ipl-logo

Casey's General Store Financial Ratios

3256 Words14 Pages

Corporate Finance Casey’s General Store Financial Analysis Report Kimberly Daily Summary Casey’s General Store is a convenience store who takes pride in serving their made-from-scratch pizza, sandwiches, appetizers, and more for delivery or pickup. Casey’s also provides its customers with fuel including diesel, premium and regular gas. Casey’s General Store has been around since 1968, after opening their first store in Boone, Iowa. After twenty years in the business it became a publicly traded company in 1983 and started making their infamous made-from-scratch pizzas in 1984. This is where the company began expanding more and there are currently 2,315 Casey’s General Stores that reside in 16 states. Most recently in the year 2020, Casey’s …show more content…

I have written a short evaluation of each ratio listed after each ratio explaining if the average of the ratios over the previous four years are relatively good or relatively bad. The first significant trend that I noticed was found within the inventory turnover ratio. I noticed that within the past four years the ratios have stayed fairly consistent. Casey’s inventory turnover ratio is fairly high which exhibits that they are not having trouble selling their products. In fact, they sell and replenish at a high rate. This can potentially be a problem if they were to understock the shelves and not have enough inventory for customers to purchase, but they have been doing a great job with this overall. The next major trend I noticed was that their total debt ratio was higher than investors like to see. The ratio has declined over the past for years by only 3%, but it is still considered high. The total debt ratio shows us the company’s total debt, as a percentage of its total assets. Casey’s total debt ratio is hovering around 60% which is concerning for future investors. I think this could possibly be caused by Casey’s planned growth. In order to build more stores, they might have been taking out large amounts of loans. This could potentially affect future investors' decision whether or not to lend them money because investors like to know that you are able to repay them. The last significant change that I noticed was found in the quick ratio. As you can see above these ratios are significantly low, not including a spike in 2021. The quick ratio tells us how quickly Casey’s can convert their assets into cash to pay for their short-term liabilities. I think this could also be attributed to Casey’s goal to grow. The non-liquid assets could be hung up in land or real estate investments. This could potentially backfire if Caseys needed cash quickly in case of an

Show More
Related

Massachusetts Stove Company Case Study

1064 Words | 5 Pages

Thus, they are in a position to cover any debt obligations that may come up quickly. Their inventory turnover has been relatively steady over the five years of data. In year 7 their inventory turnover reached 3.2 which means inventory is moving through to customers at an increased rate over the year which correlates with their increased sales. This statement is supported by the fact that the days inventory held for stoves has dropped over the past five years from 146 days in year 3 to 114 days in year 7. These reductions have allowed for the reduction of their days in accounts payable from 51 all the way down to 11.

Read More

Swot Analysis Of Lowes

567 Words | 3 Pages

Sales in the past few years have been on the decline as many homeowners faced foreclosure. During 2006, existing home sales dropped by more than 8 percent, representing the worst decline in 17 years. In the fourth quarter— during which the housing market was hit the hardest—Lowe’s experienced an 11.5 percent drop in year-by-year profits. During this same period the Company’s revenue fell by 3.7 percent, and same-store sales—a key metric for determining performance—declined by 5.3 percent. The US Census Bureau reported total construction spending in the US of $842.1 billion in June 2012 compared to $1,149.4 billion in June

Read More

Boot Bar Swot Analysis Paper

1792 Words | 8 Pages

I would concentrate on debt to asset ratio also. Boot Barn reported a .70 debt to asset ratio which is typically high because the company is being supported by debt rather than equity. I would investigate increasing sales and decrease overhead as much as possible to lower the debt to asset ratio. Another option would be debt to equity swap which would make a debt holder an equity shareholder in the company. This act would cancel the debt owed to him and would lower the ratio and reduce debt to the

Read More

Financial Overview Of Kelly Services

766 Words | 4 Pages

This is a strategically important liquidity ratio because it shows Kelly Services efficienciently they use their

Read More

Financial Comparison Of Whibread PLC And Wetherspoon

2048 Words | 9 Pages

Return on equity decline 4.78％ is a huge decline, the result is profit from operation decline but total equity was increase 26.69％(169644000~214915000). Return on capital employed in profit from operation decline and total equity increase significantly case just decline 0.73％, it is because non-current liabilities was decline. Operating profit percentage decline 0.70％ it is because profit from operation decline and operation cost increase. Interest cover decline 0.03times should pay attention to this, because it is relate to whether obtain loan from the bank, even only a small decline. Earnings per share, current ratio and the quick ratio increase are few good news.

Read More

Texas First Whataburger History

507 Words | 3 Pages

In 1953, Joe Andrews, Sr. became the first non-founder franchise owner with a location in Alice, Texas.

Read More

The Summary Statement Of Target

978 Words | 4 Pages

Over the 5 years looked at they had a range of 66%-70% in liabilities and 29%-33% in stockholders’ equity. There gross profit never got above 30% in the 5 years and there total net income available to common stockholders was right around 4%, except for the year in which they closed all of their Canadian stores. There weren’t too many surprises in Target’s percentage change statement, again, except the year they close the Canadian stores. Cash went up 83%, while Net income shot up the year after they had to pay for all those stores. Looking at both statements, Target’s future look bright with slight percentage increases in almost every category.

Read More

Tootsie Roll Case Study

1047 Words | 5 Pages

Figure 4Inventory Turnover for a Few Example Companies The inventory turnover for both Hershey and Nestle is 5.16 times. So Tootsie Roll’s inventory management is consistent with its competition. Measuring Profitability Ratios Profitability ratios measure a company’s ability to use its assets efficiently to produce profits. These ratios provide users of financial information with useful data such as how much net income is generated from each dollar of revenue and how much net income is generated per share of stock.

Read More

Home Depot Vs Lowe's Ratio Analysis Of The Pharmaceutical Industry

976 Words | 4 Pages

While this is still a positive ratio, it is lower compared to the 0.32 profit margin

Read More

Lowes Home Improvement History

1234 Words | 5 Pages

But this is only the tip of the ice burg like all companies and the end of the day it’s all about sales and money and lowes is not lacking in that department for the fiscal year total sales grew 10.1 percent driven by comparable sales growth of 4,2 percent with all regions and product categories this sales growth combined with focus on improving productivity led to a 21.3 percent increase in the Adjusted Diluted Earnings Per Share and a 175 basis point increase in Return on invested capital to 15.83 percent. What does this say about the company? It’s making money and it is growing stronger every day to drive home this point we can look at some of the highlights from the 2016 financials the net sales for the company was 65,017,000 dollars with a gross margin of 34.55% they had comparable sales increase of 4.2 % and a return on invested Capital of 15.8 %. As they continue to serve home owners, renters and professional customers to complete a wide array of projects and vary along the spectrum of do it yourself and do it for

Read More

Whole Foods Financial Analysis Paper

1056 Words | 5 Pages

The Current Ratio is used to evaluate a company’s ability to satisfy its financial obligations. If the calculated result is less than 1.00, it implies a company cannot pay its obligations thereby risking the company’s financial health unless action is taken to correct the negative trend. In contrast, if the ratio result is greater than 1.00, it is usually interpreted positively and implying a greater likelihood of said company to handle assets and capital successfully. Calculating Whole Foods current ratio, a result of 1.47 (see Appendix B for calculations for all Current Ratios) implies the company is efficiently able to turn its SKU’s into cash within a favorable operating cycle. This is similar to Sprouts Farmers Market that resulted at 1.50 and Kroger with 7.63 giving these competitors a closer advantage (Sprouts Farmers Market,2016) than Walmart’s surprising ratio of .93 for 2016.

Read More

Target Corporation's Financial Growth From 2006-2012

688 Words | 3 Pages

Retail Segment sales increased 3.7 percent over 2009 due to a 2.1 percent comparable-store increase combined with the contribution from new stores. Figures 1 and 2 further illustrate Target’s financial performance over this period of time. Figure 1: Target Corp. Financial Graphs 2006-2010 • Figure 2: Target Corp.

Read More

Target Corporation Research Paper

657 Words | 3 Pages

Stock prices fell down by 54% in 2008 FY, Because it is depending largely on debt. Falling from $61 in2007 to $28.31 in 2008, it recovered slowly from 2009to 2 Future With rising trend of ecommerce business, there is huge potential for the company to increase its profitability through its online

Read More

Costco Financial Ratios

767 Words | 4 Pages

A liquidity ratio

Read More

Kroger Industry Analysis

1905 Words | 8 Pages

What has truly made Kroger a powerhouse is it manufacturing capabilities, and it certainly shows. Kroger owns and operates 37, nearly zero-waste, food processing facilities. These facilities produce everything from dairy products, bakery products, general grocery and more. An impressive 26% of Kroger’s total sales are directly made from its corporate brands, giving Kroger a distinct advantage (Kroger, p.4). Their current management team continues to carry out the message sent by Barney all those years ago.

Read More

More about Casey's General Store Financial Ratios

Open Document