Free Essay

Key Financials on Vf Corporation

In: Business and Management

Submitted By Becka92
Words 354
Pages 2
Financial data is important in measuring businesses profits, losses and its general progress through time. I have used BLOOMBERG to identify key statistics and ratios that I will break down and use in my analysis of the VF Corporation. I shall also use these statistics to compare VFC with GAP, another large retail organization that owns a number of large businesses, and the industry average. This will be useful in deciphering the differences between both businesses progressions in comparison to the industry as a whole.
Looking at the profit margin for VFC (9.98%), GAP (5.72%) and the industry (6.22%) I see that VFC has a margin much higher than both the average and GAP, meaning it controls its costs better, and for every dollar sale VFC is able to keep $0.09 as net profit. VFC’s operating margin shows the same progress; with 13.47% compared to the industry average and GAP which both have 9.88%. a higher operating margin shows that VFC is able to pay off costs a lot easier and have money left over. Looking at the asset turnover ratio I see that VFC (1.12%) falls below the industry average of 1.41% showing that it is not as efficient as using its assets to generate sales or revenue as GAP or the industry in general. This could be because VFC has too many assets(…). VFC’s equity multiplier (1.87%) is higher than the industry average (1.41%) and lower than GAP (2.69%). A high equity multiplier indicates a higher financial leverage, which can be seen as a positive, but it can also mean the company is relying on its debt to finance the business which could be seen as very risky. VFC’s ROA (11.46%) is a lot higher than the industry average of 8.8%, indicating that the company is efficient in using its assets to generate earnings. The ROE for VFC (22.5%) is also higher than the industry average of 16.7% indicating a larger amount of net income is returned to the business as a percentage of the equity.…...

Similar Documents

Free Essay

Global Financial Corporation

...BACKGROUND Global Financial Corporation (GF) offers financing services for customers purchasing heavy construction equipment from its parent company Global Equipment Company (GEC). GF’s Bakersfield, California office is setup to process the loan applications for the western United States. A recently appointed Vice President of GF, Nancy Rodriquez, is also in charge of managing the Bakersfield office. She has received a memo from the Director of Marketing at GEC with a complaint stating that the “Bakersfield office was taking much too long to process loan applications” and their major competitor has promised to process loan applications in “10 business days or less” (Page 1). CURRENT PROCESS Once the loan application has been received at the Bakersfield office via FAX or overnight mail it is classified into either a “Standard or “New.” A “Standard” application, which accounts for 40 percent of the submitted applications, is defined as a current customer who GF has previously processed a loan application for. The “New” applications are easily defined as all new customers and any current customer who is applying for a substantially larger loan amount. The Bakersfield office has setup a process which takes each loan application through a four step process. The first step is the “Evaluation and Analysis” which determines the applicant’s qualifications to determine whether they are qualified and have the ability to repay. The next step is the “Interest Rate......

Words: 941 - Pages: 4

Premium Essay

Vf Brand

...VF Brand: Global Supply Chain Strategy ABSTRACT: This case examines VF Brands global supply chain strategy. Historically, VF has used a combination of in-house manufacturing and traditional arms-length sourcing arrangements. At the time of the case, the company is considering a third approach to supplier relations that involves much closer cooperation and partnerships. The goal of this "third way" approach is to create a sourcing relationship that combines some of the virtues of vertical integration with the flexibility of sourcing. Such arrangements are increasingly discussed in the operations literature and in practice. ANALYSIS: Alternative 1: Abandon the Third Way – go back to the old way The Third Way could potentially cause many difficulties for VF, hence abandoning this way before investing too much money is a possible alternative. Firstly, VF maintains the flexibility to change volumes or to change to a supplier who is offering a lower price, by adopting the outsourcing. It is also independent from the supplier’s problems, for instance if you are not satisfied with the quality of the product, you can simply switch to a different supplier. Following the old way, you do not need to spend money and time until the problem is fixed. Secondly, it is tough to find suppliers willing to form a partnership with the given conditions. To agree to not supply the same category of products to competitors anytime in the future is a huge barrier for a supplier and......

Words: 2971 - Pages: 12

Premium Essay

Financial Ratio Analysis: Starbucks Corporation

...Financial Ratio Analysis: Starbucks Corporation December 11, 2013 Financial Ratio Analysis: Starbucks Corporation Starbucks Corporation has created a crazed coffee culture around the globe. This paper will act as a financial and stock recommendation based of the financial ratio analysis. Starbucks opened its first location in Seattle’s Pike Place Market in 1971, selling quality ground beans over a small counter in an open-air market. Eleven years later, Howard Schultz joined Starbucks as a director of retail operations and marketing. After a trip to Italy to find new products, Schultz fell in love with the cafe environment he found there. His dream then began to bring that environment to the United States and the brand we know today began to take form. With the backing of local investors, Shultz acquired six Starbucks locations in 1987 (Starbucks) and began building his global empire. At the time of its initial public offering on the stock market in June 1992, Starbucks had grown to 140 outlets and had revenue of $73.5M. They opened that morning at $17 a share, and closed at $21.50. (Starbucks) By September 1992, the share price had risen 70% to over 100 times the earnings per share of the previous year. (Globe) After going public, the company took steps to grow the business, expanding the brand by negotiating partnerships with established companies. * Offering Starbucks coffee on United Airlines fights. * Licensing Stores to Barnes & Noble,...

Words: 1795 - Pages: 8

Premium Essay

International Financial on Sony Corporation

...TABLE OF CONTENTS 1.0 MULTINATIONAL FINANCIAL MANAGEMENT (SONY CORPORATION) 2.1 Main business of the Sony Corporation 2.2 Goal of the Sony Corporation 2.3 International business methods used by Sony Corporation 2.4 Expectation to expand to another countries, opportunities to expand and risk of pursuing new business in another countries 2.0 INTERNATIONAL FLOW OF FUNDS 3.5 List countries of Sony Corporation export products 3.6 Sony Corporation export business by recent changes in the factors that can affect the degree of international trade 3.0 INTERNATIONAL FINANCIAL MARKETS 4.7 Foreign exchange market used by the Sony Corporation 4.8 The Sony Corporation issues stock in foreign countries 4.0 EXCHANGE RATE DETERMINATION 5.9 Currencies that the Sony Corporation uses to conduct its international business 5.10 The trends in the main foreign currencies used by the Sony Corporation and affected by changes in the values of these currencies 5.0 FINANCING INTERNATIONAL TRADE 6.11 Types of payment methods to pay for imports 6.12 Types of trade finance method 1.0 MULTINATIONAL FINANCIAL MANAGEMENT 2.1 MAIN BUSINESS OF THE SONY CORPORATION Sony is engaged in the development, design, manufacture and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets as well as game hardware and software.......

Words: 6247 - Pages: 25

Premium Essay

Financial Analysis Costco Wholesale Corporation

...Financial Research Paper for Costco Company Overview for Costco Costco Wholesale Corporation operates affiliation warehouses that provide an assortment of exclusive and secluded label products in a variety of stock categories in no-frills, self-service warehouse facilities. The organizations product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, furniture, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, housewares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It offers Business and Gold Star (individual) memberships. As of October 8, 2009, the corporation operated a chain of 560 warehouses encompassing 407 in 40 states and Puerto Rico, 77 in Canada, 21 in the United Kingdom, 7 in Korea, 6 in Taiwan, and 9 in Japan, as well as 32 warehouses in Mexico and 1 in Australia. Costco Wholesale Corporation also propositions its products through costco.com in the U.S. and through costco.ca in Canada. It has a strategic alliance with Valdez Heli-Camps. The company, formerly known as Costco Companies, Inc., was founded in 1976 and is based in Issaquah, Washington. The company’s premier membership is the......

Words: 1836 - Pages: 8

Premium Essay

Toyota Corporation Financials

...University of La Verne BUS 330: Business Finance Toyota Motor Corporation (TM) F/S Ratio Analysis Case Prepared by Toyota Motors Corporation is a Japanese automotive manufacturer. Its headquarters are in Toyota, Aichi, Japan. Toyota was the largest automobile manufacturer in the 12th largest companies in the world by revenue. Furthermore, in 2012 Toyota was the largest manufacturer by production, of which, it was ahead of General Motors and Volkswagen Group. Toyota is a multinational corporation with a rough estimate of 330,000+ employees worldwide. A fun fact about Toyota is that, it is the world’s first automobile manufacturer to produce more than 10 million vehicles per year. In addition, Toyota was the largest listed company in Japan. This rank was taken by market capitalization and by revenue. It was worth more than twice as much as the second listed company. Toyota is not only in the automobile business, they have also ventured into other business areas like: Manufacture and sales of textile machinery, materials handling equipment, as well as into the logistics business. “Toyota Industries strives to enhance its corporate governance based on the belief that maintaining and improving management efficiency and the fairness and transparency of its corporate activities is of utmost importance” (Toyota). Toyota has a divisional organization system, with significant authorities delegated to each of the business divisions; furthermore, Toyota has......

Words: 3136 - Pages: 13

Free Essay

Smith Financial Corporation

...Case Analysis Form Participant Name: | Nazish Kanwal | Case Title: | Smith Financial Corporation | Main Problem and Reasons for the Problem | Main Problem: Miller and his team were not on same grounds. No consensus-building was done by Miller.Reasons for the Problem: * Miller’s over-confidence and lack of team work skills. * Sarcastic tone of Miller during official communication showing his unwillingness to cooperate with others during critical business problem and not understanding the past situations with consideration e.g. using phrases like “thorn in your side”, “excuses”, “work around”, “an exception to sound data management practice” at various moments. * Miller’s arrogant approach of overbearing self-importance. He thought of himself as the only one who can “fix the problems” (self-praised) while considering other’s ideas as worthless on two important situations: * Replacing Lotus Notes with Microsoft Exchange * Outsourcing the push technology for e-commerce application * Miller adopted non-serious attitude towards company’s interest by not sharing the information about the Interpush’s future with his senior officials (that Interpush is going to be sold and its President is resigning). He took the decision of giving the contract to Interpush even after knowing all those facts which were obviously not in favor of the organization, just to satisfy his ego in front of his colleagues that he took the right decision. * During meetings, he used to......

Words: 474 - Pages: 2

Premium Essay

Raytheon Multinational Corporation Key Strategic Risks and Financial Strategy

...surplus increase while producer surplus reduce drastically. A subsidy is government measure to promote local industries. It make local producer produce at a lower price hence resulting in a competitive products in the markets. Privatization is another way to intervene in the economy, when the public sector underperforms the government will privatize in order to inject some livelihood to these sectors. References Myers, J. H., Tauber, E., & American Marketing Association. (1977). Market structure analysis. Chicago: American Marketing Association. McEachern, W. A. (2000). Microeconomics: A contemporary introduction. Cincinnati, Ohio: South-Western College Pub Sloman, J. (2008). Economics and the business environment. Harlow: Financial Times Prentice Hall...

Words: 849 - Pages: 4

Premium Essay

Target Corporation Financial Analysis

...ACC111 – Accounting Karl Sauer Target Corporation Financial analysis In this essay I will review and offer financial regarding the financial statements of Target Corporation, we will perform a horizontal analysis of Target Corporation’s financial ratio’s starting with the company’s working capital and current ratios from 2004 to 2006. 1. Liquidity Ratios: Target’s liquidity ratios during this time period remain fairly consistent, from 2004 to 2006 the company current ratio average 1.59, its quick ratio averaged .98 and its working capital was positive averaging $5,052,000,000 each year. Typically current ratios above 1 are considered good, especially when combined with a strong positive working capital. In Chart No. 2 below, I compared Target’s liquidity ratios against two of its top competitors; Wal-Mart and Costco, across the board Target’s liquidity ratios were higher than their competitors by 45% to 60%. 2. Productivity Ratios: Productivity rations such as Asset Turnover, Inventory turnover and days stock in inventory show the investor just how well the company is able to use it assets to generate sales and managed its inventory levels. From Chart No. 3 we can see that the trend for the company’s productivity ratios has been up from 2004 to 2006, and while that is a very positive trend for the company’s asset turnover and inventory turnover ratios, it is a negative trend for the management of their inventory. Also the day’s stock...

Words: 532 - Pages: 3

Premium Essay

Petron Corporation Financial Statement Analysis

...UNIVERSITY OF THE PHILIPPINES DILIMAN – VIRATA SCHOOL OF BUSINESS Petron Corporation Case Presentation Michelle Therese Diaz | Christian Ernest Santos | Abigail Dy | Wilson Ramos | Christian Villar 1 December 2014 Contents The Company ............................................................................................................................................. 2 1.1. Overview ...................................................................................................................................... 2 1.2. Ownership Structure .................................................................................................................. 2 1.3. Business Strategy ...................................................................................................................... 3 1.3.1. Expansion of regional presence in the Asia Pacific ............................................... 3 1.3.2. Leveraging on refining assets to achieve competitive advantage .......................... 3 1.3.3. Ensuring market dominance over the long-term .................................................... 3 The Oil Industry in the Philippines ................................................................................................... 4 2. 2.1. The Philippine Economy ........................................................................................................... 4 2.2. The Oil Industry ....................................................

Words: 6514 - Pages: 27

Premium Essay

The Corporation/Introduction to Financial Statement Analysis

...1. What are the four major types of firm in the U.S, how are they defined, and what are the key differences between them? I understand from the course text that within the context of corporate finance the four types of firms in the U.S. are sole proprietorship, limited liability companies, partnerships and corporations (Berk & DeMarzo, 2011). These four firms are fundamentally different in their makeup and operations. To begin with a corporation is a legally defined artificial being with legal powers such as the ability to enter into contracts, acquire assets and incur obligations amongst others. I believe that corporations are one of the most recognizable business structures today as their span is wide spread and various corporations are in the news at any given point in time. Essentially they have a separate identity from the owners of the company and there may be many owners who participate as shareholders of a corporation. From the very name, a sole proprietorship is a business in which there is a single owner who is solely responsible for making business decisions and a partnership consists of two or more individuals who share the responsibility of running the company. A sole proprietorship is the most common form of business organization as it is easy to form and offers the owner complete control. Within a partnership each partner contributes money, property or skill with the expectation to share in the profits and losses of the business. From a corporate context the...

Words: 4000 - Pages: 16

Premium Essay

Financial Analysis of Mcdonald's Corporation

...Financial Analysis of the McDonalds Company MCD 2111 McDonalds Dr. Oak Brook, Illinois 60523 630-623-3300 Janell Coulter BUSN 5200 Company Overview: McDonald’s is the largest chain of hamburger fast food restaurants and services 68 million customers daily in 119 countries across 35,000 outlets. Company history: The company started as a bar-b-q restaurant by two brothers, Dick and Mac McDonald in 1940. In 1948, the brothers founded the McDonald’s restaurant. The menu introduced nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. The brothers developed a partnership with sales man, Ray Kroc in 1955 as a franchise agent for the McDonald’s restaurant. Ray Kroc founded the McDonald’s Corporation. Organization: Other than the many McDonald’s franchises being a key to the company’s success, McDonald’s utilizes what it calls a “system.” The system has allowed the company to remain proactive in identifying and implementing the many needs of its customers as well as the needs of the restaurants and the local communities it serves. Nearly fifty percent of McDonald’s corporate managers started as crewmembers as well as 60% of the owner’s operators did too. McDonald’s strives on being a great place to work with their efforts to offer workers flexibility, diversity and achievement. Many crewmembers are able to climb the career ladder towards an opportunity to invest somehow into the corporation.......

Words: 1568 - Pages: 7

Premium Essay

Key Financial Ratios

...September 2014 Story Between the numbers We bring some key ratios that you can use to analyse companies Rahul Oberoi/Money Today        Edition:September 2014 Commerce Ministry wants sunset clause for SEZs to go 27 PSU banks write off Rs 1.14 lakh cr bad debts during 2012-15 Impose antidumping duty on ceramic tiles from China Raise public healthcare spending to 2.5% of GDP Lenovo launches Yoga 900 convertible laptop, Tab 3 Pro tablet MORE ECONOMY CORPORATE MARKETS MONEY INDUSTRY TECH OPINION PHOTOS VIDEOS MAGAZINE MORE Railways' make in India: A look at 24coach train features Netflix launches in India, plans start at Rs 500 Vodafone's 4G services in Delhi, Mumbai by March Maruti releases first sketch of its compact SUV Vitara Breeza Supreme Court extends ban on 2000cc diesel cars Delhi-Agra train fare less than a kg of apples PHOTOS VIDEOS MORE 'Ratio analysis is crucial for investment decisions. It not only helps in knowing how the company has been performing but also makes it easy for investors to compare companies in the same industry and zero in on the best investment option', says DK Aggarwal, Chairman and Managing Director at SMC Investments and Advisors 'A high P/E ratio may indicate that the stock is overpriced. A stock with a low P/E may have greater potential for rising. P/E ratios should be used in combination with other financial ratios for informed decision-making' ,......

Words: 619 - Pages: 3

Premium Essay

Catamaran Corporation - Financial Analysis

...Catamaran Corporation Introduction Catamaran Corporation was formerly known as the SXC Health Solutions Corporation. The company was founded in 1993. The company acquired ComCoTec a software business in 2001. In 2006, the company moved its headquarters from Milton, Ontario to Schaumburg, Illinois. The company acquired four other companies, namely National Medical Health Card Systems, Inc., Zynchros, MedfushionRx, Inc., and Catalyst Health Solutions Inc. They acquired National Medical Health Card Systems in February 2008 for $143 million. Through the acquisition, the company doubled its size and labor force. Ten months after, the company acquired Zynchros, a formulary management business based in Seattle. On December 2010, the company bought MedfushionRx, Inc. for $100 million. The company purchased the MedfushionRx, Inc. to strengthen the company’s position in a special pharmacy market, improve management, as well as, improve supportive care. In 2012, the company purchased its competitor the Catalyst Health Solutions Inc. the cost was about $4.14 billion. On the same year, the company changes its corporate name to Catamaran Corporation. On March 30, 2015, the company was acquired by UnitedHealth Group Inc. for $12.8 billion. UnitedHealth Group Inc. purchased Catamaran Corporation to boost up their pharmacy services. Catamaran Corporation will be absorbed into the UnitedHealth Group Inc.’s OptumRX division. Catamaran Corporation is one of the leading and......

Words: 4439 - Pages: 18

Premium Essay

Mcdonald's Corporation Financial

...was up 4.4% versus an 8.7% increase for the S&P 1500 Index. In 2011, the sub-industry index outperformed the 1500, with a gain of 27.9% versus a 0.3% decline.” Financial Position of McDonald’s Corporation (MCD) McDonald’s Corporation (MCD) is the leader in global foodservice retail with more than 33,000 restaurants worldwide and 1.7 million employees in 119 countries (“McDonald’s Corporation”, 2012). Approximately 68 million people eat at McDonald’s each day (“McDonald’s Corporation”, 2012). With international growth and globalization on the rise for many quick service restaurants, such as Starbucks and Yum!, McDonald’s Corporation has also taken advantage of worldwide global growth. McDonald’s has grown their market in China, India, and other foreign countries (Murphy, 2011). According to Standard and Poor’s (2012), McDonald’s Corporation revenues have increased from $22.7 million in 2009 to $27 million in 2011. Additionally, McDonald’s operating income has increased since 2006 and their cash flow and current assets have increased steadily since 2009 (Standard and Poor’s, 2012). McDonald’s Corporation is the leader in market value with $98.5 million with Starbucks a far-second at $40.5 million (Standard and Poor’s, 2012). Economic Outlook for McDonald’s Corporation (MCD) Investing in McDonald’s Corporation is a sound business decision. McDonald’s has a strong balance sheet. Anthony Dadlani (2008) believes that McDonald’s is really a real estate company. He further......

Words: 760 - Pages: 4

Satanofani 36 | Remote Dog Beeper Collar With Gps Tracker | I Want You Back