Essays on Gross Profit Margin

Introduction

The objective of this report is to perform the financial analysis of Next PLC and its competitor firm, Debenhams PLC. While both the stocks are listed on the London Stock Exchange(LSE), however, the report is solely attributed to uncover the fundamental analysis using the tool of financial ratios. Here, the attempt will be made using necessary ratios delineating profitability, efficiency, liquidity and gearing position of both the firms over the period of the past two years. The report shall finally be culminated discussing whether there is an improvement in the overall performance of each firm along with the ...

The company is an integrated retailer that enables shoppers to use both physical and online shopping to meet clients’ shopping needs. The headquarters is in Hoffman, and all the retail stores are located within the United States of America. This report uses financial ratios to provide a general picture of the financial status of the company.

Profitability of the Company

The gross profit margin is one of the main metrics that is used to gauge the company’s ability to transform sales into profit. It indicates the amount of net income realizable out of one dollar of sales revenue. Gross profit margin = net ...

The company considered for the financial analysis for the last three years is Tesla Motors Inc. the United States of America automaker that produces 100% electric cars. The headquarters of Tesla are located in Palo Alto, California between the most important companies of high technology in the world and with a new warehouse facility in New Mexico, United States of America. The company had a constant growth since its foundation in July 2003, but with a high proportion of liabilities in its assets, giving the company a caution condition between the investors. The following are the most important financial ...

(Financial and SWOT analysis and Recommendation to Identified Problems)

Background

The Walt Disney Company is an American diversified firm which focuses its business in mass media where it offers licensing services for the populace to consume their products among other services. Walt Disney headquarter is at Walt Disney Studios in Burbank, California. The firm was founded on October 16th, 1923 by Walt Disney and Roy O Walt Disney in Los Angeles, California. In its most recent full year financial statements, 2015 financial statement, the firm posted a net income of US$8.38 billion, operating income of US$14.68 billion and ...

2.1 Resource-Based View

Tangible Resources

Papa John’s International Inc. grew annually to become the third largest pizza franchise across the world. The company focuses on achieving such a goal was focusing on the production of high-quality products using bets ingredients, provision of responsive customer service and focus on employee development and training. Other steps put in place include convenient ordering systems and extensive marketing campaigns. In general, these efforts spearheaded the company’s overall profit and improvement though there is a lot the company has in store for the future. Over the past decade, the company has had significant changes ...

Introduction

In the recent days, consuming a soft drink is part of daily living because people need beverages to deliver the great taste, inspiration and hope. They also want non-alcoholic beverages for stimulation and refreshments. However, soft drinks sectors are flourishing industries since the provide refreshment, soft drinks that are in high demand almost in every nation. This industry started in the 1770s and it captures domestic and global markets. Additionally, firms that are in soft drink industry are under intense competition as they try to emerge as the overall players in the world market. Therefore, the key companies in ...

Internal Analysis of McDonald’s Corp.

Introduction McDonald’s is the biggest chain of hamburger fasts food cafes around the world with over 50 million consumers. The corporation was started in 1940 by two brothers in San Bernardino, California (McDonald’s. com, 2016). Today, McDonald's is the leader in global food service retail with around 35,000 locations in more than 100 nations. However, most of its worldwide restaurants are owned and operated by independent local business people. Additionally, the alignment strength in McDonald’s is its franchisees and suppliers. This system has been the reason for the long-term success of the corporation. In the ...

Walmart is a multinational store that was founded on the idea of selling inventory at a low price (selling more for less). This selling concept has propelled the retailer to be among the largest across the globe. The firm enjoys a presence in over twenty-eight countries. Its network is made up of eleven thousand five hundred stores and eleven e-commerce sites (Walmart, 1). The adoption of e-commerce has enabled it to tap the growing demand for internet shopping. In the recent financial year, the firm revenue was $482.1 billion. The continuous growth and increasing economic value of the retail ...

The Coca-Cola Company

The Coca-Cola Company is the largest leading marketer and owner of non-alcoholic beverage brands, and the largest distributor, manufacturer, and marketer of syrups and concentrates used in the production of non-alcoholic beverages. The firm owns or license and market 500 or more non-alcoholic beverage brands, majorly sparkling beverages but also several still beverages such as enhance waters, waters, juice and juice drinks, energy and sports drinks, and ready-to-drink coffees and teas. Finished beverage products that portray the companies mark, sold in the United States from 1886, are currently sold in more than 200 nations. Coca-Cola Company markets and owns ...

Organization Performance Using Financial Ratios

Organization Performance Using Financial Ratios Ratio analysis refers to the process of determining, analysing and interpreting relationships by using financial statements. It is majorly used to evaluate various aspects of a firm’s financial and operating performance, such as profitability, liquidity, efficiency and solvency. The trend is then studied to determine whether they are deteriorating or improving (Nezlobin, Rajan, & Reichelstein, 2014). Financial ratio is an indicator used to analyse firm’s financial performance. The ratios are used by the creditors, accountants, analysts, shareholders and bankers to examine and evaluate data presented on a company’s financial statements (Nezlobin, Rajan, & ...

Five Below, Inc. is a retail chain belonging to the specialty retail industry which was incorporated in Pennsylvania, USA in 2002. It offers “dynamic, edited assortment of exciting products, all priced at $5 and below, including select brands and licensed merchandise” ("Overview | Fivebelow"). Five Below’s products range from sports equipments, styling merchandise, small décor items, craft works to candies and party items. It largely targets customers who are teenagers or pre-teens. Since the company’s inception, it has expanded its business to almost all regions of the United States and has been successful in opening more than ...

Introduction 3

Comparative Financial Performance Analysis of Pepsi and Coca Cola for the Last Two Years (2014 and 2015) through Ratios and their Interpretations 3 Analysis of Profitability Ratios 4 Gross Profit MarginW 4 Net Profit margin 5 Return on Assets 6 Analysis of Solvency Ratios 7 Current Ratio 8 Quick Ratio 9 Analysis of Capital Structure Ratios 10 Debt-to-Equity Ratio 11 Interest Coverage Ratio 12 Examination of Efficiency Ratios 14 Days Sales are Outstanding 14 Days in Inventory 15 Payables Period 16 Findings and Recommendations 17

References 20

Comparative Financial Performance Analysis of Pepsi and Coca Cola Introduction Because of their global ...

Business Health Check

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Introduction

Happyville Pharmacy is a family owned business located in Brisbane. Husband and Wife pharmacist Joe and Betty Blow are the owners of the store and it is run independently without any banner group. Although the main products sold are related to pharmaceuticals but the store also sales other products such as baby products, confectionary, cosmetics, small gifts, household and domestics products and perfumes. It also sales non-medical skincare products and oral hygiene products. As per the 2014 guild report which reported data for the years, 2012 and 2031 in Australia, community pharmacy industry has an overall size ...

A decline in the profitability of the business would leave the business with less cash reserves and thus an increase in borrowings. Exhibit 1 shows that at a gross profit margin of 30%, the business would not have any borrowing over the period and would have a reserve of marketable securities of $21,836. Exhibit 2 shows that if the gross margin were to decline from 30% to 27.5% the business would exhaust its reserves in marketable securities in November and would have to borrow $47, 117 in November order to meet its closing cash balance target of $120, ...

Introduction

This paper seeks to conduct an analysis for the financial performance of the Toyota Motor Corporation and General Motors Company for their financial years ended in 2015. In order to arrive at objective results, the analysis will compare different financial and performance ratios for both businesses. It is a purely objective analysis that will be based on the figures presented on the annual audited final accounts of the companies.

A.Ratios

Liquidity ratios These are financial metrics used to assess and determine an entity’s ability to meet its short term debt obligations. They include:

Current ratio

Quick ratio/Acid test ratio Profitability ratios. ...