...Assessing a Company’s Future Financial Health In this case the concentration is on “Company Performance Measurement”, using the “Ratios”, before we answer to the question, we have to focus a bit on the “Financial Ratios” Sales Growth: The increase in sales over a specific period of time, often calculated annually. In this specific Case, that has asked the Sale growth for the four-year period, can be calculated as bellow; ((Ending Value)/(Beginning Value) )^((1/(# of Year)) )-1 = ($244,000/$115,000) = (1+r) ^4 compound rate, = 21% Profitability Ratios: it shows how profitable the Company is; Profits as a percentage of sales in 2008; Income/Sale = 14000/244000=0.0573*100=5.73% Profits as a percentage of sales in 2005; Income/(Sale )= 5000/147000 = 0.0340 *100 =3.4% This shows an increase of 2.3% from the beginning (2005). 3. SciTronics had a total of $112, 000 (75,000+20,000+7,000+10,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) 16,000 (26,000-10,000) during 2008. Its return on capital was 14.29% (16,000/112,000) which represents an increase from the 8.11% (6,000/74,000) in 2005. 4. SciTronics had $75,000 of owner’s equity and earned $14,000 after taxes in 2008. Its return on equity was 18.66% ($75,000/$14,000) an improvement from the 8.1% ($5,000/$61,000) earned in 2005. Activity Ratios 1. Total Assets turnover for SciTronics in 2008 can be calculated by dividing $244,000 (net...
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... * Assessing The Goal Of Sports Products, Inc. Case Study September 24, 2012 John Rapa Assessing the Goal of Sports Products, Inc. case study Introduction Sports Products Inc. is a large producer of boating... Premium * Assessing The Goals Of Sports Products Inc Assessing the Goals of Sports Products, Inc. Case Study Paper What should the management of Sports Products, Inc., pursue as its overriding goal? Why What... Premium * Case Analysis: Assessing The Goal Of Sports Products, Inc. Case Analysis: Assessing the Goal of Sports Products, Inc. Submitted by: Group 1 Acebedo, Gladys Bandiola, Penuel Bautista, Jherwienne Cruz... Premium * Assessing The Goals Of Sports Products, Inc. Assessing the Goals of Sports Products, Inc. Assessing the Goals of Sports Products, Inc. Establishing and monitoring goals of any organization can be a... Premium * Assessing The Goal Of Sports Products, Inc. Maples University of Phoenix Finance for Decision Making FIN/419 Thomas Ster November 19, 2012 Assessing the Goal of Sports Products, Inc. Loren Seguara... Premium * Assessing The Goal Of Sports Product the firms stock price is falling. The management of Sports Products, Inc. should pursue its overriding goal by understanding the objectives needed for the firms... Premium * Assesing The Goal Of Sports Products, Inc specific recommendations would you offer the firm? Ans: From the information available in the case study, we get a picture that this company has some...
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...1 McKinsey Global Survey Results McKinsey Global Survey Results: Assessing innovation metrics Assessing innovation metrics A recent McKinsey Global Survey shows that companies are satisfied, overall, with their use of metrics to assess innovation portfolios—though many findings suggest that they shouldn’t be. The companies that get the highest returns from innovation do use metrics well; these organizations tend to assess innovation more comprehensively than the others. Even in the current economic turmoil, innovation remains a high strategic priority for most companies, and many see it as a strong contributor to growth. Yet many also struggle to measure the performance of their innovation portfolios. In a recent McKinsey Global Survey,1 we asked senior executives which types of innovations their companies pursue, which ones they measure and with what metrics, what goals they have in using metrics, and how satisfied they are with the metrics they choose. Companies reporting the highest contribution to growth from their innovation projects tend to be more interested in pursuing and measuring their innovations as a portfolio and therefore use metrics across the whole innovation process. In the end, they are more satisfied than others with the ability of such metrics to help their organizations do everything from aligning individual performance incentives to improving innovation performance to communicating with investors. 1 Conducted in October 2008, the survey had...
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...9 -9 1 1 -4 1 2 REV: MAY 28, 2012 Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future imbalance in the corporate financial system before its severity is reflected in the financials, and to consider corrective action before both time and money are exhausted. The avoidance of bankruptcy is an insufficient standard. Management must ensure the continuity of the flow of funds to all of its strategically important programs, even in periods of adversity. Figure A provides a conceptualization of the corporate financial system, with a suggested step-bystep process to assess whether it will remain in balance over the ensuing 3 to 5 years. The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates ...
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...9-911-412 R E V: MAY 2 8 , 2 0 1 2 ________________________________________________________________________________________________________________ Professor Thomas Piper prepared the original version of this note, “Assessing a Firm’s Future Financial Health,” HBS No. 201-077, which is being replaced by this version prepared by the same author. This note was prepared as the basis for class discussion. Copyright © 2010, 2011, 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1- 800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future...
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...COVER PAGE Table of Content Page Number Table of Contents Executive Summary Module 1 - Identifying Global Business Opportunities Module 2 - Analyzing International Competitors Module 3 - Assessing the Economic/Geographic Environment Module 4 - Assessing the Social- Cultural Environment Module 5 - Assessing the Political Legal Environment Module 6 - Selecting a Global Company Structure Module 7 - Financing Sources for Global Business Operations Module 8 - Creating a Global MIS (Management Information System) Module 9 - Identifying Human Resources for Global Business Activities Module 10 - Managing International Financial and Business Risks Module 11 - Product Target Market Planning for Foreign Markets Module 12 - Designing a Global Distribution Strategy Module 13 - Planning a Global Promotion Strategy Module 14 - Selecting...
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...process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. It is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. Traditionally, private sector businesses usually focus on the financial measures of their bottom line: return-on-investment, market share, and earnings-per-share. Alone this approach does not provide the full perspective of an organization's performance that a manager needs to manage effectively. But by balancing internal and process measures with results and financial measures, managers will have a more complete picture and will know where to make improvements. In contrast, Value Chain Analysis helps you identify the ways in which you create value for your customers, and then helps you think through how you can maximize this value: whether through superb products, great services, or jobs well done. Assessing your business performance should be an ongoing process. It helps you identify areas that need to be improved before they become major issues, as well as giving you the opportunity to consider how to respond. The first step of assessing your business performance is to review your business plan, including financial statements (Balance sheet, Cash flow and Income statement), to understand what is happening within your business. Reviewing and...
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...(input) • Materials, machinery, labour, capital, energy --- a combination • What improvements have there been over the last 50 years in – construction productivity – payroll processing – Car servicing – banking • How do we evaluate productivity levels and identify areas for improvement? Managing Productivity • Productivity – An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them. Levels of Productivity • The unit of analysis used to calculate or define: – Aggregate productivity—the total level of productivity for a country. – Industry productivity—the total productivity of all the firms in an industry. – Company productivity—the level of productivity of a single company. – Unit productivity—the productivity level of a unit or department. – Individual productivity—the productivity attained by a single person. Forms of Productivity • Total factor productivity–an overall indicator of how well an organization uses all of its resources (i.e., labor, capital, materials, and energy) to create all of its products and services. Outputs Productivity = Inputs Forms of Productivity • Labor productivity–a partial productivity ratio that uses only one category of resource (labor) to gage the organization’s productivity in utilizing that resource. Outputs Labor Productivity = Direct Labor Managing Productivity • The Importance of Productivity – Productivity...
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...1. Introduction Assessing the attractiveness of entering into a country is a scientific system full of logicality. The argument says to assessing the attractiveness refers to reviewing its market, resource and competitive opportunities. This is a kind of one-sided statement because there are numerous of other perspective which are ignored. To be specifically, to assessing the attractiveness of entering into a country comprehensively, it is necessary to consider three main perspectives: country and market opportunities, country risks and competitive analysis. This essay will be discussing those three main aspects and its details with related examples and theories to explaining how to evaluating country’s attractiveness in investment perspective. 2. Country Opportunity The argument mentions market and resource can be considered as a part of country and industry opportunities which influence the attractiveness of a country. For example, economic growth is so much important to be considered before making decision to interning a country. Groh and Wich (2009) states their research illustrate that market size is one of key factor for the Central European transaction economics like Hungary, Poland and Slovakia. Furthermore, by the development of developing countries, emerging markets shows more and more attractiveness because of market and demand growth (Mello, 1997). Also, with the high level technology innovation environment and raw materials, it shows higher attractiveness...
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...TABLE OF CONTENTS Income Statement Income Statement Analysis Balance Sheet Statement of Cash Flows Cash Flow Analysis Financial Ratios Income statement Income Statement Common size PepsiCo Inc., Common-Size Consolidated Income Statement | | | | | | | Dec 31, 2011 | Dec 25, 2010 | Dec 26,2009 | Gross profit | 52.49% | 54.05% | 53.51% | Operating profit margin | 13.28% | 14.23% | 18.69% | Net profit margin | 9.69% | 10.93% | 13.75% | Net Sale Change 2011-2010 2010-2009 14.98% 33.79% S & A Margin 2011 2010 2009 37.81% 39.44% 34.76% ANAYLIS Pepsi Co Gross Profit Margin increased from 2009 to 2010 but had deterioration in 2011. Pepsi Co had deteriorating numbers from 2009 to 2011 in operating profit margin. Pepsi Co had deterioration from 2009 to 20011 in Net profit margin. Pepsi Co Net sale change is from 2011-2010 is 14.98% and from 2010-2009 33.79%. -CFO is positive all three years. CFO also increased in years 2009, 2010 and 2011. -Pepsi Co is profitable each year. Pepsi Co net income increased in years 209, 2010 and 2011. -Account receivables decreased in 2009, 2010 and 2011. -Net earnings increased all three years from 2009-2011 -Inventories increased from 2009 to 2010 but decreased from 2010 to 2011 -NOTE In 2010 and in 2009 Pepsi Co invested money into pension and retirement funds -CFI activities were negative in all 3 years. -Pepsi Co is investing in property...
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...new entry. Together these forces determine the profitability of the company because it is these forces that determine that prices which will be charged. By analysing supplier power we would be assessing how easy it would be for our suppliers to raise their prices, and hence lower our profits. Suppliers are the once that provide us with the raw materials that we need to produce our product and thus giving them some power over the firm. If the raw material that the supplier sells is scarce, and no easily found, then this would enhance the power that they have over the company and could mean that they could raise their prices when they would see fit. If we were to see competitive firms competing for the resource that the supplier supplies then this would put the supplier in even greater power over those firms. In our case, Mdina Glass uses several raw materials that can be found in many destinations. The main raw material that is used is sand, but not just any sand, silica sand. Other raw materials include limestone, soda ash and other chemicals that are used to add colour to the glass. The raw materials themselves maybe unique, and equally important for the production of glass, but can be found available from a good amount of suppliers, and thus limiting the supplier's power. By assessing different suppliers online of these raw materials I have found out that most suppliers often give discounts to the company when they buy in...
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...Resources management | 1 | 2 | 3 | 4 | 5 | 1) Effective administration of business processes | 0 | 5 | 11 | 11 | 3 | 2) Critical business process design requirements for each department/employee | 0 | 2 | 11 | 14 | 3 | 3) Support services to enable employees to meet customer requirements | 0 | 1 | 6 | 20 | 3 | 4) Processes monitored on a day-to-day basis | 0 | 2 | 7 | 15 | 6 | 5) Assessing processes and implement changes | 0 | 2 | 8 | 17 | 3 | 6) Processes that improve employee proficiency | 0 | 2 | 10 | 13 | 5 | 7) Reduced wasteful activities | 0 | 2 | 6 | 16 | 6 | Level scale Level 1 — No formal approach Guidance - No systemic approach is evident. There are poor results or unpredictable results. Data are available, but not used for improvement of performance. Level 2 — Reactive approach Guidance – Problem-based approach. The company responds to complaints or mandates as needed. Data are reviewed as required. Limited additional company data on results is available. Level 3 — Stable approach Guidance - Data and detailed, timely local data are used to guide conformance to requirements. There is an established method or an approach. There is concern for improvement. Level 4 — Systematic approach Guidance - Systemic process alignment with good results and sustained improvement trends. The data are effectively used and employee performance continuously improved. State standards are consistently met. Level 5 — Substantial continuous improvement ...
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...organization has several meanings but the one meaning/definition which can be implemented here is an organized body of several people with a particular purpose or reason, especially a business, a society, association etc. There are various organizations which are working currently in various disciplines. Organizations always will have definite designations for people comprising an organization. For example organization will have designations like Managing Director, Manager, Human Resources Department, Banks, Outsourcing Companies, etc. Organizations which are comparable with healthcare organizations are Information Technology Companies, the companies which sell their products online etc. Information Technology organizations are the one who focus a lot on Continuous Quality Improvement very keenly and closely. They have numerous customers with whom they have to deal with daily. They have to reach to various new customers daily. These companies focus on quality improvement very frequently. There are some organizations which sell their products online and they also deals with the quality improvement. For selling the products online they have to be always ready with the new plans and offers which should attract their customers on very first sight. And they have to monitor markets very keenly for their cost control. They have a task, that at the same time they should sell their products on an average price and they should monitor other company’s prices. Banks...
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...convenient and have a lot of advantages, it has also a lot of disadvantages. Telecommuting has a lot of benefit for employees such as increased job satisfaction, organizational commitment, higher job performance and lower work stress and exhaustion (Allen, Golden, & Shockley, 2015) Telecommuting also makes the company more economically efficient because can reduce the amount of office space required to conduct business. Not to mention that telecommuting also giving company opportunities to hire professional employees from all over the world. Unfortunately, telecommuting may affect the social interaction among employees. They are may face isolation from and reduced level of knowledge sharing with colleagues. Working from home may also blur family-work boundaries and lead to increased amounts of work during non-work hours (Allen et al, 2015). Moreover, in telecommuting technical problems might develop such an unavailability of internet or viruses in a computer. However, the good and bad of telecommuting depends on the several factors such employees characteristic, the structure of organization, and geographical location. These factors determine Telecommuting suit or not for company business. With the rise in global markets, employers are no longer asking whether they will allow telecommuting but want to know how to do it right (Matos & Galinsky, 2015). References Allen, T. D., Golden, T....
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...Assessing a Company’s Future Financial Health SciTronics Inc. Case #1 Prepared by James Elias Prepared For Babak Lotfaliei Fin 423 MW: 10:00 AM- 11:50 AM 02/11/2015 Table of Contents Company Overview and Analysis Objective 1 Assessing the Company’s Profits and Sales Growth 1-2 Assessing the Company’s Use of Assets 2-3 Determining Solvency and Liquidity 3-4 Matching Companies Exercise 5 Appendix 6-14 Company Overview and Analysis Objective SciTronics is a company that operates in the medical device industry; they sell to hospitals and other medical centers with the goal of manufacturing and supplying quality goods. Being in the medical market from 2005-2008, SciTronics has been forced to keep up with an ever-changing and highly competitive industry. For this reason I found it necessary to conduct an assessment of the company’s past and present performance. Our group’s objective was to assess the overall health and financial stability of SciTronics incorporated, to achieve this I implemented the Corporate Financial System Framework (See Appendix I) and calculated four groups of ratios: Profitability, Asset Management, Leverage and Liquidity. Assessing the Company’s Profits and Sales Growth First and foremost I looked at the company’s profitability ratios starting with sales growth from 2005-2008 (See Appendix D). Knowing how well the medical industry did during this period of time, it wasn’t a surprise...
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