Analyze and answer questions about financial data
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1. What is happening to the growth in sales? How can this be explained?
2. What is the significance of the roughly $250,000,000 write off of Goodwill and Intangibles in the first quarter of 2009?
3. Does Gardner have good cost control? Cite evidence.
4. Does Gardner normally sit on a lot of excess cash? Cite evidence.
5. Please comment on the trend in managing accounts receivables.
6. Please comment on the trend in managing inventories.
7. What percentage of Gardner's assets are intangible - add the goodwill and intangibles items together and divide by total asset? Why might this number be important to an analyst?
8. Please comment on the trend in long term debt.
9. Please comment on the strength of these income statements and balance sheets.
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Solution Summary
The expert analyzes and answer questions about financial data. What is happening to the growth in sales is determined.
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Answer:
1. What is happening to the growth in sales? How can this be explained?
If we look at the sales growth rate of the company we can find that the company has a volatile sales growth. Sales growth trend shown decline in sales for the year 2000, and 2001. In 2002 the sales growth is negative as compared to the year 2001. But after year 2002 the sales growth has an upward trend till the year 2005 and then it falls again. Based on this info we can say that the sales growth of the company is highly volatile and the company is loosing its market share.
2. What is the significance of the roughly $250,000,000 write off of Goodwill and Intangibles in the first quarter of 2009?
The main reason for the goodwill write off is the declining market share of the company and this could reduce the market price of company shares. Hence in order ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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