CASE: Increasing the ROA of LogaThe company Loga was able to make € 200.000 packaging extraordinary products for logistics companies. The packaging material needs to be customized for items which need special care or have weird shapes, like for example certain modern statues that had to be shipped from one museum to another. The costs of all material and operations was € 140.000. The company had an average stock of € 10.000 of packaging materials, € 2.000 in cash and € 18.000 they still had to receive from buyers. The packaging of the items usually is done on location. Therefore Loga only has a very small storage place with one desk in it. The storage place costs about € 40.000, the computer they use about € 1.000. Then they have their second hand truck of € 8.000 and some other assets with a value of € 1.000. Last year the company had costs of lost sales of € 10.000. Shareholders of Loga weren’t happy to hear about this. They feared a lower value of their shares. To see whether this is really bad for the company, Loga had a student of Saxion look into the details. The student
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