Fossil Group, Inc Essay Example | Topics and Well Written Essays - 750 words

Fossil Group, Inc - Essay Example These include brands such as Superman, Elvis Presley, Snoopy, Wonder Woman, Chronicles of Narnia, The Matrix and Star Wars. This paper outlines the inventory policies and items that Fossil Group Inc. adopts in their operations and offers in the market respectively. Apart from selling products directly to consumers through commercial websites and retail stores, Fossil owns a global distribution network that includes wholesale outlets in countries where the company has a physical presence. In countries that it does not have a physical presence, the company maintains third-party networks that facilitate the marketing and distribution of its products. Fossils’ inventory policy is primarily based on the average cost of production, which includes related freight charges and applicable duty. Inventory that is unmarketable or obsolete is determined by the difference between market value estimates and the approximate costs of inventory. Such estimates are based on assumptions regarding future demand, available channels for liquidation and prevailing market conditions. Additional reductions in inventory are thereby inevitable in the event that market conditions and future product demand are regarded by management to be less favorable than what had been projected. Reductions in inventory are also inevitable if the management determines that channels for liquidation are insufficient. The company’s success in inventory management is hence largely attributed to continuous assessment of off-price sales and regular updates of inventory estimates. Revenue from sales of products likely to be subjected to agreements in inventory consignment is often determined at the point where title and risk of loss has been transferred, products have successfully been delivered, buying price at the end of the chain can easily be determined, and there is reasonable assurance in collectability of the product. In the event that inventory is

KPMG case Essay Example | Topics and Well Written Essays - 750 words

KPMG case - Essay Example Company had initial public offering in 2004 with a par value of $0.50 Price per share as of year end of 2007 plunged to $12.00 from $15.75 of 1st quarter quote with an EPS of $0.69. The company had approximately 9,500 holders as of February 29, 2008. This part will show trends of profitability, liquidity and solvency using ratios for the three year period. The trend analysis will present any significant fluctuation or movement in the three year operations that will have an impact in its financial operations. It will also be compared to industry sector using industry index as benchmark. (Reuters) Analysis will be presented in 3 parts, profitability, liquidity and solvency ratios. (See Annexes 1 and 2) Definition of financial terms provided by Investopedia. The comparison of the financial performance of the company against the industry (Reuters) where TMH belong and trend analysis of its own performance provided an insight on the strengths and weaknesses of the company and is presented below. Cash flows of the company consist of retained earnings and proceeds from loan transactions. The cash flows are used to pay debts, interests, taxes and other operating expenses. Retained earnings are not sufficient to fund payments for interests, taxes and long term debts. Accounts receivables and inventory of homes locks up cash for operations and affects cash flows. A slow turn over of accounts receivables and inventories reflects problems in the efficiency of management. The usual 120 to 180 loan repayments should be looked into as large amount of cash is tied up into this. 3.2. Complexity of underlying transactions. The sale of mortgage manufactured home contracts to unrelated financial institutions involves complex transaction particularly to default payments of mortgage borrowers. Recent economic crisis saw foreclosures of mortgage properties in financial institutions, and these losses could be passed on to TMH in cases of default. 3.3. Extent to