Summary: Quarter 4

From Quarter 4 to 5; Quarter 4 had a higher percent in profit margin at 6.13% while Quarter 5 was at 1.73%. Profit margins are expressed as a percentage and, in effect, measure how much out of every dollar of sales a company actually keeps in earnings. A 6.13% profit margin, then means that our company has a net income of 0.0613 for each dollar of total revenue earned and same for quarter 5 at 1.73% meaning .0173 for each dollar of total revenue earned. I believe we failed between Quarter 4 to 5 because we loss focus from our strategy which was our shoes we offer higher quality and more benefits as well as service quality and availability. Our watches are offered at higher prices, but in return there is higher quality and more benefits. From the data we went down 4.40% in Profit Margin and went down 11.91% in operating Profit Margin. We definitely loss focus because we charge higher quality but we are not receiving higher revenue. One things that we did gain was 9.34% in our Gross Profit Margin which is great because that tells our firm that our financial health is great by revealing the proportion of money left we have. …show more content…
For our firm we was on strategy because we are doing better than the industry is. For Gross Profit Margin we stand at 62.00% while the industry is at 68.72%. We are below average but are showing signs of improvement from Quarter 4. Operating Profit Margin our firm is at .10% while the industry is at 2.21%. We are doing awful but we know that we have weaknesses that could potentially hurt our financial performance. Our company is making changes in spending, pricing, and outsourcing. The weakness are hurting us on our