Studies in securities

Bibliographic data

Monograph

Identifikator:: 1757542078

URN:: urn:nbn:de:zbw-retromon-134903

Document type:: Monograph

Title:: Studies in securities

Edition:: Revised

Place of publication:: New York

Publisher:: Jas. J. Oliphant & Co.

Year of publication:: 1927

Scope:: 81 S.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Montgomery Ward & Co.

Collection:: Economics Books

7% 7 - Ee 50% shrinkage in rubber values at least proved the worth ef budget = control of inventory. Merchandising a widely varied list\o®goods, 3 ordered from an annual distribution of 40,000,000 large aRd small \ ® J catalogues to over 8,000,000 customers paying cash in adva e 95 of 100 transactions, and turning over the inventory now some seven times a year, the company is intrenched against ordinary troubles. STUDIES IN SECURITIES Montgomery Ward & Co. common stock offers attractive return with a well-protected $4 dividend, plus the promise of an extra payment in a good year. It is an equity suitable for investment holding. National Biscuit Co. Co-incident with splitting the stock seven-for-one in December, 1922, and tripling the common dividend disbursement, National Biscuit Co. began reporting earnings double the steady rate shown for twenty-four years. Net of $11,025,000 was reported for 1922 (in which year a 75% stock dividend was paid, par reduced from $100 to $25, and the cash dividend rate increased from 7% to 129%) and this earning capacity was substantiated by a steadily increasing net income to $14,674,000 in 1926. The contrast with preceding years was extreme. From organiza- tion in 1898 (as a merger of going concerns) to 1910, the net income as disclosed ranged narrowly between $3,292,000 in 1898 and $4,101,000 in 1907; and from 1911 to 1921 between $4,130,000 in 1915 and $5.677.000 in 1921. Suddenness of the jump in 1922 probably is explicable not by un- usual expansion of business (for National Biscuit has grown grad- ually and, incidentally, without borrowing a dollar) but by ac- counting income more clearly to reveal earning power. Ultra- conservatism has always marked National Biscuit bookkeeping. Besides charging extensive plant alteration direct to operating ex- pense, the company liberally wrote off outlays for new construe- tion and property acquisition. Gross business is not reported reg- ularly, but we know that in 1909 $42,700,000 sales were handled with plant carried at $53,000,000, while in 1922 sales were at a $97,000,000 annual rate with plant valued at only $62,000,000. The company now operates 43 plants with close to 200 selling branches or agencies so that 90% of the business is done by owned equipment delivering to customers’ stores. Inventory turnover averages two weeks and receivables represent only about a week’s collection. Except for a newly developing output of bread and [53]

Access restriction

Copyright

fullscreen: Studies in securities

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation