Strengths And Weaknesses Of The Company Horniman Horticulture

1197 Words Aug 30th, 2014 5 Pages
FIN3CSF
CASE STUDY IN FINANCE
Case study two
Setting some themes

Lecturer: Judy Taylor

Yijing Tu 17352944
Pengfei Xu 17353346

Case 9: Horniman Horticulture
1.Analyse the strengths and weaknesses of the company Horniman Horticulture.

The Horniman Horticulture has a large number of strengths and weaknesses.
Strengths: The management of this company is well done. Bob Brown, the co-owner of this company, has a strong work ethic. The Bob was skilled in company and was extraordinary respected by staffs. Some people described Bob as a “ people person”. His personality is warm and enjoyed by customers and employees. Because of good controlling of Horniman Horticulture. The revenue of company growth constantly from 2002 to 2005. Revenue for 2005 was 15% ahead of 2004 which is a good improvement. There is no debt happened. Most information is batter than the benchmark, such as revenue growth, gross margin and so on.
Weaknesses: The obvious one is the cash aspect. The cash account was decreased constantly from 2002 to 2005. In 2005, the cash account only got 9,400 dollar which was below 10,000 dollar. This would make not enough cash to pay for suppliers. The risk of liquidity would be growth up. The inventory days increased every year from 2002 to 2005. In 2005, the inventory days was 476.3 which is much more higher than the benchmark of 386.3. As the result of this, there would be a higher inventory risk.

2.Calculate free cash flow to the owners of the firm (FCFE)…

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