Beruflich Dokumente
Kultur Dokumente
30-12-2013
OVERVIEW
1946 Bill Johnstone (Family owned) Manufacture standardized and customized structural connectors.
NAME RESPONSIBILTY
David Johnstone
Ellen Johnstone Elizabeth Johnstone
CEO
Product design and Production Marketing, Sales and
Distribution
30-12-2013
Audrey Johnstone
Companys Finance
DESIGN
Standardized Connectors Architects, Draftsmen, Builders. Less human intervention Customized Connectors Customer Labour Intensive Generated array of new standardized connectors improved on the existing
Strong Tie
30% 60%
Attempted to adopt just-in-time Paying generous wages Heavy investment in factory automation
30-12-2013 STRONG TIE LTD CASE - FREAKY MANAGERS 4
CURRENT RATIO
Current Ratio = Current Assets/Current liabilities Higher the CR, greater the short-term solvency
2006 5.01 2007 4.29 2008 3.13 Industrial Average 4
30-12-2013
CASH RATIO
Cash ratio = Cash + Bank Balance / Current liabilities Checks the ability of cash and bank balance to meet the current liabilities
2006 0.15 2007 0.071 2008 0.033 Industrial Average 0.5
WIP TURNOVER
WIP turnover = COGS/Avg. WIP Higher the ratio, lower the inventory accumulation
2006 6.98 DAYS 2007 5.16 DAYS 2008 2.75 DAYS Industrial Average 3 DAYS
30-12-2013
30-12-2013
A/R TURNOVER
A/R turnover = Net sales/Avg. A/R Indicates the speed at which the receivables are collected Shorter the period, better the trade credit management
2006 73.3 DAYS 2007 70.06 DAYS 2008 69.79 DAYS Industrial Average 63
30-12-2013
10
A/P TURNOVER
A/P turnover = COGS/Avg. A/P
2006 18.66 DAYS 2007 16.44 DAYS 2008 15.93 DAYS Industrial Average 11 DAYS
2/10 NET 60
30-12-2013
11
30-12-2013
12
4.61
4.11
2.82
4.1
30-12-2013
13
30-12-2013
14
30-12-2013
15
30-12-2013
16
30-12-2013
17
30-12-2013
18
RETURN ON ASSET
Return on asset = net income/Avg. Total asset * 100
2006 12.7% 2007 8.01% 2008 0.06% Industrial Average 17%
30-12-2013
19
RETURN ON EQUITY
Return on equity = Net income/Avg. equity * 100 Measures the profitability of equity funds invested
2006 21.76% 2007 13.79% 2008 0.101% Industrial Average 28%
30-12-2013
20
30-12-2013
21