Second, their revenue income has increased since the second quarter of 2014 by $228 million; from $10,307 to $10,535. Last, their total assets have a higher value than their total liabilities, even if their total asset value had decreased. Additionally, Loblaw Company is known for their high quality of supermarket
WestJet have done good in 2012 compared to 2011. In 2012 WestJet’s Operating Income on Sales was 10.96 % whereas in 2011 it was 8.35% that means WestJet have earned more per dollar of sales in 2012 before tax and interest. Return on Sales measures how well a company manages its expenses relative to its net sales. WestJet performed better in 2012 compared to 2011 in terms of return on sales. The return on sales got increased in 2012 which means WestJet managed their expenses and resources better in 2012 than in 2011 and made more profit in per dollar sales.
The activity ratio or better known as the inventory turnover ratio due to its ability to determine on average how long inventory sits can be used as one of the best indicators showing how efficiently a company is turning its inventory into sales. By figuring out average inventory (last year plus current year divided by two) and dividing it by Cost of Goods Sold (includes labor costs as well as cost of materials) you will be able to find your activity ratio. Blizzards inventory consists of roughly 125,500 units a year costing roughly $1.6 million (12.63 AR) to produce, while close competitors like Sony, an entertainment company who manufactures technology as well as, produces roughly 624,289 units at about $5.2 million (7.66 AR) to produce annually,
Return on equity measures the overall profitability of the financial institution per dollar of equity. Generally shareholders of financial institutions prefer the high ROE. But, higher ROE means an increase in risk. 2014 2013 2012 2011 2010 Wells Fargo 13.01 13.35 12.66 11.90 10.38 Bank of America 2.03 4.87 1.79 0.63 (0.97) Analysis: The return on equity has been improved of the Wells Fargo & Co. from 2010 to 2014 whereas the ROE of Bank of America also increased till 2013 but decreased in 2014. In comparison of ROE the Wells Fargo‘s performance is better than Bank of America
Since the ratio is improving, it is fair to say that Kohl’s Corp is improving in their ability concerning their total liabilities. The Operating cash flow to total debt is improving since 2013 and is on an upward trend. According to Kohl’s Corporation on their 10K reporting for the last fiscal year, “our gross margin may not be comparable with that of other retailers because we include distribution center costs in selling, general and administrative expenses while other retailers may include these expenses in cost of merchandise sold.” (United States Securities and Exchange Commission, 2013) According to CSI Market: Kohl’s Revenue per employee fell on trailing twelve month basis to $ 137,971 but remained above company average. Within the retail sector 32 other companies have achieved higher receivable turnover ratio. While revenue per employee total ranking has improved so far to 504, from total ranking in previous quarter at 521.
Investors will pay close attention to this but ultimately, if the net income is less than the cash flow, the company will not have enough to pay shareholders.. Both companies had increases in their operating cash flows from 2012 to 2013. Estee Lauder 's cash flows from operating activities increase in 2013 was driven by " an increase in net earnings, a decrease in pension and post-retirement benefit contributions and a favorable change in accounts receivable due to the timing of shipments and collections" (Estee Lauder Inc, 2014). The improvements were partly balanced by a rise in the levels of their inventory, mainly to sustain satisfactory levels of service in line with forecasted sales activity as well as for the remaining safety stock from 2013 SMI implementation (Estee Lauder Inc, 2014). Revlon 's increase in 2013 was impacted by favorable changes in working capital, lower pension contributions and lower premium payments related the Company 's multi-year insurance programs.
SNC was able to increase its total firm value by $1,834,000 and its total equity value by $1,581,000, in 2012 dollars. On average, this attributed to an increase of approximately $203,778 a year in firm value. After a complete analysis of the company, SNC has proven and established itself as a trustworthy company, and it is expected that the market will reward SNC with lower risk. From 2010-2021, the equity multiplier decreased about four times from an average of 3.65 to an average of 1.10. The risks associated with taking on debt are mitigated due to SNC’s decreased leverage.
Return on Equity increased from 10.98% to 15.39%, showing that the firm is more profitable than before. Earnings per Share increased as well, as there were less shares outstanding with the repurchase while net income was unaffected. EPS increased from $0.91 to $1.04, another indicator that the leverage increased profitability. With the repurchase, Blaine’s D/E ratio increased, going from not having any debt at all to a D/E ratio of 11.48%, which is more inline with industry competitors. PE ratio fell as a result of the leverage.
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates a more promising current debt payments.