Analyzing the Performance of Benedon Limited Company Essay -- Benedon

Analyzing the Performance of Benedon special CompanyI am writing a report to try the performance of Benedon LimitedCompany and to compare with the industry as a whole. The reportanalyses company and industry performance over the three age up toat end of 20X3. It enables us to discover favourable or unfavourabletrends that are developing gradually over time, as head as pointing upany numbers that have changed sharply in the space of time of just one social class. (Sytsma, S.) This report reviews the findings of the majorchanges and the sense of weak performances. However, there arefive principal types of ratios which are gainfulness ratios,liquidity ratios, activity ratios, solvency ratios and investmentratios.Under profitability, competitive pressure has move up in 20X3 comparedto 20X1 and 20X2 as a result of Return on working capital Employed (ROCE) fellin class 20X3 from 19% to 14.7%, however, the ROCE in the category 20X3 isbetter than year 20X1 which had 13.2%. Gross mar gin (GM) could not beincrease and falls substantially throughout the years as percentageof gross sales from 43.8% to 36.6% even though distribution andadministration expenses have lowered each year. Therefore, it couldnot reflect the operating margin (OM) which has decreased in year20X3. The average operating margin figures of Industrial Average (IA)and in year 20X2 were 16.0% but there is only 13% in year 20X3. Inaddition, ROCE in year 20X3 is much lower than the Industri...