remain a fixed percentage of sales, then its unlevered net income will also grow at rate g.
Similarly, the firm’s receivables, payables, and other elements of net working capital will grow at rate g.
The estimate of Ideko’s continuation value
can be combined with the forecasts for free
x
cash flow through 2010 to estimate Ideko’s
value today using the APV valuation model.
☺ The most critical financial component of working capital
☺ The franchisee should seek to minimize the risk of running out of cash
☺ The franchised business must ensure that bills due (accounts receivable) are collected in a timely manner
☺ The franchise owner may develop policies and practices
☺ Another way to significantly reduce working capital requ
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
Capital Leases 2.7% 32.0% 3.0% 34.7%
Other Assets 13.8% 4.2% 14.8% 4.8%
Total Assets 100.0% 100.0% 100.0% 100.0%
Comments
- Korean Air has lower current assets which means they might have more difficulty in managing working capital or paying off debts in future.
- AMR Corp owns more airplane, whereas Korean Air leases more. So this should be considered as advantage for AMR Corp when compar
Capital(순운전자본)
= Current Assets(유동자산) – Current Liabilities(유동부채)
Represents operating liquidity available to a business, organization
Considered a part of operating capital
EBIT
Earnings before interest and taxes
EBIT = operating income + Non-operating income
Operating income = Revenue – Operating expenses
operating expenses = Cost of Go
Examples – 소송, 상품적 결함, 다양한 기술적 혁신과 같은 특정기업에만 존재하는 고유의 위험
요구수익률에 거의 영향을 미치지 못한다.
- 분산투자를 통해 제거 가능하기 때문
예를들어,
위험투자의 주식시장의 가치가 국채를 10% 능가하고 주식의 Beta 계수가 1.25라고 할때
Price in Japan = 1029 Yen ->13778 Won
If Directly Bought = 926 Yen
Tax (10%) 1240Won
12400 Won
Tariff (4%) 992 Won
Final Price 14632 Won
Teens
Insurance fee for treating pimple and facial skin trouble has passed sixty two million won.
CEO
Selling Department
Marketing Department
Financial Department
C) Personnel Plan
CEO (Ki Jae Min )
Selling Department (Park Sung
capital market.
O4——S1、S3、S4: Better quality than competitors and innovative technology guarantees difference between products.
O5——S5:More opportunity in the capital market funding, make use of financial management to bring down the capital cost.
O6——S2、S3:Localization of human resources management strategies to attract local talents and reduce
III. Criticisms
1. Finance gaps between the universities in capital areas and local areas.
The most serious problem with an adoption of donation based admission is that the financial gap between top universities and less privileged universities can be even larger. It can be interpreted as a gap between high-ranked universities in capital area and local universities in other areas. Actual
Capitalized interest
K-IFRS : disclosed on notes.
Business Accounting Standard 1101 : selective exemption of accounts.
KT&G doesn’t record capitalized interest on financial statements.
‘fair level’ : KT&G followed well the standards of IFRS, have adopted them clearly and without problem.
Analyzing the financial statement of KT&G, the accounting policies were following
the