Research……………………………………………………………………….. Pg 3 2.0 Secondary Research Findings…………………………………………………………. Pg 5 2.1 Horizontal Analysis……………………………………………………………………. Pg 5 2.1.1 Turnover……………………………………………………….....………………. Pg 5 2.1.2 Gross Profit…………………………………………………………….………… Pg 7 2.1.3 Operating Profit…………………………………………………….…………..Pg 9 2.2 Vertical Analysis……………………………………………………………..……….. Pg 10 2.2.1 House of Fraser………………………………………………………………. Pg 10 2.2.2 M&S and Debenhams……………………………………………………… Pg 11 3
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completion method. Compute the amount of gross profit or loss to be recognized each of the three years. Record the necessary journal entries for each year (credit Various Accounts for construction costs incurred). 2011 350‚000 3‚150‚000 3‚500‚000 10.00% 2012 2‚500‚000 1‚700‚000 4‚200‚000 59.52% 2013 4‚250‚000 0 4‚250‚000 100.00% 1‚619‚200 1‚669‚200 -50‚000 Cost Incurred to Date Estimated Costs Total Estimated Costs % Completed Revenue Expense Gross Profit 400‚000 1‚980‚800 350‚000 2‚230‚800
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company’s last one year sales is higher than the average of last five years. The EPS is showing a negative growth. The sales growth of the company in the last one year gives an indication of the better growth of the firm. Profit margins | 2010 | 2009 | 2008 | 2007 | | Gross Profit |
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9.6 30.1 67.8 121.4 expected gross profit margin 30% 30% 30% 30% 30% Operating & Marketing Expense 3.0 5.00 Net Profit Margins 10% 10% 10% Expected Profit after Operating & Marketing Expense
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PART 1: BUSINESS REVIEW a) Scope of Operations Sapura Industrial Berhad who in early know as Sapura Motor Berhad (1980s) established to manufactures and supply automotive suspension parts in Malaysia as well as Asian region. As the company continues to evolve with the times‚ Sapura Industrial Berhad has divided by six subsidiaries listed as below: 1. Sapura Machining Corporation Manufactured the high quality automotive part include engine‚ transmission and brake for automotive industry
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make a profit. In order to assess the efficiency of a business in achieving this major objective‚ two profitability ratios may be used: the return on capital employed and net profit margin. In both measures‚ a high percentage represents a better performance than a low percentage‚ as a business wants to earn high profits. The gross profit margin This measures the gross profit of the business as a proportion of the sales revenue. It is calculated using the following formula: Gross profit margin
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Earnings Per Share Earnings per share (EPS) is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio. The EPS is somewhat helpful in comparing one company to another‚ assuming they are in the same industry‚ but it doesn’t tell you whether it’s a good stock to buy or what the market thinks of it. For that information‚ we need to look at some ratios. http://stocks
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sales that are generated from each dollar of assets. Companies with low profit margins tend to have high asset turnover‚ those with high profit margins have low asset turnover. This brings us to the metrics related to net profit margins. Google’s net profit margin has been increasing from 12.51% in 2004 to its 2006 margin of 29.02%. Google is substantially outperforming the industry average of 6.9%. This higher profit margin indicates a more profitable company that has better control over its costs
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cash flows are for a given company; especially a company that is young or that might be using an innovative and new business model. Additionally‚ knowing what long-term cash flows look like requires knowledge of the long-term growth rate‚ operating margin‚ weighted average cost of capital‚ discount rate and reinvestment rate. This makes using discounted cash flows especially difficult young companies. The discounted cash flow‚ in Exhibit #1 below‚ shows an imputed value of $109 per share versus the
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competitor announces a radical new pricing policy that will drastically undercut Vodafone’s prices. e) Naught is supposed to influence on the balance sheet. 1.2 In fiscal year 2011‚ Starbucks Corporation (SBUX) had revenue of $11.70 billion‚ gross profit of $6.75 billion‚ and net income of $1.25 billion. Peet’s Coffee and Tea (PEET) had
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