As investors it is important to understand the company in which you are looking at. One of the most common mistakes made is people only see the current trends of the company and do not research previous years. In doing this they are not getting the true picture of the company and it is important to understand the cash flows of the company in and out. In order to do that one should look at the statement of cash flows, as it will provide information as to where the company spends its money. This assignment will be looking at “Eat at My Restaurant,” which is a case study that compares three different well-known companies. The companies in which we will look at are Panera Bread, Starbucks, and Yum Brands, Inc.
Panera Bread Starbucks Yum Breads, Inc.
Data Reviewed 2010 2009 2010 2009 2010 2009
Net Cash provided by operating activities $1,968,000,000 $1,404,000,000 $237,634,000 $214,904,000 $1,704,900,000 $1,389,000,000
Net Income- including noncontrolling interest $1,178,000,000 $1,083,000,000 $111,599,000 $86,851,000 $948,300,000 $391,500,000
Operating cash flow/current maturities of long-term debt and current notes payable 2.92 23.80 No current long-term debt and current notes payable No current long-term debt and current notes payable No current long-term debt and current notes payable No current long-term debt and current notes payable
Operating cash flow/total debt 30.57% 23.27% 72.23% 89.50% 63.06% 55.12%
Operating cash flow per share $4.05 $2.91 $7.68 $6.94 $2.23 $1.86
Operating cash flow/cash dividends 4.78 3.88 No Dividends No Dividends 9.97 No Dividends
Next we will look at each company’s information one and one and review the data that is given above. The first company in which will be reviewed is a café company called...
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...essment. Based off the information that was given in the case study it seems to be the company that could potentially have a cash flow issue is Yum Brands, Inc. That is due to them having the lowest operating cash flow/current liabilities, which a major difference between they years. Yum Brands, Inc. also had the lowest ratio in cash flow/total debt out of the three companies. In wrapping all this up the statement of cash flow is one of the best ways to evaluate a companies flow of cash. This statement allows people to look at various areas and can be known as the heartbeat of the company.
Reference
Assignments: Week 5. (n.d.). Colorado State University Global Campus. Retrieved January 26, 2014, from https://csuglobal.blackboard.com/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_112330_1%26url%3D
In analyzing the common-size balance sheet for Applebee’s, it is noted that the total current assets has jumped from 11% to 14% of the total assets. The total assets for Applebee’s has jumped 6% from 2000 to 2001 driven by increased in the total current assets of 28%. Of those 28% increase, they consisted of 88% increase in the Cash & Equivalents (increased of $10.6 millions) caused by the decreased in the Capital Stock repurchasing in 2001 by Applebee’s. The repurchase of capital stock has decreased by 31% as noted from the year-to-year percentage changes of the Statement of Cash Flow which equivalent to about $11 million dollars. The other current assets increased was from the other Current Assets category; there was an increase of 92% from 2000 to 2001. Due to the higher earnings for Applebee’s, there was an increase in income tax due. A significant component of the increase of other Current Assets was from increased in prepaid income taxes with net deferred income tax asset of $6.7 millions dollars.
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
“Infoplease Article” Idaho Fact Monster© 2000-2013 Pearson Education, publishing as fact monster 21 Mar. 2014
The objective of this report is to give an overall view on research and analysis to regards of two companies, Wm Morrison Supermarkets Plc and Tesco Plc that I have chosen for. In this report, I will be comparing two companies’ financial analysis based on their comprehensive income and balance sheet for one year; and also will be comparing their generating cash ability, cash management and financial adaptability based on statement of cash flows for the past two year and also determine whether the two companies have the ability to repay their debts to their creditors, generating into cash and going concern which related to finance.
Cash flow throughout the company is broken up into cash generated by operating activities, financing activities, and investing activities. A company’s operating activities are typically what generates more cash and that stays true for J.B. Hunt. J.B. Hunt generated $873 million in 2015, a $226 million increase from the $647 million amount earned in 2014 (10-k, 22). This large increase occurred due to a few occurrences over the year. Over the year, J.B. Hunt had an increase in their earnings and they also collected much of their trade and income tax receivables (10-k, 22). Due to these primary reasons, J.B. Hunt generated more cash from operating activities during 2015. Compared to the amount of cash generated by the operating activities of
University of Oregon Center on Teaching and Learning. (2014, March 31). University of Oregon Center on Teaching and Learning. Retrieved from UO Dibels Data System: https://dibels.uoregon.edu/
Teens being discriminated for being loud? Aren’t adults noisy themselves? Munchy’s restaurant should not ban students, when adults are also loud. Munchy’s is now creating a “quiet lunch” for adults that ban students for certain hours.
From the previous company selection paper, we are now familiar with the selected satellite radio broadcasting companies, Sirius and XM Satellite Radio. Our group will now take a further, in-depth look at the ratio analysis and statement of cash flows to get a better understanding of how the companies are doing financially and with in their market. First, we will be reviewing the cash flows for both companies and identifying how much cash was generated or used by each through everyday operations, and financing and investing activities. We will also address some of the significant events that have affected the overall cash flow for both organizations and describe the changes in revenue and net income over the last several years. Last, we will be calculating the current ratio, return on sales, earnings per share (EPS), debt ratio, and price earnings ratio to state the companies' solvency, liquidity, and profitability and will compare the results within the industry.
The business will also be a multi-purpose business, selling and operating a front of house cafe. This broadens the target market even more, allowing for everyday dine-in and catering. Our patrons will have a wide choice of varieties such as chocolate, different types of nuts, fruits, oatmeal and many more. The cafe will also be custom made with any type of design our consumer will desire, which will be made according to their demand, thus satisfying our client’s ideal
I first needed to acquire additional information to complete a spreadsheet that would compute the cash flows for the analysis. I learned cash flow in any year depends on sales volume and profit margin per unit in that year. I learned that sales volume is a function of price. Also profit margin per unit is calculated by the difference between price per unit and costs per unit.
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.
Therefore, the amount of profit obtained is somewhat arbitrary. However, cash flow is an objective measure of cash and it is not subjected to a personal criterion. Net cash flow is the difference between cash inflows and cash outflows; that is, the cash received into the business and cash paid out of the business (Fernández, 2006). Whereas, net profit is the figure obtained after expenses or cost of resources used by the business is deducted from revenues generated from the business operations activities. Nonetheless, the figure for revenue and cash are not entirely cash, some of the items may be sold on credit and some of the expenses are not paid up
We served best quality food to satisfaction of buyer. Our main weakness is we provide better than other cafe but other competitor in lowest price.
The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.