Premium Essay

First Farms Corporation (a)

In:

Submitted By mikeryan
Words 1063
Pages 5
Improving the Company’s Return on Equity (ROE)
During the year of 1995, the Company’s ROE decrease by five percent (5%) from twenty-one percent (21%) to sixteen percent (16%) as shown in Exhibit 3 – The Profitability Ratio. One of the causes of the decline of their ROE is when the company went public in February 1995 to raise capital and P476 million was used for the expansion of its operation capacities in poultry dressing, hatching and feedmilling and to acquire additional delivery equipment, warehouses and silos. Moreover, about P500 miliion was used in the livestock inventories and raw materials and the remaining P69 million was used to retire part of the corporation’s long term debt.
However, to improve the ROE of the company, an improvement on the Profitability Ratios, Efficiency Ratios and the Leverage Ratios should also be improved to overcome the deficit in the ROE. The Operating Efficiency Ratio in Exhibit 4 shows the decrease in trend in Account Receivable Turnover from 14.19 in year 1993 to 7.65 in year 1995 that results to a longer collection of receivables from 25 days in 1993 to 47 days in 1995. The company needs to implement a stricter policy in collecting their receivables and reduce the Average Age of their Account Receivable collection to improve their Account Receivable Turnover. Another aspect of the Efficiency Ratio that must be improved is the Inventory Turnover that saw a decrease from 5.13 in year 1994 to 3.48 in year 1995, thereby, increasing the age of inventory from 70 days in year 1994 to 103 days in 1995. The data shows that the movement of the inventory goods has slowed down that may result into a higher holding cost while keeping the stocks of the inventory, wherein an opportunity cost is tied up in the inventory, material handling and labor costs of goods. The company needs to look for ways to move the amount of inventory in a

Similar Documents

Premium Essay

Chipotle Csr

...Introduction Founded in 1993, Chipotle Mexican Grill, Inc. has expanded from a local favorite consisting of a single location in Colorado to an international chain with over 1500 locations today. There are countless example of various corporations that experience growth trends similar to that of Chipotle’s, however, as a result of the rapid expansion and gains in sales, most of these corporations tend to neglect their corporate social responsibilities (CSR). Chipotle, on the other hand, does not fall susceptible to this trend. Through a complete examination of Chipotle’s CSR initiatives and activities, as well as detailed explanations of Chipotle’s contributions to the three “pillars” of sustainable development, one is able to see that Chipotle is a leader and an innovator in its industry regarding the corporate management of ethical dilemmas and moral responsibilities. A thorough comparison with a similar corporation in the same industry, Moe’s Southwest Grill, Inc., provides further evidence that Chipotle places immense value corporate transparency and quality morals in addition to being a genuinely ethical and responsible corporation. Following the major comparison are explanations of possible underlying motives and “market nudges” leading Chipotle to participate in particular CSR activities. Lastly, a discussion of government initiatives and potential upcoming regulations has been included to indicate the possible future direction of every firm’s corporate social responsibilities...

Words: 6599 - Pages: 27

Premium Essay

Highway Farm Case Study

...Answer # 1 Highway Farms, Inc. v. U.S. 2002-1 USTC ¶50,281 Facts: Highway Farms, Inc. is a family-owned farm corporation. In Tax years 1995 & 1996, Highway Farms gave the hogs to two officers as bonuses in exchange for their performance of agriculture labor. The Two officers are brothers and only officers of corporation. The officer’s hogs and Highway Farm’s hogs were transported to the market in the same truck and sold to the same buyer. Issues: Can a Highway Farms corporation’s motivational bonus to the two officers constituted “wages” for FICA tax purpose? Conclusions: Yes, the bonuses to the officers are constituted as wages and hence subject to FICA tax. Arguments and Authorities: The two officers are brothers and were the only...

Words: 986 - Pages: 4

Premium Essay

First Farms Corp

...Executive Summary This paper shed light on the reasons behind First Farms Corporations’ deficit in its operating cash flows and its decrease in Return on Equity (ROE) despite having a 40% increase in sales and 89% on net income. The objective of the paper is whether the management should recommend pushing through with the planned expansion of the chicken business as well as the feeds business. After having analyzed the financial ratios and SWOT of the company, it has been decided that it is better for the company not to push through with the expansion. Despite the promising increase in sales and net income, its inventory has been problematic as it showed an inverse relationship with its sales which is where we can trace back the deficit in its operating cash flows. It is recommended that the company seek better implementation of how it disposes it inventories as well as collect its receivables, find alternatives as how to handle increasing cost of production, and study its business environment. This could be the best alternatives that the company could do until they are in shape again to continue with expansion plans if the need arise again in the coming years. II. Point of View For this case, the point of view of the Vice President for Finance of First Farms Corporation (FFC) will be used. III. Case Context The First Farms Corporation started in the 1950s as a small animal feeds manufacturing plant with 15 employees in Caloocan. Since then, the company...

Words: 2214 - Pages: 9

Premium Essay

Environmental and Corporate Issues in "The Promised Land"

...Film Review Business is booming, corporations run the show. How entitled are corporations and what is their responsibility towards you and me? “The Promised Land” opened in box office in 2012. It features an environmental dilemma introduced by a corporate presence in a small town outside of Pennsylvania. It was directed by Gus Van Sant with Matt Damon taking the role of the protagonist. Damon plays as Steve Butler who is a representative for an energy company called Global Crosspower Solutions. The film highlights recent and upcoming issue of fracking by questioning corporate responsibilities. This paper will discuss the environmental and corporate issues presented in the movie. “The Promised Land” focuses on fracking which is a process used to extract natural gas, this extraction is done by pumping gallons of pressurized chemically treated water into coal beds. This water then expands the cracks in the rocks allowing trapped methane to escape. The fracking procedures have been reported to contaminate water supplies and affect the health of local citizens and cattle. The controversy behind this procedure first snatched public attention after a documentary called Gasland directed by Josh Fox was released in 2010. Gasland follows Josh Fox as he investigates the issues behind fracking. He interviews family after family to paint a dreadful picture for the viewer. The take home message is very clear, the corporations specifically the oil companies show a complete lack of responsibility...

Words: 1464 - Pages: 6

Free Essay

Food Inc

... The respect towards livestock in America is steadily declining through the practice of "factory farming." Factory farming is performed by the few large companies controlling food processing in America, it is vile and takes away humanity from those who continue to do it. It is the process in which farms "manufacture" food in unhealthy environments rather than safely breed livestock. It negatively affects the welfare of animals and the companies put the value of efficiency and profit before the health and safety of the animals. The repercussions of the choice to make these environments unhealthy by large corporations and keep them that way without trying to fix them further the damage to the treatment of livestock and the nutritional damage to America. It is imperative that America takes a stand as a nation to stop the process of factory farming and its effects, before the corporations go too far to the point where it is unstoppable. Factory farming is an increasing epidemic in the world of farming, we need to stop this before it is no longer preventable. A large portion of the population in America actually have no idea how livestock is taken care of by the corporations that they buy from. They do not know that the animals are so carelessly handled, that the animals are looked at as materials rather than actual living produce. In the documentary "Food, Inc." (2010) the producers of the movie actually get an inside view of the process of factory farming. The scene...

Words: 2294 - Pages: 10

Premium Essay

Enterpreneurship

...the book are contributed by scholars from different intellectual backgrounds to produce a rich and highly stimulating compilation. The book gives a vivid background of the history of entrepreneurship from the rudimentary to the modern age. It provides ideas on principles and skills involved in sustaining entrepreneurship, potentials of businesses and entrepreneurs, types of enterprises and contributions of entreprenures to local, national and global economy. 2.0 Course description The concept and scope of entrepreneurship; the nature and forms of business ownership in entreneurship; entreneurship in Nigeria: an overview; mega-entrepreneurs: a prosopographical historical study of nigerian entrepreneurship, 1850-2000; transnational corporations and...

Words: 57078 - Pages: 229

Premium Essay

Factory Farming Research Paper

...Through a steady chain reaction, fast food has slowly changed factory farming and agriculture. Corporate ownership, harsh working conditions, and new ways to produce food have risen out of the fast food industry and are now prominent in all aspects of agriculture. Although agriculture affects many, those who witness its negatives first hand are workers. Agriculture in today’s terms can no longer be called farming. Regarded as “agribusiness” by an environmentalist group known as Grace Communications, factory workers are often employed and controlled by corporate owners. These corporations have an unexplainable upper hand over workers and other farmers. Two types of corporate farming are common in the U.S: contract farming and vertical...

Words: 725 - Pages: 3

Free Essay

Fruits and Vegetables Supply Chain

...An Analysis of the Fruits and Vegetables Supply Chain Abstract Fruits and vegetables provides your body with the essential vitamins and minerals that is needed to maintain your health. Introduction It is no surprise these days that people are trying to live a healthier life. In order to do so one has to alter their diet and add fruits and vegetables. It takes time but the effort is worth it. We are learning every day that having fruits and vegetables in your diet can help guard against diseases and some types of cancer. The Center for Disease Control and Prevention (CDC) is doing their part to inform everyone about the benefits of eating fruits and vegetables. Their website is chock full of information that every family can use to their benefit. Fruits and vegetables also provides your body with fruits and minerals. When you eat a variety of fruits and vegetables it helps you control your blood pressure and even weight loss. The daily recommended intake of fruits and vegetables is 4.5 cups. In addition to eating healthy physical activities should also be included such as biking, walking, and swimming and exercising. More and more workplaces are jumping on the band wagon to implement some form of wellness program with a variety of activities for employees to have an opportunity in having good health. Some have built gyms and allow employees time during the...

Words: 3406 - Pages: 14

Free Essay

Big Ag and the Family Farm

...Big Ag and the Family Farm Chad D. Schisler National University Big Ag and the Family Farm A way of life that dates back centuries is disappearing right in front of our eyes.  The good old family farm is becoming extinct here in America, and big agribusiness (big Ag) and our wonderful government are both to blame.  According to the U.S. Department of Agriculture (USDA), the number of farms in the United States is in decline, going from about 6.8 million in 1935 to only about 2 million today.  This doesn’t necessarily mean that there is less farming going on.  Here in the U.S., farms are producing more than ever. What it does mean is that farming is quickly becoming dominated by the big Ag farmers.  The rules of the game have been twisted and manipulated in favor of big Ag so dramatically that most small farmers find that they simply cannot compete anymore.  In 1900, about 39 percent of the U.S. population were either farmers or worked on farms.  In comparison, today only 2 percent of our population live on farms.  Big Ag, the food processing conglomerates, and big seed companies like DuPont (Pioneer), which I worked for3 in my teens, completely dominate the industry.  Unless we make a point do something about this, the family farm is going to continue to fade out of existence.  Unfortunately, the outlook is a bleak one, it doesn’t look like things are going to turn around any time soon. The way that the agricultural industry is structured...

Words: 1951 - Pages: 8

Premium Essay

Why Is Factory Farming Unethical

...way to get food faster. After World War II, the main goal of farmers was to mass produce as much product as possible at the lowest rate possible. This then led to the unethical treatment of these animals because they were kept in a very confined environment. These giant animal farms started in the 1970s, livestock farmers weren’t able to keep up with the rise of these massive confined animal feeding...

Words: 1885 - Pages: 8

Premium Essay

How Gmo's Affect Your Life

...and even cancer (Genetically Modified Food). Most of the time we do not even realize that we are eating these harmful toxins as they are infused in our food without our knowledge (Label GMOs). The farmers that maintain the traditional farming practices and choose to grow organic produce over crops that are GE are constantly trying to keep their businesses alive. Larger corporations, however, who choose to use genetically modified (GM) seeds, make larger profits with less time and effort involved. Choosing to buy local organic produce over crops that contain genetically modified organisms can not only help you stay healthy, but also keep our local farmers in business so that they may continue to grow their crops the way nature intended. Living in the Bay Area we are extremely fortunate to have access to all sorts of organic fruits and vegetables that are grown right in our own backyard. There are countless farms in California that can grow just about anything due to the fertile soil and ideal weather conditions. While we are lucky to live in an area that is well known for growing a variety of crops, corporations and their GMOs are starting to, if they have not already, take over. In the United States there are nine crops that are currently commercialized and sold to consumers. These include soy, in which 89 percent of the total soy...

Words: 2762 - Pages: 12

Premium Essay

South African Energy Proposal

...Introduction Around 77 percent of the electricity used by South Africa comes from coal produced electricity (Statistics South Africa, 2009). South Africa ranks in the top twenty countries in the world in carbon dioxide emissions. As a result, South Africa has set out to lower its greenhouse emissions and push for renewable energy. There are many paths to take in reaching this goal, but I believe South Africa should adopt a similar program as Germany’s Community Wind Power program in order to meet some of its renewable energy goals and needs and solve some of its infrastructure and economic issues. Background of South African Energy Eskom is South Africa’s national power utility, which generates about 95 percent of the electricity in South Africa (U.S. Commercial Service, 2012). Of the total electricity generated in South Africa, 88 percent comes from coal fired power, 6.5 percent comes from a nuclear station, and 2.3 percent comes from hydroelectric and pumped storage schemes (U.S. Commercial Service, 2012). Also, South Africa is crucial to the rest of Africa’s infrastructure, supplying two thirds of Africa’s electricity. In addition to being so crucial to Africa’s infrastructure, South Africa is one of the cheapest electricity producers in the world. The 2009 world economic crisis reduced South Africa’s power supply constraints, but this reduction didn’t last long. In 2010, the electricity demand in the country began to rise again with no sign of slowing down or declining...

Words: 1901 - Pages: 8

Premium Essay

Hero

...Charles Evans Hughes was secretary of state, Andrew W Mellon was secretary of treasury, Herbert Hoover was secretary of commerce * Were bright and capable officials * Senator Albert B Fall (anticonservationist) was secretary of interior, Harry M Daughtery(a big time crook) was attorney general GOP reaction at the throttle * The newly elected officials almost direction the presidents actions in government and business * They wanted the government to have no control over businesses and for the government to help guide businesses along the path to profits * Supreme court ruling on Adkins v CHildrens Hospital in 1923 declared that under 19th amendment, women no longer deserved special protection in the workplace * Corporations under president harding could once again expand without worry of the anti trust laws * Interstate commerce commission came to be dominated by men who were sympathetic to the manages of the railroads The Aftermath of War * Wartime government controls of the government were dismantled * Esch-cummins transportation act of 1920, congress returned the railroads to private management * Merchant Marine Act of 1915 , authorized American shipping board to dispose the wartime fleet of 1500 vessels at extremely low prices * La follette seamans act of 1915, American shipping could not thrive in competition with foreigners who all too often provided their crews with wretched food and starvation wages * Labor now depended...

Words: 1176 - Pages: 5

Free Essay

Food Inc.

...of corn and seed in farming. No topic in the food industry goes untouched in this movie and shortcut taken goes uncovered by director Robert Kenner. The secrets we have feared but have never known are told and shown to us in this movie. The first segment of the movie shows the corporate side of the meat packing industry. The advertising for clean farms where animals are raised to their highest maturity levels and then slaughtered is proven false as the movie shows factories with animals on what resemble assembly lines going on for miles. Chicken factories are shown where hundreds of baby chickens are put on conveyor belts taken through the factories where they are led to their end. But the factories aren’t as bad as the farms where hundreds of thousands chickens live in a dark farm where they defecate all over each other and haven’t ever seen light. This segment brings up the issue of animal treatment and health in the slaughterhouse. I personally don’t have a preference on how my animals are killed; the truth is that just isn’t a factor to me. The factor to me and for the sake of public safety is the condition the animal is in when it is killed and to make sure contaminated meat isn’t being packaged and sold. The money corporations send out for safety should be focused on sending out clean and safe food. They shouldn’t be able to take advantage of the country’s dependency on cheap food so they can send out...

Words: 576 - Pages: 3

Premium Essay

Management Essay

...In s short essay, discuss job analysis, job description, and job specification. Job analysis is more fundamental. Its typically a lengthy process, one in which workflows are analyzed and skills and behaviors that are necessary to perform jobs are identified. Job description is a written statement that describes the job. It typically portrays job content, environment, and conditions of employment. However job specification states the minimum qualifications that a person must posses to perform a given job successfully. It focuses on the person and identifies the knowledge, skills, and attitudes needed to do the job effectively. Discuss 3 of the traditional training methods that managers use to improve employee skill sets? Typical training methods are divided in two categories: On the job training and off the job training. There are several types of training and I am going to identify three of them: Job rotation, belongs to the on the job training categorie, lateral allowing employees to work at different jobs is one of its characteristics, another characteristic of job rotation is that it provides good exposure to a variety of tasks. Another method “on the job training” is understudy assignment: It refers to working with a veteran, coach or mentor. It provides knowledge from an experienced worker. Another method but that belongs to the “off the job training” is classroom lectures. They are lectures designed to convey specific, general, interpersonal and problem – solving skills...

Words: 910 - Pages: 4