Particulars The Hershey Tootsie Rolls Net sales (A) $ 5,671,009 $ 528,369 Beginning receivable $ 390,061 $ 41,895 Ending receivable $ 410,390 $ 37,394 Average receivable (B) $ 400,226 $ 39,645 Account receivable turnover C = (A/B) 14.17 13.33 Average collection period 365/C 25.76 27.39 As can be seen from the above, the table shows that both The Hershey and Tootsie Rolls companies have very low receivable period due to the nature of the industry and also reflects the efficient cash management and receivable management on the part of both
By lowering selling prices across the board, Opossumtown, Inc. reduced its inventory turnover ratio, cutting the number of days to sell inventory from 174 days to 104 days; that is a 40% improvement. Opossumtown, Inc. also cut the number of days it takes to collect its credit accounts from 68 to 44 days, again that is 35% better than the previous year. The company is able to do this while cutting its debt ratio by 10% and increasing its current ratio by 25%, making it appear more favorable in terms of liquidity. As promising as this may look, this is not the whole picture. Opossumtown, Inc. shows an 11% decline in gross profit as well as operating income ratios, and a 3% decrease on the profit margin ratio. The decline of these ratios is a result of the company’s new strategy of decreasing the selling price and increasing its marketing and selling expenses. Opossumtown, Inc. made some noteworthy advancements with the implementation of its new plan for 2014. However, based on the assessment of the balance sheet, income statement and the ratios, the corporation did not achieve its goal to increase operating income by 6% and net income by 4%. Opossumtown, Inc. was only able to grow its operating income by a little more than half of one percent and net income by
Ben & Jerry’s Homemade Holding Inc., commonly known just as Ben & Jerry’s, produces ice cream, frozen yogurt, and sorbet. Founded in Burlington, Vermont in 1978, the company is a subunit of the Unilever mega-company. Founders Ben Cohen and Jerry Greenfield created the company after completing an ice cream making course at Pennsylvania State University’s Creamery. In May of 1978, with a small investment totaling a little over ten grand, the two business partners opened an ice cream store in Virginia. Two years later, the two took their talents and started packing their ice cream into pints. In 1981, the company became a franchise, opening their second store in Shelburne, Virginia. Today, Ben and Jerry’s locations have expanded across the globe.
You all know the Chocolate Company: Hershey's; but where did it all begin? As with Walt Disney, it started with a dream. A dream that a certain person could rule the candy market. This certain person is Milton Snavely Hershey. Milton Hershey founded Hershey’s Chocolate Company in 1900. Did you know that his first product wasn't chocolate? No, he created and sold many other confections; his greatest being caramel. His highest achievement of all was creating the world's largest candy manufacturing company today. Milton S. Hershey learned most of his work from Joe Royer, the owner of an Ice Cream Parlor and Garden. Joe Royer taught Milton for four years until he quit. Milton didn't quit because he didn't like the apprenticeship. No, he quit to start his own confectionary business. Milton S. Hershey gave this world a company that changed the way we see chocolate today.
Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. Both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores Inc. I believe the reason why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in other currencies have helped Wal-Mart hedge against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of sales divided by average inventory. In the year of 2007, Wal-Mart’s inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of sales therefore it doesn’t have too much a problem of holding too much inventory. Its competitors have similar ratios though they don’t have as much sales as Wal-Mart. Wal-Mart’s ability to sell at lower prices for same quality, gives them the edge against its competition. As of the year 2007, Wal-Mart had a debt ratio of .58, and as of January 2008, it had a debt ratio of .59. The debt ratio is calculated by dividing the total debt by its total assets. Wal-Mart has a lot more assets than it does debt so Wal-Mart is not overleveraged.
Perhaps the most interesting case study of cause and effect is that which applies to the grocery industry in the United States. Events like a hurricane can affect the supply of food and other perishable items found at the local grocer. There are also other causes that can influence this fluctuation in supply, such as food recalls, or a company going bankrupt.
Hershey, Cocoa, and Child Labor. An everyday person, when asked to describe chocolate, would probably start by calling it "magic." The presence of chocolate in the everyday American life is an experience sought after, craved for, and bought for under two dollars at the corner convenience store. Indeed, chocolate is an edible ecstasy that is put in everything: coffee, ice cream, cereal, even the spicy sauce for Mexican mole. Chocolate has a cultural presence like no other food commodity; it is brought back to loved ones from the faraway places of Switzerland and Germany, it is given as a symbol of love, and moreover, it is the first thing everyone instinctually goes too when that love does not work out.
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
...e cut back to the department caused an operations halt and lead to a 19 percent drop in profit and an 8 percent drop in stock. Gross stated, “Despite a recommended implementation time of 48 months, Hershey’s demanded a 30-month turnaround so that it could roll out the systems before Y2K. (Gross)” Since the schedule was so tight, Hershey’s team had to take dastardly shortcuts at critical times of the implementation (Gross). The system went live and because of the poor implementation orders was prevented (Gross). Gross state this cost Hershey $100 million worth of orders when the supplies was in stock. Gross goes over how Hershey failed to do testing at certain phases, due to their desire to implement the system fast. Hershey also tried to implement the season during its busiest time, resulting in more loses from their cutbacks and poor handling of the implementation.
The main problems that are affecting the company were the high level of labour turnover, below target production rates, high levels of scrap, the employees had little input in the decision making, therefore resulting in low motivation and job satisfaction, and didn't have enough feedback on there performance. Added to this was the conflict between the supervisors and employees in the production and packing areas, and the grading and payment levels wasn't satisfactory to the employees.
used to finance the company. The asset-to-equity for Kraft Food Group is up and down. This is a weakness that needs to be addressed.
There is not a big difference between the current and quick ratio so we can say that company is not dependent on the sale of its inventory as the termination of inventory head from the ratio there is no such big clauses. Figure 1.2 shows that company quick ratio fluctuate during last three years but low from bench mark of quick ratio. In 2013 quick ratio of company is 0.46 and 2014 is 0.31 and 2015 it is 0.34. According to the industry average we can see that the company is fall below the industry average. But industry average also fluctuates. The investor will not do a good investment but on the other hand we see raw material provides by the company has high inventory dependence it means they are buying more from him but not a good view from clients as they are sale on the credit basis that they must
Cinnamon rolls are believed to have originated in Sweden. Today, they are a common dish in Northern Europe as well as North America, where they are generally eaten as a breakfast item or dessert. Cinnamon rolls are still very popular today; it’s virtually impossible to go to any American mall without running into a Cinnabon, a popular bakery chain known for their cinnamon rolls. They are so popular that they even have their own holiday. In Sweden, October 4th is known as International Cinnamon Roll Day or Kanelbullens dag (Höijer, Hjälmeskog, Fjellström, 2014). The day was started by Sweden’s Home Baking Council in 1999 when they were trying to find a way to celebrate their fortieth anniversary. The idea behind this was to find a way to celebrate
Therefore, the company looses cash, which could aid further business operations. Increase numbers of creditors - countless businesses acquire credit to operate, however, too much credit can become a problem for a business, especially, if it also offers credit to customers. This is because you’re ability to pay your credit is dependent on whether your debtors pay you in due time. Therefore, in case they don’t, the business will surface cash flow problems. Over-financing – excessive borrowing to finance your business can result in higher interest rates and tougher repayment schedules and this can lead to cash flow challenges. Over-trading – when a business sells over and above its capability on credit, it results to loans or overdrafts to finance the transactions. If the customers do not pay on time, cash flow problem occurs. Over-investment – often times, a company may be tempted to utilise available cash for investment; purchase vehicles, machinery, premises, and other assets. Too much investment in assets and failure to budget for the future can cause a business to run out of cash and consequently, fail to finance
Executive summary of the event. In this business case, a shift from seasonal to monthly production of toys will change the seasonal cycle of Toys World's working capital needs and necessitate new bank credit arrangements. It has to analyze the company's performance, forecast fund needs and make a recommendation. The case introduces the pattern of current assets and cash flows in a seasonal company and provides elementary exercise in the construction of the pro forma financial statements and estimation of fund needs.
Whey, a by-product of the dairy industry, is a fluid obtained by sorting out the coagulum