Slide # 2
Income statement of company for 31 December 2019 is showing sales as $484,383. Cost of pairs sold is deducted from sales for obtaining gross amount. In income statement of Company, expenses include warehouse, marketing and admin expenses. After deducting, all of these expenses operating income has been obtained. Operating income is recorded $87,329. Income before tax is calculated by deducting interest expenses. Net income is calculated after subtracting tax. Value of net income is calculated as $$59,508. Net income is positive.
In this slide, I have compared different companies with company F (Flamingo
Athletic Footwear). I have compared cost of pairs sold, net sales, gross profit and gross profit margin with Company A, B, C, D and E. Cost of pairs sold for Company F I higher than A, B, C and D. It is lower than E. Cost of pairs sold for company F is $301,756. Net sale of Company F is higher than C and D. All other companies have higher net sales as compared to company F. Gross profit for company F is higher than Company C. All other companies are showing higher values as compared to company F. Gross profit margin for Company F is 38%. It is least among all companies. Company D is showing highest value of gross profit margin. It is 50%.
In this slide, I have compared operating profit of Company F with other companies. I have included company A, B, C, D and E in comparison. Operating profit of company is showing its profitability after deducting expenses. Operating profit is showing its profit from operations. Net sale for company F is higher than Company C and D. However, its operating profit is higher than Company C. Company D has higher operating profit as compared to Company F. Company F is having lower operating profit than D despite of having high net sales. Reason is its expenses. Operating margin is 18% for Company F. it is lower from all of compared companies excluding Company C.
In this slide profit margin of company, F is compared with other five companies. Profit margin shows percentage of net income or profit in net sales. Net income is compared to net sales for obtaining net income margin. It is 12% for Company F. Profit margin for Company C is also 12%. All other companies are showing better profit margin as compared to Company F. Company A and E is showing 17% for profit margin. Profit margin for Co9mapny F should be improved for better results.
In this slide, I have compared earning per share of company F from year 11 to 19. From 18 years, it is showing mixing trends in earning per share. It is increasing and decreasing. It is not showing constant improvement. Lowest earning per share is observed for year 15 as 0.57. In year 13, it is observed 2.99. In year 19 earnings per share increased to 7. It is highest value. Same is the case with return on equity. Return on equity is also showing mixing trends from year 11 to 18. It has increased in year 19 to 21.10%. Return on equity is showing company’s profitability from invested money of shareholders. It has increased its return on equity position in 19 years. Stock price in year 11 was $16 and reached to $118 in year 19.
In this slide, stock prices of company F are compared with other companies. Initial price in 2018 and ending price of 2018 are also given. Stock price in 2019 for Company F is $118.07. It is higher than stock prices of company C and B. in 2018 price for Company F was $27.72. Stock prices in 2018 for all other companies are high. Total stock return for Company F is highest. It is 326%. All other companies are showing low values in total returns. No dividend is paid by Company F. Company A has paid dividend of $8 per share. Company D and E paid dividend of $7.75 and $3.63 respectively.