Essays on Working Capital

Purpose

This paper intends to investigate how well the Pakistan pharmaceutical industry’s supply chain system performs. The thesis aims to achieve this purpose by examining the transportation, outsourcing, logistics management, and government regulations, and how these factors influence the efficiency and effectiveness of the pharmaceutical industry of Pakistan. In particular, the paper provides insights into the performance related practices used in the Pakistani pharmaceutical industry. Consequently, it points out the need for more research aimed at capturing dynamics and specific operational characteristics of local networks for development and improvement. Further, by denoting the relationship between system practices and SCM ...

Introduction

The objective of this report is to perform the financial analysis of Next PLC and its competitor firm, Debenhams PLC. While both the stocks are listed on the London Stock Exchange(LSE), however, the report is solely attributed to uncover the fundamental analysis using the tool of financial ratios. Here, the attempt will be made using necessary ratios delineating profitability, efficiency, liquidity and gearing position of both the firms over the period of the past two years. The report shall finally be culminated discussing whether there is an improvement in the overall performance of each firm along with the ...

Improving the Operating Strategy of Marriott

Improving the Operating Strategy of Marriott The purpose of the report is to develop a recommendation for improving a company’s current strategy in order to remain sustainable in a highly competitive economic environment. The recommendation will be based on an analysis of both the external and internal factors that affects the company. This includes both qualitative and quantitative factors since the report is segregated into (1) environmental scan and risk analysis, (2) ratio analysis, (3) financial statement analysis, (4) weighted average cost of capital, and a (5) strategy development. The company chosen to be analyzed is Marriott International, ...

BUSINESS – COMPARATIVE ANALYSIS OF THE PROFITABILITY OF ETIHAD AIRWAYS IN 2013 AND 2014

Introduction This proposal will discuss the research topic, questions, and objectives. It will also include the methodology of the research, and the work plan which is designed to guide and track the organization of the research.

Research Question and Objectives

Comparative analysis of the profitability of Etihad Airways in 2013 and 2014 using profit margin ratio and working capital ratio; Purpose and Significance Etihad Airways is considered to be the fastest growing carrier in the history of commercial aviation . From that, we were motivated to prepare a comparative analysis of the profitability of Etihad Airways between 2013 and 2014. The research is expected ...

Research Paper

The research paper is designed to analyze the impact of Saudi 2030 initiatives and the current working capital practices on the financial performance of the companies in the retail sector of Saudi Arabia. Rather than relying on the secondary data, which was partially available only for multiples related to the working capital of the companies, we designed the entire research study using the cross-sectional layout. As part of this research method, a questionnaire, designed in consultation with the experts, was used. The questionnaire was categorized in two categories where responses related to qualitative aspects and quantitative aspects were recorded ...

Introduction

The vision 2030 for Saudi was designed to improve the local and the international position of the country along economic, social, political, and the peoples` dimensions. The plan was designed along three critical aspects that encompass the social, economic, people, and the political position. The three pillars that founded the plan were the vibrant society, ambitious nation, and the thriving economy. Along the vibrant society, the model focused on tapping the nation`s strong roots through the blending and optimizing on the natural resources and the community`s cultural heritages. The plan focused on developing and promoting fulfilling lives ...

The FA

The FA i.e. The Football Association refers to the English football’s governing body, which was established in 1863. Ebenezer Morley is considered the father of The Association. The activities of the company include overseeing, promotion and development of the game at different levels like The FA Cup and England International Teams. The activities also include broadcast and media rights, sponsorship, licensing, merchandising along with sales of tickets (The Bloomberg, 2017).

Financial Position of the FA

Current position with respect to financials of the company as on 31st July 2015 provided an overview of that the company is continuously striving to generate commercial revenues ...

Foing-nova is an IT company located in Varaždin, Croatia, which provides software for users of the state budget. However, Foing-nova remains a small business despite recently changing its location and expanding its headquarters. After consulting RajkoTomiek, who is the CEO of Foing-nova, it was clearly understood that the most suitable method of company’s expansion would be to increase their market share. Although, Foing-nova is expected to gain new customers by entering a new market and thus become more profitable. However, a strategy must be put in place to ease the diversification of the company and to ensure ...

Introduction

This study analyzes the financial performance of Sports Direct Company in the last three years (2013, 2014, and 2015). However, to determine the company performance, the paper will further conduct an internal and external analysis of the company. Some of the significant tools that are used in the analysis include profitability, asset efficiency and market ratios among other important attributes. Sports Direct Plc is a UK based company that engages in the retail of sports and leisure clothing, footwear among other significant attributes like sports equipment. According to the 2015 annual report, it was noted that the firm’s ...

out from the fitted line. Now, tliers that spreads out from the fitted line. Now, in R&D with the symbol s

Executive Summary SunEdison is a renewable energy company. Its revenue comes from semiconductor wafer manufacturing, solar energy business and TerraForm Power (wind power and global business). The company has recently filed for bankruptcy due to poor operational performance and its inability to serve its $11 billion debt. Luckily for the company, first and second lien holders have provided the required capital to continue operation. Overall, the renewable energy market is growing at a very high rate. However, due ...

Introduction

Capital budget analysis refers to the process through which the way a firm invests capital in projects that result in cash flows over a period of more than one year. The analysis is built on the assumption that the firm depends on the specific project or projects under analysis in order to operate and consequently, it becomes important to test whether or not the projects being considered would be viable. Notably, capital budget analysis comes with several assumptions including the estimations of cash flows from the specific project as well as the assumption on the state of the economy ...

Health organizations have different ways of implementing a specific approach to the management of working capital. Despite the differences in approaches, the aim of each organization is to have a positive working capital so as to meet its short-term obligations within the shortest time possible. This paper is going to analyze the working capital of the Saint Peter’s University Hospital in the United States, the factors that impact it, and if it is sufficient for day-to-day operations of the organization. Computation of working capital is based on the current assets and liabilities of a particular organization (Zelman, McCue, ...

Abstract

The above paper appreciates the fact that most organizations go through difficult economic times and require effective working capital management. Moreover, the study recognizes the fact that inefficient management of the same has adverse effects on the financial performance of the business. Therefore, financial managers have an obligation to maintain a balance in liquidity as one approach to enhance the profitability of the firm. To achieve the study objective, the paper utilizes an efficient research design, which is believed to assist the business in achieving its set purpose. The study seeks to use data from three companies (Coca-Cola, Barclays ...

Abstract

A patient survey at a community hospital in which I serve as the chief financial officer indicated the need for a commercial 24-hour pharmacy within the hospital. The pharmacy would ensure that patients and families fill prescriptions and begin taking prescribed medicines as and when ordered instead of waiting for the following day. In response to the findings of the survey, this paper seeks to look into the viability of the business. Herein provided is the proposal for the first three months of operations. The paper also looks into the financial implications of the proposed project by looking into ...

Ganesan (2007, p.1) defined working capital management as a company’s best strategy for its continued sustainability since it uses short-term financing strategies to fund everyday operations (Ajibolade and Sankay, 2013, p.233). The pecking order theory believes that internal financing is the best alternative but it can result to conflicts between corporate liquidity and profitability (Ajibolade and Sankay, 2013, p.234). The reason for this is that the company’s internal funding may not be enough to fund the period between the purchase of inventories or raw materials until the collection of receivables (Gill, Biger, and Mathur, 2010, p.1). Having ...

Business Plan for a Proposed Three Star Category Hotel in Auckland

Business Plan for a Proposed Three Star Category Hotel in Auckland

Executive Summary

The present paper proposes analyses and presents a business venture in the form of a 3 star category 70 room hotel Business. The business is projected as low cost and high value proposition to the mid to upper scale business and leisure clients. It is found that the business is capable of recovering its 5 year working capital costs within a span of 2 years and 2 months thus an early operational breakeven is likely. Annual revenue of $1,609,650 at 70% occupancy and $90 ADR (Average ...

Keurig Green Mountain was founded in 1981 as best coffee and coffeemaker company in the United States of America, initially named as green mountain coffee roasters. It specializes in making best beverages imaginable at homes and workplaces. The company contributes a prominent market share in the coffee industry. The paper highlights the financial department of Keurig Green Mountain and focuses on the assets, liabilities, annual income statements, inventories, stocks, and other financial related concepts. The income statement of Keurig Green Mountain indicates that company is performing well for past few years. The revenues generated by the company are the ...

Referring to the ratio multiples of the company, we found that CanGo is in a very strong position to take up the new projects. Beginning with the working capital analysis, the company is having the current ratio of 5.39 and quick ratio of 4.53, which confirms the strong liquidity position and the ability to handle short-term liquidity requirements. Important to note, even the working capital amount of $164.5 million also confirms strong liquidity position of the company. Moreover, the existing net profitability , which is recorded at 10.97%, also confirms that the company is utilizing its available resources and assets ...

Performance Measurement

Asset Utilization Revenue generation by each employee is perceived to be better for Boeing at $595,501.86, which may be due to a better employee retention policy. This was concurred by Boeing’s annual report where it revealed that the management has good relations with its employees since 38% are represented by unions (Boeing, 2016, p.20) with Lockheed at 18% (Lockheed, 2016, p.18). Due to the better employee retention, Boeing was able to generate a higher amount of sales based on its investor’s capital or equity at 15.02 but Lockheed was not lagging far behind at 14.90. The ...

Introduction to PepsiCo Incorporated

PepsiCo is an American multinational company having its origin in the United States. The company is a market leader in the global beverage industry. The biggest and worldwide competitor to PepsiCo is the Coca-Cola Company. PepsiCo serves the worldwide market and gain access to audience by mainly sponsoring sports events, players and teams.

Pro-Forma Financial Statements of PepsiCo Incorporated for 2016 (the next period)

This section is aimed at displaying the financial statements of PepsiCo for the next financial accounting period (2016) as well as the last statements for 2015. The pro-forma income statement and balance sheet are prepared by assuming a ten percent increase in sales revenue and cost ...

Executive Summary . 3-4

History .. 4-5

Strategic Elements 5-6

Critical Events .. 6-7

Leadership 7-8

Mission and Vision Statement . 8-9 External Assessment 9-13 Analysis of Competitive Position 13 Internal Assessment . 13-17 Current Strategy 18 SWOT Analysis 18-21 BCG Matrix . 21-23 IE Matrix .. 24-25

Possible Strategic Alternatives 25-26

Evaluation of Current Organizational Structure .. 25 Recommendation Changes .. 25-26

Situational Analysis . 26-29

New Turnaround Objective .. 29

Proposed Measures . 29-31

Funding this Turnaround Effort 32-33 Financial Projections 33-34 Conclusion 34

References 35-36

Sears Holdings Corporation Executive Summary Sears Holdings is a major brick-and-mortar retailer in both the United States and Canada. As such, it sells a wide variety of products, including appliances, consumer electronics, apparel, tools, sporting equipment and ...

How international finance affects Apple?

Needless to say, Apple Inc. is one of the world’s most profit making multinational company and has its target market segment spread across the world, serving consumers with its wide range of computer electronics, computer software, and online services. Hence, international finance plays a crucial role in shaping the financial position of Apple Inc. in the global market. The impact of international finance on Apple Inc. can be easily justified by the fact that the company is the second biggest brand worldwide in terms of its market share in the smartphone category. As a result, the performance of ...

“The finance industry is multifaceted, offering a variety of positions catering to a number of different skills and interests” (Kochanek). Finance is a lucrative career option and includes several opportunities in the field of commercial banking, corporate finance, investment banking, mutual and hedge funds, financial planning, management consultancy, insurance, equity management, money management, real estate, valuation analysis and the like. The scope of the subject also includes the study of financial data and the analysis of financial determinants that affect the economic health of securities, companies, capital markets and countries alike. Job opportunities in the Commercial banking sector are ...

Compass Group plc

Compass Group plc is a multinational company dealing with contract food service, support management, cleaning management and property management. It is a British multinational company with headquarter located in the compass house along Chertsey Surrey. Compass Group Company is the largest contract food service organization in the world. The company operates in more than fifty countries across the entire world. The company offers different food services in different locations and institutions such as the hospitals, cultural venues, offshore oil platforms, major sports, schools, offices, mining camps and various universities. The company has several shares and is very active in ...

Working capital is a measure of liquidity. Through working capital measurement, one is able to ascertain a company’s both financial health and short-term efficiency. Working Capital is calculated by subtracting the organization's current liabilities from its current assets. Also known as the working capital this ratio is able to portray the ability of a company to cover its short-term debts. The working capital can be a positive or a negative number; a positive number indicates good financial health and the company can adequately cover its short-term obligations while a negative figure indicates that the company is struggling to ...

Abstract

The financial accounting requires management of different accounts related to assets, liabilities, and equity. On the asset side, it could be noted that all companies report current and non-current assets. Managing of current assets is crucial in the short term as they affect the company’s operations. Companies need to have sufficient working capital to avoid disruptions in their routine operations. Too much or too less working capital both have implications for businesses. Therefore, it is important for companies to have an optimal level of working capital that could help them manage their operations efficiently and effectively. From the ...

Introduction

Restaurant industry involves high-risk business operations. Almost everywhere around the world, restaurants face a high level of local and global competition. It is difficult to establish a restaurant business that differs distinctly from its competitors. According to several research studies, about 60% restaurant businesses shut down within the first year of operation. The restaurant industry has the second-lowest rate of success only behind technology startups. There are many problems and issues faced by restaurant operations. Often ignoring these problems aggravates the situation leading to the closedown of the restaurant business. Five most common problems faced by restaurateurs are an ...

Evaluation of Corporate Performance: Apple Inc.

Apple, Inc. is a U.S. based company that has its registered office in Cupertino, California. The company has a long history of innovative progression and it will not be wrong to state that the company has changed the ways of telecommunication. It has opened up new arenas of technology development and competition between electronic companies has become fierce in the last 15 years or so due to the company’s ability to develop new and unique products. The company sells computers, laptops, hard drives, tablets, music accessories, phones, etc. The company has its own operating system that runs on ...

Working Capital Guarantee Program

Working Capital Guarantee Program allows the exporters to unlock or overcome any working capital hindrance before the shipment of their consignment. Important to note, while the entire program is operated by the commercial lenders, it is backed by Export-Import Bank’s guarantee. This business friendly program allows the exporters to purchase raw materials, suppliers or equipment to fulfill the export orders committed by them. In addition, the funds obtained can be used for positing bids and performance bonds. Many commercial banks have now expanded the authorized channelizing of the funds obtained under the program for the issuance of standy ...

Part one solution

Ford Motor Company is an American multinational company that manufactures and sells automobiles, and recently it indulged in the production of motorcycle engines. A general environment refers to the elements existing within the society which impacts organizations and firms that operate within a given industrial segment. These elements cannot be directly curbed by the management of a company. Global segments, technological, sociocultural, legal, political, and demographic segments make up the general environment. The demographic part represents the population characteristics of a given geographical area, province, as well as a nation in the world. Also, the segment is inclusive of ...

Five Below, Inc. is a retail chain belonging to the specialty retail industry which was incorporated in Pennsylvania, USA in 2002. It offers “dynamic, edited assortment of exciting products, all priced at $5 and below, including select brands and licensed merchandise” ("Overview | Fivebelow"). Five Below’s products range from sports equipments, styling merchandise, small décor items, craft works to candies and party items. It largely targets customers who are teenagers or pre-teens. Since the company’s inception, it has expanded its business to almost all regions of the United States and has been successful in opening more than ...

Butler Lumber Co.

Reason for borrowing fund for the profitable business Even though the company is profitable, Butler is looking for the funds from the market to meet the capital needs. The company operation is increasing and the company needs to support its operating activities. In addition to this, the company must hold sufficient cash to provide flexibility in the company as well as for the consolidation of the outstanding debt; Butler is seeking for the funds from the market. The careful evaluation of business shows that the company is expanding its business and there is the need of funds to meet ...

Abstract

Financial analysis is an essential tool in the hands of the manager, as it is with its help the decisions related to the company’s finances are taken. Without the analysis and grounds for making such management decisions, the firm cannot achieve the desired level of income, or the lack of financial settlement will lead the company to bankruptcy. The purpose of the assignment was to perform financial analysis of a company listed on the Bursa Malaysia. Dominant Enterprise Berhad was chosen for the completion. The Malaysia-located company turned into public listed organization with thirteen subsidiaries, operating on production ...

I. 1. Alpha Corporation’s major sources of cash from 1989- 1991 were proceeds from cash from operations, disposal of obsolete assets, proceeds from disposing of discontinued operations, sale of common stock and proceeds from raising long term debt. Its major uses of cash were purchases of fixed assets, capitalized software and treasury stock, re-payment of long term debt and payment of dividend. Major sources of cash for Beta Corporation were cash received from customers and proceeds from issue of common stock. The major uses were purchase of marketable securities and other capital expenditures, re-payment of subordinated debt and ...

Company Overview

Myer Company was founded by Sidney Myer, who will be remembered in a long as one of Australia’s great philanthropists as well as a retail visionary. He welcomed customers to his incredible department stores, giving them international class merchandise and services. Currently, Myer Company remains to be the favorite department store in Australia. It has continued to uphold its legacy. Myer Company has been the largest Australia department store offering stylish and fashionable items for more than 100 years. Since its foundation, Myer has been a significant employer and has a great history of local community involvement and ...

INVESTMENT APPRAISSAL

The project would generate total profits of $4,431 The project would generate a positive NPV of $2,569. A key difference between the profits and cash flows is that depreciation is deducted in arriving at profits while it is ignored in calculating cash flows. The incremental working capital is the relevant cash flows associated with working capital. Increases in working capital represent a cash outflows and decreases in the working capital represents a cash inflow. The working capital cash flows are calculated as follows: The internal rate of return (IRR) is the discount rate that would equate the ...

Evaluation of franchise investment

The franchise investment project is evaluated based on the net present value and the internal rate of returns. The available information is used to determine the NPV and IRR of Schneller Zug and Kyuko Densha. The two measures are used to assess whether each project is viable. NPV and IRR also help in choosing the better project between the two. NPV and IRR are determined using the cost of capital for Javelin Railway Co.

Determination of the cost of capital

The cost of capital is the return investors require from investment to secure funding. It is the minimum return projects must generate to be funded ...

Stock Analysis: Macy’s

About the report The report comprehensively discusses the discounted cash flow model and related assumptions used for calculating the intrinsic value of Macy’s stock. Since the objective of this report is to frame a prudent investment recommendation, we will also discuss the industry reports to forecast the future potential of the stock.

About the company

Founded in the year 1830, Macy’s is the largest department stores in the United States. The company has relied on multiple acquisitions over the years and has now united a conglomerate of regional brands under its flagship brands of Macy’s and Bloomingdale. Being one ...

Abstract

Managing small businesses is a complex undertaking that requires skills and perseverance. This is based on the understanding the small businesses face some challenges that are unique. Some of the key issues include limited access to funds, limited access to professional skills, and overdependence on the family. The small business managers also complain of long working hours and the need to be present in the running of the business. They also lack perpetual existence, which further complicates the succession politics. The owner has to constantly worry about how the business will perform if he or she dies. This paper ...

Strategic Business Plan Part I and Part II

Paper Due Date Strengths, Weaknesses, Threats & Opportunities This strategic plan addresses the following key strengths, weaknesses, threats and opportunities which apply to Digital Queue now and in the foreseeable future:

Vision

The promoters' vision of Digital Queue in 3-4 year's time is: Mission Statement The central purpose and role of Digital Queue is defined as: Corporate Values The corporate values governing Digital Queue's development will include the following: Honesty and transparency. Working together with all the partners across the business. Develop our business as part of community. Innovative organizational culture. People are our major asset. Business Objectives Longer term business ...

Inventory Management

Introduction

Throughout its operations, ABC faced the challenge of stock-outs in certain inventory. This refers to circumstances when the company would run out of important inventory, thereby turning the buyers away when they needed certain products. This problem was mostly witnessed among the inventory that would later be classified as under category A. Initially, ABC did not have a system of setting preference as to which products to be closely monitored or to be given priority over others. Commodities under A proved to flow easily. Simply put, their demand was overpowering the supply. With the past inventory management methods, ...

Business Plan

Executive Summary 3 1.0 Introduction 4 2.0 Operations plan 5 2.1 Location and facilities 5 2.2 Business processes 6 2.3 Distribution and outsourcing 9 3.0 Organizational plan 10 3.1 Management 11 3.2 Mission 12 3.3 Purpose 13 3.4 Vision 13 3.5 Legal structure 13 3.6 Organizational chart 14 4.0 Marketing plan 16 4.1 Price 16 4.2 Product 17 4.3 Place 19 4.4 Promotion 20 5.0 Financial plan 21 6.0 Growth plan 22 7.0 Contingency and harvest strategy 23 8.0 Timeline to launch the plan 25 9.0 References 28 10.0 Appendices 29

Executive summary

Don’t we all enjoy the experience of ...

Inventory Management

Inventory Management: ABC There are several possible reasons as to why ABC revamped its inventory management methods. These may include Past ABC records reveal that stockouts were common phenomena in the operations of the business. Often, the company would run into a shortage of its products. Simply put, the demand for the products would, in certain cases, overpower the supply. This would mean that ABC had no other option, it had to turn away its customers. This is a risk venture. In any business, customers play a significant role. They bring money to the business. Stockouts bring an undesired ...

**Business 4465**

Be sure to put your name and student number at the top of the email attachment. Your document must be less than 10 typed pages. Please read the questions carefully. Write all you answers in a word document, label all questions carefully. The best answers are those that answer the questions well and concisely using material within the scope of the course and not irrelevant material from other sources or from the internet. Answers that are beyond the scope of the course will receive no marks. Answers that are not written in the own words of a ...

Part One

Risk There is no standard way to define risks. However, one of the definitions of risk is the probability that the return on an investment will be lower than the expected return (Business Dictionary, n.d.). Examples of risk include business risk, transactional risks and exchange rate risk.

Beta

Beta is a measure of systematic risk of a stock. The value measures the volatility of the stock compared to the volatility of the market (Forbes, n.d.). The value of Beta can be either positive or negative while the beta value of the market is always one. As such, in interpreting the ...

Darden Restaurants, Inc. is an American restaurant consisting of various brands whose headquarter is located in Orlando. The company operates several brands in the United States including Olive Garden, Bahama Breeze, LongHorn Steakhouse, Season 52, Wildfish Seafood Grille, The Capital Grill, Eddie V’s Prime Seafood, and Yard House. The company used to own Red Lobster up until the year 2014 where the business changed hands. Darden had 1534 create and restaurants locations owned and operated by the company and spread in both the United States and Canada. All the restaurants were owned and managed by the firm with ...

Results and Literature Review

Slavec & Prodan (2012) found out that the strength of an entrepreneur’s social links is a significant factor in financing choice. The bigger the strong-tie network, the less the need for seeking finances to offset debts as the strong ties the entrepreneur has will enable him or her assemble the necessary financial resources. A majority of the respondents indicated that they have strong social ties with family members, financial institutions, accountants and friends whom they play an important role in supplementing the start-up and working capital of their business. This is in line with Slavec & Prodan’s research on ...

Question 1: What is Cineplex’s Altman Z-Score for 2013 and 2014?

Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

Where:

X1 = Net Working Capital/Total Assets (it measures liquidity) X2 = Retained Earnings/Total Assets (it measures the cumulative profitability) X3 = Earnings before Interest and Tax/Total Assets (it measures the return on assets) X4 = Equity Market Value/Book Value of Liabilities (it measures the market leverage) X5 = Total Revenue/Assets (It measures the revenue generating potential of total assets) X1 = Net Working Capital/Total Assets = -184,021/1,609,416 = -0.11 X2 = Retained Earnings/Total Assets = -123,771 / 1,609,416 = -0.08 X3 = Earnings before Interest and Tax/Total Assets = (97,415 + 21,948) / 1,609,416 = 0.07 X4 = Equity ...

Analysis of LaSalle Hotel Properties

Introduction: Importance of ratio analysis Financial ratios are important in analysing the financial performance of an organization. The financial performance is a key factor in the management of the organization. Financial ratios simplify the financial statements such as the income statement hence managers can easily determine whether the organization is profitable or not. For instance, profitability ratios such as the net profit margin indicate whether the organization is profitable or not. Managers can then identify areas of weaknesses and take corrective actions to improve the profitability of the organization. They are also used to assess the liquidity of an ...