Report on the financial performance of Robinson PLC 1998 - 2001.
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2. REPORT ON THE FINANCIAL PERFORMANCE OF ROBINSON PLC 1998 - 2001 In analyzing the performance of Robinson plc, the first striking observation is that while sales increased by £3000 between 1999 and 2000 the cost of sales has not increased significantly, the operating expenses ratio has been declining. The increase in gross profit can be attributed to price increases justified by increasing demand as evidenced by the growth in sales. This shows that management has become increasingly efficient in utilizing available resources, or that the firm has been operating under capacity. However, the very large difference between gross and net profit margin is too high suggesting that they ought to cut operating expenses drastically as a proportion of total costs to remain viable in the industry. The next interesting trend is that for fixed assets to increase over the period, this is attributable partially to the increase in share capital between...


