...Industry Averages and Financial Ratios Team B FIN/370 Date Teacher Industry Averages and Financial Ratios The SIC code in which Team B used in order to determine the ratios is 4841 for cable and other pay television services. The ratios will show Disney accounts receivables are in the billions. In order for the company to be successful they would have to be in good standing with their suppliers. Disney visitor numbers are high due to the high demand in wanting to come to the amusement park. Disney tries their best to keep themselves competitive within the business, because they are always able to supply their consumers with marketing supplies. Keeping their product costs low and coming up with different marketing strategies Disney has been able to successfully create more profit and revenue as years go by. Liquidity Ratios When comparing the quick ratio to the industry ratios from the Dunn and Bradstreet key business ratios we see that Disney has held steady in median level compared to samples in the statement. The higher the quick ratio, the better the company's liquidity position. When comparing the current ratio to industry ratios Disney also falls under the median range. Acceptable current ratios vary from industry to industry. For most industrial companies, 1.5 may be an acceptable current ratio, Disney falls as an average to an acceptable ratio and current ratio means that the company is more likely to meet its liabilities which are due...
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...Industry Averages and Financial Ratios Paper Manuelita Blow FIN370 Ms. Christine Gordon University of Phoenix March 13, 2015 Industry Averages and Financial Ratios Paper This paper will be discussing Target, a publicly-traded company. This paper will be Locating the SIC code for the company's industry, Finding Targets ratios for the company using the Dun & Bradstreet® Key Business Ratio link in the University Library. This paper will also be assuming that the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system. This paper will also be discussing what a change to a Just- In- Time inventory system would have if adopted by Target and Financial ratios will be calculated and the ratios will be compared with the appropriate industry. Assume According to "Just In Time Vs Traditional Inventory System." (2014), “Traditional inventory systems, seek to have enough inventory on hand so that production may continue even in the face of unexpected shortages or shipping delays. The ideal goal of JIT (Just in Time) manufacturing is to have precisely the right amount of components or materials on hand at any given moment, with as little idle inventory as possible. In a factory run perfectly according to the JIT model, every component delivered to the factory would go directly from the loading dock to the assembly line”. ("Just In Time Vs Traditional Inventory...
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...Wal-Mart’s Industry Averages and Financial Ratios Paper Wal-Mart Stores, Inc. maneuvers trade warehouses in countless structures worldwide. The business functions in three sections comprising of Wal-Mart International, Wal-Mart U.S., and Sam’s Club. “It operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, restaurants, apparel stores, drug stores, and convenience stores, as well as various retail websites, such as walmart.com and samsclub.com.“ (Retrieved by: http://finance.yahoo.com/q/pr?s=WMT) Wal-Mart has an inventory ratio that is based on a traditional inventory system, but desire a change to a Just-In-Time inventory system. Analyzing Wal-Mart’s financial ratios provide an outlook on the financial health of the company. Furthermore, the financial ratios are compared to other industry ratios including profitability, solvency, and efficiency. Wal-Mart Stores, Inc. “As of June 5, 2014, it operated approximately 11,000 stores under 71 barriers in 27 countries; and ecommerce websites in countries.” (Retrieved by: http://finance.yahoo.com/q/pr?s=WMT) In 1945, Wal-Mart was originated and its headquarters is located in Bentonville, Arkansas. Wal-Mart Stores, Inc. SIC Code is 53119901. The company line of business is department stores, but often considered variety stores and miscellaneous general merchandise stores. Wal-Mart Stores, Inc. NAICS is 452112 or 452111. On the other hand, Wal-Mart Stores, Inc. deals with a number of items...
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...Industry Averages and Financial Ratios Paper FIN/370 RUNNING HEAD: INDUSTRY AVERAGES AND FINANCIAL RATIOS 2 ACME is looking for a bank loan to provide it with increased capital for its heater business. When deciding whether or not a company, like ACME, is financially healthy and would provide a return on the invested capital there are many tools available. By using a company’s financial statements, such as their balance sheet, we can get a small view of the heath of said business. Now by applying financial ratios and measurements towards the balance sheet, we can view the bigger picture which allows us to make a decision with far less risk in the end. First and foremost, let's discuss each ratio expressed on these financial statements as to better understand the context of how we use them to make decisions in the modern business environment. The current ratio measures the proportion of current assets to current liabilities, with this comes a rough measurement of a company’s financial health by giving us an idea of its ability to pay back its liabilities with its assets.. The acid test, or quick ratio, is a measurement designed to show a company’s ability to use cash assets to pay for short-term liabilities. Where the debt ratio measures the total debt of a company to its total assets allowing us to see what proportion of assets are financed by debt. Times interest earned...
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...204 Week 5 Final Paper ------------------------------------------------------------------------------------------ ASHFORD ECO 204 Week 3 Assignment Manufacturing Industry Evaluation For more course tutorials visit www.tutorialrank.com Manufacturing Industry Evaluation. Economists sometimes use concentration ratios to evaluate whether industries are oligopolies. In this assignment, you will make your own determination using the most recent data available. You will also discuss the merits and disadvantages of oligopolies in light of your research. Go to the Concentration Ratios in Manufacturing page at the website of the U.S. Census Bureau, click on the PDF of the most recent Economic Census for Manufacturing (NAICS 31-33), and answer the following questions in a two to three page paper formatted according to APA style. 2. Find the four-firm concentration ratios for the following industries: fluid milk (311511), women's and girl’s cut & sew dresses (315233), envelopes (322232), and electronic computers (334111). 3. Assess the level of competition for each of the four industries. 4. Define oligopolies and identify which of the listed industries qualify as oligopolies. 5. Describe why these industries qualify as oligopolies and identify some of the firms that operate in the listed industries. 6. Discuss whether or not oligopolies are always...
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...the country for many centuries. * About 3% of the population is ethnic Chinese living in the urban centers of the South. * With an estimate 2014 population of 90,493,352, it is the 13th largest populated country in the world with a growth rate of 1%. * Population density is 272.4/kmsqr. * Vietnam's median age increased from 18.2 years (1980) to 28.5 years (2010). Its life expectancy increased from 58.9 years in 1980-1985 to74.3 years in 2005-2010. China and Thailand have the highest old-age dependency ratio (11 in 2010) while that of Vietnam is around 9. Current median age is 29.2 years. * Vietnam’s population is rapid aging and is going to be a new challenge.44.8% of the population lies in the 25-54 years age category. * 31% of the total population is urbanized with a rate of change of 3.03%. Ratio Percentage: Total dependency ratio: 41.3% Youth dependency ratio : 31.9% Elderly dependency ratio: 9.4% Potential dependency ratio: 10.6(2014 EST.) Provinces of Vietnam: * Vietnam is divided into 58 provinces and 5 municipalities existing at the same level as provinces. * The provinces are divided into districts, provincial cities, and district-level towns which are subdivided into commune-level towns. * The municipalities are divided into rural districts and urban districts, which are subdivided into wards. * Vietnamese provinces are controlled by a People's Council, elected by the inhabitants....
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...Concentration Ratios Norma G. Adams ECO 204 Sheila Roberts-Phipps January 28, 2013 A quick look into the Concentration Ratios for four different industries, and how Making the decision whether they are oligopolies and how that effects that industry. If an industry is oligopolies is that good or bad for society. The diversity of the industries that are in this study should give a nice idea of how competitive some industries can be. First a look into the fluid milk industry, the U.S. Census Bureau shows that there are 280 different companies in the manufacturing of fluid milk. The largest four companies make up 46 percent of the industry themselves. The industry sells $33,547,992,000.00 per year, which is a very large industry. This industry appears to be an oligopoly, because the four largest companies make up almost 50 percent with the largest eight being 58 percent of the industry (census). “An oligopoly is an industry dominated by a few firms that, by virtue of their individual sizes, are large enough to influence the market price.” (case 2009) The census information shows that the largest eight firms should be able to control the industry and the prices that everyone else should follow. Next a look into the envelope manufacturing industry, here the census bureau shows that the largest four firms make up 57.6 percent of the industry that only consist of 149 firms, selling a total of $3,653,185,000.00 per year (census). With the largest four firms making up...
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...OVERVIEW SECTOR STUDY STUDY CONTENTS Summary Sector Study: Global Cement Industry Pakistan Industry Business Risk Financial Risk Outlook PAGE 1 2 2 4 6 7 February 2014 www.pacra.com SECTOR STUDY The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW (FEBRUARY 2014) SECTOR DYNAMICS Business Risk Outlook Medium Stable to Positive OVERVIEW Pakistan’s cement industry has an oligopolistic structure – top five players (out of a total of 18) controls above 55% share. Geographically production facilities are concentrated in north (83%) of the country, while south has around 17%. During the last decade, the Pakistani cement industry has expanded its production capacity significantly; while gradually making inroads into the exports markets. The cement production capacity of Pakistan stood 44.8mln tons in FY13. Demand dynamics, playing key role in cement manufacturing, kept capacity utilization at ~75%, a behavior observed in past few years. Currently, Pakistan is ranked among the world's top 10 cement exporting countries. Pakistan Cement - Production and Capacity Utilization 50 45 40 35 Mln Tons HIGHLIGHTS FY13 Total Companies No. of listed Companies Share of listed Companies (based on capacity) Cement Production Capacity Utilization Market Capitalization Revenue* Net Income* Cement Sector Loans Share in Banking Loans Cement NPLs Share in Total NPLs Cement Infection Ratio * Listed companies only 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 18...
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...Most every organization will benefit from even the most elementary market research. If it does not provide new information, it will confirm what is known. Market research is the process of gaining information about your market. Preferably, this is specific information about your target market and the key factors that influence their buying decisions. Market research can be casual and limited in scope and, although it may not be “statistically significant” research, it can still be valuable. The value and “degree of fit” may be based on the quality, cost, or the amount of time to acquire the information using these practical market research tools.Determine what form of market research is going to work best for you. Make that decision based on the value you will receive, versus the time and other resources you need to invest to gain access to that information. Market research is often confused with an elaborate process conducted by a third party that takes a tremendous amount of time and money. It may be important to take a different perspective on what market research is and how it is conducted. Primary Market Research Primary market research is research that you conduct yourself, rather than information that you find already published. Primary market research may result from you having direct contact with your customers or the public. This may be through the following types of information gathering. • Focus groups gather a small group of people together for a discussion with...
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...four firms in an industry with the following market shares Firm 1 -30% Firm 2 -25% Firm 3 -25% Firm 4 -20% A) Calculate the Herfindahl Hirschman Index for the industry. HHI (.30) + (.25) + (.25) + (.20) HHI = 900 + 625 + 625 + 400=.225 b) What is the number of effective competitors in this market? Show your calculation. = 1/.255: = 3.92 DQ 2. Suppose the demand curve for a monopolist is given as: Qd = 500- P MR = 500 - 2Q a) Determine the monopolist's profit-maximizing price and output. MC = ATC = 50 MR = MC MR = 500 – 2Q 2Q = 500 - 50 2Q = 450 Q = 450÷2 =Q=225 maximizing quantity output 225 = 500 – P P=$275 profit max price. b) Calculate the monopolist's profit. TR-TC (P X Q) - (ATC X Q) = Q(P-ATC) 225×(275) =$61,875 c) What is the Lerner Index for the industry? L = (P-MC)÷P (275-50)÷275 225÷275= L=.818 DQ 3. There are two industries, A and B; and each industry consists of four firms. However, each of the four firms in industry A has a 25% market shares while those firms in industry B have 80% 10%, 5% and 5% market respectively.. a) Calculate the three- and four-firm concentration ratios for each industry. Industry A = 25 + 25 + 25 +25= 100 Industry B = 80+ 10 + 5 + 5 = 100 b) Calculate the Hirfindahl Hirschman Index for each industry. Industry A = 25^2 + 25^2 +25^2 +25^2 625 + 625 + 625 + 625 =0.25 Industry B = 80^2 + 10^2 + 5^2 + 5^2 6400 + 100 + 25 + 25 = .655 c) Are these industries equally concentrated...
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...The Jones Electric Case utilizes the major learnings to date, analysis of financial statements and the use of ratios to project future performance. You are the financial analyst or banker who has to decide if Mr. Jones can increase his loan level. Note use the annual data for the following questions, the single quarter for 2007 presented should not be used. * Question 1. * How does Jones Electric compare to other electrical distributors? * Prepare ratio, common size and cash flow analysis. * See the file attached with industry ratio data. Use just the Data from the highlighted column. * You can assume I know how to calculate the ratios and their definition. Your answer should be more than the ratio is more or less than the past or industry, please go beyond the numbers and tell me what the numbers are telling us. * Question 2. * Project 2007 using ratios and identities. Assume the new sales will be the $2,700 he told the bank. Use the annual data not Quarter 1 to do the projections. * Determine if the line of credit offered is adequate. (This is what we are solving for!) * Determine if Jones should or should not take the cash discount from suppliers. * Question 3 * Based on questions 1 & 2, do you recommend any changes in the way Mr. Jones is running his business? Assignment deliverables * Case analysis write-up no more than 5 typed pages with imbedded tables and charts. (Tables and charts...
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...affected by the production of output in one industry. Also, in order to produce given amount for final demand , we can easily obtain industries’ total output. By this model one can say that the economy is whether efficient or not. Structure of an input-output model: We aplly this model to large number of industries and it could be complicated. Thus, to simplify the problem following assumptions must be take into consideration. 1) Each industry produce only one homegeneous commodity. For example, food industry only produce bread. 2) Each industry uses a fixed input ratio for the production of its output. 3) Production in every industry is subject to constant returns to scale. These assuptions are unrealistic. Also, from these assumption we can assume that in order to obtain each unit of jth commodity ith input needed which can be show by aij. It is the input-output coefficient matrix. To produce a unit of output ann is required amount of product from industry Sn. For example, We can see that there are three industries; agriculture, manufacturing, and labor. In order to produce a unit of food the industry need 0.2 units of food 0.5 manufacturing goods and 0.3 labor etc. This matrix shows that whether the economy can satisfy the certain demand for their goods. The Open Leontief Model: If the economy consitituted by the n industries than these industries purpose will be satisfy the input demand...
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...Communications Corporation using information provided for the years 1992-1996. We compared Adelphia’s company practices to standard industry practices; evaluated its ability to repay debt; looked at Adelphia’s competitive position in the telecommunication industry; and evaluated its business strategy to grow and remain competitive within the industry. We based our analysis and recommendations on key business risk issues as discussed in the following: a) business risks of the company and the industry; b) possible warning signs of trouble at Adelphia; c) assessment of the company’s financial capability to cover operating and debt obligations; and d) appropriateness of Adelphia’s financial strategy in correlation with the overall industry. Finally, we gave recommendations for Adelphia to consider in the event the company does not obtain the new bank loan. Adelphia and the Industry The industry is highly competitive and capital intensive. Growth is necessary to remain competitive. This requires upgrades of cable systems and expansion of services, such as internet and phone services. By acquiring existing cable networks, companies in the industry are able to forego some of the initial expense associated with expansion. Adelphia’s growth strategy primarily focuses on acquisition rather than on internal growth, and uses aggressive debt financing to keep up with the industry. Heavy competition is not the only risk facing Adelphia. The company also faces unknowns as to how many franchises it...
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...to be aware of how and why I put together this data, and the ways it can be best used. Please read this before you use the data. Important Data Source update: After twenty years of using Value Line for my US data updates, I have had to switch in 2014. Value Line has an arrangement with NYU that prevents my sharing any statistics that I get by processing the data (such as the industry averages) with anyone and they have told me that they plan to enforce it. While I understand their desire to protect their data, that makes the data useless to me. I am regretful since I am familiar with every nook and cranny of the Value Line data base. (Since Value Line's demand came after I had actually updated the data for 2014, you will notice a change in my US industry average numbers for 2014, if you had downloaded them in the last two weeks.) It will also mean that much of my archived data, other than the country risk premiums and betas, will be removed from my site. I am sorry! I have switched to a combination of Morningstar, Bloomberg and Capital IQ data for all firms, with an overlay of my own modified industry categories. (Don't ask why... You don't want to know...) For all of the companies, I have also added my estimates of firm-specific costs of capital which you can find in the...
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...VERVIEW:Cooper Industries is a broadly diversified manufacturer of electrical and general industrial products, and energy related machinery and equipment. Thecompany operates in three different business segments with 21 separate profit centers. These segments include electrical and electronic, commercial and industrial, compression, drilling and energy equipment. The product line is consistedof cheap fuses to $3 million compressor tribune sets along with products such ashand tools and light fixtures.The company bid a $21-a-share tender offer to acquire Champion Spar Plug, manufacturer of auto spar plugs, as a counter offer for the Dana Corp.'s $17.50-a-share bid. Also, in the mean time, Cooper Industries was considering a $700 million bid for Cameron Iron Wors. Even though purchasing either or both companies will give operational and organizational advantages, there were high financial riss involved. Undertaing both acquisitions would result in a 55% to 60% debt to capitalization ratio. ANALYSIS:Cooper Industries acquired more than 60 manufacturing companies over a thirty year span in order to increase the size and the scope of the company. Most of the acquired companies made it possible for Cooper to be independent of theoutside environment and giving full control of the manufacturing process concerning their business while avoiding anti-trust allegations. Cooper basically purchased every company that is vital to its energy industry and all the side industries that effect it...
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