When Nikken moved their World Headquarters from Fukuoka, Japan to Irvine, California 10/99, their D&B rating jumped from 4A1 (apparently the highest rating a foreign company can earn) to 5A1. Here's what I'm told that means:
5A - indicates $50 million or more in assets, also indicates at least a 2:1 ratio of assets vs. liabilities 1 - indicates the credit rating; #1 is the highest, which represents no late or slow payments.
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[This letter was proudly & shamelessly stolen, with our great respect, from Dave Johnson's site, along with his great jumping WOW! Dave is our companys' top earner in America & a great mentor to me & Lou. CLICK HERE to visit his page for inspiration & great business-building ideas!]
To whom it may concern:
Nikken Inc. was incorporated in California during 1989 and is a subsidiary of a Japanese company doing business since 1975. At fiscal year, ended Feb. 28, 1998, Nikken Inc. received a 5A1 Dun & Bradstreet rating; which is the highest rating assigned to any company. This rating is assigned based on equity and strong financial ratios combined with a prompt payment record. Cash is more than adequate to retire total liabilities which consist only of accounts payable and accruals. The current ratio 2.45 to 1, indicates an abundance of working capital to fund the company's operating cycle. The operating cycle is also enhanced by an inventory turnover of five times annually. An equity position of $128,220,000 at Feb 28, 1999, has been built through retained earnings excluding initial capital stock of $3,500,000. Capital requirements which include global expansion; construction of a worldwide headquarters at Irvine, CA; and extensive research and development have been funded through retained profits. The company has no borrowings nor investor contributions to fund capital requirements. Total liabilities to net equity were .34 to 1 at fiscal year ended Feb. 28, 1999.
Never have I seen in my 24 years as a Sr. Business Consultant for Dun & Bradstreet, a company build such a strong financial base in such a short period of time. During this tenure I have read mission statements on board room walls all over the region that all give lip service to the customer. Nikken's mission statement describes the five pillars of success as a healthy mind, body, family, society, and finances. This statement provides clear balance and focus to fulfill the company's 100 year business plan.
Sincerely,
Darrell Petersen
Dave Johnson met Darrell in Salt Lake City and he is now a full-time,
EXCITED, Nikken Wellness Consultants - How about that!
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