1 - Current Ratio - 10-2004 10-2005 Decreased by .16...

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Current Ratio - 10-2004 – 10-2005 - Decreased by .16 - Current Assets dropped down by 8.7 million - Current Liabilities dropped down by 3.6 million Is this bad are good? It depends…… BAD NOTES: Cash and Short Term investments decreased by 1.8. Cash and ST Investments Growth was up at 1,228 in 2004 and went down to – 91.3 in 2005. Inventory went down 4.7. There is less storage of inventories. Consumers are buying more off the shelves. Inventory Turnover is at 2.7. This is a problem; inventory sitting out on the shelves too long is not in the customers’ best interest. Inventory grows old; costumers want something that is new and up to date. Net Sales has decreased by 61.3 million. Accounts Payable went up by 6.5 million. Majesco Entertainment is borrowing heavily and slowly paying its creditors back. Accounts Payable Growth went up 10.6. Majesco Entertainment is losing money due to the fact that customers aren’t buying. The company is not coming up with newer and better inventory allowing its competitors to attack. The competitors that are bring better inventory out to the public and therefore stealing away sales away from Majesco. Majesco is struggling financially and therefore has to pay off its creditors slowly. Accounts Receivable has decrease; therefore, Retailers are getting their cash back much quicker. Accounts Receivable is down because sales are down.
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10-2005 – 10-2006 - Decreased even more by .08 - Current Assets decreased by 14.9 - Current Liabilities decreased by 12 Accounts Receivable is up Accounts Payable is down Inventory Turnover Ratio has increased Majesco Entertainment is selling more. Inventory is leaving shelves much quicker. Accounts Receivable is probably up because of discounts are going on within the stores. Customers may not be paying back the credit in time. Majesco is bringing enough income to pay off its creditors. Majesco Entertainment’s liquidity is more efficient this year and should have no problem paying off its obligations. 10-2006-10-2007 - Increased by .16 (Good Sign) - Current Assets increased - Current Liabilities decreased Majesco is receiving its liquidated cash more efficiently. Accounts Receivable has gone down. Inventory appears to be down. Inventory Turnover has gone up quite a bit so they are doing well with their sales. The company’s liquidity seems to be running efficiently. They seem to be bringing in enough money to pay off all debt.
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They have more inventories this year than the year before. The inventory turnover is high, which tells me that customers are buying more. An increase in inventory is good as long as customers
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This note was uploaded on 11/03/2009 for the course FIN B.A. 5352 taught by Professor Dr.moon during the Spring '09 term at Texas State.

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1 - Current Ratio - 10-2004 10-2005 Decreased by .16...

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