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…show more content…
The day of stock turnover can show us the Carluccio’s plc has a good raised in the stock turnover the number of stock turnover has raised about 20% in 2007 to 2008 but in 2009 this day has been decline to 10 days.
(2007=12 2008=13 2009=10)
Debtors and Creditors Payment period
Credit Given (The debtor’s payment period) the debtors payment period shows how many days it takes on average for the debtors to pay back the owed money. The creditor payment period shows how many days it takes on average for the business to pay its creditors. Ideally the debtor period should be shorter than the creditor period for better efficiency. Here this is not the case and steps should be taken to chase the debtors to pay quickly. So the credit given days is maintain in 3 days.
(2007=3 2008=3 2009=3)
Credit Taken (Creditor’s turnover period)
Creditors are the businesses or people who provide goods and services in credit terms. That is, they allow us time to pay rather than paying in cash. Having found that debtors are taking somewhere between 30 and 50 days to pay their accounts so the Creditors Taken in Carluccio’s plc is health and good in 2007 to 2008, but in 2009 the number become 21 days it is a dangerous number.
(2007=32 2008=31 2009=21)
This company is a food sales company both running