Muhlenpoh-Talley Industries’ Incredible Income Statement by Blaine McCormick (Reporting on industry F34628 Round 2) It’s not who makes the most. It’s who keeps the most. Consider the example of Muhlenpoh-Talley Industries (MTI) in F34628. In Round 2, MTI posted only $45,710,793 in sales revenue – that’s in the bottom 25% of the class. They are also fifth in market share for their industry. Nonetheless, because of efficient and well-managed operations, MTI kept $4,982,769 of this sales revenue in profit. That’s in the top ten for their section! MTI is Team Chester in the graphic on the left. MTI clearly has the largest green slice (or percentage profit) in their industry. In fact, they lead their industry with a 10.9% Return on Sales (ROS). Low variable costs (beige slice) and keeping SG&A in check seem key to their current profitability. Modest levels of automation have helped increase their margins but will MTI continue to automate? Only time will tell. Team Andrews has a significant lead in
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This note was uploaded on 03/29/2010 for the course BUS 1301 taught by Professor Mccormick during the Spring '08 term at Baylor.