The firm’s current line of credit is about double what it normally is and the payments on their remaining long-term debts are going to increase through the next four years with a balloon payment due in 2015 of $642,000. The increased current line of credit is due to the recently added production lines and only carries a 4% interest rate. Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the
Moreover, the growing preference of customers to shop online has boosted the online retail trade globally. E.g. the online retail sector in Europe is expected to reach a value of $675.8 billion, an increase of 99.1% since 2014. The Asia-Pacific market is also expected to witness strong growth in online retail sales in the next few years, driven by strong growth rates in China and India. According to industry sources, the online retail sales in China are expected to grow at a CAGR of 20% during
Strength – Financial Performance: Home Depot exhibited an increase in the financial performance during the review period. Strong financial performance enables the company’s ability to provide higher returns to its shareholders and increases its ability to allocate adequate funds for future growth initiatives. In FY2017, the company generated revenues of US$94,595 million as compared to US$88,519 million in FY2016, with an overall growth of 5.6% over FY2016. The company also exhibited an increase in operating income by 14% from US$11,774 million in FY2016 to US$13,427 million in FY2017. Its net income increased by 13.5% to US$7,957 million in FY2017 from US$7,009 million in FY2016.
Do nothing. The company has been operating fine for years and total dollar sales have been increasing each year. If the company sticks to the status quo, they will continue to stay profitable. 2. Increase brand awareness Janmar could increase brand awareness by adding an extra $350,000 to the traditional advertising budget.
This growth has been contributed to three main focuses over the last five years; enhanced sales and operations planning, building their customer experience design capabilities, and improving their relevance to the professional contractor as a customer. Net earnings increased 18.0% to $2.7 billion during fiscal year 2014, Net sales for 2014
EOG Resources – Share of EOG Resources (NYSE:EOG) picked up approximately 18%, since its 52 weeks of low of $60.24 a share on January 20, due a 7% increase in the oil price so far this year. This should have a positive impact on its financial performance in the first-quarter of 2016, considering the fact that EOG is taking various steps to survive this downturn efficiently. This includes, reduction in costs & capital spending, improving operational efficiencies through continued focus on innovative technology, shifting focus to premium locations that generates 30% rate of return at $40 per barrel of oil prices and improving balance sheet. Let us look at these initiatives in details. Reduction in costs and capital expenditure In the low commodity price environment, EOG remains grounded in terms of reduction in operating as well as capital expenditure.
Positive effects of raising the minimum wage to fifteen dollars in 2016 are that it boosts the economy, and creates a positive GDP. By increasing the minimum wage to fifteen dollars an hour, which is double what the minimum wage is today, you are increasing consumer spending which increases GDP. Studies have shown that low-waged workers put every dollar they earn plus more back into the local economy when they were given a raise. Workers strived to work harder as their wages were raised. By raising minimum wage, it increases workers’ income, which gives an economic boost.
Wearable fitness technology is also a growing trend in the sports industry and UA is positioning its self to be a trailblazer in the industry. A positive growth outlook in the athletic apparel and footwear industry will give UA an opportunity to continually expand its market share into many geographical regions. In 2014 UA has had positive growth in the U.S., which is their primary geographic market. This increase in revenue is attributed to industry growth and a renewed focus on the female consumers (Prior, 26). Sports participation has seen a gradual increase in past few years and is expected to continue its growth.
Top 10 Countries with the heartiest aging population Growing old and being healthy is very vital to any country. Growing old in most country is more healthy than others. Growth in technology has greatly increased in recent years due to advancement in technology and this has improved health care system around the world. Due to increase in life expectancy, recent data shows that the number of people approximately 60 years and above is 901 million and it is expected to increased to 2.1 billion by 2050. World ranking on best countries to survive can be measured using various ranking metrics such as older adults health status, Good enabling environment in relation to good public transportation, civic freedom, physical safety etc, income security and capability which is measured with
Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).
Profits have increased from 1.9% in 2009 to 5.7% in 2014. Continued profit gains will be mainly due to increased sales of higher-value products which have larger profit margins. Improving market condition continue to increase the number of industry operators at an average annual rate of 5.5%, reaching 1.3 Million operators by 2019. This growing
Operating margin/Return on sales (ROS) is the ratio of operating income divided by net sales or revenue, usually presented in percent. According to gurufocus’ statistics (October, 2015), Costco’s operating margins (3.12%) ranked higher than 53% of the 359 Companies in the Global Discount Stores industry (2.99%). Just like Gross Margin, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions.