Financial strategy & results over the last three years of Carluccio’s plc
In the Profitability area
In this company the sales has a heath development and risen about 10 %, but the profit of this company hasn’t risen and have a short decline.
Gross Profit Margins is a financial ratio which for evaluating a company's core activities of profits. The gross profit Margins has remained relatively static over the three year period, but a little decline in 2007 Gross profit margins is 20.3 but in 2009 became 17.2 it means the 2009 cost will be higher than 2007 cost, the devaluation of the pound is the major reasons, because the sales was risen in this years, the cost also risen. (2007 = 20.6; 2008 = 19.2; 2009=17.2)
Net Profit Margin (the net profit margins) is a ratio which can show a company are reflected company profitability, is an important index for all costs and expenses and deduct the enterprise income tax profit margins. Net profit margin in Carluccio the net profit margin has a huge decline in 2009. In 2008 this ratio is 3.6, but in 2009 it felled to 0.3, what a huge decline, it means the operation capacity of Carluccio is weaker than before, this company should pay attention on the management, and also says the Global financial crisis is effect this company. (2007=4.3; 2008=3.6; 2009=0.3)
In the Working capital
Current Ratio, The standard test of liquidity is the current ratio; it can be obtained from the balance sheet, and is current assents/current liabilities, for a company should have a opulent current assets that give a promise of cash in to come to meet its commitments to pay its current liabilities. The number should be excess 1, 1 means comfortable varies. But in Carluccio’s plc, this company still has the current ratio problem. The number of Current Ratio still in 0.7, it means Carluccio’s plc should put more attention to the liquidity cash area. Carluccio’s plc hasn’t any Bank loan it is very surprised me, The Bank loan can...
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