Marketing Analysis : Pimo Benzina Ag

Be Our Guest’s balance sheet shows good signs of liquidity. Current Ratios for the past four years have remained above 1 proving that the company can handle its current liabilities. The current ratios are not extremely high (19941.27, 1995- 2.17, 1996- 1.15 and 1997- 1.16), but they can cover the current liabilities. It is important to note that the company is operating on a thin line because the current assets are barely covering the current liabilities. This is particularly unpleasant because we are dealing with a company operating in a seasonal business. It is a concern that the current ratio slightly eroded after 1995, and this is primarily due to Be Our Guest converting the bank line into long term debt in

Yogen Fruz is a frozen yogurt company attempting to expand its number of stores within China. The brand is built around the idea of using high quality healthy ingredients in their products while creating a unique environment that customers will enjoy and want to return to. While most frozen yogurt competitors are just entering the Chinese market, Yogen Fruz is already established

Interpretation: 53% of the total assets are financed through debts; the remaining 39% is financed through equity.

9. What is the Cost of Debt, before and after taxes? Using the interest rate for the largest debt…cannot use the weighted interest rate for the debt since it includes capital lease obligations with no stated rate and could not find in the notes to the financials. 5.4% After tax cost is .054 x (1-.36) = 3.5%

Next what catch my eye was an increase of amount of money owned by the business to the Creditors so this will be money leaving the business within the near future and if this continues to raise then the business will end up in huge debts. I have find out some improvements as well such as an increase in the amount investments in fixed assets, which could mean the business is investing more or more of the assets were sold from last year which is good news for a business.

Creditors normally focus on the liquidity or solvency of the borrower in terms of current ratio and quick ratio, which indicate whether the company has enough working capital to cover the short-term debts. Myer will enter into a syndicated facility agreement to refinance the existing borrowings of the Myer Group. Besides, creditors are interested in the business risks the company might undertake, which indicate the possibility that the company might be unable to pay back the long-term liability in the future. From this point, the expectation on high return on investment and high profitability in the long run make the creditor’s interest aligned with shareholders’ value.

After carefully reviewing the income statement, balances sheet and cash flow it seems that the company has a negative cash flow for 1998, so even before thinking about obtaining internal and external resources for long term investment, the company must assure resources for their own working capital.

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

The most important thing is that, according to our estimation, the next five-year we will get additional funds needed increasingly with no surplus funds; which means, our assets increase faster than our liabilities. Therefore, our company goes well in the short term future based on this model. In conclusion,

Du Pont's financial policy had always been based on maximization of financial flexibility. Taking to consideration the riskiness of Du Pont's businesses, its competitive position and profitability had declined in the last 20 years. Moreover, the firm is still forced to seek external financing each year for the next five years (1983-1987) due to the continued high level of capital expenditures which are considered non-deferrable to redress the causes of poor performance. In view of the importance and magnitude of the projected financing needs, the firm is concerned about how the cost and availability of debt

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.

The company’s debt ratios are 54.5% in 1988, 58.69% in 1989, 62.7% in 1990, and 67.37% in 1991. What this means is that the company is increasing its financial risk by taking on more leverage. The company has been taking an extensive amount of purchasing over the past couple of years, which could be the reason as to why net income has not grown much beyond several thousands of dollars. One could argue that the company is trying to expand its inventory to help accumulate future sales. But another problem is that the company’s

The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to

In September there was another offer of a $1.00 cash refund, with the proof of purchase for two 5 lb. boxes, which lead to an increase in gross sales of RBS, too. The $2 cash refund for the purchase of RBS plus four additional Household Division brands in January 2006 increased the gross sales even by more than 100% from $9.3mio to $20.6mio, a total net incremental contribution of $619,562. These coupons were advertised in women’s magazines, in a Sunday newspaper supplement, on the company website, and in point-of- purchase material the latter of which has a relatively high response rate of 2%. The event in June, that included a shrink wrapped twin pack of the 1 lb. boxes and a $1.00 cash refund inside the pack with proof of purchase from two 1 lb. boxes encouraged consumers to keep one box in the fridge and one in the bathroom, so that most of them bought two boxes of RBS which led to rising sales volumes Considering the significant increase in sales, RBS should focus on investing in print and online advertisement by increasing their budgets by 10% in this sector. To conclude and thinking long-term, budgets for consumer promotion should be raised by 10% to ensure that RBS continues selling high volumes. Due to missing information of the response rate of advertising in TV, RBS should maintain the budget in this sector constant.

On account of this property, the Sources and Uses of funds would enable one to analyze how the banks financed its fixed assets, discharged its liabilities, paid its dividends and taxes and so