Merill Electronics Case

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

The decline of inventory turnover presents the incresed possibility of inventory obsolescence which is likely to be assessed as higher business risk. In debts to equity part, the ratio in current year is much higher than that of preceeding year, which means the extent of use of debt in financing company is much higher than before. Pinnacle has used most of its borrowing capacity and has little cushion for addional debt.This action brought high business risk to Pinnacle. In addition, Pinnacle puchase more inventory in current year that that of preceeding year, and net sales are increasing also compared previous year. However, the net income is decreased significantly. These changes show expenses (maybe direct or indirect) have increased dramaticly. The company uses more expensive materials and labors to manufacure and sell products.

The company’s cash has been decreasing over the 2 years however its current and quick ratio has gone up, from 2.26 to 2.53 and 1.06 to 1.26 respectively, due to its increase in accounts receivable and inventory, the company may need to minimize amount of sales based on credit or require however down payment on its installment sales. Haefren must also be offering more lenient credit terms to its customers since its average collection period has also gone up significantly, this could be correlated to the lax credit terms Wiegandt currently offers Haefren. Haefren’s return on equity is also declining, using the DuPont method, as a result of our low net profit margin and our decreasing asset turnover (as a result of lower sales and higher assets). The company currently finances itself with bank loans which have decreased while cash is decreasing, the increase in debt may be growing to an unsustainable rate as our debt to equity ratio has almost doubled from 5.84 to 9.37 between 1993 and 1994. This poses a major a problem for the corporation as cash and sales are decreasing and loans are increasing, the company may need to liquidate the warehouses. The warehouses could be a major factor in another problem: low profitability. Low operating profit margins of 1.6% suggests high operating expenses. The company may need to cut operating expenses by reducing by

The profit margin ratio of the organization indicates that the profit margin in 2015 decreased in comparison to 2014, but increased in comparison to 2013. The main reason is the poor growth in net income due to increase in cost of revenues in 2015 and 2013. In relation to debt to equity ratio of the organization debt to equity in 2015 and 2014 slightly increased. The reason of increase in the debt to equity ratio is the reduction in equity financing and increase in debt financing that means more financial leverage. The situation in 2013 was same as the ratio was 0.02 times. It means the organization increased capital through long-term debt. Current ratio growth in also not good as the current ratio of the organization in 2015 was 1.2 times

AET MARSDEN clearly has the capacity to develop into a leader within the Service and with his hard working capacity and encourageing approach could strive to the level of Leading Hand with good direction and continued personnel effort. Even though he has tendered his notice MARSDEN should utalise any oppertunity of responsibility and projected leadership tasks, all of which will allow his coaching and leadership style to develop either for Service or future civilian employment. Showing some of the attributes of a Leading Hand, and if continued would see an engineer well placed above some for selection.

Based on Next Annual Report and Account January (2011), the chief executive's review present the A New Normal of company overview, due to the changing consumer environment, Next PLC need to have New avenues of growth, and brand new way to control cost, also, it will be important that retailer have to generate the healthy cash flow with cautious management. Furthermore, enable to know how company efficiently use asset to generate revenue and whether there was improvement between 2010 and 2011, the activity ratios have to calculate out. The ROCE in 2010 and 2011 were 38.91%,41.79%, this number showed how profit generated by capital employed, and the growth figure of ROCE lead to level up efficiency asset used.((NEXT PLC, 2011 page43, 45) The figure for inventory turnover, receivable turnover, and payable turnover in 2010 and 2011 were 46.81 days, 54.98 days; 66.07days, 68.23 days; 83.36days,81.3days; respectively. (ibid) It is clearly show that the inventory and receivable turnover in 2010 was taken lesser day than 2011, in which means inventories took less day to sold out to costumer and the cash credit receive more faster than the 2011, besides, the payable turnover had longer period than 2011, it was also a good example to illustrate that there was more cash flow holding by company, and the overall image of these figure present that the resource had been

The results I have found tell me that the company is operating at ratio of 1:1 in its worst position. With a 1.0 Inventory turnover and a 2.16 account receivable turnover Ryders company is operating at an efficient and effective level, as they are able to easily convert assets into cash, opposed to a company who is unable to pay its debt. The company has very little problems in obtaining credit in the manner it sees's

In addition, to that it is important to notice that their total expense represents 87% of their revenue in 2013 (See Exhibit 1). Moreover, if we look at the profit margin, it highlights the fact that the company is generating a low amount of profit compare to the amount of revenue. It is important to notice that it could reveal that the company profitability is not very

Reserve coverage ratio, despite the increase in loss reserves, is decreasing dramatically, from 213% in 2006 to 87% in June 2008, indicating an enormous increase in non-performing assets (NPA). The main reason on increase in NPAs the fact that high percentage (32.9%) of company’s total loans is Real Estate loans. This is the reason that company’s interest income has decreased despite the increase in loans made in 2008. Efficiency ratio is basically an operating expense margin measure, the lower the better. The above 60 percent efficiency ratio, 50 percent generally regarded as optimal, is an indicator of company's deteriorating performance.

Although by itself this ratio number can be misleading, since companies with lower margins can have higher asset turnover rations. In order to understand the real impact of asset turnover ratio we need to combine with margin ratio and then determine if it’s pricing strategy by UPS that is generating this high ratio or in fact UPS is much more efficient in using its assets than FedEx. Looking at the numbers for this period for both companies using Exhibits 2&3, we observed that UPS has far better Net profit margins compared [pic] to FedEx’s, that points to high asset turnover due to its pricing strategy. As we see in the above graph, UPS Asset ratios are declining while FedEx assets ratios are improving and correspondingly FedEx-RONA is also improving though lacking behind UPS’s RONA ratio even though FedEx has greatly improved their asset turnover ratios, the Net Profit margins are still well below UPS (see Net Profit Margin graph above). Does this mean UPS is creating more value than FedEx as shown by RONA graph? We need more concrete data to answer this question. Although RONA has a strong virtue of usage, as compared to traditional methods for measuring

Crocs, Inc. experienced astonishing growth within a short period of time and managed its highly flexible supply chain in ways which enabled Crocs to build additional product within the selling season. Building within the selling season made Crocs take advantage of strong customer demand, resulting in the company filling in-season orders totaling many times that of the initial pre-booked orders. But on the other hand Crocs, Inc. has a problem with high excess capacity and inventory levels which could be a threat to the company because so much money is tied up in assets. Crocs should try not

2012 saw a slight dip in gross profit margin even due to increase in revenue. This was the result of a change in mix between retail and wholesale revenue in favour of wholesale increasing in percentage contribution. The wholesale has smaller margins. There was also an increase in promotional activities in this period. There was an increase in capital employed during 2012 as well as increase in administrative expenses due to expansion activities in USA and IT and distribution infrastructure investment to handle future growth, which resulted in a slight dip in ROSF, ROCE, gross and operating margin even after an overall increase in profits. The dip in ROCE was more significant. On further analysis, it revealed that the company reserved more retained earnings and used a substantial bank overdraft in 2012 to finance their expansion activities. If some of the activities were financed by the retained

An increasingly unfavorable operating efficiency could be a potential drain on SSB 's business if SSB does nothing to monitor and stabilize the operating expenses and increase the operating revenues.

The decrease in inventory days means that the efficiency of the firm in terms of its inventory is good. The TAT of 2.0 for 2006 and 3.9 for 2007 mean that More Vino is low asset intensive. This increase in TAT is driven by a large increase in sales. The average collection period is very low with 1 day for 2007 and 3 days for 2006. This is due to the fact that most of the sales are driven by on-site consumption then consumers pay quickly. The company is managing its receivables well. The FAT has been stable to 5.8 for both years. This high number means that the company is effectively using its fixed assets. For More Vino LTD, one point of significance is the negative cash flows from operations in 2006 (2,918,738). The cash flow crunch is apparently caused by a net loss for the year 2006 (2,015,034). There is no mention of any human resources issues affecting performance but the fact that the fact that the Stone brothers own only one-third of the shares of their company could be a problem in the future.

In 2011, the Group delivered a strong financial performance, continuing the trend of increasing profitability from 2010. Its performance is slightly weaker in 2012, due to challenging macroeconomic conditions in many regions. Despite an increase in revenues, the more than proportional increase in costs took its toll on the company’s gross profits.