It mess that Heavier Beam has had difficulty obtaining capital due from customers. The strategies involving aggressive branding and offering wider selections at lower prices proved to be unsuccessful, mainly due to the influx of competition.
Figures for total and fixed asset turnover steadily decline from The negative values for net income and results from the previous sentence conclude why the firm has seen a decrease and negative values for ROE and ROAR. There is no evidence of seasonality. These figures could be a result of the expansion and building of outlet stores, as well as slower sales.
The average collection period has also shown significant Increases, going from 53 days In to 77 days In and Arranging new credit terms in order to receive discounts and improve margins are in order for the firm to generate profits.
The PM of the company is zero, due to the failure to generate profits. The current ratios for the firm have changed from 2. They are basically staying alive by debt, and will need to re-evaluate its processes to stay in business. Such a dramatic change shows that the firm is getting less efficient in managing its inventory, which could be a result of increasing competition throughout the industry.
This was a trend used by all in the industry, but sales volumes were not affected and remained flat. This was a concern for the Wigwagged, who saw Its retailers losing market share, and began aggressively advertising Its brand. Heavier Beam is primarily using financing activities to maintain operations of the business.
The overall operations of the company seem to be lacking proper efficiency due to the increase in inventory days and average collection period. The construction and building of the new outlet stores have no sales support and are eating profits with staggering mortgage cost.
Heavier Beam has been severely impacted by competition and the value of its inventory stemming from the economic downturn in Financing activities seem to be the source of funding for the firm.
In response to the German economic downturn Inthe company began to open outlets with wide selections and lower prices to maintain sales volume.
Inventory days show and Increase from in to in Total assets turnover equals 2. Although Wigwagged has been flexible with credit terms, Beam is far exceeding the net 30 terms ND is not taking advantage of any discounts. Demand for the industry is cyclical and is influenced by the overall economy.
The increase in investing activities is explained by the recent construction of outlets, and is shown in the buildings and equipment account.
Heavier Beam is showing high leverage risk with its debt to equity ratio of 5. As for fixed asset turnover, equals 6. The firm needs to be more effective and efficient with inventory and credit lines. The firm is producing negative cash flows and in turn producing zero profits.
Recently, the Heavier Beam is showing very high values for inventory days, and an overall decline Need essay sample on "Haefren Baum Business Analysis"? The GUM, though positive, shows a steady decline in profitability. The recent buyout from the other investors is shown in the payable from stockholders.
To turn profits, the company needs to be efficient In both Inventory management and asset turnover.
Heavier Beam being a retailer needs a large amount of Inventory and assets In order to generate sales.Business Analysis Amandine Tie Last four digits of student ID: Name of Business: Haefren Baum GmbH Cologne/DBA, Haefren Baum Nature of the business: Home furnishings retailer.
Marketing analysis: Haefren Baum is a home furniture retailer based in Cologne, Germany. Haefren Baum Nature of the Business Haefren Baum is an independent home furnishings retailer associated with Wiegandt that sells high quality furniture.
The company began as a partnership in Haefren Baum became a retailer for Wiegandt in Haefren Baum is located in Cologne, which is one of the most populated and rich cities in Germany. Haefren retails home furnishing from a location downtown Cologne, and three recently constructed stores in Rhineland.
Operations analysis: Haefren Baum is a retailer that obtains its products from Wiegandt GmbH Cologne.
Being a retail company, they are not asset intensive and this is apparent in their decrease in fixed asset turnover from in to in Haefren Baum Business Analysis Essay Demand and product sales are Influenced by consumer discretionary Income.
In 1an economic bust In the German economy resulted in a major dip in GAP. Haefren Baum is a furniture retailer, established in and was incorporated in Haefren Baum receives its merchandise from Wiegandt GmbH Cologne, a nearby manufacturer, whose business relationship equals over twenty-seven years.Download