Ecco Case

After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

In addition, as we are comparing the profit margin and operating profit margin, we notice that interest expense, from 2006 to 2010, consumed a relative small portion of sales proceeds comparing to 2011. In 2011, the profit margin for HH is -1.46% and the operating profit margin for HH is -0.74%. Since profit margin includes interest expense in the calculation while operating profit margin does not, we can conclude that HH has about the same amount in interest expense as the amount of operating loss before interest. This finally doubles the amount of company’s loss at the end of the cycle. This big amount of interest expense leads us to study HH’s leverage ratios.

Question Presented is to provide an advice to the client (Sam) on inclusion of the most favorable provisions of corporate documents provision under the following facts:

Was Cameron occupying the car as defined by Mr. Frye’s automobile insurance policy by placing the car on a jack and running it backwards by placing a concrete block on the gas pedal if he continued to monitor the vehicle, kicked it repeatedly and leaned on it?

Charged for drug trafficking, money laundering, and involvement in 12 murder conspiracies Joaquin (El Chapo) Guzman awaits trials in a court at Manhattan. His extradition occurred January 20, 2017 after several months of a dispute between his lawyers and U.S authorities. He was not physically present for his first court meeting with federal court Judge Brian Cogan. The judge expressed that he expected the first hearing to be “brief and non-substantive” therefore he was “inclined to have defendant present by video transmission only in order to minimize the disruption from physical transportation”. (Keshner, 2017).

During the last two quarters of 1999-2000, the company has experienced increasing revenues but profit margin contraction. There is insufficient information disclosure in the financials to source the driving factor. However, the largest driver of sales is through its distributors and Bonny Doon’s EuroDoon products (Figure 2). From a P/L standpoint, we believe that the margin fluctuations can be ignored, with a view of focusing on strategic initiatives to maximize revenue and the quantity sold.

Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

625 10.125 8.125 10.000 9.875 10.250 9.750 9.125 8.500 4.250 4.375 3.625 3.125 2.625 Close 12.125 16.000 8.375 10.375 10.500 10.625 9.750 9.375 9.125 5.500 4.625 3.875 3.500 3.000 2.500 167.24 211.28 242.17 288.36 290.10 304.00 318.66 329.80 321.83 251.79 230.3 247.08 257.07 267.82 266.37 S&P 500 Closing Bond Prices 11.13% $81.875 82.000 77.750 76.000 94.000 75.625 76.125 72.000 55.250 50.000 41.500 41.750 27.000 14.38% $90.125 101.875 100.875 99.500 96.500 95.000 95.000 98.625 96.000 94.375 68.875 63.500 50.000 54.125 34.250 S&P longterm gov bond 40.29 48.93 58.04 60.69 51.55 52.42 51.89 50.40 47.39 47.17 50.31 49.89 51.28 53.67 52.50

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

Describe Tartan 's competitive strategy. On the basis of this competitive strategy, what recommendation would you make to task force?

Torres’ common-size financial statements also show the changing composition of Costco’s financing structure over time. The fact that interest expense consistently fell over the five year span from -0.35% of net sales in 1997 to -0.09% in 2001 demonstrates Costco’s ability to reduce its overall amount of debt during these years. Exhibit nine’s balance sheet portion supports this reduction, documenting an increase in total current liabilities from 35.86% of total assets in 1997 to 40.76% in 2001 and an increase in accounts payable from 25.46% of assets in 1997 to 27.03% in 2001. This signifies that the company’s debts or obligations due within one year increased, further corresponding with the fact that short-term borrowing increased from 0.46% of assets in 1997 to 1.93% in 2001. With an increase in short-term borrowing it is logical to expect to see a decrease in long-term borrowing. The income statement proves that this is indeed the case, documenting a decrease in long-term debt from 16.74% of sales in 1997 to 8.52% in 2001. This relates back to the decrease in Costco’s interest expense on the income statement, representing the company’s decision to switch to short-term and away from long-term methods. Furthermore, the decrease in long-term debt helped account for a decrease in total liabilities from

The company lost money almost every year since its leveraged buyout by Coniston Partners in 1989. The income generated was not sufficient to service the interest expenses of the company which stood at $2.62B in 1996. From Exhibit 1, we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets.

Balance sheet show that Comerica’s total deposits are maintaining a level since 2005, however company’s net loans have increased by almost $10 Billion. Balance sheet clearly shows that these loans are finance from the increase in short-term and long term debt, which cast doubts on the profitability of company going forward.

This paper will seek to analyze the financial statements of the O.M Scott & Sons Company during the years 1957-1961, in order to provide readers with a thorough understanding of the various factors that may influence the future success of this business. Additionally, recommendations based on an analysis of their financial