Haefren Baum Business Analysis

Demand and product sales are Influenced by consumer discretionary Income. In 1 993, an economic bust In the German economy resulted in a major dip in GAP. Demand for the industry is cyclical and is influenced by the overall economy. There is no evidence of seasonality. In response to the German economic downturn In 1993, the company began to open outlets with wide selections and lower prices to maintain sales volume. This was a trend used by all in the industry, but sales volumes were not affected and remained flat.

As the German economy recovered, Heavier Bum’s business began to see fierce competition from European furniture retailers. This was a concern for the Wigwagged, who saw Its retailers losing market share, and began aggressively advertising Its brand. The strategies involving aggressive branding and offering wider selections at lower prices proved to be unsuccessful, mainly due to the influx of competition. Operations Analysis: Heavier Beam being a retailer needs a large amount of Inventory and assets In order to generate sales.

To turn profits, the company needs to be efficient In both Inventory management and asset turnover. Recently, the Heavier Beam is showing very high values for inventory days, and an overall decline in its TAT and FAT ratios. Figures for total and fixed asset turnover steadily decline from 1993-1995. These figures could be a result of the expansion and building of outlet stores, as well as slower sales. Total assets turnover equals 2. 1 in 1993 to 1. 5 in 1995. As for fixed asset turnover, 1993 equals 6. 98 to 5. 39 in 1995.

Heavier Bum’s land investment has remained constant over this period, but buildings and equipment Investments have changed, again a result from the building of the three outlet stores. Inventory days show and Increase from 103 in 1993 to 129 in 1995. Such a dramatic change shows that the firm is getting less efficient in managing its inventory, which could be a result of increasing competition throughout the industry. The average collection period has also shown significant Increases, going from 53 days In 1993 to 77 days In 1994 and 1995.

It mess that Heavier Beam has had difficulty obtaining capital due from customers. The overall operations of the company seem to be lacking proper efficiency due to the increase in inventory days and average collection period. The negative values for net income and results from the previous sentence conclude why the firm has seen a decrease and negative values for ROE and ROAR. Financial Analysis: Heavier Bum’s strategy of selling product at lower prices seems to be ineffective in 1 OFF seems that it’s improving, the net figures are still negative.

The increase in investing activities is explained by the recent construction of outlets, and is shown in the buildings and equipment account. The recent buyout from the other investors is shown in the payable from stockholders. Financing activities seem to be the source of funding for the firm. Heavier Bum’s liquidity has been mildly volatile. The current ratios for the firm have changed from 2. 26 in 1993 to 2. 53 in 1995. Accounts payable days saw a major increase going from 49 days in ’93, to 65 days in ’94.

Although Wigwagged has been flexible with credit terms, Beam is far exceeding the net 30 terms ND is not taking advantage of any discounts. Heavier Beam is showing high leverage risk with its debt to equity ratio of 5. 84%, this is a problem due to the large debt compared to equity owned. The PM of the company is zero, due to the failure to generate profits. The GUM, though positive, shows a steady decline in profitability. Heavier Beam is primarily using financing activities to maintain operations of the business. They are basically staying alive by debt, and will need to re-evaluate its processes to stay in business.

Summary: Heavier Beam has been severely impacted by competition and the value of its inventory stemming from the economic downturn in 1993. The firm is producing negative cash flows and in turn producing zero profits. The construction and building of the new outlet stores have no sales support and are eating profits with staggering mortgage cost. The firm needs to be more effective and efficient with inventory and credit lines. Arranging new credit terms in order to receive discounts and improve margins are in order for the firm to generate profits.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyHomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
thank you so much
Customer 452749, June 10th, 2021
Business and administrative studies
Excellent work ,always done early
Customer 452773, February 21st, 2023
English 101
IThank you
Customer 452631, April 6th, 2021
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
Business and administrative studies
always perfect work and always completed early
Customer 452773, February 21st, 2023
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Customer 452591, March 18th, 2021
Impressive writing
Customer 452547, February 6th, 2021
Thank you!
Customer 452545, February 6th, 2021
Great job
Customer 452773, February 13th, 2023
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes


eskişehir escort
- Korsan taksi Antalya


eskişehir escort
- Korsan taksi Antalya