production of freshly imported farm products from France. Your assistant has provided you with the following data for DDF Inc. and its industry. Ratio | 1999 | 1998 | 1997 | 1999- Industry Average | Long-term debt | 0.45 | 0.40 | 0.35 | 0.35 | Inventory Turnover | 62.65 | 42.42 | 32.25 | 53.25 | Depreciation/ Total Assets | 0.25 | 0.014 | 0.018 | 0.015 | Day’s sales in receivables | 113 | 98 | 94 | 130.25 | Debt to Equity | 0.75 | 0.85 | 0.90 | 0.88 | Profit Margin | 0.082 | 0.07 | 0.06
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A Summary of Key Financial Ratios How They Are Calculated and What They Show Profitability Ratios 1. Gross profit margin Sales - Cost of goods sold Sales An indication of the total margin available to cover operating expenses and yield a profit. 2. Operating profit margin (or Return on Sales) Profits before taxes and interest Sales An indication of the firm's profitability from current operations without regard to the interest charges accruing from the capital structure 3. Net profit margin
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projects D) become more risky over time E) accept profitable, low risk projects 2. Delta, Inc. follows a flexible short-term financing policy. The firm produces educational toys, which is a cyclical business. When the firm needs to pay for large inventories in advance of peak sales, the firm will: A) Sell marketable securities. B) Negotiate a bankers acceptance. C) Arrange for a field warehouse loan. D) Issue a trust receipt to the bank in exchange for funding. E) Issue commercial paper with a maturity
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environmental sustainability programs, alternative energy, and various social welfare initiatives to benefit employees, customers, and the community at large. Promoting health in the workplace needn’t be complicated or expensive. Success depends on management commitment, employee engagement, adequate resources and a healthy workplace policy that sets the tone and direction. As a result you will have healthier, more productive employees, and may replicate returns on your investment of
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Financial Accounting July 2012 Session 3 Kansas City Zephyrs and Inventories Jacob Cohen MIT Sloan School of Management 1 Kansas City Zephyrs – Setting I Kansas City Zephyrs – Setting II What are the owners’ incentives? What are the players’ incentives? Kansas City Zephyrs – Discussion Take-Away slide I Kansas City Zephyrs • A case where financial statements are used to resolve an internal dispute • Distinct from Shrek 2, which focused on the effect of accounting
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Supply Chain Task 1 B.1 Pro-Forma and Budget Quarter 1 marked the launch of NeoTech. Two million dollars in capital was raised by selling company stock. This capital was used for the initial cost of the launch. Unlike later in the simulation, budget decisions in the first quarter were much easier to manage because costs were fixed, and the revenue guaranteed. Just over half million dollars was spent to open the first office and complete research and development. I determined the direction of
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Riordan Finance and Accounting Process Improvement Proposal CIS/207 December 04, 2012 Executive Summary Riordan Manufacturing, Inc. is composed of three primary facilities in the United States, with locations in Georgia, Michigan, and California. Headquarters is located in San Jose, California. In addition to the core entities, Riordan Manufacturing has a joint business venture located in Hangzou, China. Investigation into the company’s operating procedures and expenses revealed several
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Analyzing Pro Forma Statements Andre' D. Singleton FIN/571 March 17, 2016 Gregory Willis XYZ Company The selected company is a Bread and Pastry store which goal is to increase the company’s market share by implementing technology through telephones, text-orders, and emails. These processes will help in increasing interactivity. The financial performance of the company for the past years is as follows: Financial Performance With 100 employees manufacturing 6000 output units 5 day a week
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alleviating stock out among distributors. JITD will lead to improved supplier-customer relationship which in the long run can be perceived as a win-win situation. Internal resistance coming from Sales and Marketing will be resolved by involving the top management and by presenting the benefits of the JITD in figures and by emphasizing that role of Sales team in JITD is of paramount to the implementation. External resistance will be combated by thorough discussion presenting the long term benefits of all
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by comparing current assets minus inventories divided by current liabilities. Krispy Kreme's quick ratio is 1.73, while the industry's is 0.69. This is a very positive ratio for the firm because it indicates that the firm has a competitive advantage over the industry when it comes to its ability to pay off its debt. i.e. its ability is superior as compared to that of the industry. Inventory turnover ratio: this is cost of the goods sold divided by inventory. The firms turn over ratio is 20.03
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