Accounting and Decision Making (ADM)
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Contents
1. Analysis of profitability of Waldron 3
Divisional analysis: 3
A. Durafit Division 3
What Happened? 3
Why sales decreased? 3
B. Contracts 4
What Happened? 4
Reason of this growth 4
C. Elite 4
What Happened? 4
Reason of this growth 4
Stellex 5
Over all Waldron analysis 6
Issues with Waldron: 6
RECOMMENDATION: 8
2. CASH FLOW ISSUES: 8
• Operating activities: 8
• Financing activities: 8
• Investing activities: 9
• Working capital cycle: 9
Recommendations: 9
3. STELLEX OVER ALL PERFORMANCE 10
Recommendations: 12
4. LIMITATIONS OF STELLEX’S CURRENT APPROACH TO
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Another reason was its bids conversion ratio which was falling year by year which can be seen from following table:
| |2011 |2012 |2013 |
|Number of tenders submitted |10,811 |11,825 |12,447 |
|Total size of contracts under tender (£m) |£5.2bn |£5.5bn |£6.2bn |
|Accepted orders (number) |4,216 |4,176 |3,961 |
|Conversion rate (%) |39% |35% |32% |
Bid conversion ratio which was 39% in 2012, fell down to 35% in 2012 and futher down to 32% in 2013.
Over all Waldron analysis
According to the financial statements being provided it shows the position and stability of Waldron’s:
• The year of 2013 shows much better performance with its profits being twice what they used to be in 2012.Waldron revenue inclines by 60% as compared to 2012. Share prices also show improvement after the announcement of £400 as a final dividend of 2013.
• In 2013 we went on to develop our products and to replace our outdated material with new customized tools. Elite is also working its best to cope up
growth of 50.2% and the net profit of 56.1% over the same period. The company also enjoys strong
result, its buying power has diminished over time. Some argue that raising it is vital to our
Prepare an 8- to 10-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on your chosen company’s financial statements:
Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by its
By using the consolidated income statements, balance sheet and cash flow statement, we can assess the company’s financial position. On the income statement, the company’s operation revenue increased by 4.5% ($393.4 million) from year 2006 while its operating income decreased by $65.1 million in the same period. Without considering the net-cash settlement feature expense recorded in 2007, operating income increased $103.6 million. Even though including the net-cash settlement feature
Wal-Mart has an increase on per share of common stock, between 2005-2007. Based on the annual report of Wal-Mart for 2007, the company generally has a working capital deficit due to the
Although 2012 has seen some increase in the industry revenue, IBISWorld predicted continuous decline until 2014 (Outlaw, 2012). David Jones announced in its ASX Release 40% decline in profit-after-tax in 2012 is expected, partly associated with costs involved in its new strategic initiatives (David Jones, 2012). Myer, David Jones’ closest competitors, experienced decreased total sales of 3.8% and stated in
The following report includes selected financial data analyzing the performance of our company Life Through the Lens for year 12. Included is our strategy for the current year, future initiatives for our four regions, our competitor analysis, and reasons our company has not been improving as well as we had projected. At the moment our company’s current position is not up to par with our previous years regarding where our company is standing among our competitors. Please refer to Table 1.0 above to further understand our company’s performance for the end of year 12.
This company experienced an all-time high in March of 2011 when its close price hit an astounding 93.01 but then dropped by nearly 20 three months later when it closed at 76.95 and then 55.44 in September of that same year. They currently hold a return on equity of 9.61% and a return on assets of 5.24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources in order to maximize profit for the companies. Although the technology efficiency is on the rise, trying to maintain a fresh and talented workforce within the industry is an area that is struggling. Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world.
dropped 20 and 28 per cent, respectively, on the world market. At this time the
The ROS had its peak in 2002, but is decreasing very sharply since. This shrinkage may be due to the pricing strategy, which is not very stringent.
In 2011, the Group delivered a strong financial performance, continuing the trend of increasing profitability from 2010. Its performance is slightly weaker in 2012, due to challenging macroeconomic conditions in many regions. Despite an increase in revenues, the more than proportional increase in costs took its toll on the company’s gross profits.
Wal-Mart is a company which operates in the service sector, more specifically in the “Discount, Variety Stores/Retail” industry. The company’s superior performance is demonstrated through the fact that it was America’s largest company (in terms of revenue) in 2002, and the reputation of the company is reflected in the opinion of “Fortune” who have identified Wal-Mart as one of the world’s most admired companies. In 2004 Wal-Mart had been hiring 1.4 million employees – making it the largest corporation in the world. Wal-Mart’s share prices have also been stable at time of stock market volatility. There are