Lancaster Colony Cooperation manufactures diversified food products for the retail and food industry customers as Albertson 's, Ford Motor Company in the United States. The company consists of three largely autonomous divisions: Specialty Foods, Glassware & Candles, and Automotive Accessories.
Financial Ratio Analysis: Lancaster Colony’s current ratio (4.60) means for every dollar of current liabilities, Lancaster has $4.60 of current assets. It demonstrates that Lancaster has the ability to pay out all current liabilities and still have enough assets left over to cooperate with. Acid-test (quick) ratio measures immediate liquidity. At 3.28, it shows that the company has a good ability to meet its immediate liabilities. Lancaster’s 2015 accounts
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If we divide the accounts receivable turnover (18.67) into 365 days, we can know that the accounts receivable are collected period of approximately every 20 days. The company’s inventory turnover is high, ranging from 11.14 to 11.11 from 2014 to 2015. This means that the inventory is sold at an efficient rate. The company does not have to tie up cash in inventory and be able to avoid inventory obsolescence. Overall, we can see that the company has a great ability to pay the short-term debt. The second ratio is profitability ratio, which can indicate the operating success of a company. The company experiences an increase (7.2% to 9.2%) in its profit margin from 2014 to 2015. It indicates that the company earns profitable income in response to each dollar of …show more content…
What’s more, the company has extremely great ability to meet its interest’s payments. Moreover, based on the recent news, the company just acquired all of the assets of Angelic Bakehouse, which will definitely strengthen their economic power. Therefore, we can say that Lancaster Colony Cooperation is strong financially, efficient, profitable, and
Net working capital represents organization’s operating liquidity. In order to compute the net working capital, total current assets are divided from total current liabilities. When there is sufficient excess of current assets over current liabilities, an organization might be considered sufficiently liquid. Another ratio that helps in assessing the operating liquidity of as company is a current ratio. The ratio is calculated by dividing the total current assets over total current liabilities. When the current ratio is high, the organization has enough of current assets to pay for the liabilities. Yet, another mean of calculating the organization’s debt-paying ability is the debt ratio. To calculate the ratio, total liabilities are divided by total assets. The computation gives information on what proportion of organization’s assets is financed by a debt, and what is the entity’s ability to pay for current and long term liabilities. Lower debt ratio is better, because the low liabilities require low debt payments. To be able to lend money, an organization’s current ratio has to fall above a certain level, also the debt ratio cannot rise above a certain threshold. Otherwise, the entity will not be able to lend money or will have to pay high penalties. The following steps can be undertaken by a company to keep the debt ratio within normal
(d) The account receivable growth rate from 2012 to 2013 was a decrease of 5.52% whereas the allowance for doubtful accounts went up by 12.10%. The sales account had a growth rate of 33.81%. From these numbers we see that the sales of Hydrogenics Corporation increased from 2012 to 2013. Since there was a decrease in the accounts receivable,
ConAgra’s Foods mission of "one company growing by nourishing lives and finding a better way today, one bite at a time (ConAgra Foods, 2010/29/07)," is dedicated to providing consumers with good quality food that tastes great and provides good nutrition at a reasonable cost. ConAgra was founded in 1919 by Frank Little and Alva Kinney, who consolidated four grain mills as Nebraska Consolidated Mills. ConAgra financed the development of the Duncan Hines brand of cake mixes in 1951 to make flour more profitable. But in 1956 they sold their assets in Duncan Hines to Procter & Gamble, and 15 years later in 1971 Nebraska Consolidated Mills changed its name to ConAgra. Several successful and lucrative investments resulted in ConAgra Foods being the largest processed foods business in America (ConAgra Foods, 2010/29/07). Along with the...
We will begin with identifying current business orientation of Kingsford. Then, we will analyze its position in the marketplace and various external forces. In-depth analysis on the strengths and weaknesses of Kingsford is done to have a clearer picture on what should be done to boost its revenue and profit. The analysis theories used are Porter’s Five Forces, PEST, and SWOT. There are a few important findings that require immediate attention.
Particulars The Hershey Tootsie Rolls Net sales (A) $ 5,671,009 $ 528,369 Beginning receivable $ 390,061 $ 41,895 Ending receivable $ 410,390 $ 37,394 Average receivable (B) $ 400,226 $ 39,645 Account receivable turnover C = (A/B) 14.17 13.33 Average collection period 365/C 25.76 27.39 As can be seen from the above, the table shows that both The Hershey and Tootsie Rolls companies have very low receivable periods due to the nature of the industry and also reflects the efficient cash management and receivable management on the part of both the companies.
natural and intact! The companies listed above will help support Burt?s Bees in achieving their goals of bringing back the bees. For example, RAFI will help with seeding and planting initiatives, as well as helping farmers and getting the word out there to educate others (Burts Bees, 2016).
The proprietors of the colony had hoped to grow profitable export crops of tobacco, cotton, indigo, and olives at first but all attempts to produce these crops were unsuccessful (Roark). Then in the...
The History of the Colony of Province of Massachusetts Bay: Volume II was created by a male author named Thomas Hutchinson. The Massachusetts Bay Colony Case against Anne Hutchinson (1637) was edited by Lawrence Shaw Mayo who attended Harvard University in Cambridge, Massachusetts. The selection was reprinted by the permission of Thomas Hutchinson, but in the Table of Contents it says that John Winthrop was the author of the selection. Even though he was the governor of the year 1637, and was also included in the trial case. Maybe he could have tweaked some of the things he said to Anne Hutchinson so that he did not come off as rude. Also, since Thomas and Anne Hutchinson have the same last name they could have been related,
Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.
The Table 2, above, shows a current ratio CR of 1.2215 and a quick ratio QR of 1.04545. Further, one could notice a DSO 40 times and a DSI of 4 times. Moreover, the current rate is superior to one; therefore, it reveals that Verizon has sufficient financial resources to cover its obligations. It can take care of its short-term obligations with its present existing liquid assets. Further, its quick ratio is more than one. Thus, Verizon has enough cash and receivables to cover its current liabilities. The DSO of 40 times shows that Verizon spends 40 days to collect on its outstanding accounts. This number is less than 90 days; therefore the company presents an expansionary credit policy. Impressively, Verizon spends only four days on selling
Firstly, based on the profitability, P&G has earned higher profit from each dollar of revenue which is 13.4% compared to C-P 12.9% for the recent year 2013. In addition, P&G also has higher EPS of US$4.04 compare to C-P US$2.41. In contrast, C-P register a Gross Profit of 58.7% and Return on Equity of 91.0% as opposed to P&G’s 49.6% and 17.0% respectively. C-P seems to rely heavily on debt and this has helped to improve the Return of Equity. P&G also has its downside in asset turnover ratio (0.62) and fixed turnover
Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future.
The purpose of this project is to show how financially stable the Kraft Foods Group is and demonstrates what its strengths and weaknesses are. The reader can expect to find out what Kraft Food Group is and about their financial history for the last five years. This business participates in the consumer packaged food and beverage industry. The markets that Kraft Food Group sell to are the United States and Canada. Some brands that are included in this company are Kraft, Maxwell House, Oscar Mayer, Planers, Kool-Aid, Velveeta, Capri Sun, and Philadelphia to name just a few. This company was started in 1903 by James Lewis Kraft. Mr. Kraft used a wagon and horse and started selling cheese to businesses in Chicago, Illinois. In 1909,
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.
The Quick Ratio shows that the company’s cash and cash equivalents are the highest t...