BUSI562 Week 8 Discussion The Home Depot

By Thursday, pick a company (manufacturer or retailer), find their annual report, calculate the following ratios, and comment on each one.  By Saturday, respond to another post by comparing and contrasting two or three of your ratios with the other company.

• Current Ratio
• Average Sale Period
• Debt-to-Equity Ratio
• Net Profit Margin Percentage
• Dividend Yield Ratio

Post a link to the annual report you are using (including page numbers, if applicable.). Put the company name in the header of your post.  Each student should pick a different company.

 

BUSI562 Week 5 Discussion

When Walmart sells an item for $100, what was their cost on that item?  Do you have a number in your head?  OK, now let's find out.

Here is a link to Walmart's 2018 annual report.

Walmart 2018 Annual Report

Look on page 55 of the report (page 61 of the PDF) and you will find their income statement. You will see that their net sales for the year were $495,761 (that's in millions; i.e. they left off six zeros, so it is actually $495,761,000,000; just under half a trillion dollars).

A few lines below that you'll see:
Cost of Sales: $393,396; Our book uses the term Cost of Goods Sold; it's the same thing: what they paid for the stuff the sold.

Take their ratio of Cost of Sales/Net Sales and you get 79.3%. That means, on average, Walmart buys an item for $79.30 and sells it for $100. Their gross margin is the difference, $19.70.

For your first posting of the week, look up the income statement of some other retailer and do the same analysis. Use the company's actual income statement in their annual report. DO NOT get data from an aggregator like Yahoo Finance, Nasdaq, Morningstar, etc. Post a link to your source, and a page number so we can easily find it.

Every student should do a different company. Put the company name in your heading.

For your Sunday response posting, look at the figures supplied by two other students and compare them. Why do you suppose one company is higher than the other?

   

BUSI562 Week 7 Discussion

Do an internet search on Medical Loss Ratio (MLR) and spend a few minutes reading about it. Under the Health Care Reform law, insurers and HMOs have to pay rebates to policyholders if they don't meet an MLR standard of at least 80 percent (for individuals and small groups) or 85 percent (for large groups).

Here is an example: Look at Aetna's 2017 annual report at the following link:
Aetna Annual Financial Reports

Click on "2017 Form 10K" to download the report.

On page 88, you'll find their income statement. It shows they collected Health Care Premiums of $52,022 and spent Health Care Costs of $42,753. That is about 82%. Thus, for every dollar collected in premiums, they paid out 82 cents in benefits.

Look up the annual report and income statement (again, actual income statement—no aggregators) of a publicly-traded health insurance company.

Calculate their Medical Loss Ratio. Which benchmark (80%/85%) applies to them? Are they within the guideline?

Post a link to the income statement you are using, including page numbers. Put the company name in the header of your post. Each student should pick a different company.

 

The Following Are Examples of Public Health Insurance Providers subject to the ACA, not an inclusive list of all companies: 

Anthem

United HealthCare

Cigna Corporation

BCBS of Massachusetts

BCBS of Michigan

Humana

Molina

Wellcare Health Plans

Centene Corporation

Aetna

  

The following are examples of supplemental health insurance providers NOT subject to the ACA and therefore cannot be used for this discussion: 

Metlife

AFLAC

Mutual of Omaha

Or any other company that only issues supplemental policies

  

BUSI562 Week 5 Discussion

Do an internet search on Medical Loss Ratio (MLR) and spend a few minutes reading about it. Under the Health Care Reform law, insurers and HMOs have to pay rebates to policyholders if they don't meet an MLR standard of at least 80 percent (for individuals and small groups) or 85 percent (for large groups).

Here is an example: Look at Aetna's 2017 annual report at the following link:
Aetna Annual Financial Reports

Click on "2017 Form 10K" to download the report.

On page 88, you'll find their income statement. It shows they collected Health Care Premiums of $52,022 and spent Health Care Costs of $42,753. That is about 82%. Thus, for every dollar collected in premiums, they paid out 82 cents in benefits.

Look up the annual report and income statement (again, actual income statement—no aggregators) of a publicly-traded health insurance company.

Calculate their Medical Loss Ratio. Which benchmark (80%/85%) applies to them? Are they within the guideline?

Post a link to the income statement you are using, including page numbers. Put the company name in the header of your post. Each student should pick a different company.

 

The Following Are Examples of Public Health Insurance Providers subject to the ACA, not an inclusive list of all companies: 

Anthem

United HealthCare

Cigna Corporation

BCBS of Massachusetts

BCBS of Michigan

Humana

Molina

Wellcare Health Plans

Centene Corporation

Aetna

  

The following are examples of supplemental health insurance providers NOT subject to the ACA and therefore cannot be used for this discussion: 

Metlife

AFLAC

Mutual of Omaha

Or any other company that only issues supplemental policies

 

BUSI562 Week 4 Discussion 3

Describe the type of budget or budgeting process used in your place of business.  If not working, use a past job or experience with a volunteer organization.  

Discuss positives and negatives you have experienced with budgeting in this organization.  If you do not have first-hand knowledge of the budgeting, then interview someone in the firm who does. 

Be sure to include a description of the type of business, your role and how the budget or budgeting process affected you.

  

BUSI562 Week 3 Discussion 2

Most of the examples in the text apply job costing to products, but it can also be used by firms providing a service (tax preparer, plumber, real estate agent etc…). 

Think of a service you have been involved with and describe how job-costing might be implemented by that service provider. 

In other words, how would that service provider determine the full cost of say, preparing a complicated 1040 tax return, or unclogging a drain at your house?

   

BUSI562 Week 1 Discussion 1

Describe your current occupation in terms of how your employer classifies your pay:

(Answer all three.)

1. Product or Period? 
2. Variable or Fixed? 
3. Direct or Indirect? 

Discuss cost classifications described in the chapter. (If you are not currently employed, describe a past job, or your desired job.)