Business Accounting

Business Accounting
Unit 5
Business Accounting
P5
Introduction
In this assignment I will be using the profit and loss accounts and balance sheet for SIGNature 's business to work out the Profitability, Liquidity and
Efficiency Ratios.
Profitability
Gross profit Percentage sales
Gross Profit Sales Turnover Г—100
244200 444000 Г—100=53%
Net Profit Percentage
Net ProfitSales turnoverГ—100
73960444000Г—100=16.66%
Return on Capital Employed (ROCE)
Net Profit before interest and taxCapital EmployedГ—100
73960149160Г—100=49.58%
Liquidity
Current Ratio
Current AssetsCurrent Liabilities
7016026000=2.69
Acid Test Ratio/ Liquidity Ratio
Current Assets–stockCurrent liabilties
70160–24420026000=1.75
Efficiency

Debtors payment period ... Show more content on Helpwriting.net ...
SIGNature 's pays of its creditor within a month in 28 days this good for keeping a good relationship with their suppliers, because the suppliers will
trust them to pay them back and the business could afford to ask for an extension from them if they need it because of the trust.
Rate of stock turnover
Average stockCost of goods soldГ— 365
12000244200Г—365=17.93 (18 Days)
This ratio measures the average amount of time an item of stock is held by a business, and is expressed in a number of days. The SIGNature
business holds their stock for 18 days which is very good for the business because they are selling their stock every 18 days and making sales every
month.
D1
Introduction
In this assignment I will write a conclusion to summarise the overall performance in Sharma and Ryan 's first year of business.
Profitability
The percentages Sharma and Ryan received in their profitability is good. The Gross profit percentage is 53% this is good because the business is
making a majority of profit from every ВЈ1 in its sales in relation to the cost of making that sale. The Net profit percentage is the only bad result in
this ratio, at 17% the business is spending too much on expenses for the business however this figure can be changed if they make the overall
expenses cheaper so the ratio can increase. The ROCE (Return On
... Get more on HelpWriting.net ...

Cmr Enterprises Essays
4383 Case 1 CMR Enterprises
CMR, originally Mike's Cabinets, is an architectural millwork business that competes in two different market segments: commercial and residential. In
order to effectively compete in both markets, the nature of CMR's business varies slightly between them.
Commercial business provides two–thirds of the company's projects as well as 80% of its sales. Due to the higher volume in demand, the commercial
sales force is larger than the residential sales team, which relies heavily on CMR's showroom. The market for commercial business is larger than
residential market with projections of its value at upwards of $5 billion. Commercial contracts are also harder to secure than their residential
counterparts. They must be ... Show more content on Helpwriting.net ...
Marcus saw that the residential side of the business had great potential for future growth, and he knew that this was a great way to get his company
involved. The additional emphasis on residential work used more of the company's resources, but it proved to be worth it with the increased revenue
and cash flows.
CMR Enterprises is confronting an issue with one of its most valuable clients, Blackstone. Blackstone as one of the biggest customers in the area,
giving CMR an opportunity for immediate market share and his volume supported its goals to standardize its processes into flexible cells. They
approached CMR looking for a new partner to work on a business that represented 25% of CMR's residential business during the first year of this
relationship. Sam Marcus was counting on further growth with his customer to pay his debt and fund expansion efforts. But relationships with
Blackstone had become increasingly intense on residential construction.
Marcus had aggressive goals of reaching $70 million in sales by 2007 by creating a scalable and replicable business model. Moreover, build close
relationship with the Blackstone will gave CMR an opportunity to standardize its business processes to be able to benefit from improved operational
efficiencies that comes because of scale of operations.
However, the relationship between two companies had evolved

The Financial Position Of Melbourne
Executive summary
Melbourne IT limited, founded in 1996 provides internet based technology services such as internet domain name, web hosting, online brand protection
and promotion. The company operates through two major segments which are SMB solutions and Enterprise services.
The aim of this paper is to analyse the financial position of Melbourne IT limited through the use of financial ratios, based on the annual report for the
periods December 2012 and 2013. Financial ratios are useful since they measure a company's performance and give an overview of the financial
situation. Ratios are also used to analyse trends and to compare a firms financial figures to other competitors within the same industry.
There three main ratios analysed ... Show more content on Helpwriting.net ...
Bazely and Hancock (2010)
During the period 2012 and 2013, the Operating profit margin decreased from 9.2% to 5.7%. This slight decline can be attributed to the decreased
revenues and the increase in tax expenses.
The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net
profits after taxes despite the fact that there was a slight decrease in revenues.
During this period, the Return on Assets increased from 5.7% in 2012 to 34.6% in 2013. This implies the number of cents earned on each dollar of
assets increased from 2012 to 2013. This shows that the business has become more profitable. Equally, the Return on Equity also increased from
12.0% in 2012 to 46.5% in 2013. This similarly implies that the company in 2013 was more efficient in generating income from new investment. This,
also can be attributed to the sale of the Digital Business Brand which enabled the company appraise its strategic plan.
The Earnings Per share in 2012 and 2013 were $2.90. This is an indicator that the company is still profitable since the ratio is a constant. The price
per earnings in 2012 was 12.5 and 17.7 in 2013. A decrease in the price per share may indicate a vote of no confidence to investors. However, this can
be attributed to the industry sector as well the stock.
Liquidity ratios
Liquidity ratios measure the ability of a firm to meet its short–term obligations. A company that is not able

Clean Edge Razor
Case Analysis
Clean Edge Razor
Splitting Hairs in Product Positioning
Executive Summary
Paramount's newest non–disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage
of product life cycle or on the declining stage. Clean Edge's improved design provides superior performance and hence the top management is
extremely excited. They need to come up with a marketing strategy including product positioning, brand name & marketing budget allocation for
the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non–disposable razors sold by
Paramount.
It is very important to come up with a suitable strategy to make the ... Show more content on Helpwriting.net ...
| 5.89| | | | | | | | Net Profit Margin| | | 21.20| | | 6.74|
Exhibit 2 M/s Paramount| Product – Clean Edge| Profit/Loss Pro–forma for 2012| | Niche| Mainstream| Capacity| Units in Million| Rate| Amount| Units
in Million| Rate| Amount| | | | | | | | | | | | | | | Product – Razor| | | | | | | Production Cost| 1.50| 5.00| 7.50| 4.00| 4.74| 18.96| Manufacturer Value| 1.50| 9.09|
13.64| 4.00| 7.83| 31.32| Suggested Value| 1.50| 12.99| 19.49| 4.00| 11.19| 44.76| | | | | | | | Product– Cartridge| | | | | | | Production Cost| 10.00| 2.43|
24.30| 21.90| 2.24| 49.06| Manufacturer Value| 10.00| 7.35| 73.50| 21.90| 6.22| 136.22| Suggested Value| 10.00| 10.5| 105.00| 21.90| 8.89| 194.69| | | | | | |
| Capacity Cost| | | 0.87| | | 2.45| Advertising| | | 7.00| | | 17.00| Consumer Promotion| | | 6.00| | | 14.00| Trade Promotion| | | 3.00| | | 8.00| | | | | | | | | | | | | |
| Revenue| | | 87.14| | | 167.54| Variable Expenses| | | 31.80| | | 68.02| Fixed Expenses| | | 0.87| | | 2.45| Operating Profit| a| | 54.47| | | 97.07| | | | | | | |
Marketing expenses| b| | 16.00| | | 39.00| Net Income| a – b| | 38.47| | |

Net Profit
LIVORIA SANDWICHES
November 14, 2013
STRATEGIC AND OPERATIONAL OPPORTUNITIES
FORECASTED YEARS: 2013 –2015
Prepared by Dev Das, CMA
Memorandum
November 14, 2013
TO: Paul and Sam Livoria
From: Dev Das, CMA
Subject: Strategic and Operational opportunities
Livoria Sandwiches faces major changes within the food industry in Dawkins. The city is in continuing growth and expansion, being ranked as the
fastest growing number of vegetarians in the country.
Currently Livoria faces a cash shortfall due to a lawsuit. The menu has to be adapted to the market demand fast to keep up with the changes. The
owners expressed the desire of having 1.1M in net profit by 2015. The goal can be reached ONLY by changing and... Show more content on
Helpwriting.net ...
Direct material is cheaper therefore a higher contribution margin can be generated.
Appendix 4 – changing the sale mix in favor of the sandwiches that bring more profitability per limited resource, Livoria is going to be able not only
to meet demand but it will meet owners preference of minimum 1.1M by 2015 and increased cash flow. Changing the sales mix there are some aspects
that must be considered: contribution margin per limited resource and popularity of the products.
No capital investment is required.
Cons:
Sandwiches for which Livoria is well known for might disappear from the menu by 2015, (losses in loyal customers). Veal cutlet sandwiches demand

can be satisfied in proportion of 77% in 2013 [67,028/86,333 units], 90% in 2014 [78,710/87,283 units] and disappear completely in 2015 from the
menu (app.4)
Limitation in number of employees Livoria can hire is a constraint against more growth possibility. Livoria can satisfy only 83% of demand in 2013,
87% in 2014 and 70% in 2015. (app.4)
Livoria will change its current business success core (meat sandwiches) in favor of vegetarian one.
Risk: Direct material is more perishable and as main ingredients, quality is a key risk for business.
Alternative (c) – Franchise
Livoria could expand its business if it follows Paul

Pel Strengths And Weaknesses
Weakness
PEL has a few shortcomings. On the off chance that PEL conquers these weakness then it can turn into a market leader in home machines. PEL loses
some aggressive edge in the accompanying ranges:
Financial Problems
Lack of promotion
System varieties
Lack of Product range
Less Utilization of limit
Financially problems
Some of the time PEL provokes the money related issues since its stocks are such a great amount of heaped up in the stores that makes issue of
income since when the stocks are not sold and the generation is in process for 24 hours a day then the organization faces such issues.
Lack of commercial:
Pell should focused in this sector. They should do promote their products by more and more adds PEL still... Show more content on Helpwriting.net ...
Each organization embraces diverse methodologies for offering of the items. It decreases the overall revenue of each organization and builds the
bartering energy of the purchasers who will request higher nature of items at lower cost.
China's product in the market
China's items are another risk for the Pakistani organizations on the grounds that these items are less expensive than the Pakistani items. China items
stretch the indigenous organizations to bring down the quality and costs that won't be beneficial over the long haul.
Price war:
As there is firm rivalry in the home machine showcase that will bring about the value war.

Slow development rate in Pakistan:
There is additionally moderate development rate of home machine in Pakistan that will build the loads of the organization. In spite of the fact that, this
industry is in the development stage, however the speed of the development is moderate.
Insecurity of

The Sports Guy Case Study Essay
The Sports Guy
Case Study
Case Synopsis
The case is about The Sports Guy which is an independent sporting goods store owned by Bob "Rocky" Rhodes; his business is in the retail sporting
goods industry. The store is located in the south part of a small town which is just outside the Greater Toronto Area. The town has been growing
rapidly for the last few years and the area around the store has become a prosperous neighbourhood, making their location a busy commercial area. The
Sports Guy store sells sports related clothing and equipment. About 70% of their sales consist of equipment and uniforms bought by local teams, and
30% of sales consist of regular (walk–in) retail trade. The store's sales have increased over the years ... Show more content on Helpwriting.net ...
Rocky's knowledge, experience and great relationship with the community and his customers are the company's biggest strength as well as being
located in a prosperous and developing area. Their greatest weakness is Rocky's lack of business knowledge because that impacts many areas of the
business negatively. The business's strengths outweigh its weaknesses because the 10 years of built up reputation and customer loyalty can overcome
the weaknesses that are minor in comparison and could be solved over time. The opportunities are greater than the threats because Rocky and his
business have a lot of areas that can be improved upon and taken advantage of whereas the only threats that the business face are one current competitor
and the prospect of potential competitors in the future.
SWOT
Strengths * Business located in a prosperous and developing neighborhood which could lead to new potential customers * Store is in a busy and
commercial area giving it much exposure to customers passing the area * Rocky's knowledge/experience of various sports makes him a great
salesperson for the business * Rocky's strong reputation throughout the community generates a lot of repeat customer business and word–of–mouth
recommendations * Well exposed and advertised in the local community (TV channel, flyers, local newspaper, sporting events, etc.)
Weaknesses * Local team purchases make up majority of sales, making the business dependent on

Essay Marketing
ASSIGNMENT # 4: FINANCIALS
Due via email by: Sunday, November 16th (11:59pm)
Please show your work – either by hand and scanned in or you can use a program like Excel or Word. If you show your work, I can give you partial
credit for incorrect answers.
Question # 1:
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased.
The ending inventory is $275,000 (at cost). Operating costs are $90,000.
a. Calculate the cost of goods sold
b. Calculate the net profit
Question # 2:
A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $140,000 at retail and
$70,000 at cost. ... Show more content on Helpwriting.net ...
Ending retail book value of inventory – physical inventory at retail
Total merchandise available (at cost) =
Beginning monthly inventory + Net purchases + transportation charges
Total merchandise available (at retail) = Beginning monthly inventory + Net purchases
Adjusted ending retail book value of inventory = adjusted the value of the retail book value of inventory to reflect the actual physical inventory on
hand. This adjusts your books to match what you actually have at the store.
Markups can be computed on the basis of retail selling price or cost but are typically calculating using the retail price. Why? (1) Retail expenses,
markdowns and profit are always stated as a percentage of sales. Thus, markups expressed as a percentage of sales are more meaningful. (2)
Manufacturers quote selling prices and discounts to retails as percentage reductions from retail list prices. (3) Retail price data are more

Home Depot's Profitability Ratios
There are various ratios' that can be used to determine the profitability of a company. The profitability of a company is the ability of that company to
make a profit. Profit is what is left over after a company has paid its' debts or expenses. One profitability ratio is the gross profit margin (Wang).
Lowe's gross profit margin for 2016 is 34.8. The gross margin provides information about how much it costs to produce the product. Another
profitability ratio is the net profit margin. The net profit margin is calculated by dividing the net profit by revenue. Lowe's net profit margin for 2016
is 0.43. The gross profit margin takes into consideration profit before expenses are deducted whereas the net profit margin uses the profit after the
expenses have been deducted. Typically, the higher the net profit margin, the better the business is financially.... Show more content on Helpwriting.net
...
Generally, a company's profitability ratios should be compared to itself – year by year. It is possible that Home Depot operate differently from Lowes.
For example, Home Depot could be leveraged differently. Financing with significant interest expenses will decrease net profit margins. For companies
in the same industry, financial data can be compared to judge profitability of each business.
Cash flows from operating activities and net income can be derived using different methods. Therefore these numbers are different. The cash flows
from operating activities are created from the core business. There are also investing activities and financing activities. "Cash flows from operations
are the best method of calculating a company's financial health because cash flow is harder to manipulate than net income and because a company
must create cash over a period of time" (Waymon).
Liquidity and Capital

Essay on Financial Ratios and Net Profit Margin
Financial Statement Analysis Exercises (Chapter 2) 2–4. Consider the following potential events that might have taken place atVodafone Group Plc on
31 March, 2012. For each one, indicate which line items in Vodafone's balance sheet would be affected and by how much. Also indicate the change to
Vodafone's book value of equity. (In all cases, ignore any tax consequences for simplicity.) a. b. A warehouse fire destroyed В
Ј50 million worth of
uninsured inventory. c. Vodafone used ВЈ50million in cash and ВЈ50million in new long–term debt to purchase a ВЈ100million of buildings worldwide.
d. A large customer owing ВЈ20million for products it already received declared bankruptcy, leaving no possibility that Vodafonewould
... Show more
content on Helpwriting.net ...
Compare the net profit margins for Starbucks and Peet's. c. Which firm was more profitable in 2011? a. Starbucks' gross margin = b. Starbucks' net
margin = c. 2–30. Compare the gross margins for Starbucks and Peet's. Starbucks was more profitable in 2011. 6.75 72.7 = 57.69% ; Peet's gross
margin = = 19.54% . 11.70 372 1.25 17.8 = 10.68% ; Peet's net margin = = 4.78% . 11.70 372 In mid–2012, Apple had cash and short–term investments
of $27.65 billion, accounts receivable of $14.30 billion, current assets of $51.94 billion, and current liabilities of $33.06 billion. a. What was Apple's
current ratio? b. What was Apple's quick ratio? c. What is Apple's cash ratio? d. In mid–2012, Dell had a cash ratio of 0.67, a quick ratio of 1.11 and a
current ratio of 1.35. What can you say about the asset liquidity of Apple relative to Dell? a. Apple's current ratio = b. Apple's quick ratio = c. Apple's
cash ratio = d. Apple has significantly more liquid assets than Dell relative to current liabilities. 51.94 = 1.57 . 33.06 27.65+14.30 = 1.27 . 33.06 27.65
= 0.84 . 33.06 2 2–35. Use the data in Problem 8 to determine the change, from 2009 to 2012, in GE's a. book debt–equity ratio? b. market debt–equity
ratio? a. 2009 book debt–equity ratio = 524 = 4.99 . 105 2012 book debt–equity ratio = 410 = 3.53 . 116 2–36. 2009 market

Thailand Case Study
1. What were RBC's ultimate goals in opening a representative office in Thailand?
The RBC's ultimate goal was to attain a full branch license to operate in Thailand. They also wanted to effectively compete in the Thai sector they
needed to enter using the BIBF format. This would give them the ability to increase presence and to demonstrate commitment to both regional and
multinational clients.
2. How large is the initial staff for the office and what is the estimated pretax Profit?
The banks intent was to commence with a staff of five people. The general manager was the most experienced banker of the five and he was chosen
from the RBC network. The other four were employees that were hired locally. They encompassed of... Show more content on Helpwriting.net ...
Local presence, combined with the ability to secure collateral, provided an opportunity to develop relationships with a much broader prospective client
base than could be achieved from abroad.
6. What are Thailand's most important exports?
Thailand's most important exports were manufactured goods. It accounted for 81% of exports. These included clothing, electronic parts and
components, furniture and jewelry.
7. What is the "current" (1997) situation in Thailand?
In 1997 the country's exports were no longer booming and the Thai economy entered a unsafe and unpredictable phase. Foreign investors were skeptical
about the current–account deficit and the big loans property developers. Bad debt continued to mount up and the stock market crashed to depths not
seen in eight years. This caused the baht to fall prey to speculative attack. High debt, heavy borrowing, large current account deficit, and the semi–fixed
exchange rate system all played a part to the Thai crisis.
8. What are the highlights of the IMF's bailout of Thailand?
On August 5, 1997 the government of Thailand announced it had reached an agreement with the International Monetary Fund (IMF). The reform
included the closing of another 16 finance firms, in addition to the 42 finance firms that were suspended earlier in that year. These firms were asked to
merge with banks and other companies or submit other rehabilitation plans. This package

Financial Analysis Of The Performance Of Burberry
Introduction
In this assignment, I have chosen Burberry as the company to report. Burberry is one of the global luxury brand leader with a long history. It
operates in three regions, Asia Pacific, Europe , Middle East, India and Africa (EMEIA) and Americas. I am interested in the firm's performance in
recent years. I am going to measure and analysis the performance of the corporate through Annual report 2015/16 and 2016/17 which published on
06–06–16 and 06–06–17 respectively.
Overview
According to the financial statement, during 2015–2017, Burberry were making profit in the three year however the firm had a drop in the net profit
constantly. In 2015, the profit for the year was 341.1m, it was down by 7.77% to 314.6m in 2016 and it ... Show more content on Helpwriting.net ...
In 2017, the firm had a higher percentage of cost of sales in term of revenue than 2016, the cost of sales was 30.11% which was higher than 2016
for 0.21%, that means the firm's gross margin in 2017 (69.89%) will also lower than the gross margin in 2016 for 0.21%. Burberry had a higher net
operating expenses in 2017. The net operating expenses was 55.63% which was higher than 2016 for 1.56%, that also lower the operating margin,
therefore the operating margin for the firm has decreased from 16.02% to 14.26% (–1.76%).
The 9.9m put option liability finance income in 2016 turn to 3.2m finance charge, so the net finance income dropped for 88.19% to 0.5m. This lead
to a 5% decline in profit before tax from 415.6m to 394.8m. Moreover for the profit for the year, Burberry had a drop of 8.55% to 287.7m from
314.6m. The trend of the firm is decreasing in related to the three financial years. The reason of the decline can be due to the increase of the
geopolitical concern in the Middle East and Russia and Uncertainty in Eurozone. These factors have any huge negative impact on the performance of
the luxury sector.
Financial

Business Analysis : Debenhams Plc
Debenhams Plc. are multinational retailers located in Britain and whose main operations involve sale of end products in departmental stores. The
stores were founded in 1778 by William Clark. Clark opened the first Debenhams stores in London. Eventually, the stores expanded to 178 more stores
as of 2014 with London still remaining to be the stores headquarters. Debenhams Plc. are a publicly traded company registered in the London Stock
Exchange (LSE) and trades under the ticker name DEB.
1.1Next Plc.
Next Plc. are also a British retail store headquartered in Enderby, Leicestershire. Next Plc. have specialized in the sale of clothing, home goods and
footwear. They have an approximate of 700 stores where more than half of these stores are... Show more content on Helpwriting.net ...
Sales increased by 1.34% to settle at ВЈ2.31billion in 2014. On the contrary, operating profits dropped from ВЈ155.4million to ВЈ128.6million hence
resulting to a percentage decrease of 17.25%. This huge drop on overall operating profits is largely explained by Debenhams' chairman report, where he
explicitly states that the company struggled the first six months in maintaining profitable margins.
Despite the huge declines in operating profit, capital employed gradually improved by 1.12%. As of 2013, Debenhams' total recorded capital was
ВЈ1.12billion but come 2014, the figures increased to ВЈ1.13billion leading to a 1.12% increase. Nevertheless, the huge drop in operating profits as of
2014, affected the Return on Capital Employed (ROCE) ratio. As of 2014, computed ROCE ratio was 11.39%, 2.53% lower compared to 2013 ROCE
ratio.
Debenhams' financial structure evaluation is also not attractive especially after one considers their gearing ratios dropped by 2.86%. Calculated net
borrowings to equity

Dupont Model Analysis
DuPont Model Analysis: Assignment 1
DuPont Model Analysis: Assignment 1
Name
University of Maryland University College
September 23, 2009
TABLE OF CONTENTS
Introduction3
Analysis3
Recommendations6
References8
Introduction
The DuPont Method is a financial method that was first introduced by the DuPont Company in the 1970's (Brooks, Callahan & Stetz, 2007). It is used
to highlight how a company's finances affect its return on investment. This assignment uses the DuPont Method to analyze the finances of Dick's
Sporting Goods Company. In addition, the results of the analysis are compared to imaginary industry standards. Based on the comparison,
recommendations will be provided to ensure that Dick's Sporting ... Show more content on Helpwriting.net ...
Operating Expense Ratio – the company is not maintaining a high percentage of profit after it pays fixed asset type expenses 5. Net profit, plant &
equipment ratio – the company is not effectively utilizing their depreciating fixed assets. The chart below outlines, in accordance to the DuPont
Method, the problem areas and their connectivity to the other areas in the financial model.
[pic]
Chart 1: DuPont Model of Dick's Sporting Goods Please note that the areas in red are the problem areas. The arrows show how each area impacts
other areas.
The table below lists the ratios of Dick's Sporting Goods and their standing compared to industry standards.
[pic]

Table 1: Comparison chart
Recommendations
It is recommended that Dick's Sporting Goods execute one critical problem resolution process to regain their competitive edge in the industry.
Working from the bottom up, the company should replace the failing fixed assets. New or well maintained fixed assets would increase productivity
and result in reduced downtime and costly repairs. In addition, the net profit, plant & equipment ratio, gross profit margin and operating expense ratio
would all increase to at or above industry standards. The direct result of their effort would be seen in the increase net profit margin. Funding for the
hardware replacement refresh should be provided

Kraft Heinz Company Mergers
The net profits for The Heinz Company for the past five years were obtained and compared to the same period for Con Agra Brands Inc., and
Campbell's. The assignment instructed students to obtain net profit for the past seven years, however, due to the complexity of operations in The
Heinz Company and its mergers, and restructuring, gathering seven years was challenging. Data utilized was readily available for five years on the
Marketwatch website but no other sites for periods prior to 2012. Net profit trends and correlations between the companies were graphically illustrated
in the use of scatterplot and sparklines. In analyzing the sparklines, there appeared to be an upward trend in net profit in comparing the financials of
Con Agra and The Kraft Heinz Company in 2012. Both companies also appear to have similar consistent upward and downward trends up... Show
more content on Helpwriting.net ...
Scatterplots provide the data and the ability to visually determine correlations that variables have when compared to each other. The scatterplot
reveals a positive correlation in net profits in the years 2012 through 2014 between The Kraft Heinz Company and Con Agra. Campbell's net
profits during the years 2012 through 2016 was close to the resemblance of a flatline with slight upward and downward movement. The analysis
revealed that Campbell's was not considered a key player during the years researched. The Kraft Heinz Company and Con Agra's scatterplot lines
intersected and were close to equal correlation in net profits in 2015 which was the closest in performance in all years. After that near equal
correlation in 2015, The Kraft Heinz Company continued upward in a substantial increase in 2016 whereas Con Agra realized a slight decline. It is at
this point in 2016 that there appears to no longer be a positive or similar correlation in net profits between these two companies, it appears to be

Tesco Net Profit Analysis
3.2.2 Net profit margin comparison
Net profit margin is a commonly used profitability measurement tool which assesses firm's net profit by comparing to its sales revenue. It is quite an
appropriate measure of a firm's profitability position because it considers the net income after tax rather the gross income (Bryman, 2008). Net profit
margin of both J Sainsbury Plc and its comparable firm Tesco Plc is given in the following table:
Table 1: Net profit margin of J Sainsbury Plc. & Tesco Plc. from 2013 to 2015
Net profit margin20132014 2015
Sainsbury0.00378490.0421312 0.03407
Tesco0.0375670.0413959–0.929934 The overall Sainsbury's net profit margin changed a lot with a huge drop in 2015 on 0.0034069. ... Show more
However back then the ratios of the two companies were comparable but their gap turned massive as Tesco hit an extreme low in 2015 with a
negative ratio of 0.092993385 where Tesco generated an operating loss twice as large as the operating profit it made in 2014. One of the main
circumstances leading to this loss–making Tesco is the ВЈ263m accounting scandal that hit the supermarket last year (Neville, 2015). As a result many
costs have hit Tesco's profits turning it into a loss such as restructuring costs including redundancy and compensation costs related to changes in store
colleague working arrangements in the UK, Europe and Asia, redundancy costs relating to Head Office restructures across the Group, and the
redundancy cost of store closures in the UK. ВЈ266m has been recognized in costs of sales and ВЈ150m within administrative expenses. (Tesco, 2015)
J Sainsbury Plc is in a stable position and it is in better position in all the three years than the net profit margin of Tesco. This is the consequence of
better implementation and introduction of higher quality products in their sales mix.
3.2.3 Return on capital employed (ROCE)

Caledonia Products Integrative Program
Caledonia Products Integrative Program
FIN 370 – Finance for Business
|Operating Cash Flow |Year One |Year Two |Year Three |Year Four |Year Five |
|Project Revenue |$21,000,000 |$36,000,000 |$42,000,000 |$24,000,000 |$15,600,000 |
|Cost of Goods Sold |($12,600,000) |($21,600,000) |($25,200,000) |($14,400,000) |($10,800,000) |
|Fixed Costs |($200,000) |($200,000) |($200,000) |($200,000) ... Show more content on Helpwriting.net ...
|
|Net Operating Income |$6,600,000 |$12,600,000 |$15,000,000 |$7,800,000 |$3,000,000 |
| | | | | | |
|Taxes |($2,244,000) |($4,284,000) |($5,100,000) |($2,652,000) |($1,020,000) |
|Net Operating Profit After Taxes |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 |
| | | | | | |
|Net Income |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 |
|Year |Units Sold | |Price Per Unit Year 1– 4 |
|1 |70,000 | |$300 |
|2 |120,000 | | | | |
|3 |140,000 | |Price Per Unit Year Five |
|4 |80,000

Mcdonalds Fuel : The First Burger Fuel
Ans:
Burger fuel: The first Burger fuel opens in Auckland city in 1995. This concept store on Ponsonby Road introduced a Gourmet Burger with fresher
and more natural ingredients delivered in an exciting environment conjured up from the images of flames, internal combustion and the desire to fuel
and fire the human engine. In the next year they are spreading their business rapidly in New Zealand. Then they open the second branch of Burger
fuel in Takapuna. After booming trade and huge interest from the locals, Takapuna became the first franchised Burger Fuel store. Now they have 44
stores in all over the New Zealand and 35 in other six countries. Burger Fuel sells burgers (beef, wagyЕ«, chicken, gluten–free, vegan and vegetarian)
fries, Beer (as a promotion), kumara fries, bottled soft drinks, milk / malt shakes and its own branded ice cream (Frostbite). In this year the Burger
Fuel Worldwide announced a partnership with California–based franchisor OH Cal Foods as part of its plan to break into the US market. OH Cal
Foods services more than 2100 Subway restaurant outlets in the United States. Its share price immediately lept 21% on the news.
Performance of Burger fuel: The Burger fuel have running their business very well in the market. In line with our stated objectives and previous market
guidance, net profit after tax in the period was $400,656 and whilst this was a reduction on the $1,098,294 net profit for the same period last year, it is
in line with our earlier

title
Sales Growth
Sales growth is an important driver of the need to invest in various types of assets and of the company's value. Sales growth also provides some
indication of the effectiveness of a firm's strategy and product development activities, and of customer acceptance of a firm's products and services.
Use the following questions to guide your analysis.
1. During the four–year period ended December 31, 2008, SciTronics' sales grew at a _____% compound rate. There were no acquisition or divestitures.
Profitability Ratio: How Profitable Is the Company?
Profitability is a necessity over the long–run. It strongly influences (1) the company's access to debt; (2) the valuation of the ... Show more content on
Helpwriting.net ...
1. SciTronics' profit as a percentage of sales in 2008 was ______ %.
2. This represented an increase/decrease from ______% in 2005.
Management and investors often are more interested in the return earned on the funds invested than in the level of profits as a percentage of sales.
Companies operating in businesses requiring very little investment in assets often have low profit margins but earn very attractive returns on invested
funds. Conversely, there are numerous examples of companies in very capital–intensive businesses that earn miserably low returns on invested funds,
despite seemingly attractive profit margins.
Sales Growth
Sales growth is an important driver of the need to invest in various types of assets and of the company's value. Sales growth also provides some
indication of the effectiveness of a firm's strategy and product development activities, and of customer acceptance of a firm's products and services.
Use the following questions to guide your analysis.
1. During the four–year period ended December 31, 2008, SciTronics' sales grew at a _____% compound rate. There were no acquisition or divestitures.
Profitability Ratio: How Profitable Is the Company?
Profitability is a necessity over the long–run. It strongly influences (1) the company's access to debt; (2) the valuation of the

FIN 512 WEEK 2 answer key Essay
FI 512 Week 2 Answer Key
Chapter 3
1. [Business Organization and Intellectual Property] Phil Young, founder of the Pedal Pushers Company, has developed several prototypes of a
pedal replacement for children's bicycles. The Pedal Pusher will replace existing bicycle pedals with an easy release stirrup to help smaller children
hold their feet on the pedals. The Pedal Pusher will glow in the dark and will provide a musical sound as the bicycle is pedaled. Phil plans to purchase
materials for making the product from others, assemble the products at the venture's facilities, and hire product sales representatives to sell the Pedal
Pushers through local retail and discount stores that sell children bicycles. Phil will need to ... Show more content on Helpwriting.net ...
Chapter 5
8. [Cash Conversion Cycle] Castillo Products Company, described in Problem 7, improved its operations from a net loss in 2009 to a net profit in 2010.
While the founders, Cindy and Rob Castillo, are happy about these developments, they are concerned with trying to understand how long the firm takes
to complete its cash conversion cycle in 2010. Use the financial statements from Problem 7 to make your calculations. Balance sheet items should
reflect the averages of the 2009 and 2010 accounts.
A. Calculate the inventory–to–sale conversion period for 2010.
Inventory–to–Sale Conversion Period = Avg. Inventory/Avg. Daily COGS = (($400,000 + $500,000)/2)/($900,000/365) = 182.50 days
B. Calculate the sale–to–cash conversion period for 2010.
Sale–to–Cash Conversion Period = Avg. Receivables/Avg. Daily Sales
= (($200,000 + $280,000)/2)/($1,500,000/365) = 58.40 days
A. Calculate the purchase–to–payment conversion period for 2010.

Purchase–to–Payment Conversion Period
= (Avg. Payables + Avg. Accruals)/Avg. Daily CGS = (($130,000 + $160,000)/2 + ($50,000 + $70,000)/2)/($900,000/365) = 83.14 days
B. Determine the length of the Castillo Product's cash conversion cycle for 2010.
Length of the Cash Conversion Cycle = (Inventory–to–Sale Conversion Period) + (Sales–to–cash Conversion Period) – (Purchase–to–Payment
Conversion Period)
= 182.50 days +

Case Study: Net Profit Margin: Kawan Food Berhad.
Net Profit Margin Kawan Food Berhad For the year 2012, For the year 2013, The net profit margin for Kawan Food Berhad in 2012 is 12.28%
while in 2013 is 12.78%. This company has a better net profit margin in year 2013 compared to year 2012. An increase in net profit margin
indicates that this company has an improvement on both operational efficiency and profitability. This company improved its profitability and
efficiency by 0.5 percent in 1 year time. London Biscuit Berhad For the year 2012, For the year 2013, For London Biscuit Berhad, the net profit
margin in year 2012 is 5.43% and for the year 2013 is 5.2%. This means that this company has $0.05 net income for every dollar of sales for the year
2012 and 2013. London... Show more content on Helpwriting.net ...
Kawan Food Berhad has enough current assets to pay off 34.9% of its current liabilities for the year 2012 while it has enough current assets to pay
off 39.8% of its current liabilities for the year 2013. So, in year 2013 it has better result compared with the year 2012 because it has higher current
ratio. A higher current ratio shows that Kawan Food Berhad can more easily make current debt payments. London Industries Berhad: For the year
2012: = 0.58 times For the year 2013: = 0.62 times For London Industries Berhad, it has 0.58 in year 2012 and 0.62 current ratios in year 2013.
London Industries Berhad has enough current assets to pay off 58% of its current liabilities for the year 2012 while it has enough current assets to
pay off 62% of its current liabilities for the year 2013. So, London Industries Berhad has better result in the year 2013 compared with year 2012. It is
easier to allow London Industries Berhad make current debt payments in the year 2013 due to the higher current ratio. Hup Seng Industries

The Ratio And Cash Ratio
Liquidity is the ability to convert any asset into cash quickly. Liquidity is important because liquid assets can provide cash that can be reinvested into
other assets when prices are low. This can also reduce some investing risks by ensuring that an investor will be able to quickly react to market moves.
There are several ratios that are used to measure liquidity – the current, quick, and cash ratios. Essentially, the higher the currentasset ratio, the better.
Amazon's current ratio (107%) is higher than that of Walmart (83%) and this suggests that this company's short term assets are more readily available
to pay off the company's short term liabilities than Walmart.
Amazon's quick ratio and cash ratio are also higher than that of ... Show more content on Helpwriting.net ...
A higher margin percentage indicates a higher profitability. Therefore, Amazon (27.2) would appear to be more profitable than Walmart (24.9). In their
2013 financial report, Amazon demonstrates that their gross profit margin has increased in 2013 compared to prior years – which they attribute to their
increase in their total sales/service sales.
The operating profit margin is another quantitative measure of profitability. Investors pay close attention to this ratio because positive and negative
trends in the operating margin are attributable to management decisions. Amazon's operating profit margin (1.0) is significantly lower than that of
Walmart (5.90). This means that a net profit of $5.90 is made on each dollar of sales at Walmart whereas Amazon only makes a net profit of $1.00 on
each dollar of sales. This indicates that a higher proportion of Walmart's revenue is converted to operating income. Over the past few years, Amazon's
operating margin ratio has actually declined – which signifies that their probability is not improving as of resent times. In comparison, Walmart's
operating margin has been consistent or stable for the past few years.
Net profit margin is most often mentioned when discussing the profitability of a company because investors can see a great deal from a net profit
analysis For example, this measurement allows them to

Key Ratios Such As Profitability, Liquidity, Debt...
Objective 5:
In this we are going to analyze important key ratios such as profitability, liquidity, debt management, asset management.
Profitability:
Source: Morning Star Investment Research center.
From the tabular column we could see that tax rate has been growing each year starting from 2005. In 2014 tax rate reached 34.55%. Normally if
tax rate increases, the net margin tends to decrease. But in the case of American express (NYSE:AXP) the net margin has been increasing each year
starting from 2005 to 2014. In 2014 it reached 17.16%. This implies either the revenue has been increasing or company is decreasing its operating
expenses. We could also see increase on return on assets. In 2014 it reached 3.77%. So we can infer that each year the return on assets is increasing
which is a good sign. Financial leverage means the company used debt in the process to acquire new assets. As this has been on a decreasing note i.e.
in 2014 it is 7.7, this means the company's liability is decreasing. Investors usually prefer a company that has minimal debts. Now we consider return
on equity, each year return on equity is increasing. Investors would be happy because there investment is getting appreciated. Based on profitability
ratios, stock has a tendency to do well in the future.
Liquidity:
Source: Morning Star Investment Research center.
Financial leverage means the company used debt in the process to acquire new assets. As this has been on a decreasing note i.e. in 2014 it is

The Harnischfeger Case Essay examples
ACC 613
Chapter 3: Harnischfeger Case
1. Identify all the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the
effect of these on the company's 1984 reported profits.
Harnischfeger made the following accounting policy changes and accounting estimates during the year 1984.
В•There was a change in the recognition of some types of sales. This resulted in a change in sales calculation. Harnischfeger incorporated products
purchased from Kobe Steel, which were re–sold by the company, into its net sales. This increased aggregate sales and cost of sales by $28 million.
В•There was a change in the fiscal year for some foreign subsidiaries.
В•There was a ... Show more content on Helpwriting.net ...
Overall, depreciation changes resulted in an increase of $3.2 million in net income in 1984.
В•The effect of LIFO inventory liquidation was an increase in 1984 net income by $2.4 million, as gains. The balance sheet also reflected an
improvement in liquidity.
В•The effect of the change in the allowance for doubtful accounts was that it resulted in $2.9 million in operating income for 1984.
В•The effect of the change in R&D expenses was an increase in operating profit by $9.1 million.
В•The effect of the change in pension plans was a reduction in pension expenses by $14 million, increase in net income by $3.9 million, and a positive
cash flow.
2. What do you think are the motives of Harnischfeger's management in making the changes in its financial reporting policies? Do you think investors
will see through these changes?
В•The principal motive for the Harnischfeger management was to show profit in 1984. This was necessary since the company was preparing to
celebrate 100 years of doing business and management was eager to prove to investors that the company was doing well. Management was also
motivated by incentive compensation; the board of directors established an Executive Incentive Plan which provided an incentive compensation
opportunity of 40% of annual salary for 11 senior executive officers only if the Corporation reached a specific net after–tax profit objective

Case Study Analysis : Ratio Analysis
Ratio Analysis
Profitability
*Numbers rounded to nearest tenth Analyzing profitability is one of the most important measures of success for a business. It is critical for the
company to increase profitability in order for it to succeed in its industry. For a company to tie ends on short and long–term liabilities, healthy profits
are required. Conversely, minimal profits may have a direct correlation with operational inefficiency, leading to short–term debt and long–term
insolvency. In reality, no business can endure their market for a significant amount of time without making aprofit. Thus, the analysis of a company 's
profitability, both current and future, is crucial in the assessment.
At first, AirBoss seems to have a decent growth rate on majority of their profitability ratios. However, when the figures are compared to industry
averages and a common rival in their industry, Cooper Tire, very interesting numbers arise. Measures including: gross profit margins, return on net
sales, return on assets, and return on equity are critical in the evaluation of profitability in their business.
For the rubber manufacturing industry, variable costs are at a minimum. Thus, in order for companies to thrive in this business, they must attempt to
lower cost of goods sold to maximize profits. Gross margin is measured by taking gross profits and calculating it as percentage to overall sales.
Without an adequate gross margin, companies will struggle with paying expenses and

Financial Reporting And Analysis: Colgate Palmolive India...
Program & Batch:PGDM 2014–2016
Term:Term 1
Course Name:Financial Reporting and Analysis
Name of the faculty:Dr. Sachin Choudhry
Topic/ Title :Colgate Palmolive India Ltd. Vs HUL
Original
or Revised Write–up:Original
Group Number:1
Contact No. and email of Group Coordinator:7042256018, hitesh2073@gmail.com
Group Members: Sl.Roll No.Name 11401–02050Hitesh D Mehta 21401–01003Abhishek Rao 31401–01112Pranav Jain 41401–02136Tina Therattil
51401–03020Anjali Singh 6
71401–03132
1401–03035Rethin Thomas Kaipuraidom
Arun Vivek S
COMPANY INSIGHT:
HUL
Hindustan Unilever Limited (HUL) is India's largest FMCG Company and has around 35 Brands under its name. It was founded in 1933and has over
16000 employees ... Show more content on Helpwriting.net ...
It shows how much of revenue is left after all operating expenses are paid and how much is left for payment of interest obligation and taxes.
Colgate Palmolive India Ltd. (2014)HUL(2014)
20.5%17.1%
The operating profit of Colgate is higher than that of HUL and the company has more funds comparatively to pay off its interest and taxes. Colgate's
higher profits is attributed to higher income and higher turnover when compared with previous year.

3. Return on capital employed: (PBIT/average total capital employed)
Return on capital employed is comparison of operating profit to capital employed in the business. It shows how much a company generates profits by
employing its capital in business.
Colgate Palmolive India Ltd. (2014)HUL (2014)
126.5%122.8%
It can be seen that both the companies are almost performing same in ROCE aspect.
4. Return on Net worth: (NPAT/ shareholder's equity)
Net worth means how much profit the company can generate from its shareholder's equity. It is a profitability ratio from the aspect of an investor. He
has to evaluate the ratio before investing in a company so that it can show how much profits his investment can generate to the

For The Year Ended 30 June 2015 And June 2016, Wesfarmers
For the year ended 30 June 2015 and June 2016, Wesfarmers current assets were consistently at 0.93 times larger than it current liabilities, this is 0.05
times higher than the industry average of 0.88 as shown in Appendix V– Wesfarmers Ltd Industry Averages. Thus, Wesfarmers current ratio is not out
of line with the current ratios of many of the company's in its industry. This gives the indication that Wesfarmers should not have any trouble paying
its debts for the next twelve (12) months, as its current liabilities are less than its current assets. However, for the year ended 30 June 2015 and June
2016, Woolworths is 0.05 times below the industry average as seen in Appendix B, Figure... This indicated that Woolworths is out of line with
... Show
In addition, Wesfarmers are remaining just above the industry averages, more work will have to be done if they want to be number one in the retailing
industry in Australia.
Profitability
Financial ratios reflects the level of the company's profit relative to sales (Titan, 2012, p. 151). In other words, this is a company 's capability of
generating profits from its operations. Profitability is one of four building blocks for analysing financial statements and company performance as a
whole. The balance sheet contains assets that the business owns and which is used in the business for the purpose of generating profit (Jessop, 2017).
See Appendix A, figure II. To determine profitability for Wesfarmers, we will look at the Net Profit Margin, Return on Investment and the Return on
Equity using DuPont Analysis.
Net Profit Margin
The Net Profit Margin expresses the net after tax profits of an organisation as a percentage of sales (Titan, 2012, p. 155). The net profit margin for
Wesfarmers and Woolworths is computed as follows in Table III below:
Formula – Net Income Sales
Table III
Wesfarmers Woolworths
2015 201620152016
0.039 or 3.9%
0.006 or 0.6%0.036 or 3.6%–0.021 or –2.1%
For the year ended 30 June 2015 Wesfarmers made AUD $0.039 of each sales dollar, and for June 2016 they made AUD $0.006 of each sales dollar,

this is converted into profits, after taxes. With this in

Drivers of Industry Financial Structure Essay
Executive summary
Ratios of ten companies are presented in this study. The companies are all headquartered in the United States and the financial statements are the most
recent annual financials for the respective fiscal years ending in 1999 or 2000.
The companies are:
1.Developer of prepackaged software
2.On–line retailer
3.Warehouse club for food and general merchandise
4.Major passenger airline
5.International hotel chain
6.Temporary staffing agency
7.Supermarket grocery retailer
8.Pharmaceutical company
9.Manufacturer of electronic communications equipment
10.Manufacturer and marketer of consumer products
Analysis
1.Innovation is extremely important in the software industry and it ... Show more content on Helpwriting.net ...
A common use of the Gross Margin is to estimate a company's breakeven sales volume.(Higgins,2012)
9.Manufacturer of electronic communications equipment has the lower Profit Margin and longer Accounts Receivable characteristic of a firm
effectively bidding for government contracts.
10.Manufacturer and marketer of consumer products have a small size of Inventory 10.4% and its Net Plant & Equipment is 39.3%. The Unearned
Revenues is zero and R&D/Sales is also 0.
Conclusions
пѓ Service Industries:

Temporary staffing agency, hotel and airline: balance sheets are C, D & I.
I is the temporary staffing agency
D is expected to be the airline
C remains as the hotel
пѓ R&D Based Firms:
Software, On–Line Retailing, Pharmaceutical and Communication Equipment. Financial statement candidates would be A, F, G & J.
J is the software firm
A is clearly the on–line retailer since it is losing.
G is the communication equipment firm because it has the lower Profit Margin and higher Accounts Receivable.
F remains the pharmaceutical firm because it has higher Margins due to the capacity to keep high drug prices. It also spends a significant amount on
R&D while the competition is always coming up with a new product.
пѓ Consumer or Retail Based:
Warehouse Club, Supermarket and Consumer Products firm. Remaining financial statements are B, E & H.
B & H have low Accounts Receivable, Margins and high Inventory turnover so must be the warehouse club and the

Pizza Fuel : The First Burger Fuel
Q1 brief history
Ans:
Burger fuel: The first Burger fuel opens in Auckland city in 1995. This concept store on Ponsonby Road introduced a Gourmet Burger with fresher
and more natural ingredients delivered in an exciting environment conjured up from the images of flames, internal combustion and the desire to fuel
and fire the human engine. In the next year they are spreading their business rapidly in New Zealand. Then they open the second branch of Burger
fuel in Takapuna. After booming trade and huge interest from the locals, Takapuna became the first franchised Burger Fuel store. Now they have 44
stores in all over the New Zealand and 35 in other six countries. Burger Fuel sells burgers (beef, wagyЕ«, chicken, gluten–free, vegan and vegetarian)
fries, Beer (as a promotion), kumara fries, bottled soft drinks, milk / malt shakes and its own branded ice cream (Frostbite). In this year the Burger
Fuel Worldwide announced a partnership with California–based franchisor OH Cal Foods as part of its plan to break into the US market. OH Cal
Foods services more than 2100 Subway restaurant outlets in the United States. Its share price immediately lept 21% on the news.
Performance of Burger fuel: The Burger fuel have running their business very well in the market. In line with our stated objectives and previous market
guidance, net profit after tax in the period was $400,656 and whilst this was a reduction on the $1,098,294 net profit for the same period last year, it is
in line

Transforming Total Sales into Net Profits
Read the Reviews
"Viable Vision: Transforming Total Sales into Net Profits is a book for anyone responsible for increasing the profitability of their business. Gerry
Kendall combines the theory with real life examples of its power to transform complex problems into clear, common sense executables that will
increase the profitability of your business. If you think the complexities restrict the future success of your business, then you're about to be
enlightened." –Patrick J. Bennett, Executive Vice President Covad Communications "As senior managers we seek but seldom find the silver bullets
that will lead to exponential growth for our companies. In Viable Vision, the author wonderfully presents proven tools with actual business cases that...
Show more content on Helpwriting.net ...
xv Part I: The Premise for a Viable Vision Chapter 1. Improve! .................................................................................. 3 Chapter 2. Viable Vision
.......................................................................... 9 Part II: The New Frame of Reference Chapter 3. Moving from Complexity to Simplicity
............................... 23 Chapter 4. A Simpler Frame of Reference for Decision Making .......... 31 Part III: Chapter Chapter Chapter Chapter Chapter
Chapter Part IV: Chapter Chapter Chapter The Components of a Viable Vision 5. Marketing .............................................................................. 6.
Operations ............................................................................. 7. Distribution: From Push to Pull ........................................... 8. Project Management
............................................................. 9. The Supply Chain ................................................................. 10. Information Technology: Necessary But
Not Sufficient ....
43 51 61 71 81 87
Making It Happen, Now and in the Future 11. Buy–In: Overcoming the Layers of Resistance ................... 97 12. Strategy
............................................................................. 107 13. Executing the Paradigm Shift ........................................... 113 vii viii
Viable Vision:

Starbucks Financial Ratios
Profitability Ratio
The profitability ratio is a class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and
other relevant costs incurred during a specific period of time (Investopedia, 2014). It is used to determine how profitable a company is over a period
of time, generally one year. The profitability ratio for Grace Kennedy group is shown below for 2009 through to 2013.
Profitability RatiosFormulas20132012201120102009
Gross profit MarginGross Profit Net Sales2,897,682
13,641,166
=0.2124
3,014,438 13,249,138 =0.2275 2,835,253 12,805,047 = 0.2214 2,553,878 11,322,627 = 0.22562,355,067 10,927,313 = 0.2155
Net profit MarginNet Profit Net Sales1,634,271
13641166
=0.1198 2,478,679 13,249,138 = 0.1871 1,172,764 12,805,047 = 0.0916 2,217,161 11,322,627 = 0.1958 2,840,979 10,927,313 = 0.259 ... Show more
A higher profit margin indicates a more profitable company, which has better control over its costs compared to its competitors. (Investopedia,
2014) The gross profit and net profit margin for the Grace Kennedy Company has remained fairly stable over the five years. There is only a 1%
changes in the margins, it increased by 1% for the years 2010/12 but decrease by the same percentage in 2013. There were major fluctuations in
Grace Kennedy net profit over the period reviewed and the margin has fallen by approximately 13% in 2013 since 2009. This shows that although
they are making a profit the group may need to lower their expenses and increase their sales to get an higher net profit

Ratio Analysis Of Tesco
Tesco is a public limited company which was founded from a market stall in 1919. The company has grown into one of the largest retailing industry
in the world having large number of stores in Europe, Asia and North America. Initially the business started as a grocery retailer although it expanded
into diverse sections. Currently the company sells a variety of products that includes books, electronics, cloths, furniture and petrol. Ratio analysis
where evaluated to identify any possible potential investment in Tesco PLC by means of buying company shares. The result of a successful
investment would be attributed from either an increase in the share price or by regular dividends distributed to the shareholders. In order to perform a
consistent analysis, ratio analysis were as well compared with Sainsbury PLC, and Morrison PLC. Moreover, to perform an improved and more... Show
Terry Smith, Fundsmith's CEO said in an interview with Telegraph that he won't consider investing in a company with an ROCE of 15%. He
states that there are a number of companies with a 30% ROCE which are more attractive. He describes a company with 10% ROCE or less "is a
machine for destroying value" (Smith, 2014). Terry Smith in the financial Times article highlighted that for many years Tesco's ROCE fell from
19% which is considered satisfactory to an inadequate below 10% (Lawson, 2014). Out of the three analysed companies, Sainsbury has the highest
and pleasing ROCE in the last two financial years. During the last financial year Tesco PLC has increased its ROCE to 9.15% at a growth rate of
1.5% while Sainsbury achieved a ROCE of 17.9% with an even higher growth rate of 2.62%. The unstable trend of Tesco's ROCE over the years and
continuous declining ROCE between Feb–2011 and Feb–2013, would generate concerns to

Net Margin Ratio : Target Ratio
Net Margin Ratio The Net Profit Margin ratio measures how profitable a company's sales are after all expenses, including taxes and interests, have
been deducted (Van Deusen, Williamson, and Babson, 2007). It is calculated by dividing annual net income by revenues (sales). Target is in the
increasing stage with the net margin ratio. Target has placed a focus on their team to make sure that they are taken care of, which in turn has allowed
the team to push out great passion and initiative for the customers to buy into for life. This is also reflected amount the race between Target's
competitors. Target is ranked first in this ratio. Return on Equity The return on equity ratio measures the rate of return that the company earns on the...
Show more content on Helpwriting.net ...
Due to the similar state of business, Target's competitors are right along with Target with their ROIC numbers. Summary Target's financials show that
the company is on an up hill ramp to success. Their ratios in 2014 for most of the ratios were lower than the 2016 ratios. The liquidity ratios showed
that Target has the ability to be flexible in transforming assets into cash funds. The asset management ratios are where on average, Target had
experienced a decrease in the ratio numbers. The Accounts Receivable Turnover ratio and the Inventory Turnover Ratio are the two that experienced a
decrease. The decrease was not overly significant to the business affairs, but the effects could be seen in the comparison against Target's competitors.
The Debt Management Ratios relay that Target is efficient at managing their debts to allow the company to be profitable. For the Debt to Equity ratio,
Target found its way to the top of the stack of its competitor. The profitability ratios also showed that target is competition at the top level in
comparison to its competitors. Recommendations External Environment One factor that open Target to major vulnerability is that they rely on
suppliers that rely on foreign countries, such as China to product their products. International trade is not a bad proportion, but Target needs to start
searching for products that are sourced in the United States. With foreign relations heating up in

Qantas Airways Limited. . Author:. . Course/Class:....
QANTAS AIRWAYS LIMITED
Author:
Course/Class:
Institution:
Date:
Qantas Airways Limited
Performance Analysis
In the analysis of earning and cash flow, the accounting return is very important. It is the average accounting profit divided by the project's initial
investment. The average annual profit is 694 million while the average annual investment is 13,968.5 million. Therefore the accounting return is
4.96%. The company has a cost of debt of 1.4% while the Cost of equity is 4.75%. Therefore the accounting return is higher than the cost of debt by a
considerable margin but has a small difference with the cost of equity. The economic value added or economic profit, can also apply to measure
financial performance on the ... Show more content on Helpwriting.net ...
There was an increase in operating margin from 4.92 to 7.77 in 2016 and is mainly attributable to the decline in operating expenditures leading to a
higher EBIT in 2016.
On efficiency, Qantas return on assets has also increased from 3.20 times to 6.01 times in 2016. The increase in ROA is due to a higher rise in
profitability compared to the change in total assets and indicates efficiency in use of total assets to create income profits. Similarly, the ROE rose from
17.67 to 30.73 in 2016. As the total equity for Qantas had declined from 3441 million to 3181 million, they still managed to increase their net profits
attributable to its shareholders.
A notable deficiency in performance was the decline in inventory turnover from 22.36 to 20.10 in 2016. As shown in thebalance sheet, inventories at
the end of the year rose from 322 million to 336 million. It means fewer inventories were converted into cash sales in 2016. The receivables were
however better collected as shown by an increasing receivables turnover. It implies Qantas has increased their frequency of debtor's collection as
shown by lower receivables of 993 million compared to 1234 million previously. Lastly, the firm increased its efficiency in use of total assets to
generate higher revenues in 2016.
Looking at the capital structure, the Debt/Equity ratio has moved in a favorable direction from 1.39 to 1.36

Marketing Plan For A Company 's Net Profit Essay
5.2.3 Promotion and Sales: Andrews spent reasonable expenditure on promotion budget that customers' awareness was around 98% to 100% except
2017. However, for the sales budgets, we invested $2000 to $2500, relatively less than the competitors, from 2017 to 2022. When the customers'
accessibility dropped to 73% on Low End segment for example, the low customer accessibility that did not match with our awareness directly
influenced our market share, we realized that prevent and remove barriers to customers was also significant. Then, we kept to invest sales budget on
$3000 in the last four years. 5.2.4 Account/Receivable: To appeal customers and increase competitive power, Andrews adjusted the account receivable
period from 30 days to 60 days in 2020. We understood that would affect cash flow on the following fiscal year, but we applied this financial strategy to
increase our competitiveness and market share, and it was successful. 5.3 Production Production determination is critical to influence a company's net
profit. Predicting next year's quantity of manufacture is not only simply matching the numbers along with forecast, but should consider the current
capacity and automation level for the different segments. 5.3.1 Automation Level: Automation level can influence a company's net profit by increasing
contribution margin and decreasing labor costs. Higher automation level indicates more efficient manufacture capability that will cut down labor costs
from hiring

Why Business Matters From A Christian Perspective
Why are businesses in the business? Is it for the sake of giving back to the community, giving people employment, or is it to make a profit? Jeff Van
Duzer (Van Duzer), author of "Why Business Matters to God," describes business from a Christian perspective. According to Van Duzer, "Business is
called first not to profit but to participate in the work of redemption, providing meaningful work and helping communities flourish (Van Duzer, 2010)."
This document will examine profit from an accounting perspective comparable to the perspective of "Why Business Matters to God."
What is Profit? There are various terms for profit such as bottom line, net profit or net earnings. A profit is also described in numerous ways. One
description of ... Show more content on Helpwriting.net ...
How the business gets there and what they do matters to God. Most companies consistently strive to continuously earn profit and accounting is an
integral part of the analysis. There are three major ways companies examine profitability analyzing gross profit, operating profit and net profit
(Investipedia.com 2016). All three can be found on the income statement and all three give details of the company's performance especially when
benchmarking against other time periods, competitors, and industries. Many companies analyze gross profit margin to assess the health of the
business and ascertain the company's performance creating a product or service compared to the competition (Investipedia.com 2016). This first
level of profitability calculates by taking sales minus the cost of goods sold (COGS and gross profit margin are generated by dividing gross profit
by sales. The changes in the company's pricing strategy or industry regulations can impact gross margin. A company needs adequate gross margin to
pay for its operating expenses (Investipedia.com 2016). While gross profit looks at profitability after direct expenses are considered, operating profit
examines profitability after operating expenses such as salaries and administrative costs

Financial Ratios
Interpreting Financial Results
FIN/571
July 22, 2013
Interpreting Financial Results
Liquidity: Current Ratio Parrino, Kidwell, & Bates (2012) detail the current ratio as current assets divided by liabilities. The current ratio identifies a
firm's potential to pay short–term liabilities; higher liquidity is a good sign for potential creditors (Parrino et al., 2012). At the same time, however,
the current ratio should not greatly exceed benchmarks of other competitors (Parrino et al., 2012). This could be indicative of mismanagement of
current assets and less cash flow for investors (Parrino et al., 2012). Current assets ($29,307,990) divided by current liabilities ($20,530,890) gives a
current ratio for ABC SDN. BHD. of 1.43. ... Show more content on Helpwriting.net ...
The previous year ABC SDN. BHD. had a gross profit margin of .108. The increase in the gross profit margin is due to the decrease of $72,386,000 in
the cost of goods sold. American Airline Cargo, its close competitors' gross profit margin (in millions) is calculated
$22,170 – $308
$22,170
to give a gross profit margin of .086. The GPM of ABC SDN. BHD. is higher than that of its competitor, which indicate the company is doing well.
The operating profit margin helps investors understand quality of the company in terms of how much a company makes on each dollar of sale. The
formula to calculate the operating profit margin is
EBIT
Net Sales
$4,529,000
$121,592,000
which gives an operating profit margin of .037. The previous accounting period the company had OPM of .035. During this same accounting period
AMR had a net loss.
The net profit margin helps investors understand how profitable a company is. This explains how much profit a company has per dollar of sales. ABC

SDN. BHD. has a net profit margin of
Net Income
Net Sales
$2,707,000
$121,592,000
which gives a net profit margin of 2.22%. The net profit margin for the previous accounting period was 1.92%. This indicates that the company has
produced an increase in profit per dollar from one accounting period to the next. The competitors had a net loss for the accounting period ending 2010.
Conclusion
References
Air Canada. (2010). Air

Analysis Of Harvey Norman 's Net Profit Margin Essay
In the Table __ and Fig __, you can see how the company has been performing. The overall profitability of the company has increased. Profitability
ratios have increased since 2010. In particular, Harvey Norman's Gross Profit Margin saw a significant growth, it grew 44.7% since 2010. Operating
Profit Margin saw a similar result, finishing with a ratio of 10.5 in Financial Year 2015. Harvey Norman's NetProfit Margin (when positive), have been
at best maximum and are further illustrative of the paper–thin margins typically associated with the retail sector. Investments of Return on Assets
(ROA) and Return on Equity (ROE) were also substantial, comparing 2010 and 2015 there was a relative decrease in ROA and ROE which doesn't
make much of a difference if the Gross Profit Margin has a strong game. Thus, on the basis of the financial results over the last 6 years, shareholders
would definitely be confident about investing in Harvey Norman, unless there is a decline in current asset and equity returns.
Harvey Norman' Activity ratios are shown in Table __ and Fig __. The only year when Harvey Noman had its maximum inventory turnover was in
the Financial year 2010. There was not much of a difference between the Financial Years 2010 and 2015 as the Average Collection Period, Accounts
Receivable Ratio, Fixed Assets Turnover and Total Asset were fluctuating (it increased as well as decreased simultaneously). This increase in turnover
is reflective of both a recent increase in consumer

Swot Analysis Of Sainsbury
Operating Profit Margin (OPM) – this ratio gives the Sainsbury's management a lot of important information about the firm profitability, mainly with
respects to cost control. A high operating profit margin means that a company has a good cost control or/ and that sales are increasing faster than costs,
which is the objective of every company.
Sainsbury's operating profit margin increased in 2014 by 0.43% to 4.21% (2013, 3.78%). This means that every ВЈ1 of sale earns a profit of 0.0421
pence in 2014 and 0.0378 in 2013. Sainsbury's increased in profit margin beats rival Tesco which has seen its operating profit margin at 4.14%,
3.76% respectively. According to Sainsbury's former chief executive Justin King rise of OPM is due to 30% increase in number of deliveries per van
and 30,000 ... Show more content on Helpwriting.net ...
Higher the net profit margin ratio than better. NPM are not the same as a GPM. Under GPM, fixed costs are excluded from calculation. With, NPM
ratio all costs is included to find final benefits of the income of the business.
Sainsbury's seem to have more control of its costs in 2014 (2.99%) than it had in 2013 (2.58%), increased by 0.41%. This indicates that Sainsbury's is
more profitable. However, this situation could change as they announced further cut prices which can lead to decrease in operating profit margin.
Profitability Analysis
The long–term profitability of a company is vital for both the survivability of a company as well as the as well as benefits received by shareholders.
Return on Capital employed (ROCE) – is the primary ratio as measure of how efficient the organisation is at generating profits from its capital. A
higher ROCE indicate more efficient use of capital. ROCE should always be higher than the rate at which company borrows otherwise any increase in
borrowings will reduce shareholders

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