From the Bed Bath & Beyond Inc. ‘s 2011 annual report, the beginning book value of PP&E is $1,119,292. To
From the Bed Bath & Beyond Inc. ‘s 2011 annual report, the beginning book value of PP&E is $1,119,292. To
D. Accounts Receivable Turnover: Liquidity of assets measured by Accounts Receivable Turnover. Home Depot ratio in this department is 60.4. Optimal ratios are always higher, and Company G shows a steady decline (32.2—30.4) representing values below industry quartile benchmarks (30%/45%/66%). Ratios representing Company G are below industry average. Accounts Receivable Turnover represents weakness for Company G.…
Founded in 1971, Bed Bath & Beyond (BBBY) was a small chain of stores; they sold bed linens and bath accessories in New York and New Jersey. After 14 years of sluggish performance, the company saw an opportunity for gaining competitive advantage by moving away from small specialty-store format to a superstore format. The superstore format allowed BBBY to do what other home retailers at the time could not do: offer a depth and breadth of domestic merchandise and home furnishings at everyday low prices. The success of the superstore format allowed BBBY to issue its IPO in June 1992. Since then, BBBY has continued to grow by opening new stores, expanding existing stores and adding additional square feet of retail space. Their growth had a positive impact on sales & net profit & their stock price has sky rocketed & increased by over 350%. However a troubling reality is that over the past 4 years BBBY’s sustainable growth rate has been declining. BBBY is at an inflection point where the sustainable growth rate is not aligned with the growth strategy. It is our recommendation that BBBY improves their sustainable growth rate by increasing leverage in the near term while continuing to improve their asset turn ratio in the mid and long term.…
18. Inventory turnover and asset turnover are both examples of which type of financial ratio?…
Asset Utilization Ratios: A) Turnover = Sales / Total Assets, B) Inventory Turnover = Cost of Goods Sold / Inventory, C) Receivables Turnover = Sales / Accounts Receivables…
Explanation: Asset turnover determines how much a company sells for each dollar worth of assets they own. ABC SDN.BHD has a total asset turnover ratio of 3.78%, which means they are selling 3.78% for every dollar’s worth of assets they own.…
The Profitability Ratios: The asset turnover is greater in the year 2011 by two thousand dollars. The average assets stayed the same making the asset turnover ratio greater in the year 2011.…
This paper is the final case study of Macy’s Incorporated and it is designed to provide a financial analysis of the company. Financial data will be spread over a three year time period using real numbers from financial statements that will be used to analyze Macy’s performance. Analysis will include stock data, financial ratios, common size analysis, cost of capital, and various calculations…
When looking at the fixed asset ratio it is .4 below industry average and the sales to working capital ratio is nearly the same. In looking at the company there may be issues with whether management is making full use of its assets. Considering the total asset management ratio is slightly higher than industry average, it shows that it is using its assets correctly. The capital intensity ratio…
11. ABC & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154,500, and current assets of $89,500. What is the total asset turnover rate?…
Asset Turnover is termed as the amount of sales generated for every dollar’s worth of assets. It is calculated by dividing sales in dollars by assets in dollars.…
Efficient Production………………………………………22 Simpler Product Design……………………………….…22 Lower Input Costs……………………………………....22 Low-cost Distribution…………………………………...22 Minimal Brand Image Cost……………………………..23 Tight Cost Control………………………………………..23…
Profitability ratios: measure the company's use of its assets and control of its expenses to generate an acceptable rate of return…
• Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving…
As it is known, the higher the number of this ratio, the better a company is standing financially. SBUX has a Quick Ratio average of 0.9 while GMCR has an average of 0.7 meaning that financially SBUX is better off than GMCR. Receivables turnover is a statistic is a way of determining how and when a company uses its assets. SBUX has a receivables turnover average of 30.3 while GMCR has an average of 9.26. It is clear that SBUX is more active with their assets and collecting debt. Inventory turnover is the measure the pace of how fast goods are sold with respect to the inventory. Naturally, the faster inventory is in and out of the company the better the company stands financially. SBUX has an inventory turnover average of 5.53 while GMCR has an average of 3.08. Because Starbucks is in demand more than Green Mountain, the results are almost 1.5x greater than GMCR. Finally, Asset Turnover Ratio is the measure of how efficiently assets of a company turn into revenue which benefits the company. Although STBUX has a lower asset turnover over ratio, “High- margin businesses often have low asset turnover ratios because each dollar assets works harder in producing revenue.” (Smith,…
premise that “cash is king, and debt is bad”. As of late their capital structure has…