Ceres Gardening Essay

882 Words Aug 6th, 2016 4 Pages
Ceres Gardening began with Jonathan Wydown in 1989 when he founded the company with a mission to promote sustainable organic gardens and landscapes. He is an advocate of soil preservation, biodiversity, natural fertilizers and pest control. The company originally operated as a mail–order Catalog Company in which sales continued to be steady, but Wydown wanted to enter the retail market. As a result he hired Annette O’Connell as VP of marketing. Initially the company focused its primary efforts on independent nurseries and garden centers in the northern California region. That later changed in the late 1990’s when people started becoming interested in organic gardening, expanding to retailers across the western side of the United …show more content…
The program allowed for a growth in sales, and increase in dealer inventories.
When developing my forecast I looked at the previous years and the growth that the company experienced to make my assumptions. For example, cash seemed to be growing at a steady pace until 2006 when it declined so I made an assumption that it would continue growing by about 7%. The growth of the overall industry had been between 8 and 10% a year. The reason I chose more reasonable numbers for my assumptions was because problems were occurring when stores weren’t adequately stocking their inventory at peak times. They were also asking for extensions for making payments after the sales had already been made.
To better understand and measure how effectively the company is using its assets and how efficiently the firm manages its operations I decided to calculate the profit margin for 2006 at 3.6% which tells me they are only making 3 cents of income for each dollar of sales. In my opinion the higher this number is the better because 3 cents to the dollar is not a lot for income and the company could be having some financial troubles that are not as obvious. Using my projections for 2009 that number would increase dramatically to a profit margin of 39.7%. Return on Assets for 2006 is 5.45% and increased to 9.71% in 2009. Another very important calculation is the total asset turnover, so for every dollar in assets they made 1.51 is sales this number unlike the others,

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