Liquidity Case Studies Samples That Help You Write Better, Faster & with Gusto

As I have come to know that the management is re-considering the additional bank overdraft to pay off the suppliers and reduce the payable period to 40 days, I am preparing this report with the objective of assisting you and provide you with real scenario our company is going through.
-Forecast for 2016
*Revenue figures are assumed to increase by 5% during 2016, while all the other expenses increase in proportion to revenue.

As we can witness from the above forecasted income statement, our net income is only expected to increase by $0.01 million, and with current situation where Continue reading...

Re: Financial forecasts and associated discussion

Dear CEO,Following your request, please find attached the financial statement forecasts for 2016 which include the income statement and the balance sheet. The points to be discussed in this memo will be addressed below:
As can be seen from the forecasted financial statements, the increase in sales does not required additional fixed assets, therefore the company’s investing needs are nil this year. However, to reach the fixed objective of bringing days payables outstanding to 40 days, accounts payable will need to be reduced to $0.9m, compared to a previous year amount of $1.8m. This reduction will thus Continue reading...

Executive summary

Management is the process of ensuring that the resources of the company are effectively to achieve the goals and objectives. There are various resources which are utilized by the company and they include human skills and financial resources. The aim of any organization is to improve the competitive advantage in the global market. The company should utilize the resources effectively to maximize the output while minimizing the input and this helps to improve the performance of the company. In this report therefore, the report discusses the main concepts of management and resource planning and the policies that can be Continue reading...

Verizon and BT are considered the largest institution in the video conferencing industry due to their capacity to finance the day to day operation. According to the recent research, it is evident that both Verizon and BT have a stable capital structure that has led to the realization of their high growth rate in the market. In other terms, the two organizations have set in place strategic planning and mechanism that ensures there is adequate inflow and outflow of resources. Verizon has been in a best position to increase its growth rate due to its ability to settle its Continue reading...

The Ratio Analysis of Beiersdorf AG financials shows obvious company’s strengths and weaknesses. The company is in good position in terms of liquidity and inventory turnover. At the same time, the company’s profitability and return on investment are not so good. Beiersdorf AG has the lowest Return on Net Sales ratio among leading competitors and the lowest net profit. In order to improve profitability, the company should compare its profit margins by product to the industry average and consider starting new high margin products.
Current ratio was used in order to evaluate Beiersdorf AG liquidity. This ratio Continue reading...

Equity Long-Short y is an investing strategy that is utilized principally by hedge funds and which entails undertaking long positions in stocks that are anticipated to increase in worth and short positions in stocks that are anticipated to reduce in worth. A long position involves purchasing a stock that will increase in value while a short position involves obtaining a stock you do not possess, selling it, then hoping it decreases in value, at which time you can purchase it once more at a lower cost.
Convertible Arbitrage is an investment strategy that entails undertaking a long position in Continue reading...

International Trade Finance

Section 1: Introduction
The main aim of designing the report is to provide an in-depth analysis into Seward Inc financial performance. A firm can strengthen its financial position when it has a better understanding of its financial position. The position is further understood through comparative analysis where the various financial ratios are compared to other competitors or the general performance within the industry. The report consists of various sections that look into the business performance through profitability leverage and efficiency, the comparative analysis and finally the ratio analysis.

Section 2: Firms performance analysis

The basic tool most investors or even the managers use to Continue reading...

Answer

As per the case study, Babes-N-Toyland has been increasing with a positive and robust pace. In this particular part, it is required to construct the Yield Curve for August 1991, August 1992 and November 1992. The yield curve is as follows
The yield curve with higher maturities usually have lower yield as compared to the higher yield that can be found from the Yield to Maturity (YTM) figures of November 1992 as compared to YTM of August 1991 and August 1992.
There is a considerable change that can be found in the aforementioned yield curve due to their approaching Continue reading...

Businesses operate in a cutthroat market whereby financial intelligence is integral to success and operational sustainability. With such a competitive environment, it is prudent to have information regarding to the sources of finance before starting the business intended. As such, through proper financing, the business performance strategies are drawn out effectively. Further, budgeting instills proper financial planning in the running of the business. Through proper planning, the business emerges as formidable forces in the market through budgeting and cost control measures. Hence, in this paper, I will look at financial analysis and recommendations at Bank of America.

Financial analysis

First and Continue reading...

International Trade Finance

Relevant Ratios
Liquidity Ratios
In the two years, both current and quick ratios have declined. In this case, looking at 2015 values, the firms were far away from the recommended ratios. As such, in the second year, the firm manages its finances more efficiently since the values are near the recommended ratios. The ratios are an indicator of prudence in financial management thus an improvement.

Efficiency Ratios

In relation to asset utilization, the firm has showed remarkable improvement as shown in the improvement in the total asset turnover and fixed asset turnover. As such, this implies that the firm has improved Continue reading...

Introduction

Financial analysis is the research process of financial condition and the main results of financial activity in order to identify the reserves for increasing its market value and provide further effective development. The results of the financial analysis are the basis for management decisions and the creation of a strategy for further development of the company. Therefore, the financial analysis is an integral part of financial management, its most important component (Keown, Martin, Petty and Scott, 2001).
Under Armour was chosen for conducting financial analysis, because it is one of the most innovative and conceptual companies in the production Continue reading...

Introduction:

Al Manal establishment is an import manpower housemaid that was licensed in 1993 by Abu Dhabi Government General Security Executive Council in Abu Dhabi. The firm is a family and was handed down by the founder to his Mohamed Saleh AlOthali, who is the current owner of the establishment.
Al Manal has experienced financial success over the years. It was started with AED 100,000 of owner capital. It broke even within the first 2 years of establishment and returned a profit of AED 245,000 in 1995. The profits have been increasing ever since. However, it experienced some Continue reading...

Introduction:

Al Manal establishment, an import manpower housemaid licensed in 1993 by Abu Dhabi Government General Security Executive Council in Abu Dhabi.MANAL was inherited from the father who established it to his sun Mohamed Saleh AlOthali who is the resident and the owner of the establishment.
Al Manal Organization’s business performance had been doing well, started with AED 100,000 of owner capital with a profit of AED 245,000 in 1995. In few periods, it had some turbulences and low performance leading to low profit between 2002-2004. The establishment faced low profit since its owner was focusing on Continue reading...

The key issues in the case include low level of borrowed funds, cash and cash equivalents and reduction in the rate of sales growth. Recommendations on the increase of borrowed funds examine a recapitalization strategy, in which it lends equal to $1 billion to repurchase its shares. Recommendations concerning increase in cash and cash equivalents consider the sale of unused or unwanted objects and reserves for an amount of $456.65 Mio. Recommendations on the increase of sales growth rate to at least 4.4%, including the improvement of advertising campaign and application of the strategy of mergers and acquisitions.

Competent, Continue reading...

Analysis of Starbucks

Analysis of Starbucks

Introduction/ Summary

Starbucks as the name suggest is the “Star” or the world leading champion coffee restaurant located in United States. It started from the scratch as a small business entity from three young and business oriented gentlemen and had good destiny for their start up. Management skills were not adequate at the initial stages of the business which made it to close down some of its branches for quite some time to pave way for a series of transformation initiatives to elevate customers experience at Starbucks store. The transformation initiatives conducted were aimed at providing additional resources Continue reading...

International Trade Finance

Section 1: Introduction
This report is designed with the sole purpose of strengthening Seward Inc financial position, through providing an in-depth analysis of the firm’s financial performance. The content of the report consist of the various financial ratios such as the profitability and leverage ratios, and how this ratios compares to the overall industrial ratios as provided by the financial analyst.

Section 2: Firm performance

Profitability measures are the most important thing to business managers. One of the most used tools for determining the business bottom line and its return to investors is by the use of profitability ratios. The operating profit Continue reading...

Introduction:

Al Manal establishment is an import manpower housemaid that was licensed in 1993 by Abu Dhabi Government General Security Executive Council in Abu Dhabi. The firm is a family and was handed down by the founder to his Mohamed Saleh AlOthali, who is the current owner of the establishment.
Al Manal has experienced financial success over the years. It was started with AED 100,000 of owner capital. It broke even within the first 2 years of establishment and returned a profit of AED 245,000 in 1995. The profits have been increasing ever since. However, it experienced some Continue reading...