Financial Analysis Essay

Jeffrey Cart
Mgt 4400 Sec 2
4/9/13
Westbrook Financial Analysis ----------------------------------------------------------------------- SUMMARY OF YEAR 17 RESULTS ----------------------------------------------------------------------- Revenue EPS ROE Stock Credit Image Company Name ($000s) ($) (%) Price Rating Rating --------------------- ------- ------ ------ ------ ------ ------ A Really Great Shoe 609071 11.87 24.8 225.88 A+ 79 B Tanex 302707 4.37 21.0 63.75 A+ 72 C Boats n Shoes 472748 7.08 22.0 131.29 A+ 78 D Sweet Dulce 216243 1.31 6.6 13.76 C– 42 E DUBHGHLAS 519695 -8.88 0.0 5.49 C– 67 -----------------------------------------------------------------------

From a financial perspective my company could have not done much better in my opinion. I started out by taking out $127,320,000 in loans to be able to finance the capacity that I wanted to build. I was able to utilize the loans I took out to build over 10,000,000 pairs of shoes which in the long run was one of the main reasons I was able to gain the lead in the industry. With this big capacity I was able to hold a big percent of the unit sales in the North America and Asia-Pacific which were the areas I thought were going to be the battleground for a large amount of sales. As it turned out my predictions were accurate and I gained a lot of sales and revenue from these two areas as noted from the graphs below.

As noted in the graph my revenue was even at the start and the skyrocketed at the middle and end of the period. This was due to the fact at the beginning I was quite confused on the direction I wanted to take with my company then as I established a concrete plan my revenues started to show progress. My plan for the company was to have a low price strategy that always had the lowest prices on the market. I was able to do this by keeping my total manufacturing cost low enough to where I could make a decent profit. I did this by having my percentage of superior materials at around 20 percent and my enhanced styling features to $10,000. Although those were low I was able to keep my number of models available, and best practices in training high enough to keep my SQ at a 5 which seemed to be the average in the industry. With all of this in mind I was able to keep my manufacturing cost at around $18 which gave me a profit of about $32 per shoe. With my styling features down to save money I was able to use the extra profit to sign celebrities to help enhance my shoes presence in the industry. At one point in the game I was able to have Peyton Manyon, Ace Federer, and Yao KungPao which gave me a strategic celebrity advantage in each region except Latin American.

With my celebrity presence pretty high I did not want to over extend the need for advertisement. I keep my advertisement price for North America at $8,000,000 and $7,000,000 for

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Analysis Of Financial Analysis