1. Cover Page
2. Contents page
3. Company Overview
4. Profitability Ratios
5. Liquidity Ratios
6. Gearing Ratios
7. Conclusion and Summary
8. References and Appendices
9. Appendices Continued
10. Appendices Continued
Company Overview
OrotonGroup is the Australian and New Zealand retailer and owner of the Polo Ralph Lauren licence and Oroton brand. For nearly 20 years OrotonGroup has been the Polo Ralph Lauren licence owner for the Australia and New Zealand territory. OrotonGroup Limited is a Public Company that is ranked number 1240 out of the top 2000 companies in Australia. In 2006 OrotonGroup Limited had 869 employees in Australia including employees from all subsidiaries under the company 's control. OrotonGroup Limited sole business strategy is to provide Australia with luxury brands that are worldwide leaders in design. Polo Ralph Lauren one of OrotonGroup’s subsidiaries has been one of the most successful consumer brands in the world being a leader in design, marketing and distribution of premium lifestyle products. OrotonGroup Limited generates the majority of its income from clothes retailing. They own 7 freestanding buildings, 13 department stores and 3 factory stores all showcasing Polo Ralph Lauren design and fashion. Some economic factors that would affect are exchange rate fluctuations, because they import all their products from Europe and these fluctuations would play a major role in their business model.
pROFITABILITY RATIOS
In 2005, the company had a return on owner’s equity of 2.39%. Therefore for every dollar that the shareholders had invested in the company they got a return of 2.39 cents for their dollar. In 2005, the company had a return on total assets of 2.83%. So for every dollar the company had in assets in 2005, the company would get a return of 2.83 cents on their assets.
In 2006, the company had a return on owner’s equity of minus 36.7%. What this means is that for every