Logitech Case Study Solution

This was done with the help of a weighted average unlevered beta, the market risk premium and the risk free rate. The risk free rate of 5.85 % has been acquired from the 30 year T bond rates. The beta was found out using the three other comparable companies and their unleveraged betas. With help of all these values the discount rate of 10.847% was calculated which contributed in discounting the cash flows and obtaining the present value of cash flows. The continuing value for Calaveras has been estimated using the key value driver formula which was found out to be $ 7019.715. The total value of the firm has been calculated with the help of PV of cash flows and the continuing value and it shows an amount of

Grandma’s Best currently has a broad product/narrow- medium market focus. The firm offers products in all five categories within the confectionery industry (chocolates, soft candy, hard candy, holiday specific chocolates and biscuits/cookies). Grandma’s Best primarily targets the middle to higher end retail outlets and gourmet shops. Grandma’s Best has .05% market share of the United States confectionery market which consists of three considerable players. Mars, Inc. owns 30.2% of the market, Hershey Company owns 27.7% and Kraft Foods, Inc. owns 7.2% followed by other companies who own 34.9% of the market. Grandma’s Best has a good market performance with a 4.62% compound annual growth for the period of 2013-2015, that is greater than the

Discuss the debt to equity ratio and what it says about how Dollarama finances its operations?

The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly

Sally’s Beauty Holding, Inc., who has a current ratio of 2.4, is quicker to turn their current asset into cash but also is not investing excess assets. Both companies are able to meet their debt obligations. On the other hand, Coty’s Inc. current liabilities exceeds their current assets revealing their current ratio to be .94. Having a ratio below one can imply that current assets are barely being covered by the current liabilities. Ulta Beauty’s debt-to-equity is estimated to be .65, which reveals Ulta Beauty to have a low risk and not using high amounts of debt to finance operations, because total liabilities is $1,001,660 and total shareholders’ equity is $1,550,218. Sally’s Beauty has a debt-to-equity ratio of -8.7 because of the total shareholders’ deficit. A negative ratio indicates Sally’s Beauty is heavily taking on debt and receiving a low investment return. Coty Inc. has a debt-to-equity ratio of 1.36 meaning for every dollar of equity its shareholder owns, the company owes $1.36 putting Coty Inc. in a possible financial distress. Ulta Beauty is doing a decent job in converting its investments into profit with a return on asset (ROA) of 16.06 % with the net income being $409,760 and the total assets to $2,551,878.

Net sales for July 2015 were $577k representing an increase of $36k or 6.7% from July 2014. Bimba sales for July 2015 increased 19.4% from the same period a year ago. The increase is mainly attributed to an upsurge of orders, new product development, and improved delivery times and product quality. Year over year Ocenco, McMaster, and Panduit sales rose 42.6%, 20.8%, and 23.3% respectively. Parker and S&S showed a slight decline in sales year over year.

Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance.

GE deducts the amount of increase in the balance sheet assets (accounts receivable, inventory) from the net profit amount to calculate the cash from (used for) operating activities. Conversely, it adds the amount of decrease in assets to the net profit to arrive at the cash from (used for) operating activities.

Most of the data was provided by the hospital to calculate the economic order quantity for each drug. For their current method, to calculate the ordering cost for each drug additional data was collected. The additional data collected was the number of orders placed per year for each drugs. With this data, the holding cost and the ordering cost was determined in order to compare the cost estimates from their current method and the recommended method. This portion of the project was the most challenging to complete because there was some reverse engineering involved to get the total cost for each product. This data is shown in Appendix J.

Rock Company Profit margin = 13% Capital intensity ratio = 2.35 times Debt ratio = 42.5% Dividend payout ratio = 30% First let calculate ROE; ROE = profit margin x total asset turnover x equity multiplier Total asset turnover = 1/ Capital intensity ratio =1/ 2.35 = 0.42553 Equity multiplier = 1/ (1-debt ratio) = 1/(1-0.425) = 1.73913 ROE = 0.13 X 0.42553 X 1.73913 = 0.09621. Sustainable growth rate for Rock Company; Sustainable growth rate = ROE x RR/ [1 – (ROE x RR)] RR = 1 – Dividend payout ratio = 1-0.30 = 0.70 Sustainable growth rate = (0.09621 x 0.70)/ [1 – (0.09621x

Furniture and fittings are part of fixed assets and their increase has a negative impact on the liquidity of the company. They are seen to have increased from $300,000 in the first year to $500,000 in the last year. This means that money is now tied up where it would be hard to get it back and it works against the credit worthiness of Custom Snowboards Company.

Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice.

Throughout the years, several different methods have been developed, which are dependent on the respective regulations of countries and institutions, such as the Internal Revenue Service (IRS). The most common inventory methods include FIFO (first-in, last-out), LIFO (last- in, first-out), HIFO (highest-in, first-out), FEFO (first-expired, first-out), as well as the average costing method (AVCO). Each of them has their specific advantages and disadvantages, and comes with certain restrictions and regulations (Lee and Hsieh, 1983, p.7). This paper is going to take a look at the choice of inventory accounting methods of FIFO and LIFO, and is therefore not going to consider the other inventory accounting methods, as that goes beyond the topic of this

It must be noted that a material manager has to comprehensively supervise category 1 items since an item may be a low cost one but critical for patient care. ( oxygen regulator)  Category I items: these items are the most important ones and require control by the administrator himself.  Category II items: these items are of intermediate importance and should be under control of the officer in charge of the stores.  Category III items: these items are of least importance which can be left under the control of the store keeper. The grouping will essentially depend upon the strategy of management and the environment of functioning. However these simple techniques can be effective in material management system. Items with high criticality (V), but required in small quantity (A) should receive highest priority. Items with low criticality (D) and which are required in big quantity should receive least

During 2014, the Group’s Strategy, which was unchanged for 2013, was to maintain a debt to equity ratio not exceeding 100%. The debt equity ratios at 31 December 2014 is a