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Analysis of Country Road's financial performance - Assignment Example
Author : willmsraymundo
Finance & Accounting
Pages 6 (1506 words)
<Title> <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…
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. ...