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Essay / Research Paper Abstract
This 9 page paper considers the performance of Thorntons PLC, the UK luxury sweet goods manufacturer and retailer. The analysis looks at the years 2001 and 2002,. The paper then considers the use of EVA and MVA (Economic Value Added and Market Value Added) as a measure that could be used instead of the use of return on capital employed (ROCE). The bibliography cites 3 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEthornt.rtf
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Unformatted sample text from the term paper:
have been an slowdown in growth. Thorntons PLC has been growing aggressive over the last few years, and investments in the amount of ?50 million made in the late 1990s
are now paying off, with the increased production facilities and associated efficiently as well as the ability to write off the capital expenditure in years where the economy is not
as buoyant. Looking at the performance all figures are un UK sterling and quoted in ?000s unless they are figures per share. The turnover has increased form 159,921 in
2001 to 163,800 in 2001 (Thorntons, 2002). This has also been accompanied by increases in efficiency that are also seen in the results. The net profit margin has increased from
6,085 in 2001 to 7,114 in 2002, this shows profit margins of 3.81% in 2001 and 4.36% in 2002. The net profit margin is the operating profit with all other
expense deducted, this may include interest payments as well as extraordinary items ether being added onto or taken off of the balance. However, it will not include taxation. This
is calculated as a percentage of the revenue. It is a worth noting that for most ratios it will be the profit before both tax and interest that is used,
as this is a more effective measure of performance. However, interest payments will reduce the amount that is adding value to the company and the shareholders, therefore, this is a
very important measure. Other indicators such as the interest rate coverage are also good, with the overage rats increasing. Some elements doe show a slightly lower ratio, such as
the asset turnover which has reduced from 1.86 to 1.99, however, with a stock turnover of 11.58, which is slightly down from 12.10 in 2001, the company does appear to
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