Decision and accounting making - Essay Example

From the below income statement summary, Waldron’s sales have been rising almost in all the four categories of products that they deal in. It is evident that Waldron has been experiencing significance growth as per the divisional summary report. Durafit has been hit with several market challenges including stiff competition from foreign markets. This can be witnessed even with the latest financial report that shows Durafit’s sales drop from 1, 332 million euros in the year 2012 to 1,214 million euros in the year 2012; this represented a decrease of 9%.

Durafit has been struggling to come into the market as an active player but there are some issues that still hold the division. The decrease in sales also saw Durafit record low profit margin at the end of the year 2013 as compared to the year 2012. Durafit’s main challenge is the nature of its products versus customers’ taste. Durafit took time in adjusting to modern construction techniques which gave its major competitors time to adjust and conquer the market with modern building techniques.

The division’s profit margin was up by 1% when both 2012 and 2013 are compared. This is one of the Waldron’s divisions that give the company an interest to continue in business. With its nature of operations, Contracts at one time experienced downfall in the U.K market which posed a threat in attaining its profits. With opening of its branch outside the U.K and completion of major projects ahead of schedule, Contracts has won the trust of major clients and has really benefited from this. Contracts’ sales improved greatly from 1,949 million euros to 1,214 million euros in the year 2012 to 2013 respectively; this represented a 12% increase.

Gross profit margin was also up from 50% to 54%. This was as a result of opening up for new markets outside the U.K which saw its sales increase as a result of more tender being awarded to the division. Unlike other divisions, elite is one of the