Ssb Essay

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

The high and increasing Operating expenses are cutting into the Operating margins, which also cuts into the bottom line.

* Efficiency Variance = 224.000-240.000 = $16.000 Unfavourable. The accountant does not mention anything that can tell for sure the reasons for this lack of efficiency, so we can only guess some reasons such as a change in the labour force to an unskilled one.

the company’s margins have shrunk by 10% in the past year due to rising costs and growing competition.

Wells Fargo is an American multinational diversified financial services company. The company operates throughout the world. It is one of the largest banks in the US in the state of assets. Moreover, Wells Fargo is the largest market capitalization bank in the US. It takes the second category in the field of deposits, delivery of home mortgage services, and delivery of credit cards. The company has its headquarters in Francisco, California. The company has coverage of more than twenty-four states in the US. In every state, it has established its headquarters that act as distribution and storage regions for the company's products and services. The company offers insurance, banking, mortgage, and consumer financing through the sale and distribution of its networks across the US. The advantages of Wells Fargo Company are widely distributed: they have helped it realize a stable market in the United States and around the globe.

The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

In addition to affecting profits by adjusting useful life and depreciation; key ratios will also be affected. The net profit margin can be influenced both ways to fit the purpose of business strategy. It could be increased to make it seem more profitable, or it can be influenced in a negative way to write off as much expenses as possible – if the year held disappointing results – in order to show next year more positively in comparison.

Referring to Vice President of Finance, he want to pursue the current approach because they are in profitable based on contribution margin by 35 percent. The company just needs to monitor their margin in control their cost well.

Return on assets has declined from 19 % to 14 % in six years. The decreasing efficiency is mainly attributed to international operations. High employee satisfaction scores, both domestically and internationally, indicates a highly motivated work force. Turnover rate of 25 % is pointing in a different direction. Training and internal recruitment provides good environment for learning, innovation and growth.

These profitability ratios indicate a better result by taking up the new loan than staying with the old bank. By Dupont analysis (Please see exhibit___), the main drivers for the higher ROE for new loan is due to higher profit margin which offset the lower equity multiplier. The effect of the discount income has driven the profitability, which in turn reflected also in the ROE and ROA ratios.

In this first section of the Social Media Plan for Wells Fargo, it will discuss the internal and external environments of the company, this will also include a SWOT analysis. Following this analysis, the corporate objectives for social media will be discussed as well as the target market analysis.

OB10 has been incurring losses for two consecutive years. The loss is attributable to the high staff cost. In order to ensure OB10 has sufficient financial resources to continue its operation, measures to reduce cost as well as to increase revenue must be taken.

In terms of finance point of view cost of sales increase in 2013 near around 8 %(New ivory finanacial.pdf) compare to previous year which substantially reduce operation profit. Along with this there is huge amount of increase in administration expense. Major factor that contribute to increase administrative expense is salary of employee (John Newton, Finance Controller).