| TMH Assignment | Spring 2010 | | Bella SongYi Wang | 3/2/2010 | Background This memorandum is presented in order to assess the risk Triangle Manufactured Homes (TMH) is engaged in. To assess the risk, we have thoroughly gone through the Company’s annual report and selected analyses of its financial condition and results of operations. These analyses have become the base of the level of risks that we determine TMH is exposed of. Business Analysis According to the Company’s annual report, TMH is a business that engages in the retailing of manufactured homes. It is one of the leading players in the manufactured homes industry, representing about 45 percent of the total U.S. market. Operating a total of 114 retail sales …show more content…
Through the acquisitions, TMH is not only benefiting from the deepening market penetration in its existing markets, but also from entering into the new markets. Moreover, the acquisition of manufacturing facilities, albeit it is in the retailing business, prepares TMH for the periods when demand for homes outpaces supply, which would mostly occur between March and October. In order to maintain its role as a leader in the industry and to create its competitive advantage, the manufacturing facilities are also planned to be used for manufacturing custom-designed homes that will help satisfy customers with special needs. In addition, TMH pays more than industry average to attract and maintain its employees, which helps the Company to stay in a leadership role. TMH has also established its wholly owned subsidiary – TMH Financial Services Corp. to expedite completion of credit approval processes for other subsidiaries and independent retailers. In addition, TMH Financial will collect installment sales contracts executed at the subsidiary or independent retailer level and sell them to third-party financial institutions with recourse. This process of selling installment sales to outside parties is one of TMH’s major sources of income. Accounting Analysis In addition to understanding a company’s business and its environment, in-depth knowledge of its accounting policies and disclosure practices also help assess
The owners of North Metro Home Services believe that most companies in this industry suffer two major problems. These are poor scheduling of job projects and poor retention of quality employees. Both lead to lower customer satisfaction, lack of repeat business and a low word-of-mouth referral rate. North Metro Home Services will continue to exploit these weaknesses to gain a greater local market share. However, NMHS wants to improve the efficiency of the business processes and increase our
An assessment of the company’s financial statements will highlight the firm’s management of its risk and opportunities.
The home improvement retailer was hit with a double whammy last year: a housing market downturn and customer service problems that have plagued the company for years. Also on the company's to-do list: preventing patrons from fleeing to competitor Lowe's, which has been chipping away at HD's lead. In-store makeovers were a start, and the company also has been seeking skilled workers to replace inexperienced part-timers who'd previously been hired to help cut costs.
Manufactured Homes is engaged principally in the retail sale of new and used manufactured single-family homes and targets individuals in the low income category. Manufactured Homes focuses on the lower end of the market, according to the company this has two advantages:
The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
The Home Depot (NYSE: HD) is a home improvement, construction products and services retailer operating over 2,000 big-box stores in the United States and abroad. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank with the vision of one-stop shopping for do-it-yourself (DIY) customers, installation services for do-it-for-me (DIFM) customers and competitive products for the professional market. Their DIFM installation programs include products such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, the company provides installation of various professional products like generators and HVAC systems.
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
Users are likely interested in information that will assess the company's liquidity, solvency, risk and return, etc. Therefore, they can know more about how is the company financed and the availability of cash to pay debt from the balance sheet. They can know exactly about allocation of the use of cash for different activities from the statement of cash flows. Income statement will provide the information about the revenues and expenses of the company. They can also access information associated with dividend paid and retained earnings.
It is always important to know the value, strengths, and weaknesses, of a company to make proper assessments
The first company that will be analyzed is Home Depot. Home Depot's total assets increased to $40,518 million from $40,125, an increase of 0.9%. These figures, however, are lower than the value of total assets on the books for HD for the prior three years. The 2008 fiscal year was the point where Home Depot had the highest asset levels at $44.324 billion. The recession has been the biggest culprit for the decline in the size of Home Depot. All of the firms in the building supplies industry have a strong relationship between their sales and the strength of the housing market, as home purchases are a major impetus for home renovation projects. Home Depot's size declined with the onset of slowness in the housing market, and it is expected that its size will not begin to increase until the housing market recovers. Home Depot management has noted that there are signs of life in the US housing market, and that this should be taken as an encouraging sign for the company (Isidore, 2012). Indeed, the company's balance sheet has grown in size throughout the 2013 fiscal year, so that the latest Q3 total
One theme in TKAM that is still present in today's society is how racism can split people apart. An example of this theme is when the case and the kids are listening and jem hears that they are going to kill him. After this happens Jem can't believe it and does not really talk about it again because it was a really bad moment for Jem. “His face was streaked with angry tears as we made our way through the cheerful crowd, it ain't right”(Lee 113). Jem witnesses this and realizes that it is wrong and that based on the colour of their skin that they should not be treated differently. This relates to the real world because it is all around. The very short time that president Donald Trump has been our president he has made some very different decision. One of them happens to be a ban on immigration because he does not want that certain race in america.” A 90-day hold on admitting any national from 7 major muslim countries”(vox.com) I think that this is sad because you should not discriminate against this certain race of people.
With over 3,000 stores in 6 countries and a network of over 16,000 vendors in 60 countries, TJX is able to offer consumers deep discounts on many top names in fashion apparel and home goods merchandise. However the Company does not like to be labeled as a “discount store.” Instead, TJX’s vision is to be a “global, off-price value retailer” with a mission to deliver the same brand name value and
Grant Nauta AHP Case Study Because American Home Products (AHP) currently operates with virtually no debt, their financial risk is very small. This shifts the burden heavily towards business risk. A porter’s five forces analysis is appropriate to determine the exact levels of business risk for American Home Products. First, the threat of substitutes is a risk that AHP cannot afford to ignore. Because they spend very little on Research and Development, and have to rely on their marketing to catch up to competitors, they always seem to be a step behind their competitors. In the industries that AHP operates, switching costs are very low and consumers based on anything from price to overall sentiment. Also, if a competitor markets a product
The home building industry is a highly risky and extremely competitive business, and NVR is one of the most successful with an estimate of $4.45 billion in reported revenues for last year. It trails Lennar Corp, which reported about $7.78 billion and D.R. Horton, Inc. with around $7.86 billion in revenues for 2014. This homebuilder currently has assets in excess of $2.35 million making it the third largest homebuilder in the U.S. NVR, Inc. may not be as large as Lennar or D.R. Horton; however, it is consistent in its performance year over year with its revenues increasing from $3.19 billion in 2012 to $4.22 billion in 2013. NVR also increased its gross profit from $7.97 million in 2013 to $8.85 million in 2014 (NVR, Inc.). Its gross