An Analysis on Debenhams

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An analysis on Debenhams

We have taken the company Debenhams for our analysis. The methodology adopted for the analysis includes ratio analysis and a comparative study with Lewis, a leading apparel company in U.K
Company profile: Debenhams
Debenhams plc engages in the operation of department stores. The company’s stores provide a range of products, including women’s wear, men’s wear, children’s wear, lingerie, health and beauty, and home ware products, as well as gifts and accessories. It offers its products under its own brands comprising Red Herring, Mantaray, Maine New England, Debut, and Bluezoo. The company also provides its products under the international brands, such as Chanel, Clarins, Denby, Levi Strauss, Radley, and Ben
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The formula for calculating the ratio is:
Interest Coverage Ratio= EBIT / Interest Charges Interest Coverage Ratio of Debenhams | | 2010 | 2009 | 2008 | 2007 | Interest Coverage Ratio | 3.809237 | 2.967427 | 2.508547 | 2.6997 |

Description: company is generating enough profit to cover its interest obligations. The ratio in 2010 stood at 3.80 shows a good number.
Dividend per share:

Dividends are payments made by a company to its shareholders during a specified time intervals, say, quarterly or yearly. It is the portion of corporate profits paid out to stockholders. When a company earns money out of the business, that money can be put to two uses: it can either be re-invested in the business or it can be paid to the shareholders. This payment is called dividend. | 2010 | 2009 | 2008 | 2007 | Dividend per share | 4.3 | No dividend paid | 3 | 3.8 |

Description: the data shows that, company is paying a dividend in the last three years and for 2010 dividend is 4.3 per share.
Earnings per share:

EPS is the amount of earnings per each outstanding share of a company 's stock. The EPS formula does not include preferred dividend for categories outside of continued operations and net income. Earnings per share for continuing operations and net income are more complicated in that any preferred dividends are removed from net income before calculating EPS. (I.M. Pandey, n.d).
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