Advanced Technology

Advanced Technologies, Inc. Case Analysis In view of the leftover harvesting in sales, inventories, receivables, and net in the past, were Michaels five- socio-economic class foretells useful? Michaelss 1998 2002 judges were base on the firms historical performance(the ingathering go into in 1993 1997 of sales and profits and its might of using summations to garden truck and sell) and that of its competitors, the firms past capacity expansion, and an persistence consensus forecast of 20% annual growth regularize of semiconductor equipment mart in 1998 2002. I find these forecasts as bylined in Case Exhibit 5 useful to an extent that it gives me a framework to examine the assumptions that Michaels made in the capital and financial backing planning. However, I notice that during the industry boom period of 1993 1997, ATI put down some kinda uneven growth in sales, internet and assets utilization. As a result, even when the industry agrees on a likely forecas t of 20% annual growth of the equipment food market during the future(a) five years, there may be potentially right complications in the forecasts arising from the assumptions of the unchanging ratios in future salute and asset allocation, and the assumed plan to convert the 1994 debenture into blondness in 2000.

With these considerations, I carry out the DuPont analysis by rift the RoE ratio to its three levers: RoS, AT and Leverage. The ratios freighter be seen in Exhibit 1. To answer this hesitation, I hash out RoS and AT and leave the discussion of financial leverage to suspicion 3. Return on Sales * Prof it mouldings (Exhibit 2). During ATIs full-! of-the-moon elaborateness of the industry-wide surge from 1993 1996, it realized an honest operating margin of 7.9%, which besides happens to be the operating margin in 1997, the year of industry-wide slump. In these five years, the margin seems rather inconsistent, ranging from 3.0% in 1993 to 11.4% in 1995. Consequently, the after-interest and after-tax earnings ratio (RoS) has a fairly low average of 4.2%, even...If you demand to get a full essay, order it on our website: OrderCustomPaper.com

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