Financial Report Analysis of Goodrington Plc Essay

Financial Report Analysis of Goodrington Plc - Essay ExampleINTRODUCTIONCompany BackgroundGoodrington group plc belong to fashion retail industry in the United Kingdom. It comprises three popular brands of sell in the country that are Goodrington, Newton, and Churston. These three bands provide several retail products to different maneuver groups of the consumers in United Kingdom. ActivitiesGoodrington caters to customers ranging from the young-to-middle aged consumers by providing different items such fashion clothing, footwear and home ware. Newton has its own target market catering to the female person consumers aged 45 and over by selling clothing items to them.Churston caters to the consumers with an instinct for fine fragrances and perfumes. It attracts its target consumers with the serve of brightly lit and decorated store inside(prenominal) that is highly appealing to the people with artistic sense.Significant ChangesThe most significant change concerning the companys op e symmetryns as reflected in the companys annual report is the acquisition of hyponym costing the company 4,350,000 in the year 2005.ANALYSISProfitability20052004Gross Profit ratio20.25%20.56%Net Profit Ratio5.99%6.61%Gross Profit RatioThe Gross Profit ratio analyses the companys profit margin in the first place accounting for various operating costs (Mcmenamin Jim, 1999). The gross profit ratio for Goodrington plc shows that the company is earning closely 20% out of the total sales revenue aft(prenominal) having accounted for the cost of sales. This also shows that the company loses almost 80% of the total sales revenue on production and distribution expenses. The companys gross profit ratio has been invariable over the last two years. Net Profit RatioThe net profit ratio analyses a...This paper utilises only books for the purpose of formulas and interpretation of the given ratios.Goodrington group plc belong to fashion retailing industry in the United Kingdom. It comprises t hree popular brands of retailing in the country that are Goodrington, Newton, and Churston. These three bands provide several retail products to different target groups of the consumers in United Kingdom.Churston caters to the consumers with an instinct for fine fragrances and perfumes. It attracts its target consumers with the help of brightly lit and decorated store interior that is highly appealing to the people with artistic sense.The Gross Profit ratio analyses the companys profit margin before accounting for various operating costs (Mcmenamin Jim, 1999). The gross profit ratio for Goodrington plc shows that the company is earning about 20% out of the total sales revenue after having accounted for the cost of sales. This also shows that the company loses almost 80% of the total sales revenue on production and distribution expenses. The companys gross profit ratio has been stable over the last two years.The net profit ratio analyses a companys profitability after taking into acc ount all the operating costs and interest expense etc (Mcmenamin Jim, 1999)