This document contains an internal factor analysis for TUSA REMIX 2.0 TEAM. It lists the company's strengths such as brand recognition and product innovation. It also outlines weaknesses such as downsizing and high long-term debt. Recommendations are provided to address the weaknesses by improving innovation efforts and diversifying financing strategies. Financial ratios for 2013-2014 are also presented and compared to industry norms and key competitors. Inventory turnover and net profit margins are found to be lower than competitors.
This document contains an internal factor analysis for TUSA REMIX 2.0 TEAM. It lists the company's strengths such as brand recognition and product innovation. It also outlines weaknesses such as downsizing and high long-term debt. Recommendations are provided to address the weaknesses by improving innovation efforts and diversifying financing strategies. Financial ratios for 2013-2014 are also presented and compared to industry norms and key competitors. Inventory turnover and net profit margins are found to be lower than competitors.
This document contains an internal factor analysis for TUSA REMIX 2.0 TEAM. It lists the company's strengths such as brand recognition and product innovation. It also outlines weaknesses such as downsizing and high long-term debt. Recommendations are provided to address the weaknesses by improving innovation efforts and diversifying financing strategies. Financial ratios for 2013-2014 are also presented and compared to industry norms and key competitors. Inventory turnover and net profit margins are found to be lower than competitors.
This document contains an internal factor analysis for TUSA REMIX 2.0 TEAM. It lists the company's strengths such as brand recognition and product innovation. It also outlines weaknesses such as downsizing and high long-term debt. Recommendations are provided to address the weaknesses by improving innovation efforts and diversifying financing strategies. Financial ratios for 2013-2014 are also presented and compared to industry norms and key competitors. Inventory turnover and net profit margins are found to be lower than competitors.
10. Selling proposition is not clearly 0,03 1 0,03
defined
TOTAL 1 2,54 Recommendations / Weaknesses
● When we look at the risks that ford faces, it can be seen that with regard to downsizing that results in the reorganization or restructuring of companies, the concern within the company is almost nil. living in a globalised world, it is vitally important that a company remains at the forefront of innovation, organizational redesign and an alienated and competitive workforce. if the company does not start to worry about this item could end up having a setback that would result in financial losses ● In terms of long-term loans it can be observed that at a business level it is generally used because of its predictability (budgeting the operational revenues needed to make payments), if ford were to consider expanding its strategies in relation to this field, will allow you to expand and diversify the company a little more. ● Financial ratio Analysis
2013 2014
Current ratio 1,76 1.1608
Quick ratio 1.30 1.29
Debt- to- total-assets ratio 0.80 0.730
Debt- to- equity ratio 1.11 1.433
Long term-debt-to equity ratio 0.52 0.50
Times-Interest-Earned ratio 16.56 16.63
Inventory Turnover 5.86 5.10
Fixed assets turnover 3.40 3.44
Total assets turnover 1.33 1.31
Accounts receivable turnover 14.95 12.43
Average collection period 27 days 25 days
Gross profit margin 0.459 0.449
Operating profit margin 0.187 0.187
Net profit margin 0.114 0.114
Return on total assets 0.164 0.150
Return on stockholder’s 0.562 0.557
equity
Earnings per share $3.61 $3.77
Price earnings ratio 27.3 25.33
How has each ratio changed over time?
We can see that in 2013 most of the ratios were higher, such as current ratio, quick ratio and debt to total assets ratio. The debts have been growing in 2014 and the inventory has been decreasing. But there are margins that have remained the same in those last two years, such as the gross profit margin, the operating profit margin and the net profit margin. Earnings per share have increased, but the price earnings ratio has decreased.
How does each ratio compare to industry norms?
In the grocery stores industry, in 2014 de inventory turnover ratio was 15.45. In hershey’s the inventory turn over ratio was 5.10, it means that in the industry the inventory turonver standars are very high compared to the inventory turnover of hershey’s. It means that hershey’s is not changing a lot its inventory compared to the industry.
How does each ratio compare with key competitors?
We are going to compare the net profit margin between Nestle and Hesheys. The net profit margin is the ratio of net profits to revenues for a company. Net profit margins show how much of each dollar collected by a company as revenue translates into profit. The Net profit margin of Nestle (Competitor) in 2014 was 0.119. In hershey’s the net profit margin was 0.114. We can see that they are very similar but, Nestle is a little bit bigger. This means that in a 0,005 Nestle is better on how much of each dollar collected translates into profit.
