As seen on the income statement by accounts receivable and annual credit sales Amazon was able to decrease the amount of days it took to collect on accounts receivable. The financial state of Amazon at this point of review, as some concerns with common stock outstanding, this led to the period in which the income statement shows a $-39 million dollar on net income. In 2012 sales did increase only due to more electronic transactions, new innovative Internet transactions and the rise in shipping costs, due to this there was a significant rise in prices of the products that Amazon sells. In 2013 Amazon must increase net income and retained earnings in order to continue to be a successful corporation.
Horizontal Analysis *** (see accompanying Excel Spread Sheets) A1a. Strengths and Weaknesses of Horizontal Analysis (amounts in millions except per share values) The First Strength: The Home Depot, Inc. Net Sales show a significant increase in growth from $74,754M in 2013 compared to $78,812 in 2014. The company increased sales by $4,058 a 5.4% growth. This is a comparable growth to 6.19% for the prior fiscal year 2013. This increase in net sales is supported by a decline in cost of sales.
That balance slowly adjusted over the next 20 years due to reduced production. The price of gas peaked at the end of that cycle in 2008 at $12.69 /mmBtu (millions of British Thermal Units) based on the Henry Hub Natural Gas Front Month Futures (a standard for finding the pricing point of natural gas). However, because of the economic crisis and the emerging shale gas market, the price lowered to $6.50 between 2008 and 2010. The quickly expanding market increased supply so much that it hit a low price of $1.82/mmBtu in 2010. It has averaged $3.50/mmBtu in recent years due to new fracking technologies and government subsidies (McElroy, Lu, 2013).
1. 2011 2012 ROCE = 30% ROCE = 34.58% Gearing = 32% Gearing = 28.2 % Asset turnover = 4.83 Asset turnover = 2 .38 Appendix A gave me a overall view of superstyles profitability and asset turnover. In 2012 superstyle has increased its return on capital employed by nearly 5 %. This is an advantage for the business, as it states that the business gets more money back from their money invested in 2012. Not only the ROCE has improved, the gearing ratio has decreased by 4%.
The biggest portion of current liabilities in the year 2009 is long term debt’s current portion. The long term debt increased by $ 10,414. The total liabilities for Patton-Fuller Community hospital in the year 2008 were $213,450. This amount increased to $462,153 in the year 2009. The percentage increase was 116.50%.
This is important to measure, where sales in stores open at least a year has declined for Target. Target Corporation’s current ratio and quick ratio have both increased in 2008 from 2007. The quick ratio measures the short-term liquidity of the company. The current ratio, which assesses current assets in proportion to current liabilities, has remained fairly consistent from 2006 to 2008. Although the current assets have increased, the currently liabilities have increased as well.
Balance Sheet analysis shows the company has increased cash assets, significantly reduced debt, and added to stockholder value which makes Riordan financially strong and desired by investors. Income Statement analysis reveals that Riordan has successfully reduced certain costs, but profits are down from previous years. Riordan Manufacturing’s Accounting System requires a number of software modules which will integrate well and greatly reduce the labor intensiveness and nearly 3-week delay of month-end general ledger
Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
United States Federal Debt or Deficits Julie Bergman Business Statistics Wheeler January 28, 2013 The United State government’s national debt is a serious and growing problem. From 1940 to 2011, the debt has risen significantly. This drastic upsurge began in the 80’s, and has increased even more in recent years. The debt seemed to level off from 1993 to 2001, but then dramatically rose in the following years. In 2011, the debt was over 14 trillion and is expected to rise in later years.
By looking at the trading, profit & loss forecast for the year, you can see that things look like they will go reasonably well over the year as it shows a net profit of £15808. You may need to consider the possibility of a rise in fuel prices or the possibility of a fuel shortage in the current climate. This could affect your business by raising the cost of sales. You should look at increasing your revenue figure in order to counteract this. Look at your pricing policy and make changes appropriately.