Sis and Charles&colrvad
Autor: zkf48649 • October 8, 2017 • Case Study • 1,534 Words (7 Pages) • 517 Views
MEMBERS/NET ID
Ziqi Liu/ziqi3,
Kefei Zhu/kefeiz2,
Junjin Shao/junjins2,
Hao Tang/haot2
Group work
We select Specialty Retail Industry as our target industry. The companies we selected are:
Tiffany, Signet Jewelers, Charles & Colvard, Birks Group Inc
1. Receivables Percentages
Years Companies | 2016 | 2015 | 2014 |
Tiffany | 4.45% | 4.03% | 3.77% |
Charles&Colrvad | 6.90% | 8.73% | 10.71% |
SIG | 29.6% | 28.5% | 26.2% |
Birks Group Inc | 7.58% | 5.63% | 4.27% |
Comparing these 4 companies, we can find that Tiffany, Charles&Colrvad, Birks Group Inc, have relatively low percentages of account receivable that are below 10%. However, SIG has a large account receivable account that is near 30%. This suggests that SIG may have a large account of bad debt and have to have a lot of bad debt expense. The profitability of SIG may lower than the profitability of the other 3 companies.
2. Receivables Turnover
Years Companies | 2016 | 2015 | 2014 |
Tiffany | 18.48 | 20.44 | 22.13 |
Charles&Colrvad | 7.61 | 4.67 | 2.97 |
SIG | 3.54 | 3.94 | 3.90 |
Birks Group Inc | 24.05 | 31.78 | 41.13 |
Specialty retail industry | 17.67 |
From the form above, we can find that there is big difference between these four companies. Charles&Colrvad and SIG have a relatively low receivables turnover that is far behind the industry. Birks Group Inc has a relatively higer ratio than the industry. The ratio of Tiffany is much similar to the ratio of industry. Compared with industry, The collection of accounts receivable Tiffany and Birks Group Inc are efficient, and the company has a high proportion of quality customers that pay off their debts quickly. This also suggests that the company has a conservative policy regarding its extension of credit. On the contrary, SIG and Charles&Colrvad may have bad collecting policies.
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