CASE 1 MGMT 480

Satisfactory Essays
Rana Ahmed
900100959
MGMT 480
Dr. Mohamed Hatem
1st of March
Case 1 Wave Riders

Financial Ratios Needed to Analyze the Case:

1. Quick Ratio: (Current assets- Inventory)/Current Liabilities

a) 1990: (1300-900)/483= 0.83
b) 1991: (1330-870)/512= 0.90
c) 1992: (1480-980)/595= 0.84
d) 1993: (1585-985)/680= 0.88
e) 1994: (1792-1242)/723= 0.76

2.Current Ratio: (Current Assets/Current Liabilities)

a) 1990: 1300/483= 2.69
b) 1991: 1330/512= 2.59
c) 1992: 1480/595= 2.48
d) 1993: 1585/680= 2.33
e) 1994: 1792/723= 2.47

3.Inventory to net working capital: Inventory/ (Current assets- Current liabilities)

a) 1990: 900/(1300-483)=1.10
b) 1991: 870/(1330-512)= 1.06
c) 1992: 980/(1480-595)=1.11
d) 1993: 985/(1585-680)= 1.09
e) 1994: 1242/(1792-723)=1.16

4. Operating profit Margin: Operating profit / sales

a) 1990: 156/2100= 0.07*100= 7%
b) 1991: 132/2120= 0.06*100= 6%
c) 1992: 116/2148= 0.05*100= 5%
d) 1993: 105/2226= 0.04*100= 4%
e) 1994: 97/2325= 0.04*100= 4%

5. Days of Inventory: Inventory/ (Cost of goods sold/365)

a) 1990: 900/(2100/365)= 156.43
b) 1991: 870/(2120/365)= 149.79
c) 1992: 980/(2148/365)= 166.52
d) 1993: 985/(2226/365)= 161.51
e) 1994: 1242/(2325/365)= 194.98

6.Inventory turnover: (Cost of sales/Inventory)

a) 1990: (2100-156)/900= 2.16
b) 1991: (2120-132)/870= 2.28
c) 1992: (2148-116)/980= 2.07
d) 1993: (2226-105)/985= 2.15
e) 1994: (2325-97)/1242= 1.79

7.Asset Turnover: (Sales/ Total Assets)

a) 1990: 2100/2304= 0.91
b) 1991: 2120/2350= 0.90
c) 1992: 2148/2512= 0.85
d) 1993: 2226/2645= 0.84
e) 1994: 2325/2889= 0.80

8.Fixed Asset Turnover: (Sales/ Fixed Assets)

a) 1990: 2100/1004= 2.09
b) 1991: 2120/1020= 2.08
c) 1992: 2148/1035= 2.08
d) 1993: 2226/1060= 2.10
e) 1994: 2325/1097= 2.12

9.Debt To Asset Ratio: (Total Debt/Total Assets)

a) 1990: 483/2304= 0.20*100= 20%
b) 1991: 512/2350= 0.21*100= 21%
c) 1992: 595/2512= 0.23*100= 23%
d) 1993: 680/2645= 0.25*100= 25%
e) 1994: 723/2889= 0.25*100= 25%

Conclusion Of Ratios:

1. Quick Ratio:
The

You May Also Find These Documents Helpful

  • Good Essays

    Mgmt 480 Guide

    • 4136 Words
    • 17 Pages

    MGMT 480 Business Policy Section 002 3.0 credit hours College of Business Administration Winthrop University Spring 2013 http://faculty.winthrop.edu/robbinsk/ Contact: Instructor: Keith Robbins, Ph.D., Chair Department of Management and Marketing, Professor of Management Office: 429 Thurmond Building Phone: 323-2699 E-Mail: RobbinsK@Winthrop.Edu Hours: Class hours: Section 002: T, R 9:30-10:45 Office hours: 10:45-12:45 TR 9:00-1:00 W Prerequisites: FINC 311, MGMT…

    • 4136 Words
    • 17 Pages
    Good Essays
  • Satisfactory Essays

    Mgmt 122 Case 1

    • 487 Words
    • 2 Pages

    Daniel Shamooelian, Mike Mahgerefteh Professor Litt Management 122 31 October 2014 Case Assignment 1 Upside Down, Incorporated designs custom storage spaces to eliminate clutter in both residential and business settings. The following data pertain to a recent reporting period. Requirements a. Use ABC to compute overhead rates for each activity. b. Assign costs to a 3,000 square foot job that requires 70 contact hours, 20 design hours, and 14 days to complete. a. Client Consultation: $100,000/500…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Mgmt 1

    • 1217 Words
    • 5 Pages

    Project Charter Template GenRays HRIS System Project Charter GenRays 3/1/2012 Table of Contents Project Title Purpose Description Objective Success Criteria or Expected Benefits Funding Major Deliverables Acceptance Criteria Milestone Schedule Approval Requirements Project Manager Authorized by Project Title GenRays HRIS System Purpose Based upon stakeholder interviews the purpose for the HRIS system is to improve productivity, improve…

    • 1217 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    MGMT 408- Case Study 1

    • 933 Words
    • 4 Pages

    issue that was affecting the business and economic development. As time progressed and the business grew, the executive board acknowledged the need to migrate to computer technology to use information at their disposal efficiently. The goal of this case study is to analyze and list the changes that occurred as a result of MSCC acquiring new systems for handling business operations. Background After a thorough analysis MSCC’s computer systems were found to be lacking proper integration…

    • 933 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    PSY 480 Week 1 DQs

    • 417 Words
    • 2 Pages

    archive file of PSY 480 Week 1 Discussion Questions consists of: DQ 1: What are the four different approaches in clinical psychology? Which one do you believe is the most effective? Explain why. DQ 2: How is a clinical psychologist different from a psychiatrist? Under what circumstances would you likely encourage a close relative - child, spouse, parent, or friend - to see a psychologist rather than a psychiatrist? General Questions - General General Questions PSY 480 Week 1 Examination of Clinical…

    • 417 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Gen 480

    • 1307 Words
    • 6 Pages

    Past, Present, and Future Karen Maijala GEN 480 January 20, 2011 Dr. Norberto Cruz, Jr Past, Present, and Future The purpose of this paper is to reflect on my personal and professional growth during my Criminal Justice program of study at the University of Phoenix. The paper will reflect upon where I was before I began college at the University of Phoenix. Then I will evaluate the growth I experienced during my University of Phoenix program of study. To conclude, the paper will analyze…

    • 1307 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Case Analysis for Starbucks-Early 2008 October 4,2010 MKTG 480 By: Brandy Johnson Instructor: Dr. Jeff Totten Table of Contents I. S.W.O.T. 3 II. Situation Analysis 5 III. Problems Found in Situation Analysis 7 IV. Strategic Alternatives for Solving Problem 8 V. Selection of Strategic Alternative and Implementation 9 S.W.O.T. Strengths • Established reputation/High brand recognition • Strong financial background…

    • 1862 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    GEN 480

    • 839 Words
    • 3 Pages

    Click Link below To Purchase: http://www.madehomework.com/product-category/gen-480/ GEN 480 Week 1 Individual Assignment Ethics Awareness Prepare a 300- to 600-word analysis of your completed Ethics Awareness Inventory. Interpret your results and apply them to your personal and professional development. Include a statement explaining how your educational experience has affected your ethical thinking. This analysis must address your use of ethics in thinking and decision-making and your potential…

    • 839 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Management 480

    • 2339 Words
    • 10 Pages

    Case Study #1 DELL INC. IN 2008: CAN IT OVERTAKE HEWLETT-PACKARD AS THE WORLDWIDE LEADER IN PERSONAL COMPUTERS QUESTIONS 1. What is your evaluation of Michael Dell’s performance in his roles as Dell’s CEO and Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2? 2. What are the elements of Dell’s strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dell’s strategy…

    • 2339 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    HR 480

    • 795 Words
    • 3 Pages

    HR challenges 1. Direct technical assistance from the Project appears more market oriented and this isn’t contrary to best practice intervention. JOBS provided initial technical assistance and skills training in coordination with multiple lead firms to develop of skilled shoe producers for the group. Since then, Apex and other lead firms have realized the benefit of strategic investment in providing embedded forms of BDS to cluster members through backward linkages, such as conducting market…

    • 795 Words
    • 3 Pages
    Good Essays