1.0Portfolio AnalysisPortfolio Analysis can be defined as systematic method of organization analysis where product and services are being associated with different business portfolio. Different businesses are offering various business products in the market and the organization are often divided into different business units, each strategic business unit consist of different portfolio of the product; In our analysis we would like to analysis the performance of different product. Shores Table1.0 HeightShoe SizeMedian175.269.00Mode175.2610.00Mean175.618.69Standard Deviation7.141.84Max189.0013.00Min157.005.00Range32.008.00Correlation0.64From the table 1, it can be seen that shoe number 10 is the most sold one followed by shoe number9. The least shoe sold is number 5, Tobacco The performance of the tobacco has improved from the year 1990 up to the year 2012, with increase in inflation, the prices has also increases upward which has enable to counteract the increase in inflation.
The highest price was recorded in the year 2001 and the same year, the company recorded the highest number tax and inflation burden. The price of the tobacco has been stable throughout the 21years. The year 2005 the tax and inflation incidence was highest making the performance of the tobacco to be the lowest. Analysis of the financial performance of the companyThe financial statements give a brief insight of the company performance in terms of the cash flow management, sales and the general financial position of the company by the end of the Accounting period. Cash flow statementThe cash flow statement shows the general inflow and outflow of the cash from the company.
From the cash flow of the two products in the year 2013, product 1 has shown no growth through out the year with constant cash inflow. This might be attributed to constant units of product produced through out the period.
The second product has shown a slim growth of around 1.0% in the month of January- June and in the Month of July to December the growth in cash inflow increased by 1.5%. The cash out flow has increased and outweigh the inflow; this might be contributed with increase in the overhead expenses. This is a good indication for the management to control and reduce the overhead expenses and increase the cash inflow through sales and other areas within the business. Profit and loss accountThe profit and loss account shows the performance of the business during the trading period, it show the total revenue the business has received less the business expenses.
PROFIT & LOSSData Generated from the Cash Flow Model£Margin AnalysisTurnover Sales367975LESSCost of Goods soldOpening Stock40000Add Purchases221784261784Less Closing Stock52,000209,784Gross Profit1581910.4299Gross Profit marginLess ExpenditureWages93000Electric6000Telephone2700Advertising14000Misc Expenditure7200Depreciation of Stock10000Depreciation of Machinery11000143900TOTAL EXPENDITURESNet Profit142910.0388Net profit margin From the company profit and loss account, the company has made a profit indicating positive growth. The net profit margin is at 0.0388 and gross profit margin 0.4299.This gives the company a good indication and bench mark. MARK & SPENCER Year Ended 20122011201020092008£ MillionsTurn Over9934.30 9740.30 9636.60 9062.10 9022.00 Operating Profit746.50 836.90 852.00 870.70 1211.30 Net Interest-88.50 -56.30 -149.30 -164.50 -82.20 Profit Before Tax658.00 780.60 702.70 706.20 1129.10 Profit After Tax489.60 598.60 523.00 506.80 821.00 There is growth in the profit in the company in the past five years; the interest rate has gone up decrease in the operating profit. It can be seen that the turn over has increased from 2008 to 2012, but the profit has decreased tremendously.
MARK & SPENCER Year Ended 20082009201020112012£ MillionsTurnover90229062963797409934Sales growth %0.44 6.34 1.08 1.99 Operating Profit1211871852837747Operating Profit growth-28.12 -2.15 -1.77 -10.80 Operating Margin0.130.100.090.090.08Net Interest-82-165-149-56-89Profit Before Tax1129706703781658Profit After Tax821507523599490There is increase in sales growth but through out the year, though this has not resulted to increase in profit. The company needs to change its strategies by, lowering overhead expenses, increasing prices and considering going for finances which are of low interest rates.