Grupo Elektra is a Mexican financial and retail corporation services company, serving the Latin America market by providing consumer credit. Grupo Elektra is divided in two divisions: retail and financial. Elektra, the main chain of the group has over 600 stores in Mexico and Latin America focusing on electronics, white goods, home appliances and furniture. Founded in 1950 by Hugo Salinas Rocha, the grandfather of the chairman, Ricardo Salinas Pliego, this company has been a family run business since it started. Elektra was the first manufacturer of television in Mexico selling TV sets through door-to-door vendors. In 1954, Elektra opened its first credit program extending credit to local consumers and opened its first store three years later. After experiencing marginal growth and the deflation of the peso in 1976, Elektra changed its policy to cash only. However, this did not help the struggling company and in 1982, Elektra filed for bankruptcy protection. By 1987, 37 years after opening his company, founder and CEO of Elektra retired and handed over the company to his grandson Ricardo Salinas. Salinas felt he could best serve the company as chairman, and appointed a group of professional managers to help run the company. Believing that the company had to get out of the “family trap”, Salinas hired Pedro Padilla, a 24-year-old Law major from UNAM had extensive experience in cross border financial and commodities transactions. Padilla trained Salinas, and in 1993, Salinas became the new CEO of Elektra, serving several years until Javier Sarro replaced him in 2000. Sarro was the former Vice President for Financial Services of Elektra. Sarro has an MBA and completed undergraduate studies in Law. Electra grew ove... ... middle of paper ... ...rts showing that sales have increased every year and continue to grow, with the major portion in merchandise and credit. Gross Profits in Elektra are also impressive with numbers in the high millions. However, according to the income statement, there is also a net monetary loss of 29.65 million and a 23.82 million dollar monetary loss in the credit operation. Minor numbers compared to the 796.12 million, Merchandise Cost of Goods sold. Elektra’s bank loans are high; however, they do have property and equipment that is almost double the loan amounts so they could liquidate if needed. Already there are 954 stores throughout six continents and expanding more will be financially feasible for Elektra; but do they really need to continue to grow? That is something only Alvaro Rodrigues Arregui, CFO of Elektra and the other officers can decide.
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
The financial statements for Exxon in 2014 are a slightly declined than it made in 2013. Exxon experienced decrease in operating income from 2013 to 2014 of $74 billion to $61 billion. Operating income indicates how much a company earned from business activities, the company has less profitable. Their operating margin Exxon made in 2014 is also decreased. It is 4% less than they made in 2013. Exxon must figure out their operating performance, include Cost of Goods Sold or fixed costs and increase revenue performance. The sales revenues that companies made in 2014 are $365
Return on sales (ROS): Harrington (2004) said that ¡§this ratio indicates that what percentage of each dollar of revenue is available for the owners after all the expenses are paid to other suppliers. This ratio is related to net income and net sales which I found from the income statements of both Starbucks and Wendy¡¦s in their annual reports.
...ts. They cannot distribute, import, sell or resell goods. Only their Cuban partners can do that.
I did some research on the Altria Group, Inc. and found that they are using a growth strategy known as conglomerate diversification. What this means is that the industry they are currently in is unrelated to the industry they have entered, through diversification. With this strategy, managers are more concerned with financial concerns such as cash flows. This is usually due to a company's current industry achieving maximum growth and has to enter into other industries to gain more opportunities for future growth. Altria is a parenting company who parents Kraft Foods, Philip Morris International, Philip Morris USA, and Philip Morris Capital Corporation (Altria, 2008). What products they produce are tobacco, packaged food, beverages, and financial services. The USA and Europe are their primary producers.
Another correlation between the management’s discussion within Fords 10-k and the financial analysis within this essay is Ford’s market expansion into the Pacific Asia Africa segment (SEC, 2015). Because ford is entering into new markets, their costs are increasing for selling and administration. The costs include hiring new salespeople and promoting their new products in new market segments. Thus causing the increase of selling and administrate costs in the horizontal income statement analysis. Furthermore, Ford’s fixed assets are also increasing because they are investing in new land and equipment to manufacture their new
As a result, the number of foreign companies established in Mexico has risen to more than 16,000. The opportunities for investors are numerous, particularly in sectors such as automotive, electronics, information and communication technology, agribusiness, chemicals and pharmaceuticals, biotechnology, financial services, water and power generation. As part of the Mexican government’s campaign to attract FDI, the 44 overseas offices of the Mexican Bank for Foreign Trade (Bancomext) operate as trade commissions that offer advice and assistance to potential investors.
We are using October 2006 as the base for our forecasted sales due to the many changes that have occurred in the last year. Several product lines have been ...
All the other aspects of this company show that even if the economic situation at this point is not that bright their sales is rising, and that all is the result of hard work within and outside the company, UPS structure and UPS management.
There is an enormous prospect for the Pkolino Company to start a business. The current task has adequate resources and a great plan to keep it operational. Nevertheless, dangers that might plunge Pkolino Company into financial disaster are also present. This is due to the fact that there are always a couple of things that tend to advance in an unanticipated direction even in a well- planned plan. For instance, P’kolino Company’s financial statements do not have provisions for the worst, average, and best scenarios.
On February 23, 1983, the Ministers' Council of the Government of Spain decrees [1] the necessary expropriation of the holding company under the protection of the forecasts contained in the articles 33.3 and 128.2 of the Spanish Constitution. The reasons adduced in the decree of expropriation are:
Russel Y., Topper S., Akerman L., Oliveira J., Strydom Z.; 2013; Studying Business NSC Business Studies Grade 12; 2013 Edition; Paardekraal; Excom Publishers; 26/05/2014
withstanding a large recession, and commanding high market share. In the last five years, the company’s
...reness, led successful advertising campaigns, expanded successfully, and diversified its distribution channels and product line by creating new products. Its advertising spending is third largest in the industry.