Preview

Summary Of The Reject Shop Limited

Satisfactory Essays
Open Document
Open Document
312 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Summary Of The Reject Shop Limited
Executive Summary
This business report have analysed the financial statements of The Reject Shop Limited (TRS) in order to evaluate the financial performance and position of the company over the 4 year period 2006 to 2009. In additional, an evaluation on The Reject Shop as an investment was also reviewed and discussed.

The trends of the total revenue and percentage increase/decrease year per year for the four years 2006 to 2009 are illustrated and evaluated. The results of the gross and net profit margins over the four are also interpreted. The difference between return on assets (ROA) and return on shareholders’ equity (ROE) are defined and the ratios calculated are interpreted and explained. The ROA and ROE ratios of Warehouse Group

You May Also Find These Documents Helpful

  • Powerful Essays

    Tanglewood Case 1

    • 1467 Words
    • 6 Pages

    Based on information in the case, Tanglewood’s Return on Revenue (ROR) shows to be on top after Kohl. When ROR grows it means that there are fewer expenses incurred for higher net income. Tanglewood’s Return on Assets (ROA) is in second place. This means it has efficiently managed its assets to revenue. Tanglewood should show concern of several competitors like Kohl’s, Federated Dept and Target.…

    • 1467 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    “Return on assets (ROA) is a measure of profit per dollar of assets” (book 449) The ROA is calculated by dividing the net income by total assets. “The return on equity (ROE) is a measure of how the stockholders fared during the year” (book 449). The ROE is called by dividing the net income by the total equity. In 2016, StilSim’s ROA was 2.1% and ROE was 2.7%. StaffAces ROA was 2.7% and ROE was…

    • 1224 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    TJX Companies Inc. is currently in one of the most secure subsets of the retail industry. The economy is a factor always present in the minds of consumers today, and the retail establishments operated under TJX Companies all cater towards the price conscience customer. They are hitting all ages and genders in the apparel industry in addition to home good products including furniture and accessories. They have expanded to reach many markets, and are continuing their expansion across the United States and throughout international countries in Europe. Their ability to payout higher dividends than the majority of the competitors in their industry, while still expanding their market segment proves their profitability along with their profit margin. The profit margin experienced by TJX has been increasing rapidly. There perfect placement in the marketplace and their successful current performance proves the strengths which lie with TJX Companies Inc. As of right now, TJX should work on growing their revenue to a higher value. Although the company is increasing in revenue from year to year, they have only jumped 4.3%. A possible weakness right now, the company’s current expansion should turn that around. Even still a stagnant revenue is much better than a declining revenue growth, which in this economy is not uncommon. If their revenue is able to grow, than they can focus on reestablishing their previous inventory method. Due to the economy, TJX restructured their inventory system in order to keep a smaller quantity on hand. With larger revenues and more sales, they will be able to profitably keep larger stocks of merchandising inventory on hand. Financial information is all interconnected, balancing and formulating from each aspect. As the economy turns around, sales increase, and revenues increase, the downfalls which TJX has endured will change into even greater profitable quarters.…

    • 1729 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    This section requires you to focus on the company (Primark) profile. As a starting point and the background to the report, this section should ‘set the scene’ by providing information on main products/services, the industry company operates in, main competitors and markets. Pay particular attention to recent financial data. Students are asked not to construct this section by cutting and pasting or simple copying material from the company’s website and other sources.…

    • 1828 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Ratio Analysis Article

    • 889 Words
    • 4 Pages

    In the evaluation of profitability ratios for 2004 the total assets were 137,598, return on assets of 1.86, and retained earnings of 72,343. For 2005 the retained earnings is 328,524 with average equity of 200,433. The return on equity is 1.28. The net income after taxes was 256,181.…

    • 889 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Foodcrop Spot

    • 570 Words
    • 3 Pages

    From the Financial and Market data, some ratios indicate that Foodcorp needs to be improved since these following ratios – Inventory Turnover, Return on average…

    • 570 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Harrod's Sporting Goods

    • 1006 Words
    • 5 Pages

    For all three ratios (profit margin, return on assets, and return on equity) the trends from 2004 to 2006 remains the same. All three ratios increased from year 2004 to 2005, but dramatically decreased from 2005 to 2006 dropping below the percent ratios of 2004. The increase of Profit margin indicates that Harrods sporting goods had a higher return on the sales dollar which shows good cost control, the decrease (2005-2006) of the same ratio indicates the company having a lower return on the sales…

    • 1006 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The ‘Total Asset Turnover’ ratio is a measure of a firm’s asset use efficiency. This ratio is important since Whole Foods is in a business where it handles substantial amount of perishable goods. Hence the asset turnover should be high. Whole Foods’ asset turnover for 2004 and 2005 was 2.54 and 2.49 respectively. One approach they can take to improve asset turn over is by increasing sales. When we increase sales by 1% (assuming everything else remains equal), then we notice that ‘Total Asset Turnover’ increases to 2.51 (from 2.49), ‘Profit Margin’ increases to 3.86 % (from 2.9%) and the ROE increases by 3.44% to 13.42%. Whole Foods could improve ROE by increasing the Asset Turnover.…

    • 617 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Mr Jax Fashion Inc

    • 1603 Words
    • 7 Pages

    Mr. Jax Inc. has successfully grown into one Canada’s largest clothing apparel company. We have grown to be the 6th largest and had four successful acquisitions. Our success in the past eight years has shown our revenue stream at 1500% and profits at 500%. Over the last 2 years, the company has been in a loss position due to aggressive growth and operational costs. Profit margin has declined from 23.52% to 9.91% as a result of increased selling and General Administrative costs outpacing sales revenues. The ROA for 1987 was 8.59% and for 1988 4.65% is declining due to aggressive growth acquisitions that are ailing business and hence effecting the ROE for 1987 was 13.35% and 1988 was 8.34% trending downward as well. These recent losses have been financed through bank debt and additional share investment in the company in 1987.…

    • 1603 Words
    • 7 Pages
    Good Essays
  • Better Essays

    The Internet has become an extremely popular place for small businesses and firms to advertise and sell their products. Although this is a very easy and popular way to sell, it all depends on how well the company uses its resources and marketing ideas. One company that is widely known across the country and famous for having grown so fast since its online creation is Amazon.com. It opened a whole new market for competitive business in the specialty industries on the computer and has proven to be a successful company on the Net. Amazon.com is one of the famous public companies that investors love to invest into. How can Amazon.com meet its goal of achieving profitability to please its investors? What information do investors need to have to consider continuing investment in Amazon.com? Financial statements are meant to enable the investors to evaluate the performance of Amazon.com, analyzer its cash flow and assess its financial position. In this paper, Learning Team D will examine the cost-flow method that Amazon uses in its inventory, its impact on adjustment and how Amazon discloses on its financial statement. In addition, this paper also analyzes the impact on adjustment to Amazon's current ratio and discusses whether its competitors made the same adjustment.…

    • 1752 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    In this FSA Case Analysis, our team takes a careful look at Office Depot’s most recent financial statements; and, using the FSA spreadsheet, performs an internal environment analysis of its liquidity, solvency, operating efficiency and capital structure. In order to make the analysis complete, prior period reported information is compared with the latest information, along with industry standards. For the liquidity analysis, we assess Office Depot’s current ratios, quick ratios, inventory turn rate based on COGS, and Altman Z-scores, as well as examine its accounts receivable collection. Its solvency is investigated using cash flows from operations, from investing activities, and from financing activities, while, as measures of operating efficiency, its return on assets (ROA), return on sales (ROS), and asset turnover are evaluated. ROA and ROS are used for the DuPont Equation. Economic profit, breakeven, and capital structure analyses are performed, as debt-to-equity ratio and leverage ratio are computed given the ROA and ROE. Lastly, some interesting findings are enumerated and explored at the end of the report.…

    • 1753 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    I feel that all of the six performance measures are all useful indicators of how well a company is being managed, but if I had to pick two they would be return on equity and return on sales. Return on equity represents more profit for the shareholder’s. ROE also shows how well the business is using and managing the money. A company with high return on equity will be better off for growth in the future, increasing the value of the company. An increase return on equity normally is consistent with an increase of the firm value. This performance measure also can be used to compare with other companies.…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Analysis Of Gamuda Land

    • 1049 Words
    • 5 Pages

    Before we start to invest in a company, we need to analyze the financial ratio for each company. This is because it helps us to know whether the companies status are worth to invest or not. Without analyzing the financial ratios of companies, it would be risky to invest and causing making loss on investment.…

    • 1049 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Walmart Case Study

    • 324 Words
    • 2 Pages

    Walmart has a higher return on equity and a higher return on asset compared to Amazon. It can be assessed that Walmart has better overall performance than Amazon. Equity return is dramatically higher for Walmart (272%) compared to Amazon’s 17.2%. Amazon has a lower accounts payable turnover therefor the company is more efficient than Walmart. Profit margins are the same and Walmart has a higher asset turnover. Walmart has a higher ART so it collects money quicker. Inventory is turned slightly quicker with Walmart. Amazon has a better PP&E turnover with every $1 of PP&E supporting $19 of sales compared to Walmarts $3.99.…

    • 324 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Kmart remains one of the largest retail stores in America that must be recognized with strong financial statement and balance sheet. In accounting, balance sheets and financial statements mean a lot to a financial organization and investors. The financial support provided to any corporate or organization is based on its ability to justify its need with strong assets, cash flow and owner 's equity. A financial organization and investors look at these tools to determine the viability of a business. As described by Kmart President and CEO Julian Day, Kmart continues to make good in improving profitability of the company. (www.kmart.com) Different accounting equations such as net income, assets, owner 's equity, account receivables and current ratio define profitability. Using different scenarios applicable to Kmart, Team A reviewed the financial and cash flow statements of fiscal years 2002 & 2003. Company data is compared and analyzed to develop realistic company goals. The information used by investors to make good decisions is the significance of current ratios, accounts receivable turnovers and other accounting components.…

    • 2826 Words
    • 12 Pages
    Powerful Essays