scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,284
Q1 Comprehensive analysis of CMLs Resource Profile PERTH Financial resources Financial Ratios Du Point For Performance analyse CML has a decreasing trend on Profit margin ROA and ROE This implied CMLs ability to generate profit has fall ROE has declined significantly due to 50 reduction on OPAT but they were relatively stable during 97-00 In 2001 the Asset Turnover rate has slightly decreased as a result of drop of cooperation efficiency EPS has also decreased from 99-01 due to weak demand poor post-Christmas clearance sale and customers dissatisfaction For the Financing analyse the decrement of Equity Multiplier has shown CML is mainly using debt to finance its investments in the last five years But as DA DE and leverage ratios Appdendix1 in 2001 were the lowest within the last five years it has indicated the reliance on debt has decreased The major financial strength of CML is the relatively high interest coverage ratio which has enabled the company to have a good credit rating for high borrowing capacity For Liquidity and Solvency analyse the current ratio and quick ratio of the CML were increasing and above 1 in the past five years Even though this implied CML has sufficient cash flow in meeting its short-term debt the ratios were still considered to relatively low because of CML significant amount of current liabilities One of the financial weaknesses is the relatively low quick ratio it indicates the tendency of building up excessive amount of inventories Physical resources CML has predominantly traded under many leading department stores with continuous acquisition of capital and take over such as Franklins It owns around 2000 stores in Australia and New Zealand together with an e-commerce business There is significant amount of highly specialized fixed equipments in Tyres and Auto stores which is hard to be liquidized There is high risk of clothing and food inventory obsolescence Reputation CML has established more than 100 years and is listed on
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA