Essay on Financial Strategy for Carluccio's Plc

1059 Words Jun 2nd, 2011 5 Pages
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
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(2007=0.7 2008=0.7 2009=0.7)

Liquid Ratio is less than 1 it suggestion that the company is in cash flow difficulties, the current ratio and the liquid ratio can be bigger than they should be, but in Carluccio’s plc the number which show us the Carluccio’s plc needs put a lot attention in their cash follow. The bank loan is also a good idea for this company, same like current ratio. (2007=0.5 2008=0.5 2009=0.5)

Liquidity ratios
At the same times the Liquidity ratios (current ratio: liquid Ratio) in Carluccio’s plc is not bad all mostly closeting 2:1 but not below 1:1 it means Carluccio’s plc have a good cash control and have a good exertion in the liquidity cash.

Return on Capital Employed is Capital return again capital profitability, it said enterprise profit (after-tax profit) and owner's equity (i.e., total assets minus liabilities of the net amount after). To reflect the company USES capital gains. It can show a company in Carluccio’s plc, the growing of the number of ROCE is means the Investors also have the confidence to the Carluccio’s plc. In the past three year the number return on capital employed has a big decline in 2007 to 2009, so it means the risk of this company for the investor is higher than before more than double in 2009
(2007=33.5 2008=29.5 2009=15)

Stock Turnover is the inventory stock inventory turnover and back-up. It requires the sales staff shall promptly

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