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To analyse the current position of Wonderfun, the trends in financial ratios have been seen and the performance of company with other companies has been compared by taking the industry averages. Based on analysis, few recommendations have been provided to the company and investors.
The financial ratios analysis has shown that Wonderfun PLC has been performing above than market average during the period 2005-2008. However, the performance of company has been declining slightly from 2005-2008. The year 2009 appears to be a tough year for the company, as its profits have reduced and debt and liabilities have increased. Still, the company has paid the same dividend in 2009, as it has paid in 2008. Moreover, Wonderfun has also pursued expansion strategy in 2009, which have enhanced the liabilities of the company; however, the sales of company are improving after this expansion.
It has been recommended to the company that it can improve its performance in coming years by reducing its operating expenses such as selling and distribution costs. Moreover, it has been suggested to investors that Wonderfun is still a good company to invest in because of its excellent past performance, declining industry performance in 2009 (which also affected company) and potential of increasing revenues because of expansion strategy.
Various groups need financial information and the nature of their uses also varies. The main groups of users may include owners of the company, managers, prospective owners, banks or lenders, suppliers of materials, government bodies, related industry regulatory authorities and employees or unions (ACS). The needs of analysis for these users groups also vary for example, investors may want information to decide whether to invest in the company or not. The suppliers of materials may need information to evaluate whether the company is profitable enough to pay back trade
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Company’s reputation is now a part of its success because, as the business world is developing, consumers and other stakeholders lay more and more responsibilities on businesses. Furthermore, being active members of hosting societies, businesses are expected to voluntarily help those societies or their environments (Cramer and Bergmans 2003, 2) in order to deserve consumers’ trust and loyalty.
The importance of value creation through positive stakeholder relationships has an impact of significantly increasing the profitability of a firm.The increase in environmental legislation and the emerging trends of ethical consumers,the incorporation of social responsibility in the business strategy is more of a necessity in the competitive market.
This group is also known for providing excellent intercity transportation facilities for goods and passengers. Under the dynamic leadership of Mr. Martin Gilbert, the group is going from strength to strength and has been able to achieve considerable growth in both, revenues and market shares.
Their marketing mix reflected these different needs. Regarding the children segment, they created different themes like Dinosaurs, Fossils and Dalmatians spots.
Not all toffee is special, unless we're talking about Thorntons. The chocolate- and toffee-maker owns and franchises sweets shops throughout the UK and Ireland.
Simplistically, shareholders gain from holding a company's stocks in two ways-dividends and capital gains. While dividends are parts of the firm's profits which are directly distributed by corporations to their shareholders, capitals are profits which arise from the appreciation of the stock price from its purchase price.
This analysis has been done with the help of various financial ratios that are known to be specifically helpful for different stakeholders and users of the company’s financial information i.e., company’s management, investors and lenders. All the data for ratio calculation has been obtained from the companies’ annual reports and financial statement for the year 2004-2005.
This means that how the company derives the earnings and the number of shares has to be understandable. If there was no clear definition of what comprises "earnings" the amount of earnings (profit) would be open to varying interpretations. Also it is possible to take differing views on the number of shares to be used in the denominator, example should it be the number of shares in issue at the balance sheet date or the average number of shares in circulation during the year (Tiffin 2004, p.
It also has the flexibility to re-programme its decision-making behaviour to software as often as is needed.
2. There are three steps of PLC Operation. A PLC work depends on the state of the inputs. It looks at the inputs, and