In 2012, Costco’s net income is $1.709 billion USD; then it is increased to $2.039 billion USD in 2013, $2.058 billion USD in 2014, and $2.377 billion USD in 2015. Overall, Costco’s net income increased by 39%, and these increases occurred through out the four fiscal years. This is a strong indication that Costco is becoming more profitable. Costco Wholesale Corporation has two parts of revenue, one is its sales of merchandises, and another one is the membership fee consumers has to pay in order to enjoy its service. During the 2015 fiscal year, Costco’s membership base grew by six percent and has more than 81 million members worldwide.
This is having a positive impact as by expanding their business and locating in Australia they are attracting more consumers. According to Morgan Stanley, prior to their expansion, Amazon already had $1 billion in sales in Australia. Amazon attracts consumers through their promises of low prices, vast variety and fast delivery and thus their market share in the Australian retail sector is expected to grow significantly. Despite their promises, fast delivery is not the easiest thing to do in Australia. Location has also had a negative impact on Amazon due to the large geographical spread of Australia.
The economic fluctuations strongly influence on operation of the firms. The big gaps of wage inflation rates and exchange rates between developed countries like Australia and developing countries have significantly endured over time and they can be the financial attractiveness of outsourcing (Postma et al 2013). For instance, in last few years, after Global Financial Crisis occurred, the Australian currency strongly appreciated (Manalo et al 2014); other currencies from developing countries depreciated, such as Indian Rupee depreciated 50% in 2011 (Postma et al 2013). So this was a big advantage for Telstra to make payments for operational and labor costs in foreign countries when implementing offshore outsourcing
This ratio denotes the speed at which the inventory will be converted into sales, thereby contributing for the profits of the concern. If the ratio was higher then it would have indicated that finished stock is rapidly turned over. A lower means that there is accumulation of obsolete stock or the carrying of too much stock. The stock turnover ratio in case of Bajaj has increased significantly from 27% to 33% with the highest recorded in the year 2015-16 of 33.35% because Net sales grew by 5.4% to H 22,253 crore. Total operating income (net sales plus other operating income) increased by 5.3% to H .Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by
Canadian National’s revenue rose 4% to C$12.6 billion, whereas Canadian Pacific saw its revenue growing by just 1% for the fiscal year 2015. In reality, the other Class I railroad companies such as Norfolk Southern, CSX, and Union Pacific experienced drop in their revenue by 9.6%, 6.8% and 9% respectively for the year. More importantly, its fourth-quarterly results were even more appealing. Despite drop in its revenue by 1%, CNI managed to record a 15% rise in the earnings per share year-on-year basis for the quarter. This growth in the earnings per share can be attributed to its efforts of
The fiscal policy is primarily an instrument in the hands of the government whereby it estimates its revenues and expenditures in the economy. This is a very important tool as it would define the flow of money from different sources, indicating the level of activity in the economy. It also defines the broad policies of the government indicating the outwards flow of money in to different sectors of the economy to maintain the overall health of the economy and fulfill its social goals. Apart from the fiscal policy every country has monetary policy at its disposal. This is primarily a tool at the disposal of the central bank of a country which uses different tools to manage the macro economic variables of a country to keep the economy stable or to stabilize it in situations of fluctuations.
Net income rose by 1,064% during the period, from a negative $223 million to $2.2 billion. Return on Equity increased from 4% to 23%, proving that Corning has a strong ability to generate profit and manage shareholders’ funds, while Return on Assets grew from 2% to 14%. The operating margin has improved from 21% to 18%, indicating the ability to generate increased profits. Asset turnover ratio has decreased, reflecting that the pressures from production capacity have lessened. The financial metric reveals that Corning has a strong ability to recover from debt, generate higher profits, grow and succeed
The worldwide market size of performance sportswear is currently estimated at US $ 6.40 billion, which is up 19.4% over the last four years, and is expected to grow a further 18.75% to US $ 7.6 billion by 2014. According to one of the reports, sports apparel will outperform all sportswear by a factor of two, raising the US $ money value of performance sportswear from US $ 5.89 billion to US $ 7.20 billion. Its share of total active sportswear will rise from 10.71% to
This is good because a high inventory turnover is better than a low one. Let’s look at how Tootsie Roll’s inventory turnover compares with Hershey and Nestle. Figure 4Inventory Turnover for a Few Example Companies The inventory turnover for both Hershey and Nestle is 5.16 times. So Tootsie Roll’s inventory management is consistent with its competition. Measuring Profitability Ratios Profitability ratios measure a company’s ability to use its assets efficiently to produce profits.
CONCEPT NOTE ON KAZAKHSTAN Introduction- The level of importance on the improvement in the quality of life of the people has made it absolutely necessary to highlight the distinctions between Economic Growth and Economic Development. Economic growth is a pure economic process whereby there is an increase in the economy’s GNP due to the increase in the productive capacity of the economy. Economic development, on the other hand, is a multi-dimensional process involving major changes in the social structures, popular attitudes and national institutions, as well as the acceleration of economic growth, the reduction of inequality and the eradication of absolute poverty. Economic growth is quantitative in nature and it is measured in terms of the