of 2016 and 2017, around 22-23 million units of two wheelers will be sold. (Market line, 2015) Therefore, Apollo should combat this weakness by treating this as an opportunity for company to increase competencies

With slow sales, the company had to keep some expenses flat, such as administrative salaries, web creation / maintenance and executive compensations. This is a weakness and as stated before, the company will need to increase sales to increase profits to raise its strength. On the balance sheet for years 7 and 8, the current assets increased in accounts receivables. This is probably due to slow pay and/or unpaid accounts receivables. The change between years 7 and 8 reported -15% with a decrease change of $107,640. Total assets change was -0.2% and this position reflects a financial weakness for the company. Cash and cash equivalents can be used to satisfy during this period, although there was a change of 348.2%, this increase could have been used for operating expenses. This is too much cash sitting idle and not working for the company. Competition Bikes can assess where to put this cash to work for the company.

Goodyear have supplied new tires to Harley Davison and Kawasaki. The ferm will help distributers fond other lines, oficials said.

In the year 2007, there is a drop in financial performance within the company. Earnings have dropped

A financial analysis of Ford Motor Company’s (Ford) statements will identify their solvency in today’s automobile market. Elements such as liquidity, leverage, profitability, and activity ratios will demonstrate Ford’s financial health and stability. A further assessment of their technological advantages, global strategies, and benchmarking analysis will indicate the future prognosis of this company.

- The financial statements for the past three years show a decline trend in both the operation and return on shareholder of the company, so a closer look at the factors contributing to this decline is needed.

Bridgestone/Firestone has also signed a new deal with Honda of America Manufacturing Inc. Firestone has previously supplied approximately 75 percent of the tires to be put on the Honda Civics manufactured in Ohio and Alliston, Ontario. Dunlop Tire Corporation supplied the other 25 percent. The new deal will equip all new Civics from those plants with Firestone tires. Not only does this add to Bridgestone/Firestone's revenues, but it also shows that Honda has confidence in Firestone's ability to produce quality tires (Chappell, 09/15/00).

- a brand with a strong potential: in most European markets, Ducati’s brand recognition and loyalty was the highest in the motorcycle industry.