This means that Ferrellgas is in risk of default. The company paid more in dividends last year than it earned in cash from operations. In short, Ferrellgas has an unsustainable burn rate. While Inergy had a poor financial position, it was able to tap into capital markets to alleviate any cash crunch -- Ferrellgas has yet to do this and of all these firms is the closest to default.
Amerigas is a mediocre performer among this group. While the company has very little cash and a low current ratio, it is earning enough to cover its interest. It is also paying less in dividends than its cash flow from operations, although it is probably paying too much given its earnings level and apparent need for capital expenditures. However, there are red flags with this company as well. For example, given its current cash situation, one would want to see an improving cash conversion cycle, and that is not the case as both inventory and receivables turn are worsening. It is also worth considering that Amerigas is less indebted than is Ferrellgas.
The company with the strongest financial position is Suburban. That company has a healthy balance sheet, good margins, good interest coverage and although it has a declining profit and revenue it has managed to keep its financial condition relatively healthy.
3. This does not appear to be a good industry in which to invest. Net incomes in the industry are declining, and...
Financial Statement Analysis The following is an equity research report on Starbucks. The company competes primarily in the quick service food industry, where it holds the #5 market share in the United States, and #1 in its segment of coffee (QSR Magazine, 2011). The company had revenues last fiscal year (ended 10/2/11) of $11.7 billion and net income of $1.245 billion. The current stock price is $43.91, which gives the company
Managing its fleet. This pertains to the optimization of an Airline's major assets, which is its airplanes, which is measure by its load factor, which is that percentage of an airplane's sets that are sold and actually filled at departure. The Company's load factor continues to increase from 69.5% in 2004, to 70.7% in 2005 to 73.1% in 2006. The Company is able to maximize its fleet by reducing its
Accounting and Finance: Financial Statement Analysis Project Intel Corporation is situated in California and is regarded as one of the major innovators and trailblazers in the creation and advancement of technology. Intel was founded in the year 1968 and in the year 1970, the company finalized its initial public offer (IPO) and became a publicly traded company. It trades as INTC in the NASDAQ stock exchange. This project seeks to provide
The data must be absolutely correct. 3. Effects of Price Level Changes: Price levels changes often make the comparison of figures difficult over a period of time. Changes in price affect the cost of production, sales and also the value of the assets. Therefore, it is necessary to make proper adjustment for price-level changes before any comparison. 4. Quality factors are ignored: Ratio analysis is a technique of quantitative analysis and
Consolidation of Financial Statement Analysis In the wake of the Enron collapse, the chairman of the Securities Exchange Commission (SEC) repeated his calls for the nation's securities laws to be updated in an effort to avoid another such case. In an article in December 11, 2001's Wall Street Journal, Harvey Pitt wrote that the Enron collapse underscores the need to update and improve the nation's financial reporting and disclosure laws that
Financial Statement AnalysisFinancial statement analysis refers to developing and analyzing a particular company�s financial statements to help with the decision-making processes. It is also essential since it helps external stakeholders such as investors understand its overall condition and evaluate the business value and financial performance. Internally, it is used as a tool to monitor and manage the organization�s finances. A company�s financial statements record essential financial data on all organization�s
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now