net income, and operating income has increased for the recent three years. In addition, a cash flow from operating activities is positive and investment continued.
④ Market value of stock price
We think price of stock will be higher because earning per share (EPS) is high as 15.15. Price earning rate (PER) is 20.08 and it is lower than an average (24.631) of 10 major companies in the comp
Profitability
Return on Asset (ROA) is (Net Income + Interest Expense(net of tex) ÷ Average Total Assets. This
ratio tells how much net income is earned by a unit of assets. Higher ratio means net income
earned by one unit of assets is large. Next, Return on Equity (ROE) is Net Income ÷ Average Total
Stockholders’ Equity. This ratio tells how much net income is earned by a unit
Volvo Car's strengths is the safety and quality, but weakness is the Volvo has
only safety and quality. in the table, The location of the Volvo is
High Price / Quality Strategies group. But Volvo car's business performance belong
to below the average. Nothing can be better such as Price, net Income, market
share, marketing, design, even technology of safety and quality. Moreover,
average industry. Considering that average ROE of other industry's companies that are listed in KOSPI is 10%, we can easily understand those 2 companies made a great performance.
Even though Kia's net income andaverage stockholder's equity is lower than that of Hyundai, ROE is higher than Hyundai. That means Kia's owner's capital is operated better than Hyundai. However Ssangyong's ROE is eve
net sales growth rate, operating profit growth rate, etc.
Stability : Company’s long-term financial ability, similar to leverage
ex) debt ratio, current ratio, reserve ratio, etc.
Activeness : Company’s efficiency of specific assets’ operation
ex) total asset turnover ratio, receivable turnover ratio, etc.
- Value : Company’s value, divided into stock index and value index
and solution to bad felling of adjusted price at Marketing Strategy.
2) Marketing Strategy
We thought differentiation policy is more important than low price policy in this case. The core concept of FreeMarket’s differentiation is information. Considering the fact that ‘average skill level of buyers in a wide range of manufacturing companies was low and the information available to he
and increased at 2009 reversely. It can be easily explained by the fact that when there is an increase in receivable, it means the sale is made with a promise to pay in the future. Thus, in the statement of cash flows, it is shown as a decrease, because the cash is not actually .
Chapter 5: ROE Profit Driver Analysis
2006 2007 2008 2009
Net income
Net sales 37,882
1,542,
found from the 10K of McDonalds.
4. What is the effect of the change in receivables on cash flows from operating activities for the most recent year?
When account receivable decreases the cash flow increases and vice versa when account receivable increases. It is because when there is an increase in receivable cash collection is promised for the future. The decrease of receivable means
Pizza’s netprofit margin is increasing since 2007 because its net income gained about twenty million dollars per year for three years. This rising netprofit suggests an improvement in management of sales and expenses. Regarding the company’s asset turnover ratio, we can estimate that it is constant (despite a slight decrease between 2007 and 2008). This ratio means that Domino’s
2.3. Strategies Against Competitors
2.3.1 Cheap Price
The distribution system between Korea and America is very different. The price with same goods in America is cheaper than in Korea. Especially season sail has the cost cut about 60~70% WizWid buys mass quantity of goods and prepares for shortage of products. It can cut their selling price very much.
2.3.2. Brand Loyalty: First-mover Advan