Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Horniman Horticulture

No description

Daniel Maldonado

on 30 October 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Horniman Horticulture

Horniman Horticulture
SWOT Analysis
Do you agree with Maggie Brown's accounts payable policy?
Phase 2
Leveraging operations
Expected revenue hitting 30% growth rate
Expected 12 acre parcel closing
Accounts payable policy
Accounts receivable
Inventory turnover
Capital expenditures
Goal of 8%
What Explains the Erosion of the Cash Balance?
Suppliers provide 30 day payment terms
Discount for payments received in 10 days
Risk averse due to inventory loss concern
Detrimental weather may lead to defaulting
Interest rate risk affecting demand
Weather changes leading to loss of inventory
Becoming illiquid in the near term
Increasing revenue, net profit, total assets, & returns on equity
Increase in demand by 40%
Good public relations
Stable depreciation expense
Debt does not exist
Liquidity issues
Not attaining 8% cash margin on revenue
Increasing number of Receivable days
Increasing Inventory Days
Inventory duration
Unsustainable growth rate
Financial Performance
Identify types of Analysis
Case Summary
Between the lines
Ratio Analysis
2005 Benchmark
Payable Days 9.9 26.9
Receivable Days 50.9 21.8
Inventory Days 476.3 386.3
Captial Expenditure
-$75,000 for farmland in Cash
What do you expect the financial position of the business to be in 2006?
Valuation Analysis and Free Cash Flow
Sales as key driver
30% revenue growth

Operating Level
Profit Margin Increase
Depreciation Expense slowly rising
Capitalization cost

Free Cash Flow
Non Cash Items
Changes in WC

Discount Rate
30 year Treasuries
Market risk premium

Valuation Analysis
$2.95 million
Expansion ability
Cash management issues
Full transcript