Profit XXXXX XXX = (XXXXX – cost XX XXXXX sold- XXXXXX & XXXXXXXXXXXX- XXXXXXXX- XXX)
What are XXXXXX A’s XXXXXXX per XXXXX XXX dividends XXX share for XXXX XXXX shown in XXXXX 1 & 2?
XXXXXX X XXXXXX XXXX XXXXXX
1993
XXXX
1995
Earnings XXX XXXXX
$ X.XX
$ 2.XX
$ 4.XX
$ X.49
Dividends per XXXXX
$ X.50
$ 1.XX
$ 1.70
$ (0.42)
Earnings XXX XXXXX: XXX XXXXXX
Shares XXXXXXXXXXX (XXX,000)
XXXXXXXXX XXX Share: (XXXXXX Stock + Net XXXXXX –Retained XXXXXXX)
Shares XXXXXXXXXXX (120,000)
XXXXXXXXX XXXX financial XXXXXX XXX the XXXXXXX XXX XXX XXXX X XXXXX XXXXX.
XXXXXX X Office Mart XXXXXX
1994
XXXXXX XXXXXX
11.XX&XX;#/span###
X.93>#/span###
10.24&XX;#/span###
8.97&XX;#/span###
Current XXXXX
X.XX
4.68
X.13
X.74
XXXXX XXXXX
X.16
X.82
XXXXXXXXX XXXXXXXX
4
4.06379576
3.110156617
3.457800712
X. XXXXXXXXXX XXXXXX
X.095
X.XXXXXX
X.250784
1.XXXXXX
XXXXXX XXXXXX = Net Income XXXXXXX Ratio = XXXXXXX XXXXXX
Sales XXXXXXX Liabilities
Quick Ratio = XXXXXXX XXXXXX – XXXXXXXXXXX
XXXXXXX Liabilities
Inventory Turnover = Sales
Inventory
XXXXXXXXXXX XXXXXXXXXX XXXXXX = (Account XXXXXXXXXXX / XXXXX) * 365 (XXX XXXX XXXX)
Note: Receivables Collection XXXXXX for XXXX XXXX XXX on =
(XXXX Year’s XXXXXXX Receivables + Current XXXXXXX XXXXXXXXXXX) * 365 / Sales
2
XXXX: I’m using 365 day XXXXXXXX XXXX for simplicity.
XX the Case study there are XXXX XXXXXXXXX that XX hand to XXXX:
XX Triple A a good short term borrowing client XXX the bank? & is XXX XXXX XXXX XXXXXX XX XXXXXXXXX more XXXX-XXXX borrowing XXX the XXXX or provide XXXXX term funding? XXXX would happen XX the XXXXX XXXXXX slowed to XXXX XXX present rate XXXXXXXX to external funding?
XXXXXX X is a XXXX short term borrowing XXXXXX XXXXXXX it XXX proved it can XXXXXXX XXXX XXXX XXXXXXXXXXX XXX XXXXX on XXX XXXXXXXXXX period XXXX XXX able to XXXXXXX XXXXX cash fairly XXXXXXX, however their XXXXXXXX in their XXXXXXXXX turnover its XXXXX XX concern XXXX XXXX that XXXXXX A XX holding on to their inventory XXXXXX XXXX expected. I XXXXXXXXXX XXXXXX on XXXXXX, return on XXXXX XXX the XXXX XXXXX XXXXXXX I XXXXX it gives XXXXX XXXXXXX of how profitable Triple X is relative XX XXX XXXXXX. Even XXXXXX XXXXXX X had a return XX equity XX 40% on1993, its XXX XXX decreased XXXX XXX XXXX three years XXX their Return XX Asset XXXXXXXXXXXX suggest that the performance XX XXX XXXXXXX has XXXX decreased, XXXX XXXX XXXX said XXX all the other XXXXXX XXXXXXXXXX we XXX XXX XXXX Triple A XX XXXXXX XXXX liquidity problems. I consider that XXXXXX X XXXXX XX a XXXXX-XXXX funding XXXXXX XXX if sales XXXXXX XXXXXX down so XXXX XXXXX XXXXXXXXX performance in which XXXX the XXXX XXXXX have XX XXXX XXX loan XX XXXXXXX XXX XXXXXX losses.
XXXXXXXXXX of inventory control XXX XXXXXXXX receivable XXXXXXXXXX XXXXXX.
For a company XXXX as XXXXXX A XXXX is XXXXXXX dealing XXXX XXXXXX inventory it is XXXXXXXXX XX keep an XXXXXXXXX control XXXXXXX:
Account XXXXXXXXXX XXXXXXXXXX XXXXXXXX are important XXXXXXX they XXXX management to XXXXXXX operating XXXXXX resulting from customer’s XXXXXXXX. Collection policies can allow XXXXXXXXX XX XXXXXXX receivables XXXX XXXXXXXXX XX they don’t pay by XXX XXX date.
XXXX XXXXXX would you XXXX XXXXXX A XXXXXXXXXX its debt ratio it XXX typical XXXX has a debt XXXXX XX XX%?
XXXX Ratio
XX.05>#/span###
18.XX>#/span###
XX.XX>#/span###
12.XX>#/span###
XXXXXX X debt ratio is XXXX their total debt XXXXXXXX XX XXXXX total XXXXXXX assets makes Triple X’s XXXXX not be so XXXX.
XX. RESULTS & CONCLUSIONS
I XXXXXXXXX the results of XX analysis
Triple A Office Mart XXXXXX
Return on Equity
XX&XX;#/span###
XX.XX&XX;#/span###
XXXXXX XX Asset
25.65&XX;#/span###
20.18>#/span###
XX.05&XX;#/span###
13.XX&XX;#/span###
XX.55&XX;#/span###
Avg. Growth Rate
-
X.XX>#/span###
7.72>#/span###
XXXXXX XXXXX XXX
$ XXX,XXX
$ XXX,954
$ XXX,454
$ 4.49
XXXXXXXXX XXX XXXXX
$ 4.50
$ X.70
$ (X.XX)
Profit XXXXXX
XX.52>#/span###
8.XX&XX;#/span###
3.XX
3.13
1.XX
0.64
0.82
XXXXXXXXX Turnover
X.457800712
XXXXXX:
X. RECOMMENDATIONS
I recommend XXX XXXXXXXXX XXXXXXX for XXXXXX A Office XXXX