...Current Financial Health Profitability Tire City has shown strong sales growth from 1993-1995. Sales increased 25.42% in 1994, and 15.48% in 1995 respectively. They have improved their profit margin in every year, 1993 had a profit margin of 4.81%, 1994 4.90%, while 1995 has improved to 5.06%. Contributing to this improving margin was a decrease in Cost of Goods Sold as a % of sales, and interest expense as a % of sales. Tire City’s gross profit margin has improved slightly through the years, 1994 saw 41.55% while 1995 saw 42.05% suggesting that Tire City may be charging slightly higher prices or have found cheaper suppliers of tires. Interest expense as a % of sales has decreased due to how they are paying off their original warehouse loan in $125,000 increments. Asset Turnover Assisting the improving profit margin Tire City has seen an improved asset turnover ratio. It has increased every year from 2.47x in 1993, 2.60x in 1994, and 2.62x in 1995. The main improvement for this increase is fixed asset turnover, which improved in 1995 to 9.65x, from 8.93x in 1994. The increase is a result of decreasing planet & equipment as a % of sales. One can conclude that the company purchased a little more plant & equipment; however sales increased significantly thereby increasing fixed asset turnover. A slightly offsetting factor was A/R turnover, it has decreased slightly from 6.58x in 1994, to 6.44x times in 1995. This is due to a longer collection time, which has rose from...
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...1). The current financial health of Tire City, Inc. can be determined by looking at its financial statements, and converting the information on them into a number of different ratios, which give analysts information about the financial activities/health of the firm. These ratios include (but are not limited to) the current ratio, acid test, profit margin, total asset turnover, and return on equity. The current ratio measures short term solvency, or the firm’s ability to pay off its short term debt. TCI’s current ratio is 2.03, a healthy indication. This means that for every dollar of short term debt the firm carries, it holds $2.03 in current assets. This means that the company is not facing any significant threat from its short term lenders. The acid test is basically a refined version of the current ratio, deducting inventories from the current assets of the firm, because of their illiquidity. The acid test for TCI in 1995 is 1.35. This is notably lower than the current ratio, which may indicate that TCI is holding too much inventory, but 1.35 is still a generally healthy acid test ratio. The profit margin and total asset turnover of TCI are 5.06% and 2.61, respectively. These numbers are used in the DuPont Equation to calculate Return on Equity, generally a good measure of a firm’s financial health. The ROE for TCI is 23.73%, which by most investors’ standards is a very strong return. The forecasted ROE for 1996 for TCI is 32.67%, an even stronger return. The overall health...
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... | 12,106 | 13,964 | Liquidity | Current Ratio | 2.03x | 1.92x | 2.03x | Quick Ratio | 1.32x | 1.29x | 1.35x | Leverage | Total Debt/Total Assets | 50.30% | 48.03% | 44.17% | Assets / Equity | 2.01 | 1.92 | 1.79 | Debt / Total Capital | 26.36% | 20.24% | 15.18% | Interest coverage ratio | 12.14x | 18.16x | 23.50x | Here is financial ratio analysis of Tire City. Let’s take a look at each items. Their business performed well in terms of profitability, although ROE did not exceed the number of 1993 in 1995. As a rule, profitability was increasing between 1993 and 1995. Next, when you look at activity ratio, Total asset efficiency was getting better during the period. On the other hands, Inventory turnover and Receivable turnover had same trends; they dropped in 1994 and recovered in 1995. In terms of liquidity, generally there was no big impact on their financial situation since the movement was small. Regarding Leverage, as Tire City paid back the long-term liability, the numbers of ratios changed (Total Debt / Total Assets, Assets / Equity, Debt / Total Capital) and this led to make Tire City have stronger Interest coverage ratio. Flow of Funds Analysis Flow of Funds ($M) | 1994 | 1995 | Net Income | 1.00 | 1.19 | D,D & A | 0.18 |...
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...Tire City Inc. » Case Solution - Casehero www.casehero.com/tire-city-inc/ Tire City, Inc. A little, quickly ... Set a reminder to receive an email after your university's case study deadline. Upload your case study solution. We will run it ... Tire City Case - Documents - Docslide.us docslide.us › Documents Nov 7, 2014 - Exhibit 1 Financial Statements for Tire City, Inc. For years .... onTune Case Study How customer use onTune in their complex environment. Tire City Inc - Course Hero www.coursehero.com › California State University › FIN › FIN 502 Tire City Inc. Current Financial Health Profitability Tire City has shown. ... Other Related Study Materials ... Tire City Case; LSU; FIN 3717; Fall 2013; 1 Matthew Geiser John Farrell Montgomery Gossen Mathew Gould Tire City Case Project S. Tire City Inc. Solution And Analysis, HBR Case Study ... www.thecasesolutions.com › Business Case Studies Feb 11, 1997 - Tire City Inc. Case Solution, Tire City Inc. Solution, Tire City Inc. Analysis, Tire City Inc. Case Study Solution, Small, rapidly growing retail ... 111101 ma i - SlideShare www.slideshare.net/SomeshPal/111101-ma-i Sep 5, 2013 - Concept & Processes of Accounting Case Waltham Oil and Lube Center, Inc. (Case 4-4, ... Case Springfield National Bank (Case 13.5, AHM) Tire City Inc. ... Digital Crisis Communications: Case Studies and Tips - July 2015. Finance 4210 > Pope > Notes > Tire City | StudyBlue https://www.studyblue.com/notes/note/n/tire-city/file/441380 Mar...
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...Current Financial Health of Tire City Inc. Tire City, Inc. has been generating a stable profit during the period of 1993-1995. Sales income increased on average of 20% every year. Consistent profit margin of 5% and ROA of 12-13% have also contributed to the strong profitability of the company for the past three years. Along with the company’s growth in profitability, fixed asset turnover increased from 8.56 in 1993 to 8.93 in 1994, and to 9.65 in 1995, which facilitated the company to improve its assets turnover ratio, from 2.47 in 1993 to 2.60 in 1994, and to 2.62 in 1995. This indicates that the company has been managing its fixed assets very efficiently that it improved the total asset management as well. During 1994-1995 there were slight decreases in accounts receivables turnover and in inventory turnover, but they are both explained by the small increases in collection period and in inventory period, respectively. In terms of financial leverage performance, Tire City has reduced its debt ratio every year from .50 in 1993 to .48 in 1994, and to .44 in 1995, decreasing its risk and increasing its solvency. Long-term debt-to-equity ratio also has diminished significantly from .31 in 1993 to .22 in 1994, and to .15 in 1995. This shows that Tire City is in a favorable position to lend more capital in the future for its warehouse expansion. Tire City has constantly been producing increasing amount of cash every year -- from $508,000 in 1993 to $609,000 in 1994, and to...
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...actually parts suppliers to end-product assemblers such as Boeing Aircraft. Aerospace Metal maintains a sales force to sell these metals, and the company stores its products in seven warehouses throughout the country. They obtain their products from steel and metal manufacturers throughout North America. If a customer requests a product not carried by Aerospace, the company will special-order it from an appropriate supplier. Business 3: Low Cost Tires Inc. Low Cost Tires Inc. began as a small auto repair and tire shop in a small city outside of Detroit. While the original goal of the shop was to gain a reputation for quality repair, the owner also stressed meeting customer needs on the sale of tires. Low Cost Tires carries a very wide selection of tires so that customers can always be served on the spot. Its staff is highly trained and very knowledgeable about tires. Selling tires has turned out to be more profitable than auto repairs. Although the owner plans to maintain the auto repair business, she wants to use the Internet to expand tire sales and to...
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...Tire City, Inc. is a rapidly growing retail distributor of automotive tires in the northeastern United States. The stores held adequate inventory, on hand, to service all immediate customer demand. The bulk of the company’s inventory was managed at an outside warehouse which was easily serviced by the warehouse. The orders were usually serviced with in a 24 hour period. The company was able to maintain such happy customers since they had fast service and competitive prices. During the previous three years at Tire City, the company had experienced a compounded annual sales increase in excess of 20%. In order to properly anticipate expected growth over the next couple of years, the company was looking to expand its warehouse facilities. Due to the companies rapid growth its current warehouse is bursting at the seams causing a delay in products. The cash flow forecast predicts that 1996 sales, $28,206, will increase to $33,847 for 1997. For every dollar of this increase, $1056.44 net investment in working capital is needed. This investment is used to support higher sales in 1997. Under this set of assumptions, Tire City has excess cash of $273.31 at the end of 1996 given management decides not to create any decision cash flows. This is very unrealistic that management will not take on any decision cash flows. This kind of fast growth rate would require capacity expansion investments. The company needs to start investing 1760.8 in the near future. The negative...
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...2013 TEXAS STRONGEST MAN (North American Strongman Inc. Membership Required of all Contestants) PROMOTERS: Jill’s Bodymill, Jill and Milo Mills DATE and TIME: March 16, 2013; competitors arrive by 9:00 am, CONTEST STARTS AT 10:00AM CONTEST LEVEL: Platinum LOCATION: Freeman Coliseum Expo Hall B 3201 E Houston St # A San Antonio, TX 78219-3711 WEIGH-IN/ YOKE HEIGHT: th Friday, March 15 5 pm-8pm at contest site RULES: check in/ rules meeting @ 9 am,Saturday, Mar 16 at contest site th HOTEL: 1.Red Roof Inn @ the riverwalk 1011 East Houston Street, San Antonio, Tx 78205 (210)229-9973. Rates: $105-$110(up to 4 people).(40% discount for event) Group name: “Texas Strength Weekend”. Must book by feb 16,2013 2. Microtel Inn - Suites San Antonio NE (rooms are @$80-90) 3911 North Pan Am Expressway San Antonio, TX 78219 US Phone: Fax: 1-210-2310123 1-210-2310089 DIVISIONS: Men’s Divisions: open lightweight 200 and under, open, open middleweight 201-265, heavyweight 266 and over, masters >40 and >50) ,novice, teen one weight class Women’s Divisions : one weight class CUTOFF: CONTEST ENTRIES WILL BE CUT OFF AT 60 AND ENTRIES WILL BE RETURNED. AWARDS: ENTRY FEES: Awards- Statues 1 through 3 in each division. General Registration ($80): Late Registration Fee ( Feb 26 - march 3 ) $100. No entries after March 3rd th rd st rd MAKE ALL CHECKS PAYABLE TO: Jill Mills, 2671 CR 320, Floresville TX 78114 CREDIT CARD PAYMENTS ACCEPTED. Call Jill @ (210) 846-4392 for information on paying with a Credit...
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...Organizational Impact Paper Marian Robertson OI/361 August 12th, 2014 Paul Sam Organizational Impact Paper Riordan Manufacturing Inc is one of the driving firms in plastics injection molding. Riordan has companies in China, Michigan, California, Georgia, Albany and San Jose. The owner of the company is one of the Fortune 1000 enterprises better known as Riordan Industries. The company is distinguished by the imaginative art in designing plastics, which is the company’s innovative skill. The company has earned international recognition because of the design capabilities. One of the major products that Riordan manufactures are the heart valves, custom plastic parts, various sizes of electric fans medical stands and plastic parts. The impact that innovation, design and creativity have on the strategy at Riordan Manufacturing is to the designs of the company to be the leading company is using the material polymer to serve the needs of the customers and to make sure that they have answers to their challenges. Riordan also wants to obtain and achieve sensible profitability. For the success of the company, they will have to have a production plan that strong and grounded. In the processing stage, Riordan’s business in China serves the needs of handling of shipping to the company adequately. Therefore, the company has made a decision to put together a design of supply chains of electric fans to China. This plan will let Riordan know the size of resources...
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...to invest state pension money in the stock market as a result of the efforts of city Treasurer Richard Eckstrom who believed that instead of investing the state pension funds exclusively in government and corporate bonds, diversification into equity securities would substantially increase return on investment without substantially increasing risk. 2. Investing in the stock market involves more risk than investing in bonds, and stocks are not guaranteed to return anything to the investor. However, investing in the stock market also presents the possibility for higher returns, the benefit of partial ownership in a company and the unlimited potential of a rising stock price, as well as the opportunity of further diversification of the portfolio. 3. The differences in return between stocks and bonds are that stocks have a higher return than bonds as shown with the average returns. Bonds have an average return ranging from about 3% to about 6% while stocks show an average return of about 13%. The risk in investments between stocks and bonds are shown in the standard deviation. While bonds have lower returns they also are less risky and less volatile than stocks. The volatility of bonds range from about 4% to about 9% while the volatility of stocks is about 20%. 4. Dow 30 Stock | Mean Return | Standard Deviation | ALUMINUM COMPANY AMER | 0.970588 | 6.721026 | ALLIED SIGNAL INC | 2.018627 | 6.450815 | AMERICAN EXPRESS CO | 1.831373 | 7.745903 | AT&T...
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...RECYCLING/ WASTE CONTACT NUMBERS Kern County Recycling Hotline ............................(661) 862-8979 Kern County Waste Management Department Local ........................................................................ (661) 862–8900 Toll-free ......................................................(800) 552–KERN option 6 ..................................................................... (800) 552–5376 option 6 TTY – ready............................................................. (800) 735–2929 Website .................................................. www.KernCountyWaste.com City of Bakersfield Solid Waste Division...........(661) 326–3114 Website .......................................................... www.bakersfield.city.us City of Arvin .................................245-0714 (Mountainside Disposal) City of California City ............................................(800) 266-7551 City of...
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...REPORT NUMBER * 13014176 2 CRASH DATE * CRASH SEVERITY 1 - FATAL 2 - INJURY 3 HIT/SKIP 1 - SOLVED 2. UNSOLVED 3- PDO 0 OTHER PDO UNDER STATE REPORTABLE DOLLAR AMOUNT PRIVATE REPORTING AGENCY NCIC * REPORTING AGENCY NAME * PROPERTY 05718 CITY, VILLAGE, TOWNSHIP cITY * vILLAGE* Englewood TOWNSHIP * * Englewood Police NUMBER OF UNITS UNIT IN ERROR 1 98 - ANIMAL 99 - UNKNOWN DAY OF WEEK COUNTY * TIME OF CRASH Montgomery County DEGREES/MINUTES/SECONDS LATITUDE 04/10/2013 DECIMAL DEGREES 12:22 WED LONGITUDE :: RoADWAY DIVISION DIVIDED UNDIVIDED N - NORTHBOUND S - SOUTHBOUND :: DIVIDED LANE DIRECTION OF TRAVEL E - EASTBOUND W -WESTBOUND NUMBER OF THRU LANES O R LATITUDE LONGITUDE 39.867823 84.292132 WA - WAY 4 LoCATION ROAD NAME ROAD TYPES OR MILEPOST AL - ALLEY CR - CIRCLE AV - AVENUE CT - COURT BL - BOULEVARD DR - DRIVE HE - HEIGHTS HW - HIGHWAY LA - LANE LOCATION ROAD TYPE MP - MILEPOST PK - PARKWAY PI - PIKE PL - PLACE RD - ROAD SQ - SQUARE ST - STREET TE - TERRACE TL - TRAIL US LoCATION ROUTE NUMBER LOCATION ROUTE 00040 TYPE LoC PREFIX N,S, E,W ST ROUTE TYPES IR - INTERSTATE ROUTE (INC. TURNPIKE) US - US ROUTE SR - STATE ROUTE CR - NUMBERED COUNTY ROUTE TR - NUMBERED TOWNSHIP ROUTE REFERENCE ROAD TYPE DISTANCE FROM REFERENCE DIR FROM REF REFERENCE REFERENCE ROUTE NUMBER REF PREFIX REFERENCE NAME (ROAD, MILEPOST, HOUSE #) MILES O N,S, ROUTE N,S,...
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...either not being in the right merchandise categories or not selling items at the right price points). Sinegal was constantly improving store operations, keeping operating costs and overhead low, stocking items that moved quickly, and charging ultra-low prices that kept customers coming back to shop while at Price Club. The first Costco Warehouse opened in September in Seattle, Washington. By the end of 1983, two additional locations had opened in Portland, Oregon and Spokane, Washington. The fourth Costco warehouse opened in Salt Lake City, Utah in 1984 and by calendar year-end, there were nine Costco’s in five states serving over 200,00 members. In October 1993, Costco merged with The Price Company, which had pioneered the membership warehouse concept in 1976, to form Price/Costco, Inc., a Delaware corporation. In January 1997, non-warehouse assets were spun off to Price Enterprises, Inc., and the company changed its name to Costco Companies, Inc. On 30th August 1999, the Corporation re-incorporated from Delaware to Washington and changed its name to Costco Wholesale Corporation, which trades on the NASDAQ under the symbol 'COST'. Costco home office is located in Issaquah, Washington. Costco's warehouses, the fourth largest retailer in the...
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...Skip to NavigationSkip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research DocumentsThe Research Paper Factory JoinSearchBrowseSaved Papers Search Video Concepts, Inc In: Business and Management Video Concepts, Inc Executive Summary Whether to remain in the business with increase in Rental to $ 2.49 whereby increasing the profitability of the business due to stiff competition from the Blockbuster or to sell it off or hire a manager for the shop and start doing job at some other place, has to be evaluated on the basic objectives of economics of the firm. The main objective of the firm is to maximize the profit and thereby maximize the return on investment. In order to attain this at the same market share it is suggested to sell the business to the competitors, if they are interested. Word Counts: 102 Table of Content SITUATION ANALYSIS | 2 | THE PROBLEM STATEMENT | 5 | OPTIONS | 5 | CRITERIA FOR EVALUATION | 6 | EVALUATION OF OPTIONS | 7 | RECOMMENDATIONS | 9 | ACTION PLAN | 9 | Situation Analysis Outlook of Video Rental business in Lexington In Research conducted by the Chad Rowan for the business of Video Rentals when it was relatively a new business, it was found that it is profitable enough to earn more than the average rate of return on investments. So it was possible to start with the store of 200 square feet with the 500 video tape library in Lexington, North Carolina, a town of 28,000 people...
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...Shipbuilders * Alta Newspaper Group * Alterra Power * Angoss Software Corporation (software) * Appnovation * Arc'teryx (outdoor apparel/equipment) * Atimi Software Inc * Aritzia (clothing) * Army & Navy Stores (Canada) * Arsenal Pulp Press (publisher) * ATI technologies (semiconductors) * Atmosphere Visual Effects (movie special effects) * AVI Sound International (audio/visual equipment manufacture) B * Ballard Power Systems * Banff Lodging Co * Bank of Montreal * Bank West * Barrick Gold * Bard Ventures Company * BBC Kids (television) * BC Biomedical Laboratories Ltd. * BC Hydro * BC Research Inc * Becancour Silicon (silicon manufacture) * Bell Canada * Bennett Environmental * Becker's * Ben Moss Jewellers * Big Blue Bubble (software firm) * BigPark (software firm) * Biovail * BioWare (video games) * Bison Transport Inc. (Transportation) * Black Diamond Cheese Limited * Black Hen Music (record label) * Black Photo Corporation * BlackBerry (wireless devices) * Blake, Cassels & Graydon (law firm) * Blackburn Radio * Bleeding Art Industries (special effects) * Blenz Coffee * Blue Water Studios (recording studio) * Bombardier Inc. * Bombardier Recreational Products spun off as an independent company in 2003 * Boeing Canada * Boston...
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