Case Studyabington-Hill Toys Essay

1207 Words Apr 5th, 2011 5 Pages
Case Study: Abington-Hill Toys

Title: Abington-Hill Toys, Inc

Part I. Introduction Abington-Hill Toys, Inc has been assigned a new president Vernon Albright due to the death of Lewis Hill. The financial condition slowly deteriorated as Mr. Hill was running the company’s final years. Mr. Albright was brought in because the founders of the companies did not have a son or daughter that was willing to the take on the role of the new president. Mr. Albright took it upon him to take the leadership role and began to seek opinions from the outside of the firm to regain the financial stability that the company needed. David Hartly was brought on to be the assistant comptroller. He took his duties very serious and his first task was to
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e. Fixed Asset Turnover is known to be how effectively the firm comes up with sales from their fixed assets. The ratio was 1.30x, which means the company is generating sales at very slow pace. f. Total Asset turnover is known to show how efficiently the firm is utilizing their assets. The amount of sales generated very g. Debit ratio is to known to be the comparison of the debts to the assets. This indicates what parts of the company are considered assets. The ratio was 40.58%, which means the firm doesn’t not have a lot of debt. So considering that, Abington-hill can continue to operate while paying their debts. h. The times interest earned is known to the ratio that indicates what earnings are met in order to pay interest payments. The ratio was 3.1%, which means the firm can operate better if the interest is lower. i. Gross Profit Margin is known to be used for way to figure out the company’s financial situation. With this it indicates what funds are remaining from the generated profits after the cost of goods sold is taken out. The ratio came out to be 25.5%, which means the Abington-hill toys is meeting the market margin sufficiently. j. Net profit Margin is known as the ratio that tells about how much the company’s makes for every cent they get from sales. The profits range differently from company to company. A

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