Calculate biosites sustainable growth rate in each year

Assignment Help Corporate Finance
Reference no: EM13892243

Biosite, Inc. is a developer, manufacturer, and marketer of medical di- agnostic products in San Diego, California. If you wanted to test for parasites, drug abuse, or congestive heart failure, you would be wise to contact Biosite. Following are selected financial data for the company for the period 2000-2004.

 

 

2000

2001

2002

2003

2004

Profit margin (%)

11.2

10.3

12.7

14.3

16.9

Retention ratio (%)

100.0

100.0

100.0

100.0

100.0

Asset turnover (X)

0.66

0.64

0.80

0.89

0.86

Assets (end of year, millions)

$83.0

$102.7

$131.3

$194.6

$283.5

Equity (end of year, millions)

$72.9

$ 90.9

$107.9

$152.9

$220.3

Growth rate in sales (%)

25.8

19.4

60.3

64.8

41.3

a. Calculate Biosite's sustainable growth rate in each year from 2001 through 2004.

b. Comparing the company's sustainable growth rate with its actual growth rate in sales, what growth management problems did Biosite face over this period?

c. How did the company cope with these problems?

Reference no: EM13892243

Questions Cloud

Role of collaboration-cooperation : Explain the role of collaboration, cooperation, and coordination in an organization's strategic planning process. Also how would stakeholders of an organization might create a unified meaning for ideas, goals, and/or missions? Please include refer..
Reputation on the market place and in public : Look for two articles (references); one on ethical practices, and the other on unethical practices. Summarize how each would impact the companies reputation on the market place and in public.
What should you do next legally what can you do to visitor : You are a supervisor of a nursing unit. You see a "visitor" walking around speaking to your nurses on the floor some seem to speak with him longer than others. What should you do next? Legally what can you do to the visitor
Difference between substantive test of transactions : Discuss the difference between substantive test of transactions and substantive test of balances
Calculate biosites sustainable growth rate in each year : Calculate Biosite's sustainable growth rate in each year from 2001 through 2004. What growth management problems did Biosite face over this period?
How use of such control may affect democracy and society : How the use of such control may affect democracy and society. For this Discussion, you will view and react to Pariser's TED Talk online.
What do you think about these arguments and further : What do you think about these arguments and further - Do you think that this kind of globalization of moving industries/services from developed countries to developing countries improves the lives and living conditions of those workers in these de..
Calculate genentechs annual sustainable growth rate : Calculate Genentech's annual sustainable growth rate for the years 2003-2007. Did Genentech face a growth management challenge during this period? Please explain briefly.
Summary of the given article : Summary of the given Article. Article- Ethics Maturity and Successful Leadership by James F. Duffield and Richard H.Mccuen

Reviews

Write a Review

Corporate Finance Questions & Answers

  1 elizabeth bicycle company makes bicyclesnbsp the firms

1. elizabeth bicycle company makes bicycles.nbsp the firms income statement is as followselizabeth bicycle

  Tylor corp taylor corporation wants to raise 40 million

taylor corporation wants to raise 40 million. its stock price is now 25 per share. the new issue will be priced at 23

  Determine the firms annual lost cash discounts

For this problem, assume that a year consists of twelve 30-day months. Assuming that Eaton is able to raise the $250,000 it needs by stretching its accounts payable, determine the firms annual lost cash discounts

  Firm a has 20000 in assets entirely financed with

firm a has 20000 in assets entirely financed with equity.firm b also has 20000 in assets financed by 10000 in debt with

  Determine cranstons average payment cycles

Determine Cranston's average production cycles for 20x4 and for20x5 and determine Cranston's average collection cycles for 20x4 and for 20x5. Assume that all sales are credit sales.

  Case studypart 1axolotl corporation a small company from

case studypart 1axolotl corporation a small company from eastern washington is currently producing avionic parts and

  The managers of ponchoparts inc plan to manufacture engine

the managers of ponchoparts inc. plan to manufacture engine blocks for classic cars from the 1960s era. they expect

  Computation of loss due to foreign currency exposurezapata

computation of loss due to foreign currency exposure.zapata auto parts the mexican affiliate of american diversified

  A firm is considering an investment in a new machine with a

a firm is considering an investment in a new machine with a price of 18 million to replace its existing machine. the

  Compute the amount to be reported as income taxes payable

In 2012, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the am..

  Sun microsystems leader and champion

Scott McNealy has been Sun Microsystems leader & champion. Mr. McNealy has keep the corporation through the wild 90s and has made benefits for investors.

  Explain key variables to influence amount of income

A person plans to retire today & expects to begin living off their retirement savings beginning one year from now & continuing until death.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd