Yankee Candle Company History A simple gift from a young man to his mother is responsible for the birth of a successful company. That young man was Mike Kittredge he melted crayons to create a candle for his mother for Christmas. The creation was an instant hit with friends and neighbors and he found it difficult to keep up with the demand. The result of that simple gift to his mother turned into a multimillion dollar company. In 1969, a young man made a special gift for his mother; in 1999 the Yankee Candle Company became a publicly traded company on the New York Stock Exchange (NYSE). The company presently owns over 17,500 locations worldwide. (Hoovers, 2007) The Yankee Candle Company is quite an accomplishment from the meager beginnings in the kitchen of Mike Kittredge's parents South Hadley Massachusetts home. The candles produced by this company are known for their longevity and there unique aromas that permeate the space in which they are burned. In some homes the candles have become a tradition. Macintosh Apple scent burnt in autumn, Pumpkin Pie at Thanksgiving or Mistletoe at Christmas, what ever the occasion or mood Yankee Candle has a scent that is appropriate. It is almost impossible to believe that a melted box of crayons started it all. Uniqueness is what differentiates the Yankee Candle Company from its competitors. Their three top competitors are Bath & Body Works, Blyth, and Lancaster County. The top three competitors do not specialize in candles but offer a plethora of other products to the selective consumer. Ratios The following are the computations of the financial ratios for Yankee Candle Company, Inc. All figures are compiled from fiscal reports from 2006 and 2005. The current ratio: current assets/ current liabilities = current ratio 1,833,683/104,104= 17.61 Inventory turnover ratio cost of goods sold/ average inventory held 72,981/77,399.5= .9 Accounts receivable turnover credit sales/ average Accounts Receivable 49.3/40.7= 1.2 Debt to equity ratio total liability/ total stockholder's equity 104,104/ 381,577= .27 Return on assets net income/ average total assets 32,198/125= 257.6 Return on equity net income/invested capital (36,033)/381,577= 9.4% Gross Margin on Sales sales cost of goods sold/ sales 452,230-241,742/452,230 210,488/452,230=47% Ratio Indications The financial ratios of an organization are compared to other companies that it competes with or with the average of similar industries in the same sector.
Brian, a young business executive, started a small software company in his mid twenties. He would invest long hours developing his business, often working late into the nights. When the business became profitable, Brian incorporated and went public through a stock offering. Flood gates open and money poured in the company coffers and Brian grew exceedingly wealthy.
This section will discuss ratio analysis for the following ratios: current ratio, quick (acid-test) ratio, average collection period, debt to assets ratio, debt to equity ratio, interest coverage ratio, net profit margin, and price to earnings ratio. Depending on the end user which ratio carries more importance, however, all must be familiar with ratio analysis. Details on each company's performance for each of these areas can be found in the attached ratio analysis worksheet.
Financial ratios are "just a convenient way to summarize large quantities of financial data and to compare firms' performance" (Brealey & Myer & Marcus, 2003, p. 450). Financial ratios are very useful tools in order to determine the health of a company, help managers to make decision, and help to compare companies that belong to the same industry in order to know about their performance.
According to the book, to gain competitive advantage a few rules to follow are: basing innovations off of experience, focusing on products that have been overlooked, be sure that there is a market for the product, and focusing on new ideas that lead to more than one product. Once the company was able to get the equipment they needed, the candles came in all shapes and sizes to extend the product line. Beckey and Kim knew that they needed to create different types of candles with different scents. Beckey 's twenty years of experience in oil landscape painting gave the company the advantage to know what types of oils that needed to be used. Kim 's decorative touch gave the company an advantage to keep the product line elegant, which is what they are known for. They wanted to keep the elegant look of the candles, but hopefully give more options to customers and wholesalers. This gave the company the competitive advantage over their
Investing in a company has certainly changed over the years. Financial information is literally at one's fingertips via the internet. In today's fast paced corporate environment companies are under tremendous scrutiny to maintain their edge. The company I am evaluating is NIKE. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. This information is designed to assist a potential investor.
Ratio analysis is a widely used of financial analysis. It is defined as the systematic use of ratio so that the financial statements can be interpret to find a firm’s strengths and weakness as well as its historical performance and current financial condition. Ratios reveal the relationship in a more meaningful way so as to enable us to draw conclusions from them.
During a trip to Japan, they found a great athletic shoe with a new design
I will be comparing five types of financial ratios through statement of comprehensive income and balance sheet, as follows:
Who would believe that one day a teenager by a lack of money would be able to create the largest company of scented candles in the world? This is exactly how Michael J. Kittredge began his journey as an entrepreneur.
Performing a financial analysis of a company allows an investor or creditor to fully understand the make-up of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
F.M.C.G. Company Heinz is the most global U.S. based food company, with a world-class portfolio of powerful brands holding number 1 and number 2 market positions in more than 50 worldwide markets. There are many other famous brand names in the company¡¦s portfolio besides Heinz itself, StarKist, Ore-Ida, Plasmon, and Watties. In fact, Heinz owns more than 200 brands around the world and makes over 5,700 varieties.
It was Christmas time and the young man wanted to make a gift for his mother, but did not have any money to buy one so he decided to make a candle from household wax, a red crayon, string for a wick, and a milk carton for the mold (The Yankee Candle Story, n.d.). With the help of his father he opened a small store near the Mount Holyoke College campus and by 1973 he had 12 employees and the first factory store outlet store (The Yankee Candle Story,
Investors use valuation ratios to help determine a company’s investment merit and to find a good entry or exit point in the market. Investor relations professions should be well versed in the basic investment valuation ratios as well as the relevant industry or sub-sector benchmarks and variations. As stock valuation depends on investor sentiment, it is important to understand not only where your company ranks relative to its peers, but why.