Prima Benzoa

2032 Words9 Pages
| | Primo Benzina AG-Case Study | |

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Submitted by
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Vaqas Jawed-B025
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Karunya Reddy-B048
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Afaan Ullah Khan-B056

| Primo Benzina AG-Case Study | |

-------------------------------------------------
Submitted by
-------------------------------------------------
Vaqas Jawed-B025
-------------------------------------------------
Karunya Reddy-B048
-------------------------------------------------
Afaan Ullah Khan-B056

What are the key elements of Primo Benzina’s business strategy? What are the implications
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In spite of aggressively increasing the Assets, the returns had decreased over the past two years. The gross profit percentage is equivalent to others but since the financial structure of the firm consist of a lot of Debt, The interest coverage was increased and the Debt to Equity Ratio was as high as 2.02
The days payable and days inventory are also high when compared to inventory standards, this implies that the company is facing severe cash crunch as its not able to pay its bills on

Prepare an economic balance sheet showing the major classes of investments (cash, net WC, net fixed assets) and major sources of financing (short term debt, long term debt and equity) for 2007-09. explain the changes over time. prepare cash flow of 2007-2009. what is ur assessment of company 's generation and use of cash?

3. What is your assessment of the company’s recent financial performance?
The company’s financial performance can be gauged by calculating several ratios which will help us decipher the firm’s growth.
Measuring Profitability: | 2006 | 2007 | 2008 | 2009 | Net Income | 195 | 487 | 1081 | 1664 | Shareholder’s Equity | 751 | 1353 | 2402 | 9477 | Total Assets | 1102 | 2031 | 6571 | 28678 | Total Sales | 2430 | 3888 | 10887 | 38103 | ROE | 26% | 36% | 45% | 17.56% | ROA |
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