logo image

The company’s operating

The company’s operating margin is arrived at by deducting cost of sales or services and operating expenses from gross margin. If one wants to get net margin, he or she must further deduct or add non operating expense/income items. Thus normally net margin is lower than operating margin. With these ratios the company’s good performance are undeniable if correlated with return on equity earlier. These latter ratios are more of management efficiency measures that are indeed needed in motivating employees which Marks and Spencer has also indicated to have indeed produced a motivated and well-organized management along the way.

This is evident in the consistency of a number of critical ratios that are almost maintained for the years 2003 to 2007. Such behaviour only provides an evidence of monitored and periodically evaluated performance against the accomplishment of its financial objectives using established criteria under Hermes principles as explained earlier. The profitability may be best observed below: Surprisingly, the profitability appears not reflected in the company’s liquidity. The current rations 0. 42, 0. 57, 0. 41, 1. 92 and 1.

61 for the years 2007, 2006, 2005, 2004 and 2003 respectively do not show the profits going in terms of generated funds. The same could be had in terms of quick ratios which were reflected at 0. 21, 0. 38, 0. 24, 1. 72 and 1. 43 for the same years respectively. Investigation however revealed higher borrowing by the company for the last three years from 2005 thru 2007 to finance its working capital for as a result of business expansions to respond to surge in demand for company’s products for those years mentioned.

Need essay sample on "The company’s operating"? We will write a custom essay sample specifically for you for only $13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.
Please, specify your valid email address
We can't stand spam as much as you do
No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
We can't stand spam as much as you do
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy