BSAD
BSAD 495-Final paper.docx

What i considered to be weakness is a that the cash

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order to be more stable with its cash ratio.What I considered to be weakness is a that the cash coverage ratio shows that StilSim is having difficulties in making money. In the profit margin chart, you can clearly see a considerable decrease in profit over the past two years, and it is evident the necessity of a well-planned strategic plan to implement a plan to increase the company’s profit for the next several years. Asset Management Asset management or asset utilization ration refers to how “efficiently or intensively a firm uses its assets to generate sales” (Dess, McNamara, & Eisner, pg. 447) There are two important ratios we are going to analyze. The first is the Receivables Turnover and the second one is Days in Receivables Ratios.
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STRATEGIC PORTFOLIO Page 24. Receivables Turnover Ratio and Days in Receivables Ratio StilSim receivable turnover collects and reloads funds 3.2 times during a year, which takes approximately 114 days’ worth of sales currently uncollected, whereas StaffAces collects and reloads funds 8.4 times a year. This ratio measures how fast StilSim can collect and reload the money onto credit accounts during a period of one year. StilSim Days in A/R takes approximately 114 days to collect payment on goods and services sold, whereas StaffAces takes 43 days to collect payments on goods and services sold, which means that StaffAces has a better turnover compared to StilSim. To finalize, the total asset turnover measures the ability the company have to generate sales from assets. For every $1.00 in assets, StilSim generates $0.88 in sales, whereas StaffAces generates $ 2.32 per $1.00 in assets. 2013 2014 2015 2.70 2.90 3.20 8.60 8.30 8.40 Receivable Turnover Receivable Turnover StilSim Receivable Turnover StaffAces Year Times Strength or Weakness StilSim shows a weakness on their bill collection and turnover, which is noticeable the improvements that needs to be done. StaffAces practices its business with more security compared to StilSim, and we definitely need to make good improvements on this area.
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STRATEGIC PORTFOLIO Page 25. Dividend Payout vs. Retained Earnings Ratios The dividends payout ratio analyzes all the dividends that is paid out to stakeholders, in other words, the payout ratio is a number of dividends the company pays out divided by the net income, whereas the retained earnings ratio analyzes how much money is retained by the company and indicates the percentage of a company’s earning that are not paid out in dividends but credited to retain earning. Strength or Weakness. In this scenario, I would say that StilSim accommodates a neutral situation in terms of dividends payout vs. retained earnings. The dividends payouts and retained earnings of StilSim have been fluctuating in the past years, but have a promising raise for the following year. Profitability Measures The profitability ratio is used to measure financial metrics to access the ability a business has to generate earning compared to its expenses, as well as other costs that may incur during a certain period of time.
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  • Summer '17
  • StilSim

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