Yum has a high account receivable turnover which decreased by 12.77% from 40.32 to 35.17 in the period. Its collecting method is not as aggressive as before, but this may increase total sales because of the more liberal credit terms. Its inventory turnover was decreasing from 13.22 to 12.36. The available inventory amount is not controlled as well as before. The total assets turnover decreased in 2013 but increased again in 2014.
A low turnover implies excess inventory, a high ratio shows good sales. High inventory levels are unhealthy because they represent an investment with a rate of return of zero. In the case of copper mining there is a unlikelihood of a high ratio for inventory turnover because as it’s mined it goes out the door. The industry average is 41.66day for inventory turnover, Newmont is a faster turnover at 21 Days and Freeport is slightly longer at 52days. In the case of this industry specifically the faster they are able to turn over inventory the more money the company is able to free up allowing for a better working capital for the
• XOM is one of the best-positioned stocks in the current oil environment due to its resilience and diversity, as a result of which it beat earnings estimates last quarter. • XOM is benefiting from lower feedstock costs, while it has also reduced its capex substantially in a bid to lower the impact of weak oil pricing on its margins. • XOM is focusing on growth areas such as LNG in the Asia-Pacific by increasing capacity as this will help it tap increased demand and weak supply in the market. • XOM could also benefit from better oil pricing as supply is expected to come down due to a variety of reasons, while demand will increase due to low pricing. Why Exxon Mobil Is a Buy Exxon Mobil (XOM) shares have remained resilient this year on the stock
However, there is a little increase in life satisfaction (Argyle, 2013) When the country experiences a sudden increase in income for their citizens, there is no corresponding increase in the sense of the well-being. The satisfaction of life tends to increase as the per capita of the nation income. Nevertheless, there is little increase in satisfaction of life once the per capita incomes go beyond $12,000. The Psychological studies present that the people who are wealthier are the most intensive negative emotions that they experience. The studies do not link wealth with greater experienced happiness.
et al, 1971). However, Arres et al. (2009) explained that higher price can have both a negative and positive effect. It could mean that the product may be assumed as of higher quality or maybe assumed to be less desirable because of the extra expense. At the same time brand has been said to be the most important non-sensory factor affecting the decisions of consumers.
By matching price to demand, hoteliers have a greater opportunity to capture higher profitability business during high demand periods. On the flip side, lower flexible rates during low demand season help generate additional demand that might not have existed before. Although, it is always wise to set a floor price, which should be equal to the lowest “positioning” price that you might be willing to accept for your product. The challenge of having a dynamic structure is that the revenue managers need to be on top of their game to manage demand as it is very easy to lose control of inventory if forecasting is erroneous. Having a revenue management system minimizes these errors; however, the majority of hotels today do not have a revenue management system as it could be expensive or might not have been budgeted.
One explanation appeals to be behavioral traits; the managers acquiring firms may be driven by overconfidence in their ability to run the target firm better than its existing management. This may well be so, but we should not dismiss more charitable explanations. For example, Firms can enter a market either by building a new plant or by buying existing business. If the market is not growing, it makes more sense for the firm to expand by acquisition. Hence, when it announces the acquisition, firm value may drop simply because investors conclude that the market is no longer growing.
Companies will be more profitable because their products are more reliable, then they will have less defected products. In return, less time and money are spent fixing those mistakes. When the value a customer receives from a product is greater than that of another then they are more inclined to stick with that
Therefore, normal goods possess positive income elasticity. The quantity of normal necessities demanded will rise with the revenue but at a measured speed than that of luxury goods. This phenomenon is due to the fact that consumers will opt to buy more extravagant goods and services rather than more of the necessities with their improved incomes (Haque 18). During a time period of improved incomes, the demanded quantity for luxurious commodities will rise at a faster rate than the demanded quantity of necessities. The demanded quantity of luxury products in response to variations in income is very sensitive.
Basically in the long run the sales promotion is positive for top line performance but it is negative for bottom line performance and firm’s value. This proves the fact that impact of sales promotion on the value of the firm is not in the long run, but in the short run it has positive impact on the profitability of the firm. Consumer Promotion Consumer promotion is a category of sales promotion including free samples, wining contests, different price packs, and sweep stakes. Sales promotion is projected to increase the sales of final ultimate consumers of the product (Kotler and Armstrong, 2002).The kinds of sales promotion are based on some sort of benefit whereas some are very communicative in type (Kotler et al. 1999: Tellis 1998).
Their image rating fell above of what is expected to make up the “difference” one might think. In review of the financial summary, they are operating aspects appear to be solid, even though they are not keeping in cash on hand. Keeping no cash on hand is not always a bad idea; it can help with the overall operations of the company, even though there default risk is high. The company has an average amount of assets compared to the other companies with the industry. There currently liabilities are what put the company at a higher risk for default with no cash on hands.
Sales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.
Because Lowes has a very high inventory level, the quick ratio is pretty useless. Their current ratio is good for the industry, but behind the market. These statistics show that Lowes is in a strong financial position. As far as efficiency is concerned, Lowes productivity from net income and revenue is less than the market but higher than their industry. This shows they still have a bit of room for improvement in their productivity to match the market.