CASE STUDY: RATIOS AND FINANCIAL PLANNING AT S&S AIR 1. The calculations for the ratios listed are: Current ratio = $3‚138‚220 / $2‚162‚080 Current ratio = 1.45 times Quick ratio = ($3‚138‚220 – 1‚238‚500) / $2‚162‚080 Quick ratio = 0.88 times Cash ratio = $365‚040 / $2‚162‚080 Cash ratio = 0.17 times Total asset turnover = $20‚077‚000 / $15‚453‚900 Total asset turnover = 1.30 times Inventory turnover = $14‚985‚000 / $1‚238‚500 Inventory
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Dell’s Working Capital Substantive Issues Dell manufactures‚ sells‚ and services personal computers. The company markets directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investments in working capital than its competitors. It also enables Dell to enjoy more fully the benefits of reductions in component prices and to introduce new products more rapidly. Dell has grown quickly and has been able to finance
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on features of the smart phone and its overall satisfaction. Thus‚ the higher the satisfaction level of the phone’s features‚ the increase in overall satisfaction of the smart phone. Next was to analyze if Samsung smart phone users are likely to repurchase Samsung smart phones based on their overall level of satisfaction. H2: There is a significant relation between the overall customer satisfaction level and customer’s decision making
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company. The main point in our analysis is to figure out how Nordstrom is using its operating assets to get returning. a). ROE is used to measure the net profit in a period as a percentage of shareholder’s equity. In other word‚ ROE means how much net income we can get by using shareholders’ investment. ROE is more important than net income in dollar terms because ROE is a ratio. Ratio allowed analysts to compare companies’ performance over the period. In fact‚ the ratio can also help us compare
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banks: A cross-sectional and dynamic panel analysis Jeitschko‚ Thomas‚ Jeung‚ Shin Dong‚ 2005. Incentives for risk-taking in banking: A unified approach. Journal of Banking and Finance Vol 44 John.Karr (2005) Performance Measurement in Banking: Beyond ROE Journal of Performance Management economy‚ Vol. 106‚ pp. 1113-1155. Mason‚ S.P.‚ (1995). The allocation of risk. In: Crane‚ D.B.‚ Merton‚ R.C.‚ Froot‚ K.A.‚ Bodie‚ Z.‚ Mason‚ S.P.‚ Sirri‚ E.R.‚ Perold‚ A.F.‚ Tufano‚ P Naceur S. and Kandil M (2009)‚
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An accounting analysis Financial Accounting Assignment Module 1‚ August 2014 GEMBA 2015 Group Assignment - Group 9 Scott Couzner Joseph Lew Nicole Sia Jay Tomar Alex Zupancich BURBERRY INTRODUCTION Burberry is a global luxury brand offering menswear‚ womenswear‚ childrenswear‚ coats‚ dresses‚ shoes‚ accessories‚ bags‚ scarves‚ beauty and fragrance. The quintessentially British brand was first founded as an outerwear brand‚ well known for it’s iconic Burberry trench coat and distinct tartan
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efficient ways for distribution and production. 5. How would your answers to questions 3 and 4 change if Dell also repurchases common stock ($500m) and repays its long-term debt? If Dell repurchases $500m worth of common stock and spends even more money on repaying all of their long-term debt‚ they won’t have nearly enough money to make a good investment into R&D. The repurchase of common stock would be able to increase the stock price and for the current stockholders‚ they’d become more loyal
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future. | 7. Du Pont Identity Why is the Du Pont identity a valuable tool for analyzing the performance of a firm? Discuss the types of information it reveals compared to ROE considered by itself. The Du Pont identity is a valuable tool for analyzing the performance of a firm because it breaks return on equity (ROE) into three parts: operating efficiency‚ asset use efficiency‚ and financial
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shareholders With more expanded offerings Online stores ROE DuPont Disaggregation Analysis Methodology 1. ROE = Net Income/ Average Stockholders’ Equity = Profit Margin * Asset Turnover * Financial Leverage 2. Profit Margin = Net Income / Sales 3. Asset Turnover = Sales / Average Total Assets 4. Financial Leverage = Average Total Assets / Average Total Equity ROE DuPont Disaggregation Analysis ROE DuPont Disaggregation Analysis ROE DuPont Disaggregation Analysis Conclusions 1. Tesco has higher
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DuPont Analysis breaks out ROE into 3 sub-components: Profit Margin‚ Total Asset Turnover and Equity Multiplier. Maximizing some/all of these subcomponents would result in a better ROE. The ‘Profit Margin’ ratio is a measure of operational efficiency of a firm. Ideal value for this ratio is 100%‚ which can be achieved if Sales are equal to Net Income. However‚ in the business that Whole Foods is in‚ this ratio will not be anywhere near 100%. One place Whole Foods can increase ‘Profit margin’
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