Pestle Analysis Chuobb

The current ratio measures the company’s ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca-Cola in conjunction with share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay all its short-term

Total asset turnover : This ratio measures the efficiency of a company’s use of its assets

I. Rate of Return on Total Assets: Measures the company’s profitability relative to total assets. A percentage increment for Company G, from 12.30% to 13.68% (2011-12) keeps them above industry benchmarks (8.60% and 12.30%). Rate of Return on Total Assets represents strength for Company G.

Current Ratio: Current ratio measures the capability of the company in paying current liability. Higher the current ratio, better the liquidity position of the company. Generally, a current

Asset turnover depicts investment efficiency, because it shows how many sales dollars are generated for every dollar invested in the company’s assets. Lowe’s had relatively lower asset turnover ratios than Home Depot because their recent investment in PP&E.

The stock ticker sample for Whole Foods the company is WFM, which is the abbreviation of the full company name, Whole Foods Market. The stock ticker WFM is recognized by the National Association of Securities Dealers Automated Quotations or NASDAQ. Whole Foods Market’s NAICS code is 445110 which determines the company is involved within the supermarkets, and grocery store market (except for convenience stores). The Whole Foods company is listed within the grocery store industry (Yahoo Finance, 2016). This means that the Whole Foods company, while still being an organic product brand, operates in the form of pre-existing retailers and competitors. Whole Foods tries to compete within its industry by offering a wide, specialized selection of natural or organic foods and products to its customers (Sharma, 2015).

. Whole Foods Market might have experimented with the co-CEO position because of the opportunities it can create for the company. For example, having co-CEO’s will allow Whole Foods to have more ideas on how to better the company, how to expand it, or how to implement their main message of healthy living and environment to their target market. This will allow them to have leverage towards their competitors, by being more creative since they have two people running the business. Also, co-CEO will decrease the responsibility and pressure that a single CEO will have, which will allow them to work more efficiently, and add value to the company. Whole Foods decided to go back to one CEO because what they want to refocus mainly on the growth of

The Quick Ratio also known as Acid Ratio is used by firms to determine liquidity position. It explains if the firm is able to pay all of their current debt liabilities. (Dyson, 2010) The graph above illustrates that over the period from 2007 to 2011 quick ratio was not more that 1, which means that their debts might not be covered all. The graph also indicates that a peak was in 2011.

Inventory turnover ratios are the number of times a business sells and replaces its inventory. The inventory turnover was four times above industry average, but has since decrease below industry level for 2013 through 2016.

How frequently do you cycle through your inventory? If you’re a high quantity distribution corporation with lots of product coming in and going out, you would expect a greater turnover ratio. For example, if you’re distributing soda, you may measure turnover ratios by month, and expect to cycle via all your stock more than one times. Inventory turnover ratios are specially essential for companies that stock perishable

Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.

This group of ratios emphasis can easily indicate the Amcor’s capability to meet short term debt obligations. Current ratio and Quick ratio will be calculated in this part. These two ratios are quite similar, short term creditors, such as bankers and suppliers are interested in this class of ratios, because they can measure the short term debt-paying ability of company.

The first ratio to evaluate is the Current Ratio, which is calculated as current assets divided by current liabilities. Halliburton’s 2010 current ratio is 3.22, which improved from 2.99 in 2009 and from 2.66.in 2008. This ratio shows that Halliburton has a strong increasing liquidity and is in much better shape than its competitors. Baker Hughes has a 2010 current ratio of 2.77

The quick ratio of 1.46 is a further analysis into the actual monetary values that are highly liquid and excluding fixed assets as part of the assets. The CFO/Avg. current liabilities also show a healthy 73%, 28% in 2004, on average of which is still higher than the industry.

CURRENT RATIO show a company’s ability to pay its current obligations that is company’s liquidity. The current ratio position is lower for Honda at 0.33 than for Toyota at 1.22 in 2010. Honda has a large portion of receivables in assets both in trade, notes receivables and finance receivables. It has a huge portion of cash as well. This indicates the company has no problem in terms of generating a positive influx of assets. But in terms of liabilities it has a large portion of short term debt which makes almost 1/3rd of total Current liabilities. Also there is a significant portion of Long Term debt. The higher level of liabilities in the denominator reduces the overall ratio.