Sunday, June 2, 2019

Analyzing the Performance of Benedon Limited Company Essay -- Benedon

Analyzing the Performance of Benedon express CompanyI am writing a report to analyse the performance of Benedon LimitedCompany and to compare with the industry as a whole. The reportanalyses company and industry performance over the three years up toat wipeout of 20X3. It enables us to discover favourable or unfavourabletrends that are developing gradually over time, as well as pointing upany meter that have changed sharply in the space of time of just oneyear. (Sytsma, S.) This report reviews the findings of the majorchanges and the awareness of weak performances. However, in that respect arefive pass types of ratios which are profitability ratios,liquidity ratios, activity ratios, solvency ratios and investmentratios.Under profitability, competitive pressure has risen in 20X3 comparedto 20X1 and 20X2 as a result of Return on Capital Employed (ROCE) fellin year 20X3 from 19% to 14.7%, however, the ROCE in the year 20X3 isbetter than year 20X1 which had 13.2%. Gross margin (GM) could non be change magnitude and falls substantially throughout the years as percentageof sales from 43.8% to 36.6% even though distribution andadministration expenses have lowered every year. Therefore, it couldnot reflect the operating margin (OM) which has decreased in year20X3. The average operating margin figures of Industrial Average (IA)and in year 20X2 were 16.0% but there is only 13% in year 20X3. Inaddition, ROCE in year 20X3 is much lower than the Industri...

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