...American Corporation Analysis ACC/561 Sep 10, 2015 American Corporation Analysis Comparative and ratio analyses are two ways that companies look at their own growth and that of their competitors. Comparative analysis is a way for businesses to look over several accounting periods and find emerging trends and see how the business is progressing in areas. Ratio analysis is a financial technique that allows companies to quickly see how they are doing at any given moment and also allows investors to see how that company is doing at that moment. Two areas that can be looked into is that of ratio analysis which focuses on liquidity and profitability ratios. Team D chose to take the American of CVS to examine and compare it to that of its competitor Walgreens to analyze its growth within its market. Comparative Profitability Comparative analysis can be completed in a number of different bases. Intercompany basis compares the financial relationship of CVS with Walgreens which is one of the competing companies (Kimmel, Weygandt, & Kieso, 2011). As shown in figure 3, 1, we analyze the data from the published financial statements from each of the individual companies. CONDENSED INCOME STATEMENTS (in millions) | | CVS | Walgreens | | Dollars | Percent | Dollars | Percent | Net sales | $139,367.00 | 100.00% | $76,362.00 | 100.00% | Cost of goods sold | $114,000.00 | 81.80% | $54,823.00 | 71.79% | Gross profit | $25,367.00 | 18.20% | $21,539.00 | 28.21% | Selling...
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...This paper seeks to look at Vietnam’s economy, financial sector, and political sector in respect to the textile industry. In an attempt to evaluate the feasibility of entering a foreign market, we focus our paper on a mid-sized company called Augusta Textile Company. This paper seeks to evaluate Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam, as well as potential modes of entry, we may conclude a recommendation for Augusta Textile Industry’s future potential expansion. Introduction Country Basics Vietnam is formally known as the Socialist Republic of Vietnam and is located in the South China Sea. It is the thirteenth most highly populated country in the world (Hossain, 2010). The current population of Vietnam is estimated at about 90.4 million (The Heritage Foundation, n.d.). There are 54 officially recognized ethnic groups in Vietnam, but the majority are Viet (also known as “Kinh”), comprising of about 86% of the total population. Other significant ethnic groups are the Tay, Thai, Muong, Khome, and Hoa. The vast majority of the Vietnamese population speaks the Vietnamese...
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...Wal-Mart Financial Analysis Well everyone knows the history of Walmart, the great American success story, or do you? Let me fill you in. In 1950s Sam Walton opened his first store in Arkansas with the believe in fair play and providing American produce goods at low prices and undercutting his competition by keeping his profit margin even lower. Mr. Walton was able capitalize on this philosophy through cultivate his business and leveraging capital by means of encouraging managers and associates to take advantage of his situation and become stakeholders thereby inspiring the manager’s and associates to improve their skill sets and take ownership and pride in the business. In the 60’s, the first true Wal-Mart open its doors permanently. By the 80’s Walmart was a billion dollar company with stores operating across 28 states. (http://walmart1percent.org/) Today Wal-Mart is the largest corporation in the world employing 2.3 million people (Dun & Bradstreet, 2014, para. 1) However todays Wal-Mart does not share Sam Walton visions or his values. Today Wal-Mart does whatever it needs to maximize revenue at the expense of its employees and customers. Today’s Wal-Mart has little or no respect for their employees. For the majority of their employees’ wages lower than their closest competitors (Costco and Target) since Wal-Mart encourage their employees to get on government funded programs such as food stamps, Medicaid, and public housing thereby passing some of their overhead...
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...SME Financing in the United Arab Emirates www.khalifafund.ae SME Financing in the United Arab Emirates Executive Summary 1. Introduction & Context 1.1 Background to the Study 1.2 Objectives of this Work 1.3 Consultations 1.4 Limitations 2.1 Definition of ‘SME’ 2.1.1 EU Definition of SME 2.1.2 World Bank Definition of SME 2.1.3 Criteria Used by Banks to Define SMEs 2.1.4 UAE Definitions of SME 2.2 Current overview of SME prevalence in Abu Dhabi/UAE 3.1 Scale of SME Finance in the UAE 3.2 Supply of Finance by Type 3.3 Sources of Finance 3.4 Stakeholder Mapping 3.5 SME Access to Finance Process 3.6 KPIs / metrics and baseline data 4.1 Key Findings – Supply Side 4.2 Key Findings – Demand Side 5.1 International Research Findings on Key Obstacles to Improving SME Access to Finance 5.2 Critical Success Factors to Improving Access to Finance for SMEs 6.1 Leading Practice SME Ecosystems: Singapore and the United Kingdom 6.2 Key Lessons Learned for the UAE 6.3 Detailed Review of Leading Practice and Regional Comparator Ecosystems 6.3.1 Singapore 6.3.2 United Kingdom 6.3.3 Jordan 6.3.4 Qatar 7.1 The core issues 7.2 n overview of the opportunities for KF and other (public and private) entities to A support SME access to finance in Abu Dhabi / UAE 7.2.1 Legal and Regulatory Transparency 7.2.2 Access to information 7.2.3 Capacity Building 7.2.4 Diversify SME Financing Mechanisms 7.3 Criteria 4 5 5 6 6 6 7 7 7 8 8 8 9...
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...major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and Bradstreet 2000). Globally, outsourcing usage grew 35 percent in 1997 and the total market for outsourced services is expected to increase to $200 billion by the year 2001 (Greer, Youngblood, and Gray 1999). A recent study was conducted by Yankelovih Partners indicated that two-thirds of companies world-wide already outsource at least one business...
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...Operations, Transition, Process re-engineering at BPO's, ISP and as a freelancer consultant. In his tenure with various organisations for 14+ years he discovered that there were more busy people with even more things to get done. That is how GenieOnCall idea was conceived in his mind but never could implement it as was extremely busy serving the corporate from various countries. In his 14+ years of experience, he provided world class services to some big names in the corporate worlds, names like: - Dun & Bradstreet (D&B) - UK, Ireland, Germany, Australia, USA and Canada, ICC (Bisnode, now part of D&B) UK, Ireland, Germany, Denmark, Sweden and Norway, Business Pro UK and Ireland, Axciom USA, Verizon USA, Data National USA, Innovectra USA, Idearc USA, Lexis Nexis USA, BSI USA, Apex UK and many more. His areas of specialization have been Project Management (Analysis/ Transition/ Migration), Review (Projects/ Units/ Vendors/ Organisation), Business Continuity, Creation of Alliances, Business Development, Process Improvements/ Re-engineering, Operations, Costing and Projection V/S Billing, ISO-9001 and ISO-27001 Audit and Compliance, P&L for Projects/ Units/ Vendors, Feedback/ Coaching/ Mentoring, Capacity/ Recovery Planning. After serving the above mentioned customers, he moved back to Agra in year 2010. He then started giving consultancy to some of the European companies and also started working towards converting the concept GenieOnCall into reality with the motive to provide that...
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...Failure of Business Enterprises; Caused by Productivity or Management? RAJKOOMAR Manish Table of Contents Definition of Business Failure3 Closures and Failures: The Numbers3 Reasons For Business Failures Failure Due to Production Related Issues4 Failure Due to Management Related Issues5 Recovering From Business Failures8 Conclusion9 Definition of Business Failure Business failure is defined as the termination of a business that results in financial loss for at least one of the business's creditors. All entrepreneurs who decide to establish their own business face the possibility of failure, and a good deal of sources holds that failure is not only possible but probable for the small business owner seeking to launch his or her own enterprise. It has long been said that four out of five new businesses fail within five years of their establishment, for instance, but current studies indicate that such gloomy forecasts often present a false picture of entrepreneurial realities. Indeed, many business experts that the majority of small business owners are actually successful with their ventures. , The US Chamber of Commerce - published newsletter; Nation’s Business pointed out "Outright failures of small businesses are in fact remarkably rare." Moreover, Nation’s Business explained that "if failure is defined, reasonably enough, as a business closing that results in losses to creditors because the firm files for bankruptcy or because it simply closes its doors...
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...------------------------------------------------- Investers Present and potential owners (investors) are prime users of financial statements. They continually assess and compare the prospects of alternative investments. The assessment of each investment is often based on two variables: expected return and risk. Expected return refers to the increase in the investor’s wealth that is expected over the investment’s time horizon. This wealth increase is comprised of two parts: (1) increases in the market value of the investment and (2) dividends (periodic cash distributions from the firm to its owners). Both of these sources of wealth depend on the firm’s ability to generate cash. Accordingly, financial statements can improve decision making by providing information that helps current and potential investors estimate a firm’s future cash flows. Risk refers to the uncertainty surrounding estimates of expected return. The term expected implies that the return is not guaranteed. For most investments, numerous alternative future returns are possible. For example, an investor may project that a firm’s most likely return for the upcoming year is $100,000. However, the investor recognizes that this is not the only possibility. There is some chance that the firm might generate returns of $90,000 or $110,000. Still other possibilities might be $80,000 and $120,000. The greater the difference among these estimates, the greater the risk. Financial statements help investors assess risk by providing...
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...major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and Bradstreet 2000). Globally, outsourcing usage grew 35 percent in 1997 and the total market for outsourced services is expected to increase to $200 billion by the year 2001 (Greer, Youngblood, and Gray 1999). A recent study was conducted by Yankelovih Partners indicated that two-thirds of companies world-wide already outsource at least one business process to an external third party. This...
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...3. Information Service National Credit Ratings Ltd National Credit Ratings Limited (NCR) is a credit rating agency in Bangladesh. It was incorporated as a public limited company under the Registrar of Joint Stock Companies in August 2010 and received its certificate for commencement of business in July 2010. It was granted a licence by the Securities & Exchange Commission (SEC) of Bangladesh for operating as a credit rating company in September 2010. The formal launching of the company was held on 18 October 2010. Managing director & CEO: MD. Momin Ullah Patwary, BP, is a former secretary to the Govt. of Bangladesh. Services: The services provide by the agency are followings: Entity Rating, Instrument Rating, Insurance Company rating, Asset Manager Rating, Sectoral Grading and Ranking. Methodology A true and fair opinion is our responsibility. NCR gives opinion as to the ability of an entity to meet its financial obligations. The rating process primarily concentrates on business and financial risks. The focus is to assess cash generation capability and its adequacy to meet debt obligations on a timely basis. The analysis attempts to determine the long-term fundamentals and likelihood of change in these, which could affect the credit worthiness of the entity. The analytical framework of our rating methodology is divided into two interdependent segments. The first deals with the...
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...Brandon Group is a family owned distributor of copiers, electronic printers, faxes, and other office equipment. The company was started by Bud Brandon in 1953 and he passed away in 1972 leaving his two sons Ed and Steve to continue to run the business who decided on the growth of the business by acquiring more dealerships. By 1995 Bandon had acquired enough dealerships and had four divisions in the western U.S. (Portland , Oregon, Phoenix, Arizona, Salt Lake City, Utah, and Denver, Colorado), the corporate headquarters located in Arizona. Ed and Steve Bandon (co-owners of Bandon Group Inc) decided it was time to do an information systems study to better help the organization. Identify the purpose and scope of study The purpose and scope of the study of information systems was to conduct a thorough investigation into information systems to determine how Information Technology can best be used to meet the overall mission, goals and objectives of the organization over the next 3-5 years. Information management systems are set up and designed to collect, store, and process business information and provide it to the business for the personnel who make the big decisions in a format they can use to design and implement them better assist the business. The "Customer-Focused Era," as it commonly referred to by experts when discussing the current era of modern computing (Petter & Mclean, 2012) as Information Systems have gone through many changes. The Bandon Group currently has divisions...
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...Case Study | De Havilland | | Executive Summary Financial analyst, Kim Tomar is a Financial Analyst at De Havilland Inc, a Canadian aircraft manufacturing company. Her responsibility within procurement is to evaluate bids and make recommendations to De Havilland Source Selection Board (SSB). She must make a recommendation on a supplier for flap shrouds and equipment bay doors. Since Dollard Plastics has failed to remain competitive by addressing the high pricing by unwilling to lower their price, she has solicited a number of competitive bids from 9 suppliers. We currently have sufficient supply of flaps and doors till the end of 1993, giving us approximately 17 months of inventory. Recent changes at de Havilland meant that we wanted to establish long term, cooperative contracts with suppliers. Normally 6-8 weeks were permitted for the vendors to return their completed bids. The value of the contract under consideration required the more senior management participated. The Bidder Selection Board (BSB) was comprised of representatives from finance and materiel areas. The BSB had four major objectives; review historical data in purchasing and cost patterns, financial data, quality and product support, secondly they produced an estimate on future purchasing trends for the part as well as new costs and finally they assembled a list of potential bidders. Once all bids were normalized they analyzed them, picked the likeliest candidate and a physical inspection was conducted...
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...com/journalsPermissions.nav Downloaded from http://cqx.sagepub.com at Blue Mountains Hotel School on October 25, 2009 © 2005 CORNELL UNIVERSITY DOI: 10.1177/0010880405275598 Volume 46, Number 3 304-322 10.1177/0010880405275598 Why Restaurants Fail by H. G. PARSA, JOHN T. SELF DAVID NJITE, and TIFFANY KING , Past research on restaurant failures has focused mostly on quantitative factors and bankruptcy rates. This study explored restaurant ownership turnover rates using qualitative data, longitudinal data (19961999), and data from Dun and Bradstreet reports. In contrast to frequently repeated statistics, a relatively modest 26.16 percent of independent restaurants failed during the first year of operation. Results from this study indicated marginal differences in restaurant failures between franchise chains (57 percent) and .2 independent operators (61.4 percent). Restaurant density and ownership turnover were strongly correlated (.9919). A qualitative analysis indicated that effective management of family life cycle and qualityof-life issues is more important than previously believed...
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...PREDICTING FINANCIAL DISTRESS OF COMPANIES: REVISITING THE Z-SCORE AND ZETA® MODELS Edward I. Altman* July 2000 *Max L. Heine Professor of Finance, Stern School of Business, New York University. This paper is adapted and updated from E. Altman, “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy,” Journal of Finance, September 1968; and E. Altman, R. Haldeman and P. Narayanan, “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations,” Journal of Banking & Finance, 1, 1977. Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA® Models Background This paper discusses two of the venerable models for assessing the distress of industrial corporations. These are the so-called Z-Score model (1968) and ZETA® 1977) credit risk model. Both models are still being used by practitioners throughout the world. The latter is a proprietary model for subscribers to ZETA Services, Inc. (Hoboken, NJ). The purpose of this summary are two-fold. First, those unique characteristics of business failures are examined in order to specify and quantify the variables which are effective indicators and predictors of corporate distress. By doing so, I hope to highlight the analytic as well as the practical value inherent in the use of financial ratios. Specifically, a set of financial and economic ratios will be analyzed in a corporate distress prediction context using a multiple discriminant statistical methodology. Through...
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...Advance Financial Management Graduate Business Administration 645 CRN: 11046 Building 163 – Room 2032 Winter Quarter 2013 Wednesday: 6:00-8:50 Paul Sarmas www.csupomona.edu/~psarmas CATALOG DESCRIPTION: A seminar course in finance utilizing comprehensive cases to simulate the role of the financial manager. 3 seminar-discussion. Prerequisite: GBA 546, all required 500-level courses, and microcomputer proficiency. Concurrent enrollment in GBA 646. Unconditional standing requirement. EXPANDED DESCRIPTION OF THE COURSE AND INSTRUCTIONAL METHODS: A. Expanded Description of the Course: This course reinforces the basic concepts of financial management. The course provides an in-depth discussion of key topics that are critical to financial management: (1) the goals of the firms, (2) financial statement analysis, planning, and forecasting, (3) working capital policy and management, (4) capital budgeting techniques without and with risk, (5) capital structure theory and application, (5) the cost of capital estimation, and (6) long-term financing decisions. In addition, the course examines issues such as lease financing, merger and acquisition, and international financial management. B. Instructional Methods: The delivery system throughout this course will be a combination of class discussion and case analysis. The case analysis will be both in a written format and oral presentation. The amount of lecture will be limited to detailed coverage of concepts...
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