Finance and Business Perfomance Assignment 1 - Coursework Example

Only on StudentShare

Extract of sample
Finance and Business Perfomance Assignment 1

That Sales are growing does not mean this is good because the cost price of goods sold is also increasing faster than Sales. The increase in sales figures may be due to the mark-ups of Louise to the Cost price.
Louise is therefore selling a lower volume of goods but at higher prices as confirmed by the - 2% figure above, even though in Year 5, sales grew by 20% after Louise dropped gross margins from 30% to 25%.
The gross margin is the ratio of gross profit to Sales and is the mark-up Louise adds to the cost of her products, whilst the net margin is the ratio of net profit to Sales after expenses are deducted from gross profit.
Declining (- 4%) gross profits means sales are not increasing as fast as Cost price of goods, whilst the increase (14%) in net profits only means that Louise is controlling her expenses better, as shown by the 17% Average Sales/Expenses figure.
Louise can improve the management of her business by spending more on marketing to increase demand and Sales figures. This would result in higher expenses, but it would increase Sales at a faster rate than the Cost price of goods and would result in an increase in net profits. Unless Sales increase, Louise's profits will be squeezed.
If the capital of 60,000 in Year 1 is assumed to be the total she invested in the business, which includes initial inventory, improvements on the premises, furnishings and equipment, the van, ...Show more


1. Based on the evidence available, use numerical analysis to comment on the relationship between 'Sales' and 'Cost price of goods sold', and between 'Sales' and 'expenses'. What might the figures signify concerning Louise's management of the business [30/300]
Author : mkoch
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Finance and Business Perfomance Assignment 1"
with a personal 20% discount.
Grab the best paper

Related Essays

Personal Finance Assignment
outline three factors Jane may wish to consider when thinking about whether to take out the fixed rate mortgage.(130 words) Jane has to determine the length of the mortgage. If she plans to borrow money longer than 2 years, which means long-term financing, then it is strategic to choose the fixed rate mortgage; since fixed rates reduce the risk of fluctuations.
6 pages (1500 words) Assignment
The above numerical clearly shows that when the ROE was increased to 20%, the company experienced a high growth rate and likewise its stock price also increased. (a) Each project has a different discount rate because it is the expected rate of return demanded by investors for that specific project and secondly the differing discount rate is dependant on the timing and risk of cash flows related to that project.
17 pages (4250 words) Research Paper
Finance Assignment
Now as an inventor, one gets confused that where should he invest his money. Definitely, the investor would be looking for stocks that provide best profit. In the case of stock trading, the investor would be looking for industries or companies that are performing well and their financials are also good.
3 pages (750 words) Essay
Business/Finance (islamic Finance)
Last ten years have witnessed a phenomenal growth rate in Islamic financial institutions' performance. As per the recent statistics provided by The International Islamic Finance Forum (2007), there are 270 Islamic banks worldwide having $265 billion assets, financial investments of around $400 billion, and deposits of $202 billion.
4 pages (1000 words) Research Proposal
International Business Strategy/Assignment 1
itioners, with a recommendation on whether Midea should focus on defending its local market or expanding into international markets; and third, what Midea’s international strategy should be if it decides to expand abroad. The first step towards crafting any organisational
9 pages (2250 words) Essay
Business Law Assignment Level 1
This means that one partner is usually not responsible for misconduct or any other issues of the other partners in the business. This is something that makes it different from limited
8 pages (2000 words) Essay
Reflections on Contemporary Leadership Issues and Strategies
The design of the course allows for an in-depth discussion of leadership concepts, as well as the issues faced within the complex business environment prevalent
3 pages (750 words) Essay
Learning objectives
Recruitment and Selection, Training and Development, Retention of Employees and Compensation packages determination. The challenge faced by HR department was also highlighted during the internship and the mechanisms used to solve them gave
4 pages (1000 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email