Management even brought their quick ratio to 1.08. Thus, they are in a position to cover any debt obligations that may come up quickly. Their inventory turnover has been relatively steady over the five years of data. In year 7 their inventory turnover reached 3.2 which means inventory is moving through to customers at an increased rate over the year which correlates with their increased sales. This statement is supported by the fact that the days inventory held for stoves has dropped over the past five years from 146 days in year 3 to 114 days in year 7.
Lowe’s continually receives awards for customer service and leads the industry with knowledgeable employees that focus on taking care of the customers needs. 2. Financial Highlights As you can see from the chart below Lowe’s has been able to have sustainable growth over the last five years. They have grown their total Revenue in 2010 which was $48.8 billion dollars to over $56 billion dollars in 2014. 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.
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
The working capital ratio measures the difference between the total current assets and current liabilities. My analysis of Boeing’s working capital ratio has shown a steady increase from $2.4 million in 2009 to $8.5 million in 2011. This is a positive indicator that the company has the ability to pay it liabilities. Boeing has a massive $374 billion backlog, amounting to five times 2011 sales. Such strong revenue visibility should allow the firm to adjust production rates and ride out economic downturns (Boeing website 2012).
If the BSC is accurate and WalMart achieves their goal they stand to increase their customer population by 25% within the next five years. Utilizing customer satisfaction/dissatisfaction surveys is an excellent way for WalMart to gauge the quality of service customers receive when frequenting their stores. It allows them to see what customers like and don?t like. It also allows WalMart executives to determine methods that are working and those that may need to be adjusted. The goal of the BSC is to decrease customer complaints by 5% every year over the next three years, and increase customer satisfaction by at least 10% every year.
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.
Strategic Audit CNO Financial Current Situation Current Performance Bankers Life and Casualty, Washington National, and Colonial Penn insurance companies are the main divisions operating under the parent company of CNO Financial. CNO Financial reported revenue earnings of $3.8 billion in 2015, which was a decrease from the previous year growth of $4.1 billion. However, quintupling net income of 2014 of $51.4 million to an astonishing $270.7 million shows a superior performance over the previous year. CNO Financial carries operating earnings of $275 million in 2015, which is an increase from the previous year of $259 million (CNO Financial Group, n.d.). Continually improving market share within the middle market is a focus for CNO Financial.
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.
One of those strengths is the company's dominant market position built on a strong brand portfolio like Nike, Jordan, converse and Hurley. Its enhanced retail presence enables easier customer recall as well as help it to drive topline growth and to attain a competitive advantage over its peers. In addition, another strength of NIKE is its focus on R&D activities. The strong focus on R&D allows NIKE to renew its product line at regular intervals, which boosts customer loyalty and revenue growth. On the other hand, NIKE has one main weakness, the dependence on independent contract manufacturers.
Freeport-McMoRan (FCX) has lost half of its market value so far this year, but the stock has made a comeback in the past couple of months, gaining more than 42% since the end of August. However, this impressive run might come to an end due to the company’s weak third-quarter results that were released last Thursday. In addition, the weakness in the copper market is expected to continue, at least in the short run, and this will have a negative impact on Freeport. Let’s take a look at the reasons why Freeport might face weakness in the near-term, and what steps the company is undertaking to overcome them. The copper market outlook is weak The copper market has been under pressure over the past year as evident from the chart given below: Source Looking ahead, the