Jet Financial Analysis

In: Other Topics

Submitted By laxmi9846
Words 3797
Pages 16
Competition Bikes, Inc.
Competition Bikes, Inc. makes bicycles for professional and other highly accomplished riders who compete in bike races, biathlons, and triathlons. Sixty percent of all race winners have been victorious using a Competition Bikes bicycle when at least ten percent of the entrants were also using a Competition Bikes bicycle. This extraordinary success rate consistently is a topic of conversation among racers and this word of mouth advertising has been effective in promoting sales. The company also uses these statistics to promote sales, although its advertising efforts have been quite limited. The Main Competitor Two Wheel Racing, Inc. is the only other manufacturer that offers a competitive product in this market space. Their product weighs only a few ounces more than the bikes made by Competition Bikes, but Two Wheel Racing builds a chain driven product. Two Wheel Racing is also a publicly traded company. Their financial ratios are provided for comparison and analysis.

OWNERSHIP Larry Ferguson formed the company in 2001 in his garage. An avid racer, Larry often heard comments from other riders about how heavy and unreliable their bikes were. Larry identified and sought to remedy this market niche by creating a specialized product that would satisfy the needs of racers. His new company also proved to be a vehicle for financial success. Early success prompted Larry to take the company public after three years in order to acquire sufficient capital to build the two current manufacturing facilities. His bikes enjoyed high demand and good profit margins. Larry continues to be the CEO of the Competition Bikes, Inc. and retains a 40% interest of company shares.

Each of the manufacturing locations for Competition Bikes uses operating procedures based on department and…...

Similar Documents

West Jet Case Analysis

...operations. West Jet’s main core competency, its integrated cost-differentiation focus strategy and implementation, has proved to be a recession-proof solution that gains considerable media and business attention. This strategy, fully embraced by each WestJet employee, is designed to continuously identify new areas for growth, such as an additional low-capacity regional line to underserved markets and WestJet Vacations packages. Finally, the airline’s ability to liquidate assets quickly and maintain low leverage makes WestJet a very lucrative TSX investment. Mission Statement and Vision WestJet aims “to enrich the lives of everyone in West Jet's word by providing safe, friendly and affordable air travel. “By 2016, West Jet will be one of the five most successful international airlines in the world providing guests with a friendly and caring experience that will change air travel forever”1. 1.0 Political/Legal Extensive laws regarding airline safety and security, the provision of services, competition, and environmental and labour concerns govern Canada’s airline industry2. Government bodies such as Transport Canada, the Competition Bureau, the Canadian Transportation Agency may impose new laws or regulations, or render decisions, rulings or changes in policy that have a negative impact on the WestJet by “significantly increasing the cost of airline operations, imposing additional requirements on operations or reducing the demand for air......

Words: 4430 - Pages: 18

Financial Analysis Jet Task1

...This document provides financial analysis of Competition Bikes Inc. Horizontal Analysis: Horizontal analysis is a financial statement analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time. It is a useful tool to evaluate the trend situations. (Financial Analysis of Financial Statements) The statements for two or more periods are used in horizontal analysis. The earliest period is usually used as the base period and the items on the statements for all later periods are compared with items on the statements of the base period. The changes are generally shown both in dollars and percentage. (Financial Analysis of Financial Statements) Let us analyze strengths and weaknesses of the Horizontal Analysis provided by Competition Bikes Inc. Let us consider Net Sales of Competition Bikes over the Year 6, 7 & 8. In the Year 6, Net Sales of Competition Bikes were $4,485,000 which increased in the subsequent Year 7 by $1,495,000 which is percentage increase of 33.3 as compared to 31.8% of increase in the cost of goods, resulting in 37.5% increase of Gross profit. This can be considered as a strength of the company . On the other side considering Year 8 against Year 6, Net sales are increased to $5,083,000 but they are lowered by $897,000 as compared to Year 7. Year 8 Net sales are behind 15% as compared to Year 7, resulting in $266,600 less Gross profits as compared to $1,638,000 profit of Year 7. Year 8 resulted in......

Words: 3694 - Pages: 15

Jet Financial Analysis Task 1

...Competition Bikes, inc, Executive Summary Report * Skip to Navigation * Skip to Content ------------------------------------------------- Top of Form Bottom of Form Horizontal, Vertical, Trend and Ratio Analysis The assessments of the financial health of Competition Bikes, Inc. (CB) are derived using the attached income statements and balance sheets. Focusing on calendar years # 6, 7 and 8 to gauge the growth and stability of this company. Between the years # 6 and 7, Competition Bikes, Inc. had a significant growth in new earnings that was not extended on into year # 8. The net earnings moved from a positive 313.4 % to a dramatic loss of 81.6% . A.1.a) Horizontal Analysis Results Horizontal Analysis is a direct comparative analysis of each line item across the same time frames of a particular company. It is calculated in dollars and percentages. An analysis will look at how the accounts have fluctuated from one year to the next. The formula used is: Dollar change = This Year’s Balance – Last Year’s Balance. Percent change = Dollar Change . The income statement from year # 6 to year # 7, exhibited a sales increase of 33%. There was only a 31 percent increase in product costs. This decrease in cost of materials was offset by sales expense of 33 percent and an increase in general operating espense – totaling 20 percent.. These line expenses both increased from year # 6 through year # 8. These increases offset the profit from...

Words: 5051 - Pages: 21

Financial Analysis: Jet 2 Task 4

...JET2 – Task 4 Financial Statement Analysis Managing Internal Cost & Controlling Finances Summary Report In response to a request from the Vice President of Competition Bikes for an analysis and recommendation regarding Activity Base Costing, as well as a request for a break-even analysis with projections of the company’s target profit, I have developed the following report. 1. Costing Method Evaluation Traditional Costing and Activity Based Costing (ABC) are the two systems we will evaluate in relation to Competition Bikes’ operations. To do so, we will need to look at the advantages and disadvantages of both systems. Costing systems are used to help predict the profitability of a product and help establish the cost of a product correlated to the income it generates. Traditional costing allocates overhead according to the amount of a particular cost driver, for example, how many direct labor hours are required to manufacture a product, while activity based costing looks at each activity and assigns a cost to it. Traditional costing separates costs into direct and indirect categories. The costs of labor or of raw materials would be examples of direct costs. Then, traditional costing divides the total cost of a product by the direct labor cost. This gives us the estimated cost of the product per item. However, increasingly in today’s business environment, the proportion of direct costs have fallen in relation to the......

Words: 3145 - Pages: 13

Financial Analysis

...“Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” Submitted for partial fulfilment of the Award Of Master of Business Administration DEGREE (2011-2013) Submitted By ArushiBhutani 1103270034 UNDER THE GUIDANCE OF Internal Guide:JayaPandey School of Management ABES ENGINEERING COLLEGE, GHAZIABAD (ISO 9001:2000 certified) AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA Candidate’s Declaration/Certificate I “ARUSHI BHUTANI” hereby declare that the work which is being presented in this report entitled “Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” is an authentic record of my own work carried out under the supervision of Ms. “JAYA PANDEY”. The matter embodied in this report has not been submitted by me for the award of any other degree. Dated: ARUSHI BHUTANI MBA Department This is to certify that the above statements made by the candidate are correct to the best of my knowledge. Prof. Rakesh Passi JAYA PANDEY Head of Department Designation: Date: Department: Date: ACKNOWLEDGEMENT “Interdependence is a higher value than independence” Some says “Managers are born and some says managers are made”. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are......

Words: 17043 - Pages: 69

Financial Analysis Jet Task 2

...Requirements for Task 1: A Prepare a summary report in which you do the following: 1) Evaluate the company’s operational strengths and weaknesses based on the following: a) Review the horizontal analysis, analyze the results, and discuss operational areas of concern. “Horizontal analysis of financial statements involves comparison of a financial ratio, a benchmark, or a line item over a number of accounting periods. This method of analysis is also known as trend analysis. Horizontal analysis allows the assessment of relative changes in different items over time. It also indicates the behavior of revenues, expenses, and other line items of financial statements over the course of time.” (Ready Ratios, 2014a) The sections below summarize the results of my horizontal analysis of Competition Bikes, Inc. (CB): Year 7 to Year 8 CB suffered a decrease in Net Sales Revenue of 15% from Year 7 to Year 8, but the course materials explained this as a result of a decline in the overall economy. This is a reasonable explanation and may very well indicate that CB management’s actions or inactions are not to blame for decline. It is encouraging that percentage decreases in Cost of Goods Sold and Selling Expenses, 14.5% and 14.9%, respectively, approximated the 15% decrease in Net Sales indicating no significant change in marginal cost of production and sales. That total General and Administrative Expenses increased by 1.2% is not any cause......

Words: 10434 - Pages: 42

Financial Analysis

...Financial Management Case - Boeing 7E7 1. Background 1.1 General introduction of Boeing Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. According to Boeing’s 2002 Annual Report, the revenues split between its commercial airplanes division and its integrated defense systems division is about 50/50. Boeing has been the premier manufacturer of commercial jetliners for more than 40 years. Today, the main commercial products are the 737, 747, 767 and 777 families of airplanes and the Boeing Business Jet. New product development efforts are focused on the Boeing 7E7. 1.2 Basic information of Boeing 7E7 Boeing 7E7 was expected to enter service in 2008 with three versions: a baseline model with 200 seats and a range of 7,800 nautical miles; a lighter version with a 3,500 nautical-mile range; and a stretch version with 250 seats and a 8,300 nautical-mile range. The 7E7 is intended to replace the 757, 767 and A300 and even the successful A330. This is why Boeing has a lot of opportunities in this market segment. With almost every U.S. major airline operating a large fleet of 757/767 aircraft, this will be the main target market for Boeing's 7E7. American Airlines, Delta Airlines and United Airlines may all be the customers we want to pay attention to. American Airlines also......

Words: 2793 - Pages: 12

Financial Analysis Wgu Graduate Program- Complete Course - All 5 Tasks Rjet Jet Rjet2 Jet2 - a+ Work

...Financial Analysis WGU Graduate Program- COMPLETE COURSE - all 5 tasks RJET JET RJET2 JET2 - A+ WORK IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download If You Face Any Problem E- Mail Us At Question This tutorial contains the attachments for all of the required tasks for the entire WGU Financial Analysis course. There are three attachments (the documents for all five tasks have been combined into one document and there are two attachments containing the financial data). All of these attachments passed in Taskstream. These tutorials are based on the Competition Bikes storyline case study. Task 1 includes a summary report evaluating the company's operational strengths and weaknesses, analyzing the working captial of Competition Bikes, evaluating the internal controls for the purchasing system, and analyzing their compliance with Sarbanes-Oxley. Task 2 includes a summary report discussing specific budgetary items that raise concern in the budget planning, and evaluating the flexible budget and its variances. Task 3 includes a summary report recommending a captial structure approach, discussing areas that raise concern related to Net Present Value and Internal Rate of Return, discussing how working capital can be properly obtained and managed for the Canadian expansion, and discussing whether Competition Bikes......

Words: 669 - Pages: 3

Financial Analysis

...Running head: A FINANCIAL ANALYSIS FOR THE BOEING COMPANY 1 An Overview of Financial Statement Analysis for The Boeing Company. Kathleen Kelly Capella University A Financial Analysis of The Boeing Company EXECUTIVE SUMMARY: The Boeing Company is a leader in manufacturing aircraft in both commercial and military sales. The Boeing Company is the world’s largest within its industry of aerospace/defense products and services with over $90 billion in revenue at the end of 2014 (Boeing, 2015). Boeing is a top US exporter of goods and has customers in 150 countries (Boeing, 2015). Boeing is listed on the NYSE and compared to their top two competitors, Lockheed Martin and Northrup Grumman, Boeing has an operating cash flow of 7.83B while both competitors total 5.31B (Yahoo Finance, 2015). This is more than double the amount of their competitors. While Boeing clearly has a higher cash flow their profit margins are not as high as both competitors (Yahoo Finance, 2015). However, Boeing has been extremely profitable but not as profitable as recorded in 2012 (Yahoo Finance, 2015). Boeing also appears to be losing market share at the present time. A 52 week range has been 116.32-158.83 and the last day’s range has been 146.01-148.37 (Yahoo Financials, 2015). A thorough analysis will follow to compare Boeing with its major competitors as well as review Boeing’s financial data for the last 3 years to identify any noteworthy changes......

Words: 7887 - Pages: 32

Financial Analysis

...Financial Analysis – Week Five Final Assignment ACC 205 Principles of Accounting I July 4, 2000 Financial Analysis As an introduction, financial analysis provides an opportunity to make informed decisions about the health and viability of the company under review. The analysis can be done in several ways, but most commonly the business activities of a particular entity are compared internally from one year to the next. Similarly, the company is compared to an external but similar company in the same industry. Alternatively, one could also compare the activity of the company under review with that of an industry average of similar companies. The various financial analysis techniques used by accountants and analysts are all designed to provide the best possible estimate of financial viability of a company on a go forward basis. The company selected for this project is a publicly held healthcare corporation based in Boca Raton, Florida and named Cross Country Healthcare. As an overview, the company is comprised of three segments: contingent nurse and allied healthcare provider staffing, physician staffing, and other human capital management services, the latter of which provides education and training programs to the healthcare industry, as well as retained search services for physicians and healthcare executives in the United States. Competitors of Cross Country Healthcare would be companies similar to Staff Care, Maxim, Delta Staffing, Onyx MD, and others...

Words: 1702 - Pages: 7

West Jet Case Analysis

...WESTJET CASE ANALYSIS Information technology is a revolution in itself. I perceive the blend of Information Technology with business strategy in collaboration with most apt IT governance is what is required for an organization to flourish and be in a win- win situation in the long run. In the case analysis of The West jet, we are going to see how IT, Business Strategy and IT governance can be utilized in upgrading an organization so that it provides better customer service and satisfaction. Analysis :- West Jet Airlines known for its "High Value and Low Fare" was working fine with its in- house small but efficient Information technology services(It worked as the integral growth of the West Jet) until it started facing hindrances in code share. The systems in the west jet were stand- alone systems and were not able to collaborate with the international Airlines Systems. Initially, West Jet selected Sabre to move to International reservation system but it was not commendable. There were some issues with the IT Infrastructure. I perceive not having an IT expertise at an executive level is a major drawback for any growing organization since the business strategies have to be in sync with the IT requirements. Realizing that, the CEO along with other executives signed a contract with Cheryl Smith to be the CIO for The West jet. Since The West jet wanted to use IT to move to next level so Cheryl was responsible for raising the IT systems and infrastructure at par with other......

Words: 1948 - Pages: 8

Financial Analysis

...Financial analysis Accountancy Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. Financial analysts often assess the firm's: 1. Profitability -its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term; 3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the......

Words: 826 - Pages: 4

Jet Blue Situational Analysis

... I. Customer Analysis a. Who: consumer, business, national, international i. Consumer: Younger, affluent, present on social media, fare-conscious 1. The “middle space” for those who dislike larger airlines and love amenities that low-cost rivals don’t offer ii. Business: NY Jet’s Official Team Carrier iii. National: Serves 90+ destinations in 25 states, the District of Columbia, Puerto Rico, and Virgin Islands 2. New routes from: Detroit, Ft. Lauderdale, Hartford Springfield (CT), Washington-National (DC), Salt Lake City, Orlando, Las Vegas, San Francisco, Cleveland, West Palm Beach, NYC, Pittsburgh, Boston, Savannah/Hilton Head, Charleston, Fort Myers, Reno/Tahoe, Martha’s Vineyard, Anchorage, Portland, and Nantucket iv. International: Serves 15 countries in the Caribbean and Latin America 3. New routes from: Nassau (Bahamas), Port of Spain (Trinidad & Tobago), Curacao (Curacao), Catagena (Colombia), Montego Bay (Jamaica), Newark, Punta Cana, Hyannis/Cape Cod (MA), St. Lucia (UVF), Puerto, Plata (DR), Santiago (DR), and Port-au-Prince (Haiti) b. B2B, B2C, etc. v. B2B: Subsidiary, LiveTB, LLC, provides in-flight entertainment systems and internet connectivity in commercial aircrafts, sells vacation packages through JetBlue Getaways which provides fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels, resorts, car rentals, and attractions ...

Words: 1150 - Pages: 5

Financial Analysis

...three years and also shows the forecast of the company for financial year 2012. This would help investors and researchers to decide on investing to SWM or not. SWM has been analyzed step by step in order to find out its true value in the industry. The analysts have first looked into SWM business and strategy where it has been noted that SWM was a result of merger of seven group holdings and Australian West Newspaper in order to expand and use their resources efficiently. Secondly, SWM accounting policies and procedures have been analyzed where they showed that the company is following the accounting standards and using their flexibility that was given by the standard in order to measure some accounts in the financial statement. This flexibility was compared to the industry where it has noted that the company is valuing these accounts in a proper way. Thirdly, a financial analysis was also undertaken. It has been understood that the company, though there was a merger, is managing their resources well that resulted to positive book and cash returns. Lastly, the forecasts of the said company, where the analyst has determined the company’s value and the full set of financial statement for 2012, were estimated and calculated intelligently. With the help of the four steps of business analysis, the group has recommended that it is safe to invest to seven west media even if merger has occurred twice in the last three financial year. I. INTRODUCTION In order for a......

Words: 1963 - Pages: 8

Analysis of Jet Blue Airways

...Analysis of Jet Blue Airways BUS 599 October 19, 2010 Analysis of Jet Blue Airways JetBlue Airways Corporation is an American low cost airline. Since 2001, the U.S. airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest U.S. airlines filed for Chapter 13 bankruptcy protection (Flouris, Walker, 2005). As a result, the airline industry has been more creative in their strategic marketing plans to remain financially viable. Many airlines have led the way with innovative ideas to retain, gain, and build their customer base. JetBlue Airlines has followed the path of most airlines but as one of the leading low cost air carriers, Jet Blue’s business strategy differentiates from most airlines. Trends in the U.S. Airline Industry and Impact on Strategy Trends in today’s U.S. airlines industry continue to show a drastic departure from business practices of previous years. With the constant increases in the price of conducting business, airlines are searching for ways to make or increase profit. Passengers are often charged for many amenities once offered free of charge by the airlines. Due to one of the most severe economic recessions in recent years, passengers should expect these trends in the airline industry to continue. However, prospects for the airline industry look a lot brighter as the industry continues to persevere and......

Words: 1833 - Pages: 8