We have taken the company Debenhams for our analysis. The methodology adopted for the analysis includes ratio analysis and a comparative study with Lewis, a leading apparel company in U.K
Company profile: Debenhams
Debenhams plc engages in the operation of department stores. The company’s stores provide a range of products, including women’s wear, men’s wear, children’s wear, lingerie, health and beauty, and home ware products, as well as gifts and accessories. It offers its products under its own brands comprising Red Herring, Mantaray, Maine New England, Debut, and Bluezoo. The company also provides its products under the international brands, such as Chanel, Clarins, Denby, Levi Strauss, Radley, and Ben Sherman; and concession brands consisting of Coast, Jacques Vert, Oasis, Phase Eight, Wallis, and Warehouse. It operates approximately 166 stores in the United Kingdom, the Republic of Ireland, and Denmark, as well as operates approximately 60 international franchise stores in 23 countries. In addition, the company offers its products through an online store, debenhams.com. Debenhams plc was founded in 1778 and is headquartered in London, the United Kingdom.” (Debenhams plc (DBHMY.PK), 2009).
Ratio Analysis of Debenhams
Ratio analysis is considered to be a powerful method for analyzing the financial health of a company. We are analyzing Debenhams with the help of some key ratios in the below section.
Sales (top line) growth: | Growth of Debenhams | | | 1 yr | 3 yr | 5 yrs | Sales | 10.67 | 6.11 | 5.67 | EPS | -24.67 | -5.98 | -21.67 |
(Financials: Debenhams Plc. (DBHMY.PK), 2010).
Description: the data given above shows that company’s last one year sales is higher than the average of last five years. The EPS is showing a negative growth. The sales growth of the company in the last one year gives an indication of the better growth of the firm.
Profit margins | 2010 | 2009 | 2008 | 2007 | | Gross Profit |
Bibliography: Debenhams plc. (DBHMY.PK), 2009. [Online] Yahoo. Finance. Available at: http://in.finance.yahoo.com/q/pr?s=DBHMY.PK[Accessed 1 January 2011]. Financials: Debenhams Plc (DBHMY.PK), 2010. [Online] REUTERS. Available at: http://www.reuters.com/finance/stocks/financialHighlights?symbol=DBHMY.PK[Accessed 1 January 2011]. India heads for 9 per cent growth in 2011, 2009. [Online] yahoo. Finance. Available at: http://in.finance.yahoo.com[Accessed 1 January 2011].