...Company Financial Analysis Pacific Brands Release Date: 30th September, 2011 Table of Content 1. Ratios Summary 1 2. Financial Analysis 2 3. Recommendation 9 Appendix I: Calculation Illustrations 11 Appendix II: Further Calculation Illustrations 17 Appendix III: Figures 18 Appendix IV: Executive Summary 19 1. 2. Ratios Summary Ratios | Pacific Brands, 2010 | Industry | Unit | Liquidity | | | | Current Ratio | 2.69 | 2.67 | times | Quick Ratio | 1.66 | 1.92 | times | | | | | Activity | | | | Days Inventory | 98.93 | 50 | days | Days Receivables | 51.12 | 25.78 | days | Days Payables | 60.38 | 58.83 | days | Total Asset Turnover | 0.81 | 3.17 | times | Fixed Asset Turnover | 13.33 | 5.26 | times | | | | | Profitability | | | | Net Profit Margin | 3.05 | 2.45 | % | Return on Assets | 5.91 | 7.77 | % | Return on Equity | 4.03 | 16.8 | % | Quality of Income | 254 | 7.03 | cents | | | | | Leverage | | | | Times Interest Earned | 2.64 | 64.72 | times | Assets/Equity | 1.63 | 2.16 | times | | | | | Dividends | | | | Dividend Yield | 0 | 4.75 | % | Price/Earnings Ratio | 15.44 | 12.16 | times | | | | | Note: Calculation in details is available in Appendix I 3. Financial Analysis 2.1 Tests of Liquidity 2.2.1 Current Ratio | Pacific Brands Ltd | Industry Average | Current Ratio | 2.69 | 2.67 | The current ratio for Pacific Brands Ltd...
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...FINANCIAL ANALYSIS OF DELL AND HP Executive Summary 2 This financial analysis report examines two high profile competitors, Dell and Hewlett Packard (HP), within the computer/technology industry in order to evaluate company performance and financial health. Overall company strategies were reviewed and considered along with the financial analysis to come to a conclusion for recommendation of investment. The reports introduction gives an overview to the computer/technology industry and expands on the strategies executed by Dell and HP. The financial analysis covers both companies’ common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance, asset utilization and market measures from year 2006 to year 2010. A pro forma look ahead estimated financial performance is generated for each company and assumptions explored that helped derive the financial data for the pro forma. Conclusions are drawn from the above stated financial analysis as well as areas for improvement and investment recommendations. Dell and HP are both well known companies competing in an ever evolving and expanding industry. The industry is in every segment from personal to educational to professional. HP is a more mature company having been founded in 1939, but Dell made waves throughout not only the computer/technology industry but in...
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...Table of Contents 1.0 Introduction 4 2.0 Methodology 4 3.0 Non-Financial Information 4 3.1 SWOT Analysis 5 3.2 Porter’s 5 forces model 5 3.2.1 Fig 1 Porter's five forces Model 6 3.3 Corporate Social Responsibility 7 4.0 Financial Information 7 4.1 Directors’ Report 9 4.2 Auditors’ Report 9 4.2.1 Understanding Unqualified and Qualified Phrases 10 4.3 Financial Notes 10 5.0 Balance Sheet 11 5.1 Assets 11 5.1.1 Cash and Cash Equivalent 11 5.1.2 Temporary Investments 12 5.1.3 Accounts Receivable 12 5.1.4 Inventory 12 5.1.5 Prepaid Expenses 13 5.1.6 Total Current Assets 13 5.1.7 Property, Plant and Equipment (PPE) 13 5.2 Liabilities 14 5.3 Stockholders’ Equity 14 6.0 Working Capital 14 6.1 Current Ratios 15 6.2 Financial Leverage 15 7.0 Income Statement 15 7.1 Profit Margins 16 8.0 Cash Flow Statement 17 8.1 Financial Ratio Analysis 18 8.1.1 Return on Capital Employed ROCE 18 8.1.2 Calculating ROCE 18 8.1.3 Return on Assets ROA & Return on Investments ROI 19 8.1.4 Calculating Return on Fixed Assets ROFA 19 9.0 Summary 20 References 24 1.0 Introduction. Abacus Accounts are seeking to outsource most of their Facilities Management operations to an external FM provider; these will include: maintenance, cleaning, catering, security and vehicle management. They are a large business which is seeking to identify a strategic partnership and will therefore, only be willing to deal with significant organisations...
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... “Media and Promotional products history in UK “ Globally promotional merchandise is famous for promoting brands, products, and corporate identity as the corporate companies in UK and Ireland have Promotional merchandise as their main trade of sales. According to studies shown, promotional products became popular with calendars, apparel, balls, magnets, holders, shirts and candy which were dated back to George Washington. UK and Ireland formally emerged in 1950’s to create the industry of promotional merchandise since previously there was no organized industry to cater the creation, distribution of promotional pens and accessories. Sooner later, the newest designs of pads and t-shirts became the hottest popular apparel that was imprinted in ink. Published in 2008, the UK and Ireland promotional merchandise industry had an overall value of £850m and by Mid 2009 the market went down by £712m taking the UK’s worst ever recession grip. The top 10 promotional merchandise products published in July 2009, were promotional pens, bags, clothing, plastic items, USB memory sticks, mugs, leather items, polyurethane conference folders, and umbrellas. However the market may be saturated with promotional items but it’s known as a great way to create loyalty among companies that would help...
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...April 30 2014 Financial Analysis Apple I am not a huge fan of Apple products, although I am a big fan of their company. No matter what you read in the press or business press about Apple the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit possible from every sale it makes. Apple’s financial strategy is to maximize , a financial strategy that has been put to use since Steve Jobs returned to the company. However every thing great must have a downfall, Apple doesn't have much weaknesses but they might affect the company financially in the long run. One of Apple strengths is Customer loyalty combined with expanding closed systems. First, Apple now has a full range of apps, software and products that are linked and support each other. Second, new products and programs will be released soon (iTV), hence expanding the system. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed system, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed system and customers’ loyalty increases competitive advantage. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s ability of producing innovative products is the strength the company builds upon and is able to bring the best products to the market. Apple’s financial performance is...
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...Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Froot Loops, Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Cocoa Krispies, Keebler, Pringles, Pop-Tarts, Kashi, Cheez-It, Eggo, Nutri-Grain, Morningstar Farms, and many more. Kellogg's stated purpose is "Nourishing families so they can flourish and thrive." Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as an outgrowth of his work with his brother John Harvey Kellogg at the Battle Creek Sanitarium following practices based on the Seventh-day Adventist Church. The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922. In 1930, the Kellogg Company announced that most of its factories would shift towards 30 hour work weeks, from the usual 40. W.K. Kellogg stated that he did this so that an additional shift of workers would be employed in an effort to support people through the depression era. This practice remained until World War II, and continued briefly after the war, although some departments and factories remained locked into 30 hour work weeks until 1980...
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...Analyzing AsiaCell Financial Statements Financial Statements Analysis 1/17/2016 Prepared by: Azhy Azad Ahmed Ari Sherzad Zamo Zana Mohammed Omed Contents Introduction 3 Financial statements of AsiaCell Company 4 Financial statements Differences: 6 Definitions: 7 Liquidity Ratios: 7 Solvency Ratios: 7 Profitability Ratios: 7 AsiaCell Ratio Analysis 8 Liquidity Ratios: 8 Solvency Ratios: 12 Profitability Ratios: 14 Conclusion: 18 Introduction We are analyzing the financial position of AsiaCell Company during the years (2011, 2012, and 2013); the financial statements are provided on Iraqi Exchange and commission website (www.isx.iq). It is important that you fully understand the data presented here. Please be aware that the analysis presented is not a prediction of the future but rather a tool for monitoring the progress of AsiaCell business over time. This information should factor into your decision making, but it should certainly not be the only factor in your business decisions. Be sure to consult all appropriate resources and professionals before making any decisions that may affect the financial health of AsiaCell Company. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Financial statements of AsiaCell Company Financial statements Differences: There many differences...
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...analyzing the financial data of both Lockheed Martin and Northrup Grumman I would conclude that Northrup Grumman is in slightly healthier financial condition in 2013 out of these two companies. This conclusion is based on a number of different financial ratios calculated from the figures in each company’s annual report. These include liquidity ratios, solvency ratios, funds management ratios, and profitability ratios. Comparison of these ratios between each company show Northrup Grumman having slightly better numbers and an advantage in some key ratios such as the Current Ratio, Acid-Test, and Profit Margin. The spreadsheet used to calculate these ratios is attached and will be referenced to through the analysis discussion. The first data analyzed was looking at a couple liquidity ratios for each company. These ratios included the Current Ratio and Acid-Test, also known as the Quick Ratio. As shown in the spreadsheet, both of these values showed Northrup Grumman as having slightly better ratios. This means that Northrup Grumman has more readily available funds and better protection against liquidity problems. They also have greater quick assets to pay off current liabilities immediately if needed. The second set of data was taking a look at the solvency ratios. In this set Lockheed Martin has a slight edge in Times Interest Earned; however Northrup Grumman has quite the advantage in Times-Fixed-Charges-Earned and Debt-to-Equity. Times Interest Earned shows how well a company is positioned...
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...Panera Bread Company Financial Analysis In 2017 the Panera Stock were going for $315 per share in cash, in transactions valued at approximately $7.5 billion, including assumption of $340 million of net debt. For this Panera Bread Company, they came out with themes on digital, clean food, loyalty, delivery, and new formats for growth. Panera is the leading industry in digital with 26% of sales digital. They are the first and only menu with a clean menu. They have a loyalty program which is the largest in the industry with 25 million members and half of transactions through the program. There omni channel approach leads the industry, with delivery now available in 24% and their catering sales growing 11%. Their Company owned bakery café...
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...Inter Company Analysis Britannia can be compared with its competitor on the basis of various ratios as mentioned below Current Ratio Britannia has a current ratio of 1.054 in comparison to HUL which has a current ratio of of 0.79.The high current ratio mainly is because of a more than proportionate increase of the Current Assets when compared to the Current Liabilities. Debt Equity Ratio There is a stark comparison between the two companies in terms of funding. While HUL funds its operations from lower and lower loans every year, Britannia increasingly funds its operations through more and more debt, possibly due to lesser cost of debt. This is visible in the DER of HUL at 0.07 and 1.084 of Britannia. Interest Coverage Ratio The interest coverage ratio is a measurement of the number of times a company could make its interest payments with its earnings before interest and taxes. Lower the ratio, higher is the company’s debt burden. This is measured as the ratio between the profit before interest and taxes to the interest amount paid that year. The ICR of Britannia has improved over last year from 20.77 to 29.62.But in case of HUL there has been a drastic improvement .ICR has rose from 122.22 to 409.36. Earning Per Share Over last one year, EPS has declined for Britannia due to drastic decline in profits, and hence the EPS has fallen from Rs 75.51 to Rs 48.77.However in case of HUL the EPS has declined due to slight increase in the number of shares...
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...Attached is the Statement of Cash Flows for the most recent fiscal year. This statement provides an overview of Noskaj Company’s activities for the year which affected the company’s balance of cash. The statement is divided into three sections: cash provided or used by operating activities, investing activities, and financing activities. By examining each of these three sections, you can see how each group of activities affected the company’s ending balance of cash. The operating activities section reflects activity that took place on the company’s income statement. With regard to operating activities, the company took in $534,200 from customers, which reflects the sales revenue for the year less any outstanding accounts receivable from customers...
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...iiste.org Financial Analysis of Selected Pharmaceutical Companies in Bangladesh Md. Tofael Hossain Majumder Department of Accounting and Information Systems, Faculty of Business Studies Comilla University, Comilla, Bangladesh. Email: tofael_cou@yahoo.com Mohammed Mizanur Rahman School of Business and Economics, Atish Dipankar University of Science and Technology Dhaka, Bangladesh. Email: mizancu@yahoo.com Abstract The Pharmaceutical industry plays a vital role in the socio-economic development of Bangladesh. But the net profit of this industry has decreased for the last few years. This study is designed to review the financial performance of this industry, to test its strengths and weaknesses. The financial performance of this industry is measured in terms of Ratio (Profitability, Liquidity, Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data mainly relied on Annual Reports and official records. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management...
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...Financiële analyse SnowWorld DCF methode DCF is afgekort voor discounted cash flow en wordt in het bedrijfsleven gebruikt om de verkoopwaarde van een bedrijf vast te stellen. De DCF wordt volgens de volgende formule berekend: Vrije kasstroom * WACC = DCF WACC staat voor Weighted average cost of capital. De WACC is op de volgende wijze berekend: WACC = vermogenskostenvoet (EV / TV * Ke) + ( VV / TV * Kv* (1-b)) EV = marktwaarde van het eigen vermogen VV = marktwaarde van het vreemd vermogen TV = totale marktwaarde van de onderneming (= VV + EV) Ke = rendementseis van de aandeelhouders Kv = rendementseis van de verschaffers van vreemd vermogen b = belastingpercentage. In het geval van SnowWorld levert dit de volgende tabel op: | best case | normal case | worst case | ev/tv * Ke (bankrente consument) | 0,135306115 | 0,236785702 | 0,338265288 | vv / tv * Kv (bankrente langlopende lening bedrijf) | 4,894821447 | 5,419266602 | 5,943711757 | wacc (1 + 2) / 100 | 0,050301276 | 0,056560523 | 0,06281977 | Waarde SnowWorld (WACC * FCF * 1000) | € 99.599.859,80 | € 88.577.681,58 | € 79.751.962,85 | In bovenstaande tabel is van drie situaties uitgegaan bij het bepalen van de WACC. In de eerste situatie is er sprake van een best case scenario, waarbij Ke 2% en Kv 7% bedraagt. In de tweede situatie is er sprake van een normaal scenario, hierbij is Ke 3,5% en Kv 7,75% In de laatste situatie is er sprake van een worst case scenario, hierbij is Ke 5%...
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...Group Work: Financial Statement Analysis of your selected listed Bangladeshi company Guideline for Term Paper Dear All, Please complete the strategy analysis and accounting analysis based on the following guideline by next 2 weeks for the company allocated to your group for term paper, and give me the update. Topic Specific Topics Key Questions Strategy Analysis Industry Analysis (Five forces Model) Rivalry -How do firms in an industry rivalry compete among themselves? -What are the dimensions of the competition? Threat of new entrants -What are the legal entry barriers for a new firm? -What are the economic entry barriers for a new firm? Threat of substitute products -Is there any substitute products of the industry? -If so, What is the level of price difference with substitute product? Bargaining power of buyers -What is level of buyers’ price sensitivity? -What is the buyers’ relative bargaining power? Bargaining power of suppliers -How many numbers of suppliers? -How much critical the product is to buyers? Competitive Strategy Analysis Which competitive strategy the company has taken? Cost leadership or Differentiation Corporate Strategy Analysis -Are there significant imperfections in the product, labor or financial markets in the industry in which the company is operating? - Does the company have special resources such as brand names, proprietary know how, access to scarce distribution channels, and special organization...
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...Three Case Study Questions Trina G. Stevens trinagstevens@bellsouth.net Part III of the Course Project for PM598 Nov10 Contract and Project Management Presented to Instructor Robert Davy of DeVry University December 5, 2010 RUHLING MANUFACTURING COMPANY QUESTIONS Question # 1: Why might negotiation be favored over competitive bidding in certain procurement situations? A buyer or a procurement section of an organization, or business might choose negotiation over competitive bidding when a project is small, not planned, or an emergency. There are some situations in which a buyer would favor negotiation rather than competitive bidding. For example, when the buyer is contracting for part of the seller’s services rather than a product. Also when there are ambiguities involved with the project. Another reason to use negotiation is when cost and risk cannot be correctly identified early within the project. Negotiation is used a lot when there are new, or unexpected ideas introduced to solve a problem within the project. Negotiation is usually cheaper and quicker than competitive bidding. Question # 2a: Considerations of Epsilon's alternative proposal: a. What is the applicability of a requirements contract from Ruhling’s point of view? - Assume that Epsilon will still make a profit resulting from economics of long runs and learning curves The applicability of a requirement contract from Ruhling’s point of view is that they would agree...
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