Case Study Of Ajinomoto (Malaysia) Berhad

Inventory Turnover Ratio Debt to Equity Ratio Current Ratio Net Profit

Because Lowes has a very high inventory level, the quick ratio is pretty useless. Their current ratio is good for the industry, but behind the market. These statistics show that Lowes is in a strong financial position. As far as efficiency is concerned, Lowes productivity from net income and revenue is less than the market but higher than their industry. This shows they still have a bit of room for improvement in their productivity to match the market.

Liquidity Ratios……………………………………………….4 4.1.2. Gearing…………………………... ………………………….. 5 4.1.3. Profitability…………......………………………. ……………5 4.2

Ratio Analysis: Liquidity Analyzing liquidity ratios determines whether or not a corporation has enough assets to cover it’s short term liabilities. Although Gemini Electronics’ current ratio is below industry average, in general, a company a 2:1 ratio of assets to liabilities indicates that a company is in good standing to pay off it’s short term liabilities. Although this is the general rule of thumb, we need to analyze what comprises Gemini Electronics’ current assets portfolio. Upon analyzing, we can see that: • Out of the total $1,267,311,420 of current assets in 2009, approximately 50% of it was tied into inventory accounts • Out of the total $3,162,140,833 current assets in 2008, approximately 51% of it was tied into inventory account

Current ratio enables us to examine the liquidity of the business by equating the amount of current assets to current liabilities. Although current ratio fluctuates from industry to industry, is preferred to have at least one dollar of current assets for every dollar of current liabilities. Kohl's has the advantage over J.C Penney, as Kohl's current ratio is 1.87 in comparison to J.C. Penney?s ratio of 1.67. Kohl?s Corporation can pay all of its current liability and still have a positive working capital better than J.C.

This is an important market law, and thanks to that law we have a wide range of goods in the shops In this essay, based on the chapters 2nd and 4th of the book “What the Dog Saw”, I will explain some examples and ideas about the competition, emphasizing the importance of differentiation, of advertising, of brands and the importance to introduce new commodity in the market; analyzing the methods used by companies. Indeed in these chapters the author explain some examples used by different companies and different protagonists. So in the 2nd chapter the author talk about the difference between mustard and ketchup. He explain why today we have only one quality of ketchup, and many qualities of mustard.

To increase the production, they built more production facility in Finland and also went into join venture with companies in France, Chile and US. Johnson & Johnson using their McNeil production group proposed production, promotion and distribution strategy. McNeil would purchase stanol ester exclusively from Raisio, make products then promote and send these to the market. They budgeted over $80million for promotional expenses. Their agreement covered 2 other item concerning payments that would be made to Raisio.

Cash Ratio measures the cash available to the company in order to satisfy its short-term liabilities. Cash ratio of at least .5 is better because there are very few companies that actually have enough cash to cover their current liabilities. The cash ratio is the most conservative look at a company’s liquidity since it only looks at the cash. This ratio is an indication of a company’s creditworthiness and is used to decide how much credit should be extended to the company. In the case of Newmont it has a ratio of 1.96 which is a good indication that the company would be worthy of a loan from creditors.

The organization inventory turnover ratio show that the company is selling their products in a short matter of time, showing an increasingly positive cash flow, depicting the picture of growth and opportunities. The inventory

Therefore, in order to make the company a more interesting option in the financing market, there are several approaches that the company can follow to offer higher equity, such as increasing net income, increasing retained earnings, and increasing shares outstanding. Shareholders’ equity is the sum of three balance sheet line items: the common stock account, retained earnings and capital contributions. Whereas the common stock account reflects the par value of outstanding shares, capital contributions are the assets contributed by shareholders subsequent to the original stock issuance. As revenues increase, all other things being equal, net income increases. As net income increases, retained earnings increase by the amount of the net income less any cash dividends that are paid.

This makes the total contribution margin per machine hour for Product N $5.00. Based on this information the contribution margin per machine hour, Product M should be produced. Because the company has maximum capacity of 24,000 machine house and can sell all the products it produces, Product M will increase profits by $144,000 (for example $6 x 24,000 hours) where Product N can only increase profits by $120,000 (for example $5 x 24,000

A debt ratio of more than 1 indicates that a company has more debt than assets. Also, a debt ratio of less than 1 indicates that a company has more assets than debt. The results confirm that American has more assets than debt and investors can determine the company’s level of risk. Basically, American has more money coming in than the debt

The business outlook at Tesla Motors, Inc. (TSLA) is intriguing. While the electric vehicle manufacturer has reported operating losses in every year since its IPO, the company has certainly been exciting auto enthusiasts. Much of the recent interest in the company is due to the introduction of its lower-priced Model 3, a car that could boost the auto maker’s production output by five or even tenfold in the coming years. As an investment, Tesla is an interesting selection, as well.

Shareholders would generally approve of this ratio, as the more money that is being invested in the company (we can see that our inventory turnover and quantity of inventory have both increased in 2014),

The Debt to Equity ratio can be described as the total liabilities divided by the stockholder’s equity. This type of ratio is used to measure a company’s financial leverage and it indicates how much debt a company is using to finance its assets relative to the amount of value represented in the shareholder’s equity. The company experienced a significant change in its leverage ratio over the past two consecutive years. The leverage ratio for the Boston Beer Company Inc. decreased from 34.6% to 25.3%. This ratio is servers as a measure of a company’s ability to repay its obligations.