ANALYSIS OF DERRIMON March-30-2012 1 Profitability & Revenue Derrimon has shown increased profitability over the 6 year review period driven by increased sales‚ diversity of revenue (rental income) and key partnerships with renown brands. The growth in profitability however‚ has been a bit erratic. Net Profit/(Loss) For the Year 60‚000‚000 50‚000‚000 40‚000‚000 30‚000‚000 20‚000‚000 11‚661‚103 8‚387‚370 10‚000‚000 0 Dec-06 (10‚000‚000) Dec-07 Dec-08 Dec-09 Dec-10 9-Months Est. ’Decto
Premium Financial ratios Revenue Financial ratio
the period divided by receivables turnoverd. Rio Tinto PLC’s average receivable collection period improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. Operating cycle Equal to average inventory processing period plus average receivables collection period. Rio Tinto PLC’s operating cycle improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. Average payables payment period An estimate of the average number of days it takes a company to pay its
Premium Rio Tinto Group Working capital Financial ratios
in this thesis. The efficiency of working capital management can be determined by the cash conversion cycle and the net trade cycle. By testing the two variables with corporate profitability‚ we can see that Finnish and Swedish corporations can increase their gross operating profitability by reducing the cash conversion cycle and net trade cycle. Also‚ the different components of the cash conversion cycle have been studied. There is significant evidence that by effectively managing each part of
Premium Inventory Balance sheet Working capital
LITERATURE REVIEW In intention to discover the relationship between efficient working capital management and firm’s profitability(Shin & Soenen‚ 1998) used net-trade cycle (NTC) as a measure of working capital management. NTC is basically equal to the CCC whereby all three components are expressed as a percentage of sales. The reason by using NTC because it can be an easy device to estimate for additional financing needs with regard to working capital expressed as a function of the projected sales
Premium Working capital Accounts receivable Cash conversion cycle
Cash Conversion Cycle Time from payment for raw materials until cash is collected on sales. * Accounts payable- when should the firm pay Inventory- How much to hold Laber and Materials Needed Finished Goods Inventory- how much needed Credit Policy-restrictions Cash collection- how fast do you collect See exhibit 14.2 on page 86 Cash Conversion Cycle 1.) Operating cycle= days sales in inventory+ Days Sales Outstanding =(Inv/(COGS/365))+(AR/(Credit 2.) Ideally purchases would
Premium Inventory Working capital Balance sheet
What is Krebs cycle? The Krebs cycle‚ also known as the Citric Acid cycle‚ is a very important process in cellular respiration. Without this portion‚ respiration would not be possible. This is because the Krebs cycle uses the pyruvate molecules from glycolysis to produce high energy molecules essential for the electron transport chain (ETC) which follows soon after. Described by Hans Adolf Krebs in 1937 A feature of cell chemistry shared by all types of life. A complex series of reactions beginning
Premium Citric acid cycle Cellular respiration Adenosine triphosphate
[pic] Department of Finance & Economics College of Business and Management Sultan Haji Ahmad Shah Campus‚ Pahang FICB123: FINANCIAL MANAGEMENT FOR ACCOUNTING SEMESTER I YEAR 2013/2014 GROUP ASSIGNMENT OBJECTIVE: 1. Understand the basic concepts learned in the subject. 2. Analyze critically and understand relevant financial issues pertaining to the principles of financial management; and 3. Apply your knowledge gained from the various topics to the case organization
Premium Financial ratios Balance sheet Financial statements
Pharma market | 9 | 3.Ratio Analysis | 11 | 4.Working capital management | 12 | 5.Phase І : Net Operating Cycle | | 5.1 Operating cycle Ankleshwar unit | 13 | 5.2 Operating cycle Dhabasa unit | 15 | 5.3 Major API Companies | 16 | 5.4 Operating cycle of API companies | 20 | 6.Phase II : Inventory Management | 22 | 6.1 Procurement Cycle | 24 | 7.Phase III : Recievables Management | 25 | 7.1 Distribution system | 26 | 7.2 Credit
Premium Inventory Working capital Cash conversion cycle
Management Concepts Worksheet Amber Collins University of Phoenix May 31‚ 2007 Working Capital Management Concepts Worksheet Concept Application of Concept in the Simulation Reference to Concept in Reading Describe the firm ’s cash conversion cycle: Cash inflow "Most firms keep track of the average time it takes customers to pay their bills. From this they can forecast what proportion of a quarter ’s sales is likely to be converted into cash in that quarter and what proportion is likely
Premium Working capital Money Accounts receivable
Chapter 18 Working Capital Management 18-1. As was done in Checkpoint 18.1 in the text‚ we can evaluate Deere & Co.’s liquidity using net working capital and the current ratio. Net working capital is simply the difference between current assets and current liabilities‚ while the current ratio can be found as (using 2008 as an example): current assets current ratio = current liabilities $9‚197‚400 = = 0.61. $15‚083‚300 Since Deere’s current ratio is less than 1‚ its current
Premium Cash conversion cycle Working capital Interest