Saturday, January 25, 2020
Martin Manufacturing Company Historical Ratios :: essays research papers
Martin Manufacturing Company Historical Ratios RATIOS     ACTUAL 2001     ACTUAL 2002     ACTUAL 2003     INCREASE (DECREASE)     INDUSTRY AVERAGE                          Current ratio     1.7     1.8     2.5     0.7     1.5 Quick Ratio     1.0     0.9     1.3     0.4     1.2 Inventory turnover (times)     5.2     5.0     5.3     0.3     10.2 Average collection period (days)     50.0     55.0     58.0     3.0     46.0 Total asset turnover (times)     1.5     1.5     1.6     0.1     2.0 Debt Ratio (%)     45.8     54.3     57.0     2.7     24.5 Times interest earned ratio     2.2     1.9     1.6     (0.3)     2.5 Gross profit margin (%)     27.5     28.0     27.0     (1.0)     26.0 Net profit margin (%)     1.1     1.0     0.7     (0.4)     1.2 Return on total assets (ROA %)     1.7     1.5     1.1     (0.4)     2.4 Return on common equity (ROE %)     3.1     3.3     2.5     (0.8)     3.2 Price / earning (P/E) ratio     33.5     38.7     34.5     (4.2)     43.4 Market/ book (M/B) ratio     1.0     1.1     0.9     (0.2)     1.2 Analysis Liquidity: The current ratio and quick ratios for the year 2003 are at 2.5 and 1.3, which are both higher than the industry average. The company has enough to cover short term bills and expenses. Both the current and quick ratios are showing an upward trend compared to 2001 and 2002. The current assets decreased by $ 20,264 to $ 1,531,181 and the current liabilities also decreased considerably by $255,402 to $616,000, a 29.3% decline, thus making the current ratio jump to a 2.5. The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %. Activity:      The inventory turnover is almost half compared to the industry average, although it managed to increase by 0.3 compared to 2002. The company needs to maintain a constant cost of goods sold and at the same time manage inventory more efficiently to maintain market competitiveness. The average collection period also increased slightly to 58 days, three days increase compared to 2002. The company needs to negotiate or persuade on efficient payment methods to customers to decrease the collection period down to industry average. The total asset turnover increased 0.1 to 1.6 but still failing to meet the industry standard of 2.0. Martin Manufacturing needs to boost sales while maintaining a constant asset value to meet or exceed industry standards. Debt:      The debt ratios increased by 2.7% to 57% more than double the industry standard of 24.5%. The long term debt increased from $700,000 to $ 1,165,250 an increment of 66.5% in the year 2002. The company is currently highly leveraged thus it needs to work on reducing long term debts and continue to increase assets. The times interest earned ratio dropped by 0.3 to 1.6 in the year 2003. The company could face difficulties making interest payments in case of a sales slump. Profitability: The gross profit margin is at 27% which is a percent higher than industry standards. The company is performing good and meeting industry standards in terms of cost of goods sold and sales volume. The net income margin decreased to 0.7% in 2003 a decrease of 0.3% compared to 2002.
Friday, January 17, 2020
Royal Malaysia Customs Department: Parking Problems
Parking problem at Royal Malaysia Customs Department and its solutions. Parking at the Royal Malaysia Customs Department has been a difficult proposition. Rising the necessary additional units and support staffs have Increased demand for parking. The building is ill-equipped to accommodate the rise of population growth which only exacerbates the problem. Taking into account of the problem, a number of potential solutions are proposed; these include a park and ride information system facilities, bicycle facllltles and vehicle stacking will be further explain below. TheHeadquarters of Royal Malaysia Customs Department Is located in the centre of administration in Putrajaya, in which park and ride services are made available. However, the park and ride lots are a different situation. Location, size, accessibility, cost, and frequency ot transit service can have a significant effect on how popular the service Is. An advanced traveller Information system could be Implemented for the park and ride lots in Centre of Administration in Putrajaya. This would provide real- time details about the availability of parking spaces in each of the park and ride lots through a variety of media.The information provided through this system is likely to be most useful on corridors where there Is both an ‘inner-ring' and ‘outer-ring' park and ride lot. For example. a car coming from precinct 17 is likely to prefer parking at Alamanda Putrajaya since that facility is served by two buses that run more frequently than at the Precinct 8 park and ride lot. If he drives as far as the north to Alamanda Putrajaya, only to find that there are no spaces, he Is left with several choices: drive to the Precinct 8 or Precinct 9 lots. pay for parking on or near offce building, or turn back and park at the precinct 16 lot.In any case, he pays a penalty in lost time and extra petrol; if he parks in town, he will also be paying an additional fee. If, however, he knew that the Alamanda Putr ajaya lot was full before he reached the other lot, he could park there and save himself time, money, and frustration. Second, to be in line with government encouragement to use bicycle, hence the bicycle facility improvements should address two elements in order to embolden the use of this mode. Travel facilities, such as bike lanes, wider shoulders, off-road bike paths, and the like, help make the Journey safer and more pleasant.Storage facilities in the building should be convenient and secure. This could take the form of bike lockers which provide dry, secure storage. Bike shelters could be added in areas with existing bike parking, which would protect parked bikes from the weather. one interesting fact of people who commuted by bicycle to workplace is the amount of money a person could save a year. This makes sense because the cyclist usually less concern about the hike of petrol rates and parking fees. The main concern of a cyclist is likely about the security and protection o t their bicycles while parked.Lastly, nother option to decrease the demand for parking at Royal Malaysia Customs Department is by vehicle stacking, a mechanical parking solution that enables multiple vehicles to be parked in the footprint of a single vehicle. This presents a potential method for increasing the number of parking spaces. In the context of the tOf2 Royal Malaysla customs Department DullOlng, tnls type 0T tecnnology Is only sulta for use in parking decks. Future parking structures could be designed to accommodate vehicle stackers; however, this type of technology requires a trained operator and thus is only suitable for valet parking.These devices are also unsuitable for many types of vehicles, including vans and trucks. Stackers require significant capital outlay per space, plus additional electricity requirements for each stacking mechanism. At the current time, these drawbacks mean that vehicle stacking is unlikely to be a practical solution at Royal Malaysia Customs Department. In conclusion, parking problems at Royal Malaysia Customs Department can be reduced by making efforts to improve the facilities of park and ride information system, provide safer and conducive surrounding to cycle and offer car stacking technology in the building.
Thursday, January 9, 2020
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