Preview

An Analysis on Debenhams

Good Essays
Open Document
Open Document
3433 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
An Analysis on Debenhams
An analysis on Debenhams

We have taken the company Debenhams for our analysis. The methodology adopted for the analysis includes ratio analysis and a comparative study with Lewis, a leading apparel company in U.K
Company profile: Debenhams
Debenhams plc engages in the operation of department stores. The company’s stores provide a range of products, including women’s wear, men’s wear, children’s wear, lingerie, health and beauty, and home ware products, as well as gifts and accessories. It offers its products under its own brands comprising Red Herring, Mantaray, Maine New England, Debut, and Bluezoo. The company also provides its products under the international brands, such as Chanel, Clarins, Denby, Levi Strauss, Radley, and Ben Sherman; and concession brands consisting of Coast, Jacques Vert, Oasis, Phase Eight, Wallis, and Warehouse. It operates approximately 166 stores in the United Kingdom, the Republic of Ireland, and Denmark, as well as operates approximately 60 international franchise stores in 23 countries. In addition, the company offers its products through an online store, debenhams.com. Debenhams plc was founded in 1778 and is headquartered in London, the United Kingdom.” (Debenhams plc (DBHMY.PK), 2009).
Ratio Analysis of Debenhams
Ratio analysis is considered to be a powerful method for analyzing the financial health of a company. We are analyzing Debenhams with the help of some key ratios in the below section.
Sales (top line) growth: | Growth of Debenhams | | | 1 yr | 3 yr | 5 yrs | Sales | 10.67 | 6.11 | 5.67 | EPS | -24.67 | -5.98 | -21.67 |
(Financials: Debenhams Plc. (DBHMY.PK), 2010).
Description: the data given above shows that company’s last one year sales is higher than the average of last five years. The EPS is showing a negative growth. The sales growth of the company in the last one year gives an indication of the better growth of the firm.
Profit margins | 2010 | 2009 | 2008 | 2007 | | Gross Profit |



Bibliography: Debenhams plc. (DBHMY.PK), 2009. [Online] Yahoo. Finance. Available at: http://in.finance.yahoo.com/q/pr?s=DBHMY.PK[Accessed 1 January 2011]. Financials: Debenhams Plc (DBHMY.PK), 2010. [Online] REUTERS. Available at: http://www.reuters.com/finance/stocks/financialHighlights?symbol=DBHMY.PK[Accessed 1 January 2011]. India heads for 9 per cent growth in 2011, 2009. [Online] yahoo. Finance. Available at: http://in.finance.yahoo.com[Accessed 1 January 2011].

You May Also Find These Documents Helpful

  • Good Essays

    Capstone Project

    • 1471 Words
    • 6 Pages

    In order to understand a company’s successes of failures, one must first understand each of the characteristics used when looking at its financial documents. Liquidity, profitability, and solvency are all added up by using ratio analysis. Ratio Analyses involve dividing two numbers to get a number or percentage, which can then be compared to other companies in the same industry.…

    • 1471 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Task3 Sec2

    • 293 Words
    • 2 Pages

    Ratios are calculated from an organisation’s financial statements and are an effective business tool in measuring its performance. By comparing the ratios to those of the previous year it is possible to determine whether a business is doing better this year than last year.…

    • 293 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Debenhams plc is a British multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. It sells a range of clothing, household items and furniture and has been known since 1993 for its ‘Designers and Debenhams’ brand range.…

    • 3494 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Chipotle Mexican Grill

    • 3043 Words
    • 13 Pages

    (1) Sales, Sales Growth (Hint: Use Revenue Line) Sales Amount in USD; Growth in percentage. | 2008 | 2009 | 2010 | 2011 | 2012 | SALES | 1,331,968,000 | 1,518,417,000 | 1,835,922,000 | 2,269,548,000 | 2,731,224,000 | SALES GROWTH | ------ | 13.99 | 20.91 | 23.61 | 20.34 | (2) Gross Margins (Hint: Restaurant Operating Costs Lines for COGS) Gross Margin = (Sales – COGS) / Sales; Expressed in % | 2008 | 2009 | 2010…

    • 3043 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Sipef Case

    • 252 Words
    • 2 Pages

    1.) What is the primary focus of SIPEF’s operations? How does the company create value? What are its key success and risk factors?…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Ratios P5 M2 D2

    • 2433 Words
    • 7 Pages

    In this report I am going to be analysing the profitability, efficiency and liquidity of SIGNature Ltd. As shown by their accounts for the year ended 31 January 2010. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. Ratio analysis is good because it helps to compare current performance with previous records and it also helps monitor and identify issues that can be highlighted and resolved. However, there are some limitations with ratio analysis. For example it only includes numerical data, and no other sources of information which will explain more things which can be more understandable.…

    • 2433 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Home Depot

    • 4370 Words
    • 18 Pages

    | |Data shows that sales growth increase by 11.4% and earning declined by 1.3%. Increased selling space realized through |…

    • 4370 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    MKTG 311 HW#2

    • 647 Words
    • 3 Pages

    On the other hand, we can clearly recognize that the profit is increasing as well. Actually, the overall performance of the company’s profit is growing slightly year by year. However, the company’s profit and sales performance are maintained in a good situation for the time specified period we have. In fact, we can say that the good condition of the company’s financial situation is due to strategies and procedures that the company follows in their production cycle.…

    • 647 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Debenhams is the UK’s leading department store with a turnover in excess of £2bn, over 140 department stores in the UK, a further 40 franchised stores around the world, and a significant online presence. The original Debenhams store, founded in 1913, was based in London, and is still used by the company for its press and communications activities. Acquisitions of Harvey Nichols and Browns stores followed and the company listed on the stock market in 1928. Debenhams continued to expand rapidly in the 1990s before being bought by a private consortium in 2003, returning to the stock exchange in 2006.In the UK, Debenhams has a top four market share in women’s wear and menswear, and a top ten share in children’s wear. It leads the market in premium…

    • 352 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Overall the financial data presented above indicates that the performance of Whole Foods Market constantly improved since 2009. First of all, between the years 2009 to 2011, Whole Foods Market’s sales increased by 20%. Regardless of the high increase in sales during the two three financial years (2009-2011) Whole Foods Market profit margin, stayed almost the same with a slight improvement of 0.69%. Nevertheless, WFM profit margin is 27% greater than the industry average (25.47%). Which means that WFM had keeps a decent profit on every dollar of sales (34.99% as of Sep 2011). In addition to that, the significant increase in WFM’s net income (57% increase), strengthen the assessment that WFM performs well and enjoys superior financial health…

    • 3589 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Debenhams

    • 3433 Words
    • 14 Pages

    Debenhams has 30 international franchise stores in 14 countries outside the UK and Ireland, with 15 franchises scheduled to open by the end of the 2008. Debenhams have increased demand of its market, by technological developments, flexibility and ease of use, along with their strong brand reputations and marketing campaigns, and their strong national presence.…

    • 3433 Words
    • 14 Pages
    Good Essays
  • Better Essays

    Ratio Analysis

    • 3271 Words
    • 14 Pages

    Ratio analysis is the most widely used tool since it compares risk and return relationships of firms from various aspects. Ratio analysis is the method or process by which the relationship of items or group of items in the financial statements are computed, determined and presented. It is an attempt to derive quantitative measures or guides concerning the financial health and profitability of a business enterprise. It can be used both in trend and static analysis. There are several ratios at the disposal of an analyst but the group of ratios he would prefer depends on the purpose and objectives of analysis.…

    • 3271 Words
    • 14 Pages
    Better Essays
  • Good Essays

    Debenhams is a chain of department stores based in the United Kingdom. Debenhams Retail Plc is part of the Debenhams Group of Companies. The company started as a retail outlet in 1778 with a nice British gentleman, William Franks and a fancy boutique: expensive fashionable clothing, gloves and bow ties, only for high class London society and grew to acquire other stores in town and cities in the UK such as Pauldin's in Manchester and Brown's of Chester. Most stores retained their former identities until a unified corporate image was rolled out across the stores.…

    • 378 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    The Financial Detective

    • 3723 Words
    • 15 Pages

    The case presents the student with financial ratios for eight pairs of unidentified companies and asks them to mate the description of the company with the financial profile derived from the ratios. The primary objective of this case is to introduce students to financial ratio analysis—in particular, the range of ratios and the insights each one affords. This case presumes that students have already been introduced to the definitions of various financial ratios through other readings or lectures.…

    • 3723 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Created in 1979 by David Reiss, Reiss is has developed into a powerful brand offering stylish clothes at affordable prices. 2006 proved to be a successful year for the organization, where it achieved £6.8 million in operating profit and sales of £44.5 million. Currently, it has 39 stores worldwide and is expanding rapidly. The following 3 year strategic marketing plan will demonstrate the steps Reiss need to take in order to become a dominant force in the UK and a strong international brand.…

    • 4685 Words
    • 19 Pages
    Powerful Essays