It has seen a slight decrease in structure of capital from 74.87% in 2014 to 72.72% in 2015, and long-term liability equal about almost triple of equity. Total liability make up about 83% of total asset and this percent exceeds the industry norm (60%). Furthermore, if the gearing ratio continues to increase means the risk of insolvency will be higher. Financial leverage ratio has dropped from 3.66:1 in 2014 to 3.98:1 in 2015, which leads to a lower inherent risk in a change in return on equity. While a lower financial leverage ratio reduces the return on equity.
Return on asset gives an idea as to how efficiently company is to generate revenue by using assets. Comparing the ratios, it is obvious that return on asset declined over these years. In 2010, the ROA was 7.07% indicating that every dollar in asset generated about seven cents in profit, which is reletive high compared to that in 2013 where every dollar in asset gererated 0.75 cent. Return on equity generally measures that the amount of profit generate relevant with how much shareholders invest. Amazon had a lower ROE in year 2013 compared to year 2010, which illustrated that every dollar shareholders invested generated lower net income.
The 0.4% decline in Gross Profit margin between year 8 and 7 signifies that there was a proportional increase the amount of sales revenue that was taken up by the cost of sales. As a result, it is in order to state that there was a proportional decline of the gross profit by 0.4% of the total sales revenue and an increase in cost of sales by 0.4%. The total selling expenses in relation to sales remained constant over the three years.
Balance Sheet Analysis Applebee’s International 2004 In analyzing the common-size balance sheet for Applebee’s, it is noted that the total current assets has jumped from 11% to 14% of the total assets. The total assets for Applebee’s has jumped 6% from 2000 to 2001 driven by increased in the total current assets of 28%. Of those 28% increase, they consisted of 88% increase in the Cash & Equivalents (increased of $10.6 millions) caused by the decreased in the Capital Stock repurchasing in 2001 by Applebee’s. The repurchase of capital stock has decreased by 31% as noted from the year-to-year percentage changes of the Statement of Cash Flow which equivalent to about $11 million dollars. The other current assets increased was from the other Current Assets category; there was an increase of 92% from 2000 to 2001.
Costco’s return on assets has had steady growth, though it fell 8.45% this year. Costco’s inventory turnover strategies are apparent; its ratio is 50% higher than Wal-Mart’s. Costco’s return on equity, though growing, is seeing a sharp decline in growth rate. Costco’s return on assets ratio also has had steady growth, but declined this past year. Lastly, earnings per share is also seeing a sharp decline in growth.
The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %. Activity: The inventory turnover is almost half compared to the industry average, although it managed to increase by 0.3 compared to 2002. The company needs to maintain a constant cost of goods sold and at the same time manage inventory more efficiently to maintain market competitiveness. The average collection period also increased slightly to 58 days, three days increase compared to 2002. The company needs to negotiate or persuade on efficient payment methods to customers to decrease the collection period down to industry average.
From 3.56 in 2001 to 3.76 in 2002 to 4.17 in 2003. The reason of grow is constant increase in Current Assets. Cash ratio – Big drop (from .35 to .087) in year 2002. In 2003 the rate grew from .087 to .460. The reason of drop in 2002 is decreased in Cash and big increase in Liabilities.
Domestic wage rates during 1991-95 rose about 11%, on average or about 5% increase in real wages per year, cited as the key factor in the slowdown in growth of labor intensive exports. The real effective exchange rate of the baht is estimated to have appreciated by about 15% during 1995-97, primarily because of the linkage to the US$, which appreciated against the yen. While the above factors suggest that Thailand was losing its edge in low cost, labor intensive exports, these are at best partial explanations for the overall decline in export performance.
From 2005-2014 Cabela’s AR turnover ratio has increased 154.89%, largely due to their expansion over the 10 year period. Cabela’s Days Sales Outstanding ratio has seen a large decrease over the 10 year period. From 2005-2014 their DSO ratio has decreased 60%, meaning that Cabela’s now collects revenue from its sales at a much faster rate. Cabela’s AR change to overall sales change ratio saw
It is calculated as: Total assets divide by total equity. As equity multiplier calculates leverage, the higher EM indicates that a bigger portion of asset financing is being used through debt. The smaller amount of equity multiplier is better, because it spends less money to fund an asset. As we can see on the tables, the EM of Citi Group was 12.161 times in 2009 and 11.706 times in 2015 respectively, it had decreased by 0.455 times due to bigger increase in total equity which was $154.17 billion dollars in 2009 and $157.33 billion dollars in 2010. In general, both Citi bank Group and Bank of America used less equity capital to funds their assets after financial crisis.