Analysis of Country Road's financial performance

Analysis of Country Road
Undergraduate
Assignment
Finance & Accounting
Pages 6 (1506 words)
Download 0
<Title> <Student Name> <Name and Section # of course> <Instructor Name> <Date> Analysis of Country Road’s financial performance Step One a. Appended figure 1 shows the trend analysis for the period 2009-2012 for the respective items. b. The trend analysis shows that gross profits have increased by 22.9% over the period whereas net profits increased by mere 2.9% over the same period…

Introduction

The company net profitability declined in 2012 as compared to the 2009; whereas the gross profitability increased by a mere 0.7% in 2012 as compared to 2009. This signifies the growing inefficiencies and disabilities in the company to control costs and expenses. Step Three The profitability provided a better measure as compared to the profits. This is because the profitability analyses the profits with terms to the growing sales; and therefore, helps in measuring the efficiency of the company in controlling costs and expenses with the increasing sales. (Keiso 1999) Step Four a. Appended figure 3 shows the extended trend analysis on the expenses for the period 2009-2012. b. Depreciation and Amortization expenses have increased the most over the period. The expense has increased by 57% in 2012 as compared to the expense in 2009. The second most increased expense is the occupancy expense which increased by 38.4% over the same period. Step Five a. Appended figure 4 shows the vertical analysis performed on the identified items of the income statement. b. ...
Download paper
Not exactly what you need?

Related papers

Financial Performance Analysis of Fuller Smith and Turner Plc Group
It is of great significance that the ratios must be benchmarked against a standard in order for them to possess a meaning. Keeping that into account, the comparison is usually conducted between companies portraying same business and financial risks, between industries and between different time periods of the same company. The company under consideration is Fuller Smith and Turner Plc Group and in…
Financial Analysis
They also state that the market value is not determined by the dividend policy. In relation to the irrelevance of dividends, two theorems are applied; these are Modigliani-Miller approach and residual theory (Thompson & Mathew 82). Q2. The major assumption behind the residual income valuation model is the clean surplus relationship, that stresses the relationship among book value per share,…
South Korea Country Risk Analysis
South Korea is politically stable and has excellent infrastructure. With consistent reformation policies, the Government has been able to transform the country into a knowledge-based service-oriented economy. The labor market is flexible but the wages are higher than the neighboring countries. The workforce is highly qualified but the country has an aging population as the population growth rate…
country risk analysis
Therefore, the country’s economy is growing and when united with its population increase, India is indeed a very significant nation for investment in the world (Machiraju 36). This paper will seek to discuss a country risk analysis with reference to India by taking the perspective of a multinational corporation considering expanding its operations into that country, and is intended to assess the…
country eisk analysis
Based on the economic growth that the country has experienced in the last 12 years, it becomes a viable country where foreign firms can establish their operations. Thus it is essential to undertake assessment of political and economic risks that exist in the country. This paper analyzes the risks that a multinational corporation will face by investing in Morocco. Location and climate As mentioned…
Japan country risk analysis
In assessing the viability of locating or starting a business in a foreign country, a country risk analysis is vital in allowing investors to identify associated risks or opportunities that might affect the business in future. This is because a country risk analysis undertakes an in depth investigation on the economic, political and social factors that affects the financial and strategic…
Financial Analysis
Horizontal Analysis – Income Statement   May-13 Feb-13 Nov-12       $ in million % of Sales $ in million % of Sales $ in million % of Sales Revenues 6,697 100.00% 6,187 100.00% 5,955 100.00% Cost of Sales 3,757 56.10% 3,451 55.78% 3,425 57.51% Gross Profits 2,940 43.90% 2,736 44.22% 2,530 42.49% Demand creation expense 642 9.59% 619 10.00% 613 10.29% Operating overhead expense 1,380 20.61%…