We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Investment Decision: Goofys / Plutos - Case Study Example

Free
Investment Decision: Goofy’s / Pluto’s

The gross margin is a measure of broad profitability. Goofy’s has a gross margin of 47.09% which is better than Pluto’s by 2.74%. In comparison with the industry standard gross margin of 46% Goofy’s gross margin is better than the industry, while Pluto’s is below the industry standard. The net margin ratio is a measure of the absolute profitability of a company. The net margin of Goofy’s is 13.54% and the net margin of Pluto’s is 12.58%. Both companies have a net margin that is above the industry standard. The return on assets metric measures how effective a company has been at generating profits from its assets. High ROA is the desirable outcome.

The financial analysis performed on Pluto’s and Goofy’s had some mixed results. In terms of profitability Goofy’s demonstrated better performance than Pluto’s illustrated by its higher gross and net margin. Pluto’s did a better job of generating profits from its assets and equity. Goofy’s is turning its inventory faster than Pluto’s, but Pluto’s had a superior asset turnover ratio. The liquidity position of Goofy’s is superior to Pluto’s due to the fact that its current ratio and quick ratio are higher than Pluto’s. The extremely low quick ratio of Pluto is a worrisome sign. The debt position of Goofy’s is lower than Pluto’s. Overall I would invest the $5,000 in common stocks from Goofy’s due to its superior profitability and liquidity among other factors.

Check these samples - they also fit your topic

Decision Paper
It is not surprising therefore that the school seems to struggle with overall growth. This is said because the present information system does not satisfy the pedigree of advanced administration and this is indeed a mature weakness of the existing information system.
8 pages (2000 words)Case Study
Strategic Investment Decision Making
To my friend's parents I want to say thank you to you all. Their prayers and blessings serve as a shield towards the tremendous circumstances in life. My supervisor and course tutor has been a great source of motivation and care has helped me sharpen and refine it to the point where I have confidence to put it forward to the community.
11 pages (2750 words)Case Study
Investment theory and analysis
Nordstrom’s business philosophy has been based on quality, value, exceptional service, and selection. The company has built a devoted customer base, and has more than 180 stores across 27 states in America. Nordstrom now has a stock market value of more than $12 billion.
4 pages (1000 words)Case Study
Lending Decision
However, a judicious mix of fast action (shape up or ship out) at the top and middle management levels, training and empowerment at the bottom level must help to turn the tide in its favour. Coles has had a long and great history. It has survived the recession and two world wars.
2 pages (500 words)Case Study
Investment management
Using stakeholder mapping, we classify its various stakeholders and the policies of AVZ for dealing with them, and investigate the company's behaviour by comparing its policies, programmes, processes, etc. with shareholder expectations. The stakeholder map of AVZ is determined by its being a publicly-listed enterprise in three countries, a headquarters in one country (England), and clients from all over the world.
8 pages (2000 words)Case Study
Investment in Libyan Oil Industry
Similarly, Libya, an important nation situated at the centre of the North African Mediterranean coast, is also in the news for couple of years for a variety of reason. The Arab Jamahiriya of Libya, encircled by Algeria and Tunisia in the west, Egypt and Sudan in the east and Niger and Chad in the south has not been viewed as an attractive destination for investments in the past.
4 pages (1000 words)Case Study
General Management - Investment Case Study
This can be done by increasing allocation to the riskier investment category of growth funds and income funds. The original recommendation will still remain the same. This is because the risk
4 pages (1000 words)Case Study
Investment Promotion ( Jordan )
Other manufacturing costs such as rent, utilities, and insurance are typically much lower in foreign countries that in the United States. The countries that offer these types of savings are typically emerging economies such as Jordan. An emerging economy is
2 pages (500 words)Case Study
Starbucks' Foreign Direct Investment
ing that the use of “pure licensing agreement” does not guarantee that Starbucks’ foreign operators will comply with the business formula that was initially developed by Starbucks. To ensure that Starbucks’ foreign operators will be able to imitate and deliver the
2 pages (500 words)Case Study
Managerial Economics Decision: Long-term Investment Determination
The paper also discusses how government policies and regulations affect business operations and their effect on investments decisions. The paper tries to explain reasons why government regulation is needed in the low-calorie frozen, microwavable
7 pages (1750 words)Case Study
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Investment Decision: Goofys / Plutos Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/78087-investment-decision-goofys-plutos
(Investment Decision: Goofys / Plutos Case Study Example | Topics and Well Written Essays - 500 Words)
https://studentshare.net/finance-accounting/78087-investment-decision-goofys-plutos.
“Investment Decision: Goofys / Plutos Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/finance-accounting/78087-investment-decision-goofys-plutos.
  • Cited: 0 times

Summary

This paper includes ratio analysis. It is a financial analytic tool that is very useful to analyze the performance of an enterprise. A ratio analysis of Goofy’s and Pluto’s which includes the industry standard is illustrated below…
Investment Decision: Goofys / Plutos
Read TextPreview
Comments (0)
Click to create a comment
Let us find you another Case Study on topic Investment Decision: Goofys / Plutos for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us