Smith And Wesson Case

Decent Essays
• In recent years Smith & Wesson is outperforming on sales, net income, and profitability. The financial ratios to see if the company is taking on too much debt compared to other companies in the industry. Smith & Wesson has a lower debt-to-equity ratio and leverage ratio compared to the industry, which tells me that Smith & Wesson is not taking on a high amount of debt compared to other companies in the industry. Smith & Wesson has a current ratio and quick ratio that is much higher than that of the industry. Smith & Wesson should not have any problems meeting short-term debt obligations. One figure not shown in the table is Smith & Wesson's price-to-free cash flow "P/FCF" ratio. Currently (2015), it is 13.23, and Smith & Wesson has the second

Related Documents

  • Great Essays

    Can a company handle the interest expense associated with debt? Kohl’s, Inc. Kohl’s, Inc. Industry Target Formulas 03/20/15 03/21/14 10/06/2015 10/06/2015 10/06/2015 Debt to Equity Ratio TL/TSE 1.41 1.40 88.88 76.21 91.26 Times Interest Earned EBIT/Int Exp 4.97 5.15 5.00 3.01 3.66 Equity Multiplier TA/TSE 2.40 2.41…

    • 813 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Bravo Consulting Inc has made a detailed financial analysis in order to evaluate Cango’s performance and current financial position compared to Amazon, one of Cango’s biggest competitors. Bravo consulting decided to use the Ratio Analysis in order to analyze the process of the financial statements by computing ratios, and in this way inform the possible changes in the financial condition of Cango.. This Ratio Analysis will allow Bravo Consulting Inc to evaluate the key performance indicators like liquidity, solvency, and profitability of Cango. Such Financial Analysis will disclose Cango’s ability to earn income, identify its strength and weakness’s, and will also evaluate the short and longer term prospects of Cango.…

    • 329 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Diane and Alan Johnson passed away on September 2, 2003. They were shot and killed at a close range and the suspect was the victims daughter, however; the suspect was not covered in blood and the lab technician had testified that the shooting was closed range, therefore; the perpetrator would be covered in blood from the blood splatter. Another, witness said that when Diane Johnson was shot the perpetrator had to have been a foot away from the mother and the accused would have a significant amount of blood, however; the close she was wearing the morning the crime took place had no DNA evidence or…

    • 107 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Kohl's Dupont Analysis

    • 705 Words
    • 3 Pages

    In addition, Kohl’s asset turnover increased from 2010 to 2011and it means that every $1 worth of goods produced $1.3 and $1.4 of Kohl’s revenue. In addition, Kohl’s has a better Return on Equity than others competitors of its industry. A lower equity multiplier means that a company is more favorable than one that has a higher ratio. For this reason, a lower rate does not has a high debt servicing costs and depends less on debt financing. Based on the results, Kohl’s has a smaller risk of debt than its competitors because it able to manage the principal repayment as well as interest payment.…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    SGT Smith Case Summary

    • 214 Words
    • 1 Pages

    SGT Smith became a subject matter expert providing timely and relevant knowledge on ASIP radio, which allowed him to be selected as the Battalion ASIP fielding NCOIC. During this time, he successfully balanced resources to continue the daily missions of inspection, preparing and upgrading 252 ASIP radio systems totaling over $2 million dollars in seven days. SGT Smith went above and beyond his duties during eight FTX. Without SGT Smiths high level of dedication and motivation these training exercises would of failed. SGT Smith, continued to sustain a high standard and knowledge of signal flow during the 123rd MSB EXEVAL 13, allowing him to implement three new phase of communication for the Battalion.…

    • 214 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    The Concealed Carry Act was chiefly written by the County Sheriffs of Colorado and was founded on the permit-issuance strategies established by Sheriff Jim Alderdan. The process for supplying a permit is neutral in predictable cases. Colorado law goes beyond and permits the sheriff to make optional rejections as long as they are made within reason. The sheriff may reject a carry-permit application if the sheriff “has a reasonable belief that documented previous behavior by the applicant makes it likely the applicant will present a danger to self or others.” (Colorado.gov, 2015).…

    • 299 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Smithville Case

    • 540 Words
    • 3 Pages

    The city of Smithville is faced with a difficult financial circumstance. The situation is partly due to a general business slump in the state that had affected the city’s revenue. City officials resisted demands for pay raises from the police, fire, and other city employees. Union leaders were critical of the city official’s financial decision making. City Manager Harmsworth acknowledge that budget cuts were inevitable in order to gain control of the financial situation.…

    • 540 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    CORNING CASE MEMO Corning Inc. operates in telecommunications (telecom), advanced materials, and information display. The majority of its revenues comes from its telecom businesses in fiber and cable, hardware and equipment, and photonics. Strategic keys to the company’s success include a large research and development (R&D) component and also an affinity for strategic mergers and acquisitions (M&A). Corning was heavily impacted by the bursting of the tech bubble in early 2001.…

    • 1298 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Verizon Ratio Analysis

    • 1045 Words
    • 4 Pages

    This all being said, Verizon is worth the hype. All of their numbers are increasing at a steady and constant rate with no dismal future in sight. Here are a few short analyses of what financial accounts are supporting Verizon: - Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low.…

    • 1045 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Costco Capital Structure

    • 1954 Words
    • 8 Pages

    Capital Structure Debt and equity are the principal components of a company’s long term capital and capital structure describes this composition (combination of debt and equity) of the company’s permanent/long term capital. Capital structure is an indicator of how a firm finances its overall operations and growth using the different sources of funds available. It is a mix of long-term debt, short-term debt, common equity and preferred equity. Debt is in the form of bond issues or long-term notes payable while equity can be common stock, preferred stock or retained earnings. The proportion of short and long term debt is considered while analyzing the capital structure.…

    • 1954 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    So almost everyone is looking ways to save some and which even can result in switching to buy generic brand Impressive about Under Armour’s Financial Performance during 2008-2012 Between 2006 and 2011” Sales growth 242% from $403 million to over $1.4 billion Net profit margin remains constant about 48-50% COGS expense steadily accounted for 50-53% of the Revenue Earned This surprises me when I noticed that with huge sales growth and almost constant COGS Under Armour has almost constant Net Profit After the decline for years 2006 and 2008, the following Profitability Ratios have been trending upward: Net Profit Total Return of Assets Net Return of Assets Return on Shareholders’ Equity Earnings per Share Leveraging Ratios over the 5-year period show that Under Armour is: Low debt Low risk of bankruptcy…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Case Analysis Of Nintendo

    • 756 Words
    • 4 Pages

    Liquidity The current and quick ratio are used to determine a company’s ability to meet its short-term obligations. Though it is not surprising that the current ratio is generally higher due to the inclusion of inventory in the calculation, the bulk of Nintendo’s current assets are in the form of cash and cash equivalents, indicating that it is highly liquid. Nintendo uses little debt leverage and accrues minimal liabilities, which explains why their current/quick assets cause the current and quick ratios to be greater than 1 and why these ratios have steadily increased over the past 3 years.…

    • 756 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Smith & Wesson is a leading designer, manufacturer and seller of a wide range of firearms, including handguns, rifles, shotguns, assault rifles, and related products and accessories. The company is headquartered in Springfield MA, with additional manufacturing facilities in Maine and Connecticut, and development and marketing of firearms accessories in Missouri. This paper reviews Smith & Wesson’s pricing and retail strategies, with an additional market analysis and competitive strategy review (Smith & Wesson Holding Corporation, 2016). Competitive Strategy Smith & Wesson (S&W) competes with a number of dominant global firearms manufactures including Ruger, Sig Sauer, Taurus, Glock, Colt, Savage, Remington, Winchester, and Bushmaster.…

    • 766 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Introduction This report is prepared for Shalom, who is considering purchasing shares in a company, ‘The Warehouse Group’. This report is aimed to provide Shalom with an analysis of the company and the viability of the investment in shares in ‘The Warehouse Group’. The Warehouse Group consists of four major segments which are: • The Warehouse (Red Sheds) • Torpedo 7 • Noel Lemmings • Warehouse…

    • 2423 Words
    • 10 Pages
    Great Essays
  • Great Essays

    The company’s total assets are 190,554,000,000. Ford’s debt to equity ratio is 10.95 which is due to the capital intensive nature of the automotive industry. For 2012, Ford’s net income was 5,665,000,000 which indicates the company is currently 75% less than the over $20 billion profit in 2011. Additionally, the cash flow from investing activities has decreased from $6.9 billion in 2010 to -$14 billion in 2012. Short-term debt has increased in the last couple of years, it is still nearly 50% of the over $60 billion in 2009.…

    • 2346 Words
    • 10 Pages
    Great Essays