Open Supplier Network

The financial performance of the company over the years six t thirteen is shown in table no 7. The data includes Revenue generated over the years, Earning per share, Return on Investment and Stock Prices. Chart 5 shows that there has been a decline in the revenues generated. Charts 6 to 8 all show a decline in Earnings per Share, Return on Equity and Stock Prices suggesting a poor financial performance by the company.

The income over the last three years has been fluctuating.. This tells us the company has an initial growth period. Sales also drop between years 7 and 8 and the gross profit margin decreased as well. This may be due to operating expenses. This leads to the prospect of stable future sales. The stakeholders are continuing to back the company and the company does predict sales will remain stable. The modest increase in sales does not show enough to recover without making adjustments to free capital.

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

Based on my full ratio analysis, the first reason would be due to the ratio of rate of return on net sales. The rate of return on net sales for the current year 2011 is 2.4% compared to the previous year 2010 is 10.3%. There is a decreased difference of 7.9% ratio which is an indicator that the company's operational efficiency is fragile.

The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.

* In 2005, the profit was approximately ($144,000 / $5,500,000) 2.6% of sales; does this number indicate whether the company is doing well or not?

So while the company increased its net income, it has done so with diminishing profit margins.

Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.

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.

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

We will express the solutions for the issues in the order of which we listed them. Fixing the ordering process is the first priority as it ultimately affects communicated information between buyers and sellers. Effective order management is key to operational efficiency and customer satisfaction. At ACME, orders are normally keyed in to the ordering system from purchase orders that are

On the other hand, Mega Corporation’s financials are going downhill. Despite having a strong balance sheet, there was a benefit pension plan that was hugely under-funded. The income statement was worse. Sales were nearly cut in half, due largely to the fact that foreign competition was squeezing out the margins. Profits and cash flow dropped even more than sales.

- 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.

It’s noticeable how the company’s operations have been deteriorating as they are having a more difficult time translating sales into cash. Their A/R turnover is not where it needs to be, and in line with that, their liabilities are increasing as well. The company has also been inefficient with the use of their assets as their current activity ratios are not up to par with the industry standards.

Our mission is to help each client’s business, to reach our goal, our purpose and make every business man happy with our best products. We have the best possible worldwide. We had people working to our company to the highest of any company in the world. We guarantee that every Client that comes into play is happy with our product they use. We assure you your beauty and ease of work is our wish. That’s why we are providing software that is integrating all CRM, Accounting, Marketing and Shipment categories in one product on the lowest prices comparing with any Cloud