Warren Buffet’s formidable investment performance was also demonstrated when Berkshire Hathaway acquired Scott & Fetzer. Berkshire Hathaway paid $315 million for Scott & Fetzer in 1985 after which they received significant dividends. Again, Buffet’s investment performance on the acquisition of Scott & Fetzer outperformed the S&P 500 evident by an internal rate of return (IRR) of 26.4% including the 1994 cash flow or 14.9% without 1994 cash flow on the Scott & Fetzer investment. Clearly, Warren Buffet’s positive investment performance carried a significant weight and influences the market to have a more optimistic outlook on his investments. Conversely, his historical records of investment success do add value to shareholders trust.
Based on this number alone you might think that Dollar General is performing better financially. Over the period 2000-2001, Dollar General and Family Dollar both increased net sales by nearly 17 percent. However, Dollar General increased its net income from $70,642 to $207,513. The nearly 193 percent increas... ... middle of paper ... ...p a close eye on competitors. Since dollar stores compete with stores like Wal-mart and big supermarkets, it is essential to not lose potential customers to these stores.
The growth was mainly attributed to stronger-than-expected device sales and Mobile Station Modem (MSM) chip shipments during the quarter. The result piped analysts' consensus estimate for sales by 0.65% but significantly surpassed the earnings estimate by 14.21%, according to data compiled by Reuters (source) . As a matter fact, it has a rather strong history of meeting/surpassing estimates for both revenues and earnings of late, which speaks volumes of its business tran... ... middle of paper ... ...rly dividend by 20% to $1.68 per share that yields at 2.20%. With this hike, the five-year average dividend growth rate stands tall at 20.24% per year. Second, it extended its share repurchase program by $5 billion to a total of $7.8 billion.
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.
Customer service is very important to every company and keeping customers satisfied can lead to a big increase in profit. A survey carried out by NOP showed that reducing customer defections can raise profits by 25-85% and in 73% of cases the organisation in question made no attempt to persuade dissatisfied customers to stay with their company, despite 35% of them saying a simple apology would prevent them from moving to their competitors. Another survey carried out by HENL showed that a 1% cut in customer service problems could generate a 16 million pound profit for a medium sized business over 5 years. This shows that customer satisfaction can actually generate money. Another example of the benefits of keeping current customers satisfied are the surveys produced by TARP and PriceWaterhouseCooper.
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.
Berghaus’ Case Study 1) Berghaus is very successful business having an annual growth rate of 25%. This indicates that there is an increasing demand for their products. They also have an export ratio of 50% meaning that their distribution rates are very good. Last year alone their per-tax profits were £750,000 and a large amount of this money can, most probably, will be reinvested into the company for further development. Also, its pre-tax profits in 1991 were £750,000 which is obviously not a small amount, Berghaus clearly mean business.
Considering the technology of magnetic disk specifically we see that disk density has been improving by about 50% per year, almost quadrupling in three years. Access time has only improved by one-third in 10 years. Super fast processors and huge memories have to be ‘fed’ and a system is only as fast as it’s slowest component, currently the disk. In our analysis we shall consider the advantages and disadvantages of currently available technologies and their impact on system performance and effectiveness. To narrow down this still very broad subject even more, we shall focus our attention on standard Personal Computers.
Lucent's third-quarter earnings will improve significantly, while sales will see a modest increase. Stronger-than-expected revenue and a stabilized balance sheet led Salomon Smith Barney analyst Alex Henderson to upgrade his rating on the stock to outperform from neutral. He said the company looks on track to break even within the year. All results excluded Lucent's former Agere optical components unit, which was partly spun off recently and reported its second-quarter results separately on Tuesday. Lucent also said losses for its Winstar Communications loans and other write-offs totaled 15 cents per share.
Financial Information GM dealers sold 558,092 cars and trucks in June of 2005 up 41% compared to June of 2004. Gm had the best monthly sales since September 1986. The calendar year to date sales are up 2.5% for the 2005 year. Sales were spiked by GMs “Employee discount for everyone.” “We are confident that are employee discount program would hit a responsive cord, but we were a little surprised by just how strong the results were, including bringing over one hundred and fifty thousand new customers into the GM family in June. This definitely moves us in the right direction as we gear to introduce our 2006 models,” says Mark LaNeve, GM vice president of sales and marketing.