... | 12,106 | 13,964 | Liquidity | Current Ratio | 2.03x | 1.92x | 2.03x | Quick Ratio | 1.32x | 1.29x | 1.35x | Leverage | Total Debt/Total Assets | 50.30% | 48.03% | 44.17% | Assets / Equity | 2.01 | 1.92 | 1.79 | Debt / Total Capital | 26.36% | 20.24% | 15.18% | Interest coverage ratio | 12.14x | 18.16x | 23.50x | Here is financial ratio analysis of Tire City. Let’s take a look at each items. Their business performed well in terms of profitability, although ROE did not exceed the number of 1993 in 1995. As a rule, profitability was increasing between 1993 and 1995. Next, when you look at activity ratio, Total asset efficiency was getting better during the period. On the other hands, Inventory turnover and Receivable turnover had same trends; they dropped in 1994 and recovered in 1995. In terms of liquidity, generally there was no big impact on their financial situation since the movement was small. Regarding Leverage, as Tire City paid back the long-term liability, the numbers of ratios changed (Total Debt / Total Assets, Assets / Equity, Debt / Total Capital) and this led to make Tire City have stronger Interest coverage ratio. Flow of Funds Analysis Flow of Funds ($M) | 1994 | 1995 | Net Income | 1.00 | 1.19 | D,D & A | 0.18 |...
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...1). The current financial health of Tire City, Inc. can be determined by looking at its financial statements, and converting the information on them into a number of different ratios, which give analysts information about the financial activities/health of the firm. These ratios include (but are not limited to) the current ratio, acid test, profit margin, total asset turnover, and return on equity. The current ratio measures short term solvency, or the firm’s ability to pay off its short term debt. TCI’s current ratio is 2.03, a healthy indication. This means that for every dollar of short term debt the firm carries, it holds $2.03 in current assets. This means that the company is not facing any significant threat from its short term lenders. The acid test is basically a refined version of the current ratio, deducting inventories from the current assets of the firm, because of their illiquidity. The acid test for TCI in 1995 is 1.35. This is notably lower than the current ratio, which may indicate that TCI is holding too much inventory, but 1.35 is still a generally healthy acid test ratio. The profit margin and total asset turnover of TCI are 5.06% and 2.61, respectively. These numbers are used in the DuPont Equation to calculate Return on Equity, generally a good measure of a firm’s financial health. The ROE for TCI is 23.73%, which by most investors’ standards is a very strong return. The forecasted ROE for 1996 for TCI is 32.67%, an even stronger return. The overall health...
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...Tire City Inc. » Case Solution - Casehero www.casehero.com/tire-city-inc/ Tire City, Inc. A little, quickly ... Set a reminder to receive an email after your university's case study deadline. Upload your case study solution. We will run it ... Tire City Case - Documents - Docslide.us docslide.us › Documents Nov 7, 2014 - Exhibit 1 Financial Statements for Tire City, Inc. For years .... onTune Case Study How customer use onTune in their complex environment. Tire City Inc - Course Hero www.coursehero.com › California State University › FIN › FIN 502 Tire City Inc. Current Financial Health Profitability Tire City has shown. ... Other Related Study Materials ... Tire City Case; LSU; FIN 3717; Fall 2013; 1 Matthew Geiser John Farrell Montgomery Gossen Mathew Gould Tire City Case Project S. Tire City Inc. Solution And Analysis, HBR Case Study ... www.thecasesolutions.com › Business Case Studies Feb 11, 1997 - Tire City Inc. Case Solution, Tire City Inc. Solution, Tire City Inc. Analysis, Tire City Inc. Case Study Solution, Small, rapidly growing retail ... 111101 ma i - SlideShare www.slideshare.net/SomeshPal/111101-ma-i Sep 5, 2013 - Concept & Processes of Accounting Case Waltham Oil and Lube Center, Inc. (Case 4-4, ... Case Springfield National Bank (Case 13.5, AHM) Tire City Inc. ... Digital Crisis Communications: Case Studies and Tips - July 2015. Finance 4210 > Pope > Notes > Tire City | StudyBlue https://www.studyblue.com/notes/note/n/tire-city/file/441380 Mar...
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...Tire City Case Analysis The Case The case is about Tire City Company which is increasing its warehouse capacity. In case there was given the background of Tire City and its future plan in terms of expansion. It also highlighted the past relationship with a bank called Midbank with whom company used to take loan for the purpose of expansion. The case also describes the financial need, the financial statement of the company before the expansion and the impact of expansion of warehouse capacity on various aspects of financial statement. The Company: Tire city was a retail distributor of automotive tires in northeastern United States and was growing rapidly. It has chain of 10 shops located throughout the USA. Bulk of Tire city inventory was managed at a central warehouse outside Worcester, Massachusetts. Company expanded earlier in 1991 by building ware house and is planning to increase its capacity by investing $2400000 by taking loan from Midbank. Company had sales of $23505000 in year 1995 and sales grows at a compounded annual rate of 20%. The issue: Jack Martin the CFO of the company wants to develop a pro forma financial statement for the company and wants to estimate the income statement and balance sheet after the expansion of warehouse for the year 1996 and 1997. The Analysis: By considering the projected sales value and other facts given in case the Financial statement will as follows: Pro-forma Financial Statements INCOME STATEMENT 1995 Percent of...
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...Professor Crocker H. Liu | Financial Management, Spring 2000 Tire City Case Frequently Asked Questions | | Note: What I'm trying to make you do is THINK! To read things carefully. To make judgements for yourself without your parents/teachers telling you what to do. This is an INDIVIDUAL project and therefore, anyone who cheats will be given an F in the course. Marine Corp. slogan: The weak quit when they experience pain, the strong quit only when the mission is accomplished. Hawaiian: ho'oikaika Collaborating with Others: * I would like to know if we can work on the case with another student to make things a bit easier and more productive, but still hand in separate copies. If you wish to discuss the case with another student that's fine. However, if you are "borrowing his spreadsheet" and modifying it slightly and/or "lifting his analysis" but putting it in your own words the answer is NO!! It's always easier to work in a group but there is too much free ridership. I HATE remoras (a tiny fish that gets a free ride and free eats but sticking to the belly of a shark). Also, you already know the grade you'll be getting if your report and spreadsheet resemble another student's. I don't make idle threats. In Class Example: * I was wondering whether you were going to post a completed version of the Financial Planning Spreadsheet on the net. As far as posting a completed version of the Financial Planning Spreadsheet on the net, it is already in your Financial...
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...SUBMITTED BY: RAMAKRISHNA KASETTY MU ID: 901719348 INSTRUCTOR: DR. TRACY CHRISTEFERO 1 Table of Contents 1. Background ......................................................................................................................................... 3 2. Founders Name ................................................................................................................................... 4 3. Vision................................................................................................................................................... 4 4. Mission ................................................................................................................................................ 4 5. Objectives............................................................................................................................................ 4 6. Product and Services ........................................................................................................................... 7 7. Market Competition.......................................................................................................................... 10 8. Laws and Regulations........................................................................................................................ 11 8.1 Business Insurance ...................................................................................................................... 11 9. Marketing Strategy...
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...Article RebuttlePage 1 Article Rebuttle: Country or City Life University of Phoenix BCOM/275 Mr. Luna August 20, 2014 City Life or Country LifePage 2 Although it may seem to many that traffic jams on every highway in the area and people are everywhere no matter if you go to the post office or take a walk down the street is a normal part of life, but thats not always the case if you havent lived on the other side. Lots of people who grow up in the country living in small towns know that the tractor holding up traffic on the side of highway twenty one in Ironton, Missouri is the only traffic jam that they are going to be in that day and probably the rest of the month depending on what season it is and if the hay is already cut. When a person is taken from his normal life, and put into an environment that is totally different than the way they were raised, it can be very tramatizing at times. Usually people will compare the contrast of city versus country life as being taken from the jungle if you were a wild animal and put into a zoo. Country living is extremely laid back and life itself seems to go a little slower than living in the city. This is because you are raised in a way that is less stressful in all aspects of life starting from childhood and working its way into adulthood. When you are being raised in the country you are taught to be a well deciplined child and are taught to respect your elders whether it be at church, school, or even at the...
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...actually parts suppliers to end-product assemblers such as Boeing Aircraft. Aerospace Metal maintains a sales force to sell these metals, and the company stores its products in seven warehouses throughout the country. They obtain their products from steel and metal manufacturers throughout North America. If a customer requests a product not carried by Aerospace, the company will special-order it from an appropriate supplier. Business 3: Low Cost Tires Inc. Low Cost Tires Inc. began as a small auto repair and tire shop in a small city outside of Detroit. While the original goal of the shop was to gain a reputation for quality repair, the owner also stressed meeting customer needs on the sale of tires. Low Cost Tires carries a very wide selection of tires so that customers can always be served on the spot. Its staff is highly trained and very knowledgeable about tires. Selling tires has turned out to be more profitable than auto repairs. Although the owner plans to maintain the auto repair business, she wants to use the Internet to expand tire sales and to...
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...Case Analysis Report In August 2000, Ford Motor Company and Firestone Tire Company recalled 6.5 Million ATX and AT tires that had been installed on Ford’s Explorer model SUV. At the time, it appeared as though Ford and Firestone were doing the right thing. They had found out that the tread separated on Ford Explorers in states with intense heat, such as Florida and Texas. However, it later came to light that both Ford and Firestone had known about these problems earlier than 2000 and that Ford had even had a similar recall in 9 countries the previous year. Firestone however had disagreed with the recalls prior to 2000. Many of these countries were in the Middle East where temperatures are frequently in excess of 100° Fahrenheit. The Stakeholders There are numerous stakeholders in this case some, such as Ford and Firestone by not being forthright with the consumer had a lot to gain and others such as the consumers had a lot to lose. Ford Motor Company Ford Motor Company is one of the largest stakeholders in this case. They had the most to gain from selling the Explorers and not publicizing the potential problems with Firestone tires. By issuing a recall, they would lose both money and customers if the public thought their SUVs were unsafe. My problem with Ford is that they knew that there was a problem with the Ford Explorer before it went into production. Ford engineers recognized that by using the larger P235 tire, there was a potential for more rollovers...
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...Fundamental of Criminology Investigation - an inquiry, judicial or otherwise for the discovery and collection of facts concerning the matters involved. - it is the process of inquiring, eliciting, soliciting and getting vital information, facts, circumstances in order to establish the truth. Criminal Investigator - a public safety officer who is tasked to conduct the investigation of all criminal cases as provided for and embodied under the revised penal code, criminals laws and special laws which are criminal in nature. - a well trained, disciplined and experienced professional in the field of criminal investigation. Custodial Investigation - investigation conducted by law enforcement officers after a person has been arrested or deprived of his freedom of action. Neighborhood Investigation - one of the most crucial steps in kidnap for ransom cases which is often overlooked. The objective is to identify and interview in person all individuals in the area where the victim was kidnapped or last known sighting area during the window of opportunity.(last time seen until the time discovered missing. Crime scene - a venue or place where the alleged crime/incident/event has been committed. Corpus delicti - (latin for the body of the crime) - used to describe the physical or material evidence that a crime has been committed. ex. corpse of a murder victim. Confession - is an express acknowledgement by the accused in...
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...Case Analysis Goodyear Tire and Rubber Company Submitted by: Rick Fletcher MB545 Marketing Management City University, Renton MBA 2000 Program Fall Quarter, 1999 Introduction The Goodyear Tire and Rubber Company is currently the #1 tire maker in the world[1]. The 101 year-old company has maintained that position through most of the company's history. However, in the early 1990's Goodyear slipped to #3 as France's Michelin and Japan's Bridgestone found better ways to get their products to consumers. To regain their #1 status, Goodyear was forced to re-think their century-old practice of marketing their product exclusively through its dealer network. Problem Definition Goodyear is facing tough competition from tire companies that focus their attention on the replacement tire market rather than the new car market. Also, their competitors do not rely solely on dealer networks to distribute their product. To respond to these challenges, Goodyear decided to focus on the replacement tire market and to sell tires through Sears, Wal-Mart, Discount Tire, and other discount stores in addition to their traditional franchise stores. The decision to sell tires through discount stores created some problems for Goodyear: • Allowing tire franchises and multibrand discount stores to sell Goodyear tires upset Goodyear dealers because it drastically increased competition. • Multibrand outlets may lure customers...
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...an automotive repair shop which not only repairs cars that need to be fixed, but also has a small sales section which sells tires and services related to tires such as mounting the tires, etc. I have based the answers on this automotive repair shop located in the near vicinity of my house. 1. What Internet business model would be appropriate for the company to follow in creating a Web site and why? Each Internet business model is based upon certain skills and incorporates a certain set of responsibilities. Each of the models offers a wide variety of benefit. We need to comprehend the kind of Web site functionality necessary for the different sites and particularly which factors can provide this certain competence so that we can get the assessment of our related expenditures. There are three most common Internet business models - product sales, service sales, and information delivery. For this particular business of an automotive repair shop, I would like to make a mixed approach of 2 of the 3 business models. Apart from repairing automobiles and tires, which can be specified as service sales, the shop can also include the product sales by which they can sell the tires as well at a small scale. The proper model on which the website can be based could be a virtual storefront. There will be information on the storefront about the inventory about which tires are currently available at the store of the shop and what is the specification and price for each of them. Customers can have...
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...Introduction Tremco Ldt. was founded in 1962, as a manufacturer and distributor of protective coatings, sealants and industrial applications for consumers. During a North American Hardware trade show in 1987, Tremco discovered a great opportunity. A private labeller, Foam-o, agreed to give Tremco the exclusive right to distribute the insulation spray foam in Canada. Tremco began importing, to Canada, from Foam-o within a year, without incurring any new product development cost, and no additional overhead. However, Tremco still faced numerous problems ranging from poor market share due to the high pricing position, to a lack of consumer awareness and knowledge due to a poor promotional strategy. To add to this, Canadian Tire which accounted for 25% of all hardware sales in Canada was reluctant to cooperate with Tremco. In the effort of improving Tremco's status quo, two marketing strategies and implementation plans are introduced in following report. Market Audit For a detailed list of marketing parameters, see Appendix 1.1. Product: Tremco’s Mono Foam line up of products started with a 350g can of expanding insulation foam and later had an addition of a 935g can. This is compared to the three common sizes of foam in the overall market, a small 350g can and medium size 620g can and a large 935g can. The smallest size sold 733 thousand, whereas, the medium and large sizes sold 604 and 304 thousand respectively in 1990. The brand name “mono” is said to...
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...EXERCISE I. What is a paragraph? Some of these groups of sentences are paragraphs and some are not. Read them carefully and answer the questions. 1- Iceland is not a place for the ordinary tourist. The landscape, for example, is bare and strange—though many consider it beautiful in its own way. Then, too, the far northern climate is not ideal for tourism. The winter weather is extremely severe and the summers are short and cool, with constant strong winds. The remote location also means that many products have to be imported and so they are expensive. However, the few tourists who do put up with these difficulties are warmly welcomed by the Icelanders. Is this a paragraph? _______ If it is a paragraph, what is it about? _____________________________________________ 2- For fewer tourists, lower prices, and more beautiful scenery, head for the Sagres Peninsula. The regional museum has a rich collection of costumes, weapons, and handicrafts. Buses will get you to most places, but for long trips, trains are cheaper and more comfortable. The Portuguese economy has expanded very rapidly in recent years, but it still has many problems. In the fifteenth century, Lisbon was a worldwide center of political power, religion, and culture. Is this a paragraph? ______ If it is a paragraph, what is it about? _________________________________________ 3. The two peoples of Belgium—the Flemish and the Walloons—are divided by language, culture, and economics. Hotels in Brussels are expensive...
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...Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F258708 CoursePack code C-589-202004-STU Michelin Fleet Solutions From selling tires to selling kilometers Case Abstract Michelin, a worldwide leader in the tire industry, launched in 2000 a comprehensive tiremanagement solution offer for large European transportation companies, called Michelin Fleet Solutions (MFS). With this new business model, the company ventured into selling kilometers – instead of selling tires. This decision moves the strongly product-driven firm into the new world of services and solutions. The shift is intuitively appealing, and it provides Michelin with an opportunity to differentiate itself in the tire business. After 3 years, however, expansion is far below expectations and profitability is terrible – despite the outside help of a strategy consulting firm. The case presents the decision point in 2003, whereby MFS’s future has to be decided. Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time? Or was it just a passing fad that should be abandoned? This case investigates the difficulties that industrial groups face when they transition from selling products to providing service. It enables participants to reflect on the following issues: What’s industrial groups’ rationale for moving towards solutions? What kind of business model reconfiguration does it imply? How does moving...
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