Cash Ratio measures the cash available to the company in order to satisfy its short-term liabilities. Cash ratio of at least .5 is better because there are very few companies that actually have enough cash to cover their current liabilities. The cash ratio is the most conservative look at a company’s liquidity since it only looks at the cash. This ratio is an indication of a company’s creditworthiness and is used to decide how much credit should be extended to the company. In the case of Newmont it has a ratio of 1.96 which is a good indication that the company would be worthy of a loan from creditors. In the case of Freeport the cash ratio is 0.05 which is very small even compared to the industry average of .65. This means that a lender …show more content…
A low turnover implies excess inventory, a high ratio shows good sales. High inventory levels are unhealthy because they represent an investment with a rate of return of zero. In the case of copper mining there is a unlikelihood of a high ratio for inventory turnover because as it’s mined it goes out the door. The industry average is 41.66day for inventory turnover, Newmont is a faster turnover at 21 Days and Freeport is slightly longer at 52days. In the case of this industry specifically the faster they are able to turn over inventory the more money the company is able to free up allowing for a better working capital for the …show more content…
Debt ratio lies between 0 to1. Higher value indicates more risk to company and it will be difficult to obtain loans for new projects or expansion of any project. A low value indicates the company is less dependent on the money borrowed from or owed to others and the company has a strong equity position. Times Interest Earned is used to determine how easily a company can pay interest expenses on outstanding debt. Lower the ratio, more the company is burdened by debt expenses. When a company’s interest coverage ratio is only 1.5 or lower, its ability to meet interest expenses may be questionable. Return on Assets measures how efficient firm assets in generating profit. It is expressed in percentage. Higher the ROA, more money the company is earning on its assets. A low ROA shows inefficient use of company’s assets. Return on Equity shows how much profit the company is generating with the money invested by common shareholders. ROE is expressed in percentage. A high ROE is preferred for a high dividend to the hareholder. ROE depends upon the capital invested in the company. If more capital investment is there in the company less will be
The case was implied a Magistrate Judge, whose brief discoveries and recommendation completed up, and "the Pledge does not slight the Establishment Clause. " The District Court grasped that proposition and released the protestation on July 21, 2000. The Court of Appeals turned around and issued three separate choices talking about the benefits and Newdow 's standing. As it would see it, the offers court consistently held that Newdow has remaining as a watchman to challenge a practice that meddles with his qualification to facilitate the religious direction of his daughter. That holding managed Newdow 's remaining to challenge not only the game plan of the school locale, where his young lady still is enrolled, moreover the 1954 Act of
On May 17, 1954 the case of Brown v. Board of Education, “declared that segregation in schools of black and white students would no longer be constitutional.” After this law was passed, in 1957 nine African American students enrolled in a predominantly white school in Little Rock, Arkansas. When word got out that, nine students, Melba Pattillo, Ernest Green, Elizabeth Eckford, Minnijean Brown, Terrence Roberts, Carlotta Walls, Jefferson Thomas, Gloria Ray, and Thelma Mothershed were attending Little Rock Central High School, the governor of Arkansas sent the Arkansas National Guard to the school. Many of the students that already attended the school also barricaded the doors so they would not enter the school. The students started “throwing stones, spat on them, shouted and yelled death threats.”
Their current ratio improved from 1.59 to 2.44 which shows the ability to cover current liabilities has improved. Massachusetts Stove Company strategically made decisions to not only increase their current assets quickly but also managed their liabilities to keep them from growing out of control. This means that the company could cover current liabilities at any time relatively easily with their cash, receivables, or other current assets. In terms of the market, Massachusetts Stove Company does have the demand of 220,000 active prospects they could try to sell stoves too if a dire need arose for quick cash. Management even brought their quick ratio to 1.08.
Brief Prepared By: Kahla Rosenfeld Case: Village of Arlington Heights v. Metropolitan Housing Development Corporation, 429 U.S. 252 (1977) Procedural Overview: Metropolitan Housing Development Corporation applied to the Village of Arlington Heights for rezoning land to build a racially integrated, low and moderate housing project. The request was denied and the respondent, MHDC, sued the petitioner, Arlington Heights, for injunctive and declaratory relief on the grounds of racial discrimination. The District Court ruled in favor of the petitioner; however, on appeal, the United States Court of Appeals for the Seventh Circuit reversed the District Court’s decision. The Petitioner appealed to the United States Supreme Court and writ of certiorari was granted.
Return on equity measures the overall profitability of the financial institution per dollar of equity. Generally shareholders of financial institutions prefer the high ROE. But, higher ROE means an increase in risk. 2014 2013 2012 2011 2010
First, is a strong reliance on mall traffic to drive sale and the second is low inventory turn relative to its past average. Foot Locker’s low inventory turnover. A high inventory turnover means less cash tied up in inventory, and more available for other investment opportunities. A low turnover means the opposite. Because the company has a low turnover it is not efficiently using its investment capital.
With the current ratio greater than one percent, they have the ability to pay their current liability safely. The quick ratio compares the sum of cash, short-term investment, and accounts receivable to current liabilities. The Home Depot’s quick ratio for fiscal 2008 is 13.4 percent that is .1 percent lower than fiscal year 2007. Solvency ratio is a measurement of a company’s ability to meet their debt and other obligations. It indicates whether a company’s cash flow is enough to meet its short-term and long-term liabilities.
If you needed help on an assignment you would ask for help right? Well if Fairmont Heights was to establish an honor code you would no longer be able to ask a classmate for help. This is why Fairmont shouldn’t establish an honor code. Honor codes are placed to make severe consequences for cheating. The honor code also states that if you see a fellow classmate cheating your suppose to tell the professor or your not obeying the honor code.
Most companies are judged by its effectiveness, although analysis of profit is important. What is used most of the times is the return on equity (ROE) which it relates the level of the profitability
Mukamel, D. B., Spector, W. D., Limcangco, R., Wang, Y., Feng, Z., & Mor, V. (2009). The costs of turnover in nursing homes. Medical Care, 47(10), 1039-1045. doi:10.1097/MLR.0b013e3181a3cc62 Location: JSTOR Purpose and Key finding: The aim of this paper is to estimate the net costs associated with turnover of direct care staff in nursing homes. The study showed that turnover and cost is negative i.e. turnover is associated with cost saving.
Return on Equity From the Cash Flow Statement we can see that, ROE projected for the following years are 1996 - 42%; 1997 - 45%; 1998 - 48.13%; 1999 -
Why would higher wages not absolutely resolve the issue of turnover found in manufacturing jobs? The answer is found with the work itself. “Ford’s employees were initially enthusiastic about the high wages, but most disliked the monotony of the work… workers benefited from shorter hours, higher wages, and falling consumer prices, but they worried about the loss of freedom on the shop floor, about the endless repetition of the same movement for eight hours, and about jobs that deadened the soul”. Workers found their jobs mind-numbing, dull, repetitive, and monotonous. To them, the benefits of their work simply could not outweigh the issues they had with their jobs.
The stakeholders in this tragedy are Union Carbide Corporation (UCC USA), its CEO Warren Anderson and shareholders; Union Carbide India Limited (UCIL) and its management team; the Indian federal government; the state government of Madhya Pradesh; the associated Courts of these governments; the international community; and the people (victims) of Bhopal. As the Union Carbide/Bhopal communications case study articulates, there was considerable debate within UCC leadership regarding how to respond to the Bhopal tragedy. There were difficulties in getting accurate information from UCIL management as to what had actually occurred, and it was over a week before UCC released a formal statement. Initial considerations by the Board were financial
This being the case, the more growth the company experiences, the more capital will be
Additionally, turnover can definitely birth new broadened perspectives by newer employees bring forth new key essential perspectives, experiences, and further can establish a new way of doing and completing things in which to help the organization prosper and grow. Equally important, turnover can truly help an organization stay competitive (Westfall, 2018). Therefore, turnover helps organizations adapt and become more dynamic in order to stay afloat with others in the industry. Further, by having some turnover helps to prevent the organization from enduring a standstill and stagnancy and