ipl-logo

Dynatronics Case Summary

796 Words4 Pages

Dynatronics, Inc. Dynatronics, Inc. is a company which was formed in Burlington, Massachusetts in 1979 by three electrical engineers. The company produce digital systems with several lines of proprietary items sold as components and had considerable success since its founding. According to the tendency of increasing of customer demand they expanded it’s business to variety of special purpose systems that applied digital techniques to computing, control tasks, information handling, and data processing. The company faced to serious financial problems during the discussion before the introduction of new product line. Dynatronics’s financing opportunities were restricted by its current financial position, the external financial possibilities …show more content…

Analysis According the information above , we think there are several steps need to be taken to solve the corporate problems of Dynatronics, Inc.. 1. Analysis of current financial statements 2. Analysis and comparison of financial projection based on assumptions 3. Analysis of capital structure Analysis of current financial statements To identify financial strength and weaknesses of Dynatronics, Inc. it's necessary to determine financial performance of the company. Best way to analyze that is observation of net sales growth and return on equity for last 3 years. a. ROE (return on equity) ROE is an important variable to determine earning growth and dividend growth that reaveals how much profit a company earned in comparison to the total amount of shareholders equity. From balance sheet we can calculate ROE for 1986 - 0.67%; 1987- 13.0%; 1988- 24.0% and see that It increased annually Comparing to ROE of selected companies AMP Inc. 1986 - 14.5%; 1987- 18.5%; 1988- 19.5% Dynatech Corp. 1986 - 18.8%; 1987- 16.1%; 1988- 15.0% Analog Devices Inc. 1986 - 8.7%; 1987- 6.5%; 1988-

Show More
Related

Xacc/280 Week 3 Financial Ratios Paper

422 Words | 2 Pages

The three financial ratios are important tools that judge the leverage, profitability, and liquidity. “Profitability ratios are ratios that measure the rate of return a firm is earning on various measures of investment.” (2018, p. 150) This is important to a business because the whole purpose of a business is to make a profit, profitability shows the business exactly how it is doing and if the business is achieving that goal. “Profitability ratios also have many major ratios one being return-on-equity (ROE), calculated by dividing net income (profit) by owners’ equity, measures the income earned per dollar invested by the stockholders.”

Read More

Boston Beer Company Financial Ratios

932 Words | 4 Pages

In this category the Boston Beer Co. results are similar to Heineken, and much better than the financial ratios of Anheuser Bush. Comparing the profitability ratios, we can see that while the profit margin lays between the profit margins of Heineken and Anheuser Bush, the return on assets and equity is much higher than the returns of any of the two competitors. And all the profitability ratios for Boston Beer Co. are increasing over the last five years. The market values ratios measure how much investors are willing to pay per $1 of earnings (Price Earnings Ratio) and compare the market value of the investment to its historical cost (Market to Book Ratios). Both of these ratios are higher for the Boston Beer Co. and so is the Earning per Share Ratio.

Read More

Roger's Financial Ratios

679 Words | 3 Pages

Rogers uses it to compare debt to equity. Rogers likely requires substantial investment in infrastructure; this ratio can indicate its ability to manage debt obligations relative to shareholder equity. Return on Assets (ROA) and Return on Equity (ROE): This ratio evaluates Roger’s ability to make profits from its assets. Return on equity estimates how effectively Rogers shareholders' equity generates profits. Return on assets and return on equity are vital for understanding Roger’s operational efficiency and profitability.

Read More

Mechanic Breakdown Case

409 Words | 2 Pages

MECHANIC TWP. — Alcohol, speed and seat belt use, or lack thereof, all played a role in an early Friday crash that resulted in serious injury to two people. Robert Scott Huy, 29, Township Road 262, Millersburg, sustained massive head trauma and was transported from the crash scene to a helipad at the former Holmes County Fairgrounds. From there, he was taken by emergency helicopter to Akron General Medical Center, where he remained Friday afternoon.

Read More

Compare And Contrast Bank Of America And Wells Fargo

221 Words | 1 Pages

In this paper I have compared two financial institutions, Wells Fargo and Co and its competitor Bank of America using different tools and techniques given in chapter 12 of text book. In this paper I will give a detailed analysis of both the Banks as well as ratios on ROE, ROA, Equity Multiplier, Profit Margin, Asset Utilization, Net Interest Margin, Interest Expense ratio, Provision for Loan loss ratio, Noninterest Expense ratio, Tax ratio, Interest Income ratio, Noninterest Income Ratio, The Spread, and the Overhead Efficiency Ratio. After each ratio for the two Banks are calculated, I have performed the time series analysis. Each company ratios are compared to each other for the past five years to compare the performance of both companies

Read More

Nt1310 Unit 1 Formula 1

1141 Words | 5 Pages

However, in 2010-11, it has decreased. This was due to the decrease in profit margin during 2011-10. And in 2012-13, the return on equity has increased, because the profit margin and asset turnover have increased during 2012-13. Horizontal Analysis of Balance Sheet Liabilities While the Shareholder funds have been steady with very less change in them.

Read More

Bank Of The Ozarks Financial Analysis

848 Words | 4 Pages

According to our textbook, a bank with higher ROE will have more leverage, a risker mix of assets, or existence of economies of scale (Cecchetti, Stephen G 307). The chart below displays Return on Assets for the 2nd quarter of the previous three years in comparison to the national average. Chart 2 – Data provided by Bank of the Ozarks and Federal Reserve Statistical

Read More

Ratio Analysis: Gemini Electronics

911 Words | 4 Pages

As a corporation that has many successful competitors, such as LG, Samsung and Sony, it has effectively positioned itself as an “American” tech company amidst the demise of brands Zenith and RCA. The key indictor of this is Gemini Electronics’ profitability and solvency ratios. Gemini’s Statement of Cash Flow Analysis The largest source of cash comes from the financing section of the statements of cash flows and is from long-term debt financing. In comparison, the largest source of cash utilization comes from the acquisition of property, plant and equipment.

Read More

Inventory Turnover Ratios Paper

781 Words | 4 Pages

And, if the equity multiplier increases, then ROE as a whole will increase as desired. 10. Refer to an online finance source such as Yahoo! Finance of Google finance to look up the P/E ratios for Verizon Communications and Walmart. Which company has the higher P/E ratio?

Read More

Women Aerospace Foundation Scholarship Essay

470 Words | 2 Pages

I show this in the form of Matlab, where I had to find the total profit/revenue then finding the breakeven point (support/resistance level) of the company’s merchandise. This scope helped me perceive that the field of engineering has more different aspect that is letting on, and by doing this it will help me develop my arithmetic, business, and forecasting in a certain

Read More

Taking A Look At Boral Limited

1086 Words | 5 Pages

Table 2: Balanced Scorecard of IAG 2013 Category Objectives Target Outcome Financial ROE Cash ROE of at least 1.5 times WACC • Cash ROE of 25.3%, compared to 13.3% in the prior

Read More

Alcohol Industry Ratios

1893 Words | 8 Pages

Although Boston Beer Company only had the third highest average ROE, I believe it is the strongest and most healthy of all five companies. Both Diageo PLC and Constellation Brands had significantly higher ROE, but both companies had at least double Boston Beer’s equity multiplier which is a technique companies use to boost their ROE. Boston Beer’s ROE is driven by their superior asset management to all other companies in the industry, measured by ROA, and a solid profit margin. As far as market value ratios are concerned, Boston Beer is trading a slightly higher P/E ratio and market/book ratio than the industry average which is a slight concern from an investor’s standpoint because it indicates an overpriced stock; however, it does show that there’s plenty of confidence in the market for the future of the company.

Read More

Clarkson Company Disadvantages

806 Words | 4 Pages

Growth of earnings may take place at the expense of ROIC. 10. Growth of earnings may take place at the expense of net asset value 11. It presents difficulties in assessing quality of

Read More

Daktronics Case Study Solution

764 Words | 4 Pages

Back in 2006, Daktronics faced a strong three-year growth period since 2003. To-tal sales increased by 74% from $177M to $309M. To maintain this growth, Daktronics set the goal of eliminating manufacturing and capacity constraints. Before 2006, Daktronics followed the main strategy of replication (increasing number of facilities, equipment and people). They decided to expand their first facility in Brookings and add two more (Redwood Falls and Sioux Falls). Increas-ing pressure on cost reduction led the company to think of different methods of growth management.

Read More

Financial Case Study: Delta Signal Company

682 Words | 3 Pages

In order to, analyze the company’s performance, we will closely focus on financial performance which is the degree to which financial objectives have been accomplished. This process measures the result of the overall financial health of the company over a period. The most efficient and effective metrics we choose were the improving operating income and return on equity and increasing sales, earning per share. Firstly, our sales have gradually increased in every single period, despite the minor changes in initiatives.

Read More

More about Dynatronics Case Summary

Related Topics

Open Document