Amazon had a lower ROE in year 2013 compared to year 2010, which illustrated that every dollar shareholders invested generated lower net income. Morever, in 2012, both ROA and ROE were negative. The reason why Amazon’s profit decreased over recent four years is because that its cost of goods as a percentage of revenue increased. Amazon expanded its digital market to Asia and Europe, which led to a increasing in shipping and packaging cost. Comparing Amazon wi... ... middle of paper ... ...old these elements constant, the estimate Amazon’s stock price should be $286.41 to $387.2.
Receivables Turnover: With a lower receivables turnover ratio than the industry, SIA should consider reviewing its credit policies to ensure timely collection of imparted credit that is not earning interest for the firm. Profitability Analysis Sales: SIA's revenue has been increasing for the last 2 years since FYE2005. However, this growth has slowed down from double digit growth to 8.6% recently. This is not a concern as SIA is still considered as one of the more profitable companies in the industry as shown in its Net Income and Operating profit ratios. With the new addition of A380s they will also be able to charge higher prices.
The fall in consumer consumption has had its toll on the GDP as it too has slowed. Again, the economy has continued its growth, but the vigorous rate that it has been cruising along is falling. The US international trade deficit is growing every year revealing the US's dependencies on imports vs. exports. The need for vast imports is not unusual, but the level of exports continues to fall. The Balance of US International Trade in Goods and Services for Jan.-Dec. of 1997 was -104.7 billion dollars and -164.2 billion this year.
TWR had a better ratio of 4.8% signifying a signifying a higher return of profit from investment for every unit of total assets invested. The return of profitability for every unit of equity contributed by shareholders declined in year 8 as indicated by the return on common equity. TWS shareholders had far much better profitability for every unit of equity contributed by shareholders. This profitability ratio indicates that a unit of equity in TWR contributes 0.081 as profit attributable to shareholders compared to 0.014 in Competition Bikes In year 8, Competition Bikes witnessed a decline in price/earnings ratio. However, TWR had a higher price/earnings ratio.
The earnings per share for both the companies is following a zigzag trend due the change in net income for the respective years. In the years 2010 and 2011 the earning per share of IOCL has decreased in comparison to HPCL due to increase in number of shares from 119.47 to 242.7. The share capital of IOCL is quite large in comparison HPCL i.e. IOCL’s equity share capital is 2427.95(crore)and that of HPCL is of 339.1(crore) but the profit earned by the company is not much in contrast to each other so EPS of IOCL is in same range as of HPCL.
Big rivals such as Tesco and Morrisons started to compete in price by shrinking packages, introducing cheaper equivalent products, or using cheaper ingredients. Although these strategies cause a sluggish revenue increase, it works on boosting sales and market shares. For example, Tesco’s sale grew by 2.2 percent during July to September. Apart from the traditional retailers, Aldi who applies a similar discounter model is also a strong competitor. In 16th July, the market share of Aldi was 6.2% while Lidl occupied 4.6% of the market (Gale,2016) Compared to Lidl, Aldi has a more dominant market position and better corporate with local farmers.
However, costs of goods are increasing and more inventory is left over each year causing the return on sales to decrease. For 1995, it was 1.7% which is less than the average of 2.44% but is a lot higher than the bottom 25% of companies as seen in exhibit 3, which actually have negative sales return of 0.7%. Return on equity is increasing each year and at a higher rate than industry average. In 1995, it was 20.7%, greater than the average of 18.25% and close to the highest companies in exhibit 3, of 22.1% showing that the return in investment in the company is increasing, which is good for the owner. Return on assets is also decreasing and less than industry average.
However, GM did return to better performance in 1999 and 2000. GM overall was able to attain a fixed dividend of $2.00 per share and increase the shareholders value over the past five years. The first observation from the financial data in appendix one is that General Motors has a low profit margin and is generally less than the industry average each year. The firm is able to keep a low profit margin because they have such high sales volumes throughout the world. This strategy can be both an asset and liability in business planning.
As the relative role of the private sector increased in the economy, the importance of enterprise management and performance correspondingly increased. Looking more deeply at Thailand’s performance, manufactured exports grew by about 23% per year between 1980 and 1995, almost doubling during 1992-1995. However, in 1996 export growth fell practically to 0 per cent, with labor-intensive exports usually identified as the main culprit. Certain factors are generally cited as responsible for this abrupt and dramatic decline: · External factors cited included the emergence of new competitors, with the coming on stream of new production facilities in lower income/lower wage countries such as China, Indochina, Philippines, further complicated by the30% devaluation of the Chinese yen in 1994; · Domestic factors cited generally relate to rising wage rates and overvalued exchange rates. 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.
Therefore the main factor that will affect demand for it is price i.e. ticket, food and merchandise prices. This means that in times of recession and during periods of wide spread financial difficulty, the business is likely to see a decrease in demand for their service. As stated in (Mintel 2010) ‘Half of those who participate in leisure activities have cut back on at least one activity during the recession. Three out of ten have cut back on three or more activities.’’ However, fortunately for the business, more recent reports highlight that this may not be a worry ‘’The figures for the third quarter in 2013 show consumer spending activity increased by 0.8%, faster than any other quarter since 2010.’’ (Mintel 2013).