Ice Film

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.

The liquidity of firm can be measured by computing certain ratio’s such as current ratio and acid ratio. For measuring Target Corporation’s 2014 liquidity; the firm’s current ratio and the acid ratio is computed. The company’s current ratio is 0.91 times which is computed by comparing current asset ($11, 573,000) with current liabilities ($12,777, 000) of the year 2014 (TGT Company Financial, n.d). The firm’s acid ratio is 0.26 times which is computed by deducting inventory ($8,278,000) from current assets. The inventory is deducted from current assets because the company has not received any money for the unfinished good or from unsold inventory worth ($8,278,000). To analyze the Target Corporation’s liquidity trend in 2014; the current ratio and acid ratio of 2014 is compared with the 2015’s ratios. In 2015, the firm’s current ratio was 1.20 times and the acid ratio was 0.45 times. These liquidity ratios reflect that the firm’s liquidity was better in 2015 than 2014. (See Table 1).

ACC/291 March 25,2012   Liquidity Ratios Current Ratio: Current Assets/Current Liabilities 2005 $14,555,092/ $6,974,752= 2.09:1 2004 $14,643,456/ $6,029,696=2.43:1 Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities 2005 $305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1 2004 $357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1 Receivables Turnover: Net Credit Sales/ Average Net Receivables 2005 $50,823,685/ ($6,133,663 + 5,775,104/2) $50,823,685/ $5,954,384= 8.54 times 2004 $46,044,288/($5,775,104+6,569,344/2) $46,044,288/ $6,172,224=7,46 times Inventory Turnover: Cost of Goods Sold/ Average Inventory 2005 $42,037,624/ ($7,850,970+$7,854,112/2) $42,037,624/$7,852,541=5.35 times

In this case, Ice-Fili hold this competitive advantage since the company mainly use natural ingredients and do not use any preservatives or colorants (“Lakomka”). At the time of the case Ice-Fili’s ice cream are seen as a quality product which fit with the traditional recipe. At the opposite, Nestlé adds preservatives which distort the taste, but by using these ingredients, it decreases the total costs.

First of which, is the current ratio. It has been rapidly declining since 2000. To me this indicates that there is a liquidity issue. Each year their trade debt increase exceeds the increase of net income for the company. As a result, the working capital has taken a nosedive from $58,650 in 2002 to only $5,466 in 2003.

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.

We believe that Ice-Fili, to stop the decline in its market share, should focus on the market opportunities in the Russian ice cream market. The main opportunity seems to lie in consumers’ behavior. They only consider ice cream as an "on the go" snack. Ice-Fili should use all possible means to create a change in their way of consumption. It would be doubly useful as it would both increase ice cream sales in restaurants but also in supermarkets so that families eat them at home.

The ice cream industry is very a competitive field. Blue Bell has many competitors with a bigger budget and a bigger distribution channel. The company still manage to produce top brand ice cream to please its customers. According to the U.S Market for Ice Cream, “Sales nearly $12.2 Billion in 2005 with the sales of frozen, yogurt frozen desserts at scoop shops, restaurants and vending outlets. Three years ago there was a tremendous interest in ice cream nutrition panel. Other competitors were introducing product such as; low crab ice cream, no sugar added and low fat ice cream.

Ice-Fili is the top ice cream producer in Russia. Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market.

Ice-Fili’s marketing approach and product distribution could be seen as weaknesses in the company’s primary activities. In 2001 the firm started its first TV marketing campaign years after competitor’s advertised through the media outlets. To date Ice-Fili is still very inexperienced and far lacking of marketing strategies deployed by Western competitors such as Unilever and Nestle. Not only does Ice-Fili need to market more fiercely against competitors within industry, it must also compete against other consumables such as beverages and snacks. Another weakness is the distribution that is handed over to several distribution companies. There is a much higher chance (twice as likely) to find products of its biggest competitor Nestlé than those of Ice-Fili. Another detriment is how ice cream is viewed socially. Currently ice cream is primarily an impulse purchase. If Ice-Fili can change this outlook, it would result in an enormous

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

Interco's overall financial health is relatively healthy. It is highly-liquid as the current ratios are consistently over 3.5, showing that it has plenty of cash to cover any of its current liabilities. Its accounts receivable days indicate that in 1987 it took longer to collect on outstanding accounts while this figure would drop in 1988. The same trend follows with its inventory days, increasing in 1987 and decreasing in 1988, which would signal that its turnover was slower in 1987 and faster in 1988. The accounts payable days increased in 1987 while slightly decreasing in 1988. This is a healthy trend as Interco was able to take

Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and

The paper provides analysis of Ice-Fili, and the paper reveals that Ice-Fili is one of the important ice cream producers in Russia. However, the entrant of foreign ice cream producers such as Nestle has made Ice-Fili to face stiff competitions within the industry. Porter five analysis reveals that Ice-Fili has not been able to compete effectively with foreign companies because the company still relies on imported equipment and technology and traditional method of production, which lead to high cost of production.

Besides sales increment, the number of ice-cream manufacturers, parlour and restaurants has grown and they are gaining popularity by introducing new flavours of ice-cream and providing a comfortable environment. Supermarkets play a role in supporting the sales by selling multipack ice-cream and bulk ice-cream. (SeowMIee, 2011) Hence, we will use PEST, SWOT and Porter's five forces analysis to analyse the industry.