Premium Essay

Jackson Industries Case Study

In:

Submitted By tomforse
Words 1517
Pages 7
Financial Ratio Analysis
Introduction
Based on the financial ratios calculated for Jackson Industries we feel there are five key areas of performance that must be analyzed and discussed. Those five areas of performance include: liquidity, asset utilization, financial leverage, profitability, and market value. Using the 2010 Industry Average for a wide variety of financial ratios we have come up with some conclusions about the company’s current standing as well as ideas for future growth and success.
Liquidity
To measure liquidity we focused mainly on three financial ratios that included the Current, Quick, and Cash Ratios. The Industry Average for all three of these ratios exceeded those of Jackson Industries. Jackson Industries’ 2010 Current Ratio was 2.39, which was slightly up from their 2009 ratio of 2.33. Still, this increase falls short of the Industry Average of 2.7. Unlike the Current Ratio, which improved from 2009 to 2010, both the Quick and Cash Ratios decreased slightly. The Quick Ratio for Jackson Industries in 2010 was .84, whereas the Industry Average was 1.00. Generally, the Quick Ratio is a more conservative measure than the Current Ratio because it excludes inventory, which can be harder to convert to cash at full price. With that being said, the fact our Quick Ratio is 16% lower than the Industry Average is worrisome. Finally, when looking at the Cash Ratio, which is the most stringent measure of liquidity, the lack of liquidity is even more exaggerated seeing that Jackson Industries’ ratio is 40% lower than the Industry Average.

Asset Utilization
Of the eight measures of asset utilization, six were troublesome. Both Inventory Turnover and Days Sales in Inventory show how far off the Industry Average Jackson Industries is. The Industry Averages for Asset Turnover is 7 and Days Sales in Inventory is 52.1, compared to 3.9 and 93.47 for

Similar Documents

Premium Essay

Employee Relations in a Changning Environment

...Date: Employee Relations in a Changing Environment The case study clearly enlightens those others companies of Alum-Titan’s size have established a reliable and effective human resource functions. In Alum-Titan’s, the management has to perform duties designed for the function; this tends to load more obligations to the management. As a result, there has been wastage of time that could have used to attend to other duties. Moreover, though the management has tried to somehow perform the tasks, lack of human resource function is a great barrier to the company. Therefore, I can urge the company to hire part time/temporary human resource function if it cannot afford permanent, to assist the controller on undertaking the human resource responsibilities. Otherwise, the organization can train its management personnel to attain enough expertise on human resource concepts and principles to avoid incurring much expense. To eliminate and control unethical relationships, the organization should have established human resource function to effectively enforce ethical codes and standards. In addition, the company should also establish a potential mechanism to deal with individuals who engage in such mal-practices. It is an obligation of human resource function to update such policies to clarify the organizational expectations to both the managers and employees (Mathis, & Jackson, 2010). However, according to the case study, the company’s handbook includes Sexual Harassment Policy. Therefore...

Words: 2512 - Pages: 11

Premium Essay

Detriot

...Introduction: This Case Study is focus on the company of AutoNation, the system they are using for their business process. We scope some information about the said company and the connection of it to M.I.S. (Management Information System). Lastly to answer the question “CAN DETROIT MAKE THE CARS CUSTOMERS WANT?” History: AutoNation was created in 1981 as Republic Industries, Inc. a company specializing in waste disposal. H. Wayne Huizenga became Chairman of the Board in 1995. Republic got into used auto sales with the purchase of Auto Nation USA in 1997, In 1996, Republic began purchasing new car dealerships and offering long-term contracts to owners who joined the automotive division management team In 1996, Alamo Rent a Car was acquired. In 1997, Republic continued acquisitions in the car rental business with the purchase of National Car Rental, Spirit Rent-A-Car, Value Rent-A-Car, Snappy Car Rental, and EuroDollar Rent A Car. In January 2003, Jackson is named chairman of the board replacing Huizenga. On October 24, 2005, the AutoNation building in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma. The company has since transferred to another nearby building. In 2006 Mike Jackson, CEO of AutoNation announced that his company would be reducing orders from General Motors, Ford and Chryslerin 2007 In 2009 AutoNation announced the AutoNation Payment Protection program, promising that the dealership will buy back any car at market value, should...

Words: 1160 - Pages: 5

Premium Essay

Management Plan for Cyber Software, Inc.

...------------------------------------------------- Case Study #1: Planning and Organizing ------------------------------------------------- Christian Ntaganira ------------------------------------------------- BMGT 364: Management and Organization Theory ------------------------------------------------- Summer 2015 ------------------------------------------------- Instructor: Deborah Shearer ------------------------------------------------- University of Maryland University College ------------------------------------------------- Introduction Cyber Software, Inc. is a medium cyber software company which makes and provides cyber protection products to small and medium size customers such as retailers and local municipal entities. Cyber Software, Inc. has been performing well in providing its products and services to its clients. The main objective of the company is to safeguard information of its customers from hackers and cyber bullies (Schermerhorn, 2008). Joseph Jackson, the CEO of Cyber Software Inc. has managed to control the problem of hacking clients’ information. However, one of Cyber Software’s customers has been hacked and credit card information was stolen. Cyber Software, Inc. was able to intervene, immediately, and was able to limit the damages. This incident showed Cyber Software, Inc. to always stay on its toes in this evolving and ever changing industry. It realized that it has to stay on the cutting edge of the cyber-software industry and be able to prevent cyber-crimes...

Words: 1924 - Pages: 8

Premium Essay

Jackson Automotive Case Study

...Case Study Jackson Automotive Systems Executive Summary Jackson Automotive Systems is an Original Equipment Manufacturer (OEM) that supplies parts for the automobile industry. Jackson Automotive Systems is currently operated by the president, Larry Edwards, and was founded in 1961 by Larry Edward’s father. Jackson Automotive Systems has been operated largely as a cash only business with very little if any debt outstanding typically. The 2008 financial crisis was a difficult time for all participants of the automobile industry. Jackson Automotive System’s reluctance to carry debt coupled with a strong working capital position and a conservative financial policy helped bring the company through the financial crisis. After the financial crisis a group of unhappy stockholders arose and Mr. Edwards chose to repurchase their stock in 2012. To finance the stock repurchase Mr. Edwards used $5 million of cash on hand and secured a $5 short-term loan from a local bank. It is now June of 2013 and the balance of the loan is due at the end of the month. Wanting to purchase new equipment with a cost of $2.4 million Mr. Edwards has approached the bank for an extension on the original $5 million loan as well as the additional $2.4 million equipment loan with a new maturity date on the total of $7.4 million of September 30, 2013. Introduction Mr. Edwards has exhausted his cash reserves and gone in debt following the 2008 financial crisis in order to repurchase stock from an unhappy...

Words: 2393 - Pages: 10

Premium Essay

Detriot

...Introduction to information system CAN DETROIT MAKE THE CARS CUSTOMERS WANT? Done by : BiLaL aLi Introduction 7788655 Why is AutoNation having a problem with its inventory? AutoNation is having a problem with its inventory. That is that they have to maintain an excessive inventory that it can't easily sell. Because of Detroit’s century-old business model, which is still continue from the dates of Henry Ford's mass production of millions of largely identical Model T's. Rather than build cars to suit customer’s preferences, Most of the U.S. car makers are production oriented but not customer oriented therefore they have to put an extra effort to sell the cars to the customers. Vehicles like SUVs and pickup trucks become outcast. That case booms the question that is can the automakers will be able to sell all the cars they have. Current situation of American economy make this worse. With the slumping economy and very high gas prices, now Americans can't think of affording new vehicles like in past. They want smaller and more fuel-efficient vehicle models. AutoNation, they are being loaded with the unwanted inventory which results in stocking up there yards and also getting them costs such as interests on the money that had been borrowed from the bank. And also dealers often have a surplus of new cars sitting in their lots for months at a time that no one wants to buy it. Why is this also a problem for auto manufacturers such as GM, Ford, and Chrysler? This is also a problem...

Words: 1788 - Pages: 8

Premium Essay

Mgt520 - Business Management

...Describe how a strike by the Teamsters against UPS affects that company's various stakeholders. Does the timing of the strike make a difference? Explain. A strike defiantly has ramifications on a company’s stakeholders. In the case of UPS, these ramifications were quite large due to the size of the organization. According to Jackson and Schuler (2006, pg. 604), strikes are often timed to coincide with a company’s busiest time of the year. It is the hopes of those striking that this will create the large disruption and revenue loss for the corporation. It is typically used as a means to get employers to the bargaining table. However, when negations fail, and a strike occurs, the impacts trickle to all the stakeholders involved with the organization. Stockholders are impacted by the loss of revenue and disruption to work. Executives and managers are sometimes forced to try to do the work of those employees on strike in order to minimize the impact. Organizations that support the striking company may be impacted by delays in payments, orders, and contracts as a result of the strike. Finally, the employees themselves are greatly impacted by the strike. They have to walk picket lines and lose their income for the time that they are on strike (Jackson & Schuler, 2006 pg. 5604). Basically, every customer, partner, stockholder, and individual that interacts with the organization that is on strike will be impacted on one manger or another. 2. Union membership has been declining...

Words: 1335 - Pages: 6

Premium Essay

Case Study of Applied Research Technologies Incorporation

...Case study of Applied Research Technologies Incorporation The case study is about the Applied Research Technologies Incorporation, which is an emerging corporation in the field of technology. Company has built up its strength from mergers and acquisitions in the year of 1980 and 1990. As a result, in the year of 2006, the ART portfolio consist of 60 business units having major divisions of Industrial automation, Health care, HVAC (Heating ventilation and air conditioning) and Water management Division. Backbone of the business:- Innovative Culture:- The company success is based on the innovative environment and friendly culture for the entrepreneur mind people. The encouragement for innovative ideas can be idealized from the fact that company spends double money on supporting innovative ideas from the other industrial companies. This innovative culture comes from the top, because the CEO (David Hall) encourage employees to spend half day in a week in brainstorming, problem solving and experimenting which is referred as “tinker time”. According to the CEO, he likes to have meetings of managers and innovators so that new ideas emerged. According to him, it is the fact that you will not succeed every time but we should celebrate worthy attempts even they are unsuccessful. Knowledge Sharing:- Knowledge dissemination and sharing is also a promising picture that reflects the cooperative culture of the company. Experts of different department help each other in the successful...

Words: 3886 - Pages: 16

Free Essay

Imus and Msnbc

...1. In a narrative format, summarize the key facts and issues of the case. The key facts of this case include Imus’ performance and history as a 28-year veteran shock-jock, his employment by CBS and MSNBC, his controversial and off-color comments against a girl’s basketball team, and CBS’ response to the matter. The issues include the remarks made by Imus’, was the response by CBS timely and appropriate and what could have been improved upon in preparation and execution of their crisis management approach. Also, was CBS strategic in their execution of their damage control? Should Imus have continually remained in the media empathetically apologizing then saying he had apologized enough? 2. Update the information in the case by researching it on the Internet. Focus your response on the specific issues in the case. The case study provided by the text provides limited information in the summary. Although it includes the incident, a little history of Imus and CBS’ response, it is vague as to how the matter became so public and why CBS would severe a $40 million contract with one of the nation’s most revenue-producing jock (Press, 2007). Further research reveals the history of Imus’ profession as a highly sought after shock jock, the efforts behind his firing, CBS’ reaction, responses and their inadvertent handling of the matter. The employment contract was extended to Imus by CBS in 2006 because he was a shock-jock of the nation and because his controversy and...

Words: 1033 - Pages: 5

Premium Essay

Organisational Behaviour in Hospitality Industry

...Organisational Behaviour in Hospitality Industry BY GORICA STANISIC NOVEMBER 20, 2013                           Lashley and Morrison (2000) have produced definition of hospitality industry; which they see it as, compromises of commercial organisations that specialise in providing accommodation, food and drink through voluntary exchange, and highlighted that the issue of human exchange is a hart of the hospitality concept. Barrows and Powers (2009) have pointed out that hospitality industry includes hotels and restaurants and other kinds of institutions that offer shelter or food or both of them to people away from their homes. Research conducted by Hayes and Ninemeier (2009) have stated that hospitality industry has often been described as a people business. Hospitality industry is UK’S fifth largest employer and plays vital role in UK industry, employing more than 2.4 million people. Hilton Hotels Corporation is the leading global hospitality company with more than 3,000 hotels in over 74 countries (Hilton Worldwide; 2012). Understanding group behaviour in an organisational environment is a challenge and great managerial tasks. A leading author, Mullins (2007) has pointed out that organisational behaviour is concerned with study of the behaviour of the people within organisation. In his research Singh (2007) argued that organisational behaviour is a way of thinking and it is directly concerned with understanding, prediction, and control of human behaviour and application...

Words: 2049 - Pages: 9

Free Essay

Case Study of Detroit, Mi

...Case Study of Detroit, MI Michael Harker BIO 201-2 Public Health and the Environment Although the city of Detroit, Michigan has been hit by hard times over the last 50 years or so, people and businesses are coming together in order to change the city and its residents. “Detroit has a long and storied 300-year history, but the heart and soul of Detroit is its residents” (City of Detroit, 2013, para.1). In the early to mid-1900’s Detroit used to be known as the auto industry of the world however, because of cheaper labor overseas and in the southern part of the United States thousands of Detroit residents ended up losing their jobs. These auto industry workers were the main income earners for their families but due to the loss of thousands upon thousands of auto industry jobs, entire neighborhoods in Detroit now sit vacant and abandoned. According to Jackson and Sinclair the authors of Designing Healthy Communities, the city of Detroit once had a population of two million people but has been declining over the last 50 years. In 1950 Detroit was the fourth largest city in the United States, however by 1990 the population was down to 1 million people and by 2006 there were only 871,000 residents. (Jackson & Sinclair, 2012). This continued downward spiral of the city’s population has seen many younger and highly skilled people looking to leave Detroit, leaving behind an older generation of city residents who are left to fend for themselves and who require more city services...

Words: 862 - Pages: 4

Premium Essay

The Applied Research Technologies Incorporation Strategic Analysis Tools

...The Applied Research Technologies Incorporation Strategic Analysis Tools Introduction of Case study:- The case study is about the Applied Research Technologies Incorporation, which is an emerging corporation in the field of technology. Company has built up its strength from mergers and acquisitions in the year of 1980 and 1990. As a result, in the year of 2006, the ART portfolio consist of 60 business units having major divisions of Industrial automation, Health care, HVAC (Heating ventilation and air conditioning) and Water management Division. Backbone of the business:- Innovative Culture:- The company success is based on the innovative environment and friendly culture for the entrepreneur mind people. The encouragement for innovative ideas can be idealized from the fact that company spends double money on supporting innovative ideas from the other industrial companies. This innovative culture comes from the top, because the CEO (David Hall) encourage employees to spend half day in a week in brainstorming, problem solving and experimenting which is referred as “tinker time”. According to the CEO, he likes to have meetings of managers and innovators so that new ideas emerged. According to him, it is the fact that you will not succeed every time but we should celebrate worthy attempts even they are unsuccessful. Knowledge Sharing:- Knowledge dissemination and sharing is also a promising picture that reflects the cooperative culture of the company. Experts of different...

Words: 3883 - Pages: 16

Premium Essay

Advanced Technologu

...The Applied Research Technologies Incorporation Strategic Analysis Tools Introduction of Case study:- The case study is about the Applied Research Technologies Incorporation, which is an emerging corporation in the field of technology. Company has built up its strength from mergers and acquisitions in the year of 1980 and 1990. As a result, in the year of 2006, the ART portfolio consist of 60 business units having major divisions of Industrial automation, Health care, HVAC (Heating ventilation and air conditioning) and Water management Division. Backbone of the business:- Innovative Culture:- The company success is based on the innovative environment and friendly culture for the entrepreneur mind people. The encouragement for innovative ideas can be idealized from the fact that company spends double money on supporting innovative ideas from the other industrial companies. This innovative culture comes from the top, because the CEO (David Hall) encourage employees to spend half day in a week in brainstorming, problem solving and experimenting which is referred as "tinker time". According to the CEO, he likes to have meetings of managers and innovators so that new ideas emerged. According to him, it is the fact that you will not succeed every time but we should celebrate worthy attempts even they are unsuccessful. Knowledge Sharing:- Knowledge dissemination and sharing is also a promising picture that reflects the cooperative culture of the company. Experts of different...

Words: 3864 - Pages: 16

Premium Essay

Non Market Stategy

...MARCH 2007 Professor Romain Wacziarg Littlefield 214 Tel: (650) 723 6069 wacziarg@gsb.stanford.edu http://www.stanford.edu/~wacziarg Assistant: Chris Lion Littlefield 330 Tel: (650) 723 9040 lion_chris@gsb.stanford.edu POLECON 230 - NONMARKET STRATEGY This course addresses managerial issues in the social, political and legal environments of business. Cases and readings emphasize strategies to improve the performance of companies in light of their multiple constituencies, in both international and US environments. Topics include integrated strategy, activists and the media, legislation affecting business, lobbying, regulation and antitrust, intellectual property, international trade policy, and business ethics. Most core courses focus on firms’ interactions with customers, suppliers, and alliance partners in the form of mutually beneficial exchange transacted in markets. In contrast, this course considers the strategic interactions of firms with comparably important constituents, organizations, and institutions outside of markets. Issues considered include those involving activist and interest groups, the media, legislatures, regulatory and antitrust agencies, and international organizations such as the WTO. Markets and the business environment are increasingly interrelated: issues such as boycotts, legislation, regulation, judicial decisions, and trade policy directly affect firms’ market performance. Conversely, the profit-maximizing activities of firms often give rise...

Words: 5029 - Pages: 21

Premium Essay

Gb519 Case Study Wk 1

...Unit One: Case Study (MIP) Kaplan University – GB519 Measurement and Decision Making March 2010 What is the ROI for MIP based on original estimates? • Operating assets ( development costs were $140 million • Sales ( annual operating income was expected to be approximately $25 million ROI for MIP = 25 million / 140 million = .18% What is the ROI if Richard Lawrence’s new revenue projects are used? • likely generate operating income of just $17.5 million per year ROI for MIP with new figures = 17.5 million / 140 million = .13% Elaine feels pressure to deliver “good news” to Blake. What advice would you give to her? Given the possible personal financial rewards that Elaine may enjoy if GSM goes public, would your advice change? The truth in the figures is exactly what Elaine should be showing to Blake. Although the numbers are less than satisfactory to Blake and his expectations, the numbers are the numbers and should be reported appropriately. It would prove Elaine less than assertive and capable of doing her new job if she sugar coated the news. Managers and executives require solid information in order to make sound decisions. What responsibilities does Elaine have to other GSM employees, the board of directors, and the venture capitalists? Elaine’s duty is to report to Blake. However, this is information that also affects all those involved with the possibility of MIP going public. Because of this, Elaine...

Words: 1008 - Pages: 5

Free Essay

Nandy

...Poison Pill Use in the Banking Industry Introduction The 1980s was an era of expansive mergers and acquisitions fueled by the popularity of corporate raids. Although this drastically changed the landscape ofmany industries, the banking industry was relatively untouched. Commercial banks were protected from hostile takeovers by federal regulations. The McFadden Act of 1927 and the Bank Holding Company Act of 1956 supported the existence of 24,495 small banksl in 1985.However, by 2003 there were 11,021 small banks and 80 banks had adopted a poison pill plans (Critchfield, Davis, Davison, Gratton,Hanc, Samolyk, 2004). The Riegle Neal Interstate Banking and Branching Efficiency Act of 1994 was the catalyst of the rapid consolidation. Prior to this act, a commercial bank could only make acquisitions across state lines if state the bank was operating in and the state of the target allowed interstate banking. Riegle Neal removed state and federal restrictions on bank mergers creating rapid consolidation in the industry. During this period of deregulation, a growing number of banks adopted poison pill plans. A poison pill plan is a defensive measure adopted by a management team to protect a company from an unwanted takeover. Functionally, this measure releases additional shares of stock, at a discount, to shareholders of record when an unwanted acquirer achieves pre-specified stake in the company. This version...

Words: 1982 - Pages: 8