Yankee Candle Company History A simple gift from a young man to his mother is responsible for the birth of a successful company. That young man was Mike Kittredge he melted crayons to create a candle for his mother for Christmas. The creation was an instant hit with friends and neighbors and he found it difficult to keep up with the demand. The result of that simple gift to his mother turned into a multimillion dollar company. In 1969, a young man made a special gift for his mother; in 1999 the Yankee Candle Company became a publicly traded company on the New York Stock Exchange (NYSE). The company presently owns over 17,500 locations worldwide. (Hoovers, 2007) The Yankee Candle Company is quite an accomplishment from the meager beginnings in the kitchen of Mike Kittredge's parents South Hadley Massachusetts home. The candles produced by this company are known for their longevity and there unique aromas that permeate the space in which they are burned. In some homes the candles have become a tradition. Macintosh Apple scent burnt in autumn, Pumpkin Pie at Thanksgiving or Mistletoe at Christmas, what ever the occasion or mood Yankee Candle has a scent that is appropriate. It is almost impossible to believe that a melted box of crayons started it all. Uniqueness is what differentiates the Yankee Candle Company from its competitors. Their three top competitors are Bath & Body Works, Blyth, and Lancaster County. The top three competitors do not specialize in candles but offer a plethora of other products to the selective consumer. Ratios The following are the computations of the financial ratios for Yankee Candle Company, Inc. All figures are compiled from fiscal reports from 2006 and 2005. The current ratio: current assets/ current liabilities = current ratio 1,833,683/104,104= 17.61 Inventory turnover ratio cost of goods sold/ average inventory held 72,981/77,399.5= .9 Accounts receivable turnover credit sales/ average Accounts Receivable 49.3/40.7= 1.2 Debt to equity ratio total liability/ total stockholder's equity 104,104/ 381,577= .27 Return on assets net income/ average total assets 32,198/125= 257.6 Return on equity net income/invested capital (36,033)/381,577= 9.4% Gross Margin on Sales sales cost of goods sold/ sales 452,230-241,742/452,230 210,488/452,230=47% Ratio Indications The financial ratios of an organization are compared to other companies that it competes with or with the average of similar industries in the same sector.
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.
(c) Hydrogenics Corporation financed its assets mostly through debt. In 2013, it had 84.6% debt and 15.4% equity. Similarly in 2012, it had 89.7% debt and 10.3% equity. Its debt to equity ratio was 5.50 times and 8.72 times in 2013 and 2012 respectively. The debt to equity ratio of Hydrogenics Corporation is a concern to creditors. Potential creditors might be reluctant to extend credit to the company.
Brian, a young business executive, started a small software company in his mid twenties. He would invest long hours developing his business, often working late into the nights. When the business became profitable, Brian incorporated and went public through a stock offering. Flood gates open and money poured in the company coffers and Brian grew exceedingly wealthy.
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
... organization's management. The ratios were broken down into classifications of liquidity and asset utilization, debt and interest coverage, profitability and market-based ratios.
Organizations use financial statements and ratio analysis assess financial performance viability. The ratio analysis are used to identify trends and to perform organizational comparison (financial) with other companies within same industry. Ratio analysis, using data reported on the financial statements, are divided into five major categories: common size, liquidity, solvency, efficiency, and profitability. This paper will assess the financial stability of John Hopkins Hospital (JHH) using the five ratio analysis.
Since January 31, 2004, the investment banker for Wal-Mart has been Moody's investor services. Wal-Mart plans to refinance for their long term dept with Mood's Investor Services and also a few other investment banking for other corporate purposes that are not mentioned. Wal-Mart also plans to bowwow 3.3 billion dollars and an additional 1.1 billion for commercial paper By January 31, 2004 the, Wal-Mart had already established a 5.1 billion dollar lines of credits from 77 different banking industries and investment and used up approximately 145 million in the production of commercial paper. During the same time period Wal-Mart had 6 billion dollar debt of securities under a shelf registration regulation which derived from the SEC. Wal-Mart sold 1.25 billion in notes and maturity. The notes bear an interest of 4.1.25 % and mature by February 2011. The total quantity of notes allowed to be sold to is up to 4 billion.
Sears has seen many different changes in business and has had to adjust to t...
General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company.
F.M.C.G. Company Heinz is the most global U.S. based food company, with a world-class portfolio of powerful brands holding number 1 and number 2 market positions in more than 50 worldwide markets. There are many other famous brand names in the company¡¦s portfolio besides Heinz itself, StarKist, Ore-Ida, Plasmon, and Watties. In fact, Heinz owns more than 200 brands around the world and makes over 5,700 varieties.
During a trip to Japan, they found a great athletic shoe with a new design
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
It was Christmas time and the young man wanted to make a gift for his mother, but did not have any money to buy one so he decided to make a candle from household wax, a red crayon, string for a wick, and a milk carton for the mold (The Yankee Candle Story, n.d.). With the help of his father he opened a small store near the Mount Holyoke College campus and by 1973 he had 12 employees and the first factory store outlet store (The Yankee Candle Story,
Ratios traditionally measure the most important factors such as liquidity, solvency and profitability, as well as other measures of solvency. Different studies have found various ratios to be the most efficient indicators of solvency. Studies of ratio analysis began in the 1930’s, with several studies of the concluding that firms with the potential to file bankruptcy all exhibited different ratios than those companies that were financially sound.
Mark setup a company that designed inflatable structures for advertisement and entertainment. The name of this company was Air Structures Design. This business was really successful for Mark and the few people that he associated with to help him run his company. He eventually moved on from the company and continued to be his...