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Ankitaben

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  • 1. -1-0100090000032a0200000200a20100000000a201000026060f003a03574d464301000000000001001fab0000000001000000180300000000000018030000010000006c0000000000000000000000350000006f000000000000000000000042390000be5d000020454d460000010018030000120000000200000000000000000000000000000040120000901a0000c600000020010000000000000000000000000000950403007a640400160000000c000000180000000a0000001000000000000000000000000900000010000000860d000025160000250000000c0000000e000080250000000c0000000e000080520000007001000001000000a4ffffff000000000000000000000000900100000000000004400022430061006c006900620072006900000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001100dc5f11001000000040631100c060110052516032406311003860110010000000a8611100246311002451603240631100386011002000000049642f31386011004063110020000000ffffffff6c4ef300d0642f31ffffffffffff0180ffff0180efff0180ffffffff0000000000080000000800004300000001000000000000005802000025000000372e90010000020f0502020204030204ef0200a07b20004000000000000000009f00000000000000430061006c00690062007200000000002022970400611100dee32e31e88d0832606411006c6011009c3827310c00000001000000a8601100a8601100e87825310c000000d06011006c4ef3006476000800000000250000000c00000001000000250000000c00000001000000250000000c00000001000000120000000c00000001000000180000000c0000000000000254000000540000000000000000000000350000006f00000001000000cf9d8740888787400000000057000000010000004c000000040000000000000000000000870d00002516000050000000200000003600000046000000280000001c0000004744494302000000ffffffffffffffff870d000027160000000000004600000014000000080000004744494303000000250000000c0000000e000080250000000c0000000e0000800e000000140000000000000010000000140000000400000003010800050000000b0200000000050000000c022103ea01040000002e0118001c000000fb020200010000000000bc02000000000102022253797374656d0000000000000000000000000000000000000000000
  • 2. 000000000040000002d010000040000002d0100001c000000fb02f3ff0000000000009001000000000440002243616c6962726900000000000000000000000000000000000000000000000000040000002d010100040000002d010100040000002d0101000400000002010100050000000902000000020d000000320a0c0000000100040000000000ea012203204d0800040000002d01 0000040000002d010000030000000000
  • 3. -3- Executive synopsisSafe has designed a new product that provides managers with a quick,easy, and affordable method to effectively monitor employee handwashing. Proper hand washing is the most effective preventativemeasure available to combat communicable diseases.Studies have shown that proper hand washing procedures in theseenvironments could cut down the spread of disease by up to 75%. Thegreatest contributing factor to this problem stems from the inability ofsupervisors to monitor and control employee hand washing. Existingproducts offer no effective or affordable solutions for enforcing andensuring hand washing compliance.MissionOur mission is to create value for customers and shareholders bycontinually improving health and reducing preventable illnesses throughthe use of our soap.Keys to Success * A branding campaign to build awareness of SAFEs products as thestandard for ensuring hand washing compliance. * Patent protection to defend our time-sensitive dye and productconcept from competitors. * Complementary relationships with organizations interested inincreasing hand washing compliance.Objectives * Develop a complete prototype which meets regulatory standards * Become the specialty soap of choice for day cares * .establish a strong brand image early to position ourselves in themarket
  • 4. Company SummarySAFE, IS created as a Limited Liability Corporation. SAFE develops andmarkets soaps utilizing time-sensitive dyes promoting sanitary and safeenvironments to businesses and parents interested in maximizingcleanliness. The company will initially be based out of a residentialapartment in AHMEDABAD.Company Locations and FacilitiesThe management team of SAFE will initially use a residential apartmentto run operations.we will move to a rented office. Distribution will remainoutsourced.ProductsSAFE product line provides a unique control level to managers,supervisors and parents alike. We have two basic product lines:CHILDSAFE, intended for day care facilities, and an antimicrobial-basedproduct for hospitals (HEALTHSAFE) and restaurants (FOODSAFE) -the antibacterial products are not yet in development. The variousproduct lines, competitors and future product possibilities for SAFE, willbe outlined in the following section.
  • 5. -5- Product Description * SAFE will produce a line of institutional liquid soaps with a time-sensitive dye blended into the mixture. * The dye reacts with the hands during the lathering process, stainingthe hands a distinct color, then fading in under six minutes. * The product will sell for approximately (rs38/case.) * The packaging will be compatible with existing soap dispensersmounted in washing stations and be available in a variety of sizes. * Initially, SAFE will produce products with child care acquirers inmind, utilizing the brightest colors possible. This product line, calledCHILDsafe, will consist of four colors: red, blue, pink and green.
  • 6. Competitive Comparison * SAFE products offer a high value alternative to other hand washingcompliance products. * They provide an unprecedented level of control, allowing thesemanagers to monitor and follow hand washing frequency and habits ofboth child-care workers and children. Ultimately this can lower costs forall users, either in a workplace or private environment. * As the first fading dye hand soap in the market, SAFE, will buildbrand identity, establishing the company as the standard for improvinghand washing compliance. * As SAFE products become more familiar in a workplaceenvironment, the product will begin to produce a pressure on employees,whereby they feel compelled to wash their hands out of a consciousnessabout the perception of all employees, not just managers. This "peerpressure" effect will further fuel the use of our products and therecognition of the benefits they deliver.
  • 7. -7- Sales LiteratureIn order to sell our product while creating familiarity and a positive brandimage, it will be necessary to develop brochures and literature toemphasize the safety and beneficial attributes of fading dye soap, manyof which may not be readily apparent to an interested party. These willbe delivered both in person during a sales presentation and by directmail.SourcingThe key to our success is the time-sensitive dye. Once the proper ratioof dye to base soap is isolated, the fragmented nature of the soapindustry provides many options for outsourcing production. Similar to anycommodity, economies of scale require the soap to be produced,packaged and distributed in large batches. Initially, the soap base will bepurchased in quantities of at least 38,000 gallons for approximatelyrs50,000. Once the relationship with the manufacturer is established, oursubsequent purchases will be approximately forrs20,000. Theseinventory amounts should be sufficient to for SAFE to meet the customerdemand. Utilizing his production and distribution knowledge, Rick Brownwill use existing established relationships in the industry to help us mix,package and distribute the product line.
  • 8. TechnologyThe technology of our fading dyes will be pivotal in the success of ourcompany. The interactions between fading dyes and antibacterial oranti-microbial bases suitable for use in restaurants or hospitals are morecomplicated than the interactions with the glycerin or lotion soaps utilizedin the CHILD line. Safe employee a professional chemist with experiencedeveloping dye products to further the research into technologicalinnovations that may produce antibacterial and anti-microbial versions ofthe soap to address additional markets. Future ProductsAdditional soap products, manufactured to comply with regulatoryminimums for strength and effectiveness in their respective targetmarkets will be developed to address restaurants and hospitals. Thesesoaps will be trade marked under the names FOOD and HEALTH,respectively.Perhaps the most promising future market opportunity for fading dyesoap is the retail market. This product line will include soaps using thesame or similar dye colors as the day care to encourage children towash their hands more often at home. This will be a top priority when thecompany develops the financial resources enough to mount a nationaladvertising campaign and distribution system. A complete line of fadingdye products could potentially be developed, including floor, counter andbody cleaning products that use fading dyes to indicate places on asurface that may not have been cleaned.
  • 9. -9- Market Analysis SummaryThere is tremendous potential for a product that provides supervisorsand parents with the control to monitor and encourage hand washing.Considering the large scope of our potential markets, we feel it isimperative to focus our limited resources on a particular geographicregion where we can establish demand for our product. After successfulmarket penetration, we will begin implementation into the restaurant andhospital markets.Market SegmentationIndustry AnalysisThe Industrial and Institutional soap industry, of which we are a part, isquite fragmented, but contains several well known main competitors:dettol safeguard savlon medimix lifebuoy’there is fierce competition formarket share among the existing popular soap offerings, leading to leanprofits on soap sales.Distribution PatternsDistribution in the soap industry is provided by regional providers. Thesedistribution companies usually serve a large portion of the market basedon the respective size of the market, delivering to the organizationsmonthly or bi-monthly depending on demand and usage patterns. Foodservices typically receive deliveries of cleaning products once a month.Hospitals typically have a distribution system that operates on monthlydeliveries olarge quantities. Restaurants typically have a weekly delivery schedule.SAFE first product line addresses the day care market. There arecurrently 200 day carecenters inMetro area. After successfulimplementation insaurashtra, we will begin expansion into the gujratregionn .Successful penetration into the day care market will be followed byimplementation into the restaurant and hospital markets.
  • 10. Industry ParticipantsThe soap industry is highly fragmented. There are more than fortydifferent Institutional soap products that compete in the market.Target Market Segment StrategyOur initial day care market will consist of medium to large day careorganizations, consisting of twenty children. Organizations of this typeare attractive because they are well managed, successful, healthconscious and nationwide. Within these organizations we will targetdecision level managers with the power to implement use of our productin those locations. Market NeedsAccording to a study published in the medical journal, InfectiousDiseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing thatmore than 33% of day care facilities "had poor hand washing techniquesand no policy for hand washing before eating or after playing outside. Inspite of all the studies about the benefits of hand washing, improper orinfrequent hand washing continues to be a major factor in the spread ofdisease in day-cares."Hand washing in child care facilities is an ideal initial target market forseveral additional reasons: * Child care facilities have rampant illness and germ problems thatcan be directly reduced through frequent child and worker hand washing. * Child care facilities have strict, government mandated rules thatrequire frequent hand washing. * Parents are particularly interested in reducing child illness, makingthem one of our strongest advocates for the use of CHILD inenvironments they cannot directly monitor.
  • 11. - 11 - Market GrowthThe demand for child day care services will continue to grow. As thelabor force participation of women between the ages of 16 and 44remains high, parents of preschool and school-age children areexpected to seek more day care arrangements. As parents continue towork during weekends, evenings, and late nights, the demand will growsignificantly for child day care programs that can provide care duringnontraditional hours. School-age children, who generally require childday care only before and after school, increasingly are being cared for inchild care centers Target Market Segment StrategyOur initial day care market will consist of medium to large day careorganizations, consisting of twenty or more children. Within these organizationswe will target decision level managers with the power to implement use of ourproduct in those locations
  • 12. Marketing StrategyFor our initial target market of day care facilities, the company will implementtwo parallel marketing efforts, aimed respectively at day care facility decisionmakers, and the parents of young children who use these facilities. We willcreate a push factor by effectively convincing the decision-level managerswithin the organizations that our product provides an ideal solution to the handwashing compliance. A "first to mind" branding campaign will build CHILD asthe leader in increasing hand washing compliance. Significant parental supportwill encourage organizations to implement CHILD in environments involvingtheir children. Positioning StatementCHILD is valuable to day care managers who need effective control solutions toensure frequent child and child-care worker hand washing to keep theenvironment clean and to minimize preventable illness. No other product on themarket serves the hand washing compliance aspect of workplace safety withsuch an affordable, direct and complete solution. Unlike traditional soaps, ourproduct provides conclusive evidence every time an employee washes his or herhands for only a marginally higher cost than traditional soaps, and significantlyless than gloves or other hand washing compliance systems. Pricing StrategyRetail pricing for CHILD will generally be around $90/case for four gallons andwill command a 25-30% price premium over conventional liquid soaps. Thevalue of our product will not be attractive to extremely price sensitivecustomers. The market for soap is generally inelastic, but our product offerssignificant differentiating benefits over current soaps that justify the pricedifference.
  • 13. - 13 - Promotion StrategyOne of the most important aspects of a successful launch is positive publicityfor our product. We will develop an awareness campaign to promote ourproduct through several avenues. Our management team will fiercely pursuepositive public perception through government endorsements promoting thebenefits of our products. We will also attempt to capitalize on the novelty of thesolutions provided by our product by actively seeking local news and mediacoverage to help spread awareness. Buzz will be developed in social hubs bydistributing samples to parties with potential interest. Parental support of theproduct will be garnered through free trials, demonstrations, and direct mailingsto the day care At washing stations in client facilities we will spread awarenesswith stickers targeted towards children, showing them the process of washing toturn their hands different colors and emphasizing how fun it can be. Pamphletswill be sent to the family homes through the day care roster mailing lists, tocalm fears regarding a new product in their childs environment, explain thebenefits and encourage the parents to respond and build feedback for thebenefits of the product to further increase implementation Distribution StrategyOur initial distribution strategy will involve a combination of distributorand direct sales. Relationships with local distributors will be established toincrease promotional reach and potential users. The first orders will beavailable immediately through direct delivery by our executive team.Outsourcing distribution entirely in the future will allow SAFE to focus itsefforts on marketing and expanding as quickly as possible.Distributors will pay for the inventory up-front, and although this cuts our profitmargins it helps SAFE to maintain a more flexible structure. distribution will beentirely outsourced to distribution companies, and direct deliveries from theexecutive team will cease.
  • 14. Marketing ProgramsOur most important marketing program is our branding program, aimed initiallyat regional chain and franchise managers. This program is intended to penetratethe target markets, and establish SAFEa products as the soap of choice.Achievement should be measured against our projected 45% monthly salesgrowth rate for the first year.Emphasizing the risks associated with hand washing non-compliance, ourmarketing program will employ the fear of disease, costs of illness andgovernment regulations extensively. Written materials will convey urgency,connect users to the underlying problem and suggest SAFE products as theoptimal solution to the problem
  • 15. - 15 - Sales StrategySales strategy will initially address local and regional managers with orderingauthority for the establishments in that area. The prospective clients will besupplied with a professional product information packet and moved into thesales funnel to begin closing prospect, followed up with a direct mail brochureand a phone call.There will be no initial direct compensation or commission for closed sales.Proceeds from sales will be invested back into developing and expanding thebusiness. As the company begins to increase its initial sales force, commission-based incentive programs will be implemented.
  • 16. Sales Forecast•If we are able to distribute our product through existing distributors, it will provide us a significant financial advantage, as well as the ability to meet the quick increase in demand for our product.•Beginning with an initial monthly sale of rs1,250 for our day care soap product (CHILD), we predict sales will increase by 45% per month for the first year. We then calculate a growth rate of 90% yearly. Cost of Goods Sold is approximately 47% of sales. However, COGS grows at a yearly rate of 88%, which is less than the sales growth rate in order to represent the economies of scale that we hope to achieve as our operations grows
  • 17. - 17 - Web Plan SummaryOur website will be available as a resource to customers and interestedparties. It will include statistics, surveys and articles to build awarenessabout the need for and benefits of our product. The website will provideinterested parties with a way to contact our company for answers to anyquestions they may have, and will include information on ordering andlocating the product. Our product will not be directly available online, butwe will build positive perception and awareness about our product therethrough statistics and user testimonials demonstrating our value.We will include the URL in all printed materials, and encourage distributors tolink to our site. Because the audience for SAFEaproducts is fairly specialized,the most efficient means for marketing the site will be working specifically withthe intended customers and pointing them to the site. The site will be registeredwith search engines.,After the initial implementation of the site will also be used as a resource topromote our other fading dye products as they are developed. The website willthen be converted into a multiple product site, perhaps expanding its offering toinclude direct ordering
  • 18. Management SummaryTwo of our strengths are the low cost structure and flexible personnel needs.Sales people with experience relevant to each new respective target market canbe attained as need dictates, but the initial management team consists of thefounders themselves, with little operational support. The Board of Advisors willbe a critical foundation for the successful growth and development of SAFE Management TeamInitially, both founders will share in the operational and financialresponsibilities of the company. They will be responsible for finding, attainingand managing new accounts. Both founders will be responsible for makingdirect sales, marketing, and all other operational tasks involved with makingthis company successful. The CEO will oversee all company decisions
  • 19. - 19 - Management Team GapsIt will be necessary to hire new sales associates as we expand into each newmarket segment. A child-care industry professional with relevant experienceand networks in the industry will be acquired to accelerate sales growth. Aftersufficient cash flow has been established and revenues have plateaued, we willhire a chemist on salary to expand our existing product line. A chemical expertworking as a consultant will initially be useful for three reasons: •Aiding in the research and creation of a safe initial prototype. •Troubleshooting problems with our product and answering customer questions and concerns about SAFE products as they arise. •Further developing the product for future target markets
  • 20. Key Financial IndicatorsSales - Our sales are projected to grow at a consistent rate of 90% yearly, andwe believe this accurately reflects the realistic growth our product would becapable of attaining if we can properly utilize existing channels of distributionand gain social acceptance.Gross Margin - As we grow, become more efficient, and gain economies ofscale we begin to see a slight growth in our margins.Operating Expenses - we see an increase in the number of operating expensesthat we will incur. We begin incurring larger costs involving advertising,promotion, marketing, and payroll expenses.Inventory Turnover - We will begin operations with a preliminary purchase ofrs50,000/ 38,000 gallons of soap. Our preliminary forecast suggests that for usto be flexible in meeting customer demand we will need to maintain a minimalinventory stock at a rented warehouse. We estimate that, on average, we willkeep two weeks worth of inventory on hand.Collection days - We will collect our accounts receivable on an average of 45days. we will have the cash to cover unexpected costs or expenses so that wemay decide to allow a longer collection period.
  • 21. - 21 -
  • 22. Break-even AnalysisThe following fixed costs reflect the relative costs for selling and distributingour product within the greater Portland metro area, and do not reflect the fixedcosts necessary to expand further.
  • 23. - 23 -Pro Forma Cash Flow Year 1 Year 2 Year 3Cash ReceivedCash from OperationsCash Sales Rs0 rs0 Rs0Cash from Receivables Rs138,736 Rs362,031 Rs687,858Subtotal Cash from Operations Rs138,736 Rs362,031 rs687,858Additional Cash ReceivedSales Tax, VAT, HST/GST Received rs0 rs0 Rs0New Current Borrowing Rs0 rs0 rs50,000New Other Liabilities (interest-free) rs0 rs0 Rs0New Long-term Liabilities Rs0 rs0 rs0Sales of Other Current Assets Rs0 rs0 Rs0Sales of Long-term Assets Rs0 rs0 rs0New Investment Received Rs0 rs0 Rs0Subtotal Cash Received Rs138,736 rs362,031 rs737,858
  • 24. Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending rs57,600 rs144,000 Rs216,000Bill Payments Rs128,381 rs215,710 rs438,395Subtotal Spent on Operations Rs185,981 rs359,710 Rs654,395Additional Cash SpentSales Tax, VAT, HST/GST Paid Out Rs0 rs0 rs0Principal Repayment of Current Borrowing $0 $0 $0Other Liabilities Principal Repayment rs0 rs0 Rs0Long-term Liabilities Principal Repayment Rs0 rs0 rs0Purchase Other Current Assets rs0 rs0 Rs0Purchase Long-term Assets Rs0 rs0 Rs0Dividends rs0 rs0 Rs0Subtotal Cash Spent Rs185,981 rs359,710 rrs654,395Net Cash Flow (rs47,245) rs2,320 Rs83,463Cash Balance Rs29,455 rs31,775 rs115,239
  • 25. - 25 - Projected Profit and LossOur profit and loss projections reflect our expectation that monthly fixed costswill remain constant over the course of the first year.Cost of goods sold increases at a decreasing rate, as economies of scale makesoap production cheaper per unit as production volume increases. Based onthese projections the company will become profitable.Advertising expenses will remain steady during our first year of operations.However, Advertising and Promotion will grow in to reflect the purchase ofprint ads, PR brochures, and additional promotional content.
  • 26. Pro Forma Profit and Loss
  • 27. - 27 - Year 1 Year 2 Year 3Sales Rs237,168 rs450,620 rs856,177Direct Cost of Sales Rs94,867 rs178,351 Rs321,031Other Rs0 rs0 rs0Total Cost of Sales Rs94,867 rs178,351 Rs321,031Gross Margin Rs142,301 rs272,269 rs535,146Gross Margin % 60.00% 60.42% 62.50%ExpensesPayroll Rs57,600 rs144,000 Rs216,000Payroll Taxes Rs0 rs0 rs0Depreciation rs0 rs0 Rs0Rent Rs8,400 rs8,400 rs8,400Utilities rsr1,200 rs1,200 Rs1,500Insurance Rs6,000 rs6,000 rs6,000Telecommunications rs1,200 Rs2,500 Rs3,500Travel Rsr1,800 Rs2,500 Rs4,000Warehousing Rs3,600 rs4,000 Rs4,500Other General and Administrative Expenses Rs1,200 rs1,200 Rs1,200Total Operating Expenses rs81,000 rs69,800 Rs245,100Profit Before Interest and Taxes Rs61,301 rs102,469 rs290,046EBITDA rs61,301 rs102,469 Rs290,046
  • 28. Interest Expense Rs0 rs0 rs2,500Taxes Incurred rs18,390 rs30,741 Rs86,264Net Profit rs42,911 rs71,728 rs201,282Net Profit/Sales 18.09% 15.92% 23.51%
  • 29. - 29 - Projected Balance SheetOnce we have established a relationship with the manufacturer, we willpurchase inventory in minimum quantities of approximately 15,000 gallons forapproximately rs20,000 per shipment (following the initial start-up inventorypurchase, at rs50,000). As sales increase we expect that inventory turnover rateto increase.Our only significant Accounts Payable will be Inventory, which are a directreflection of the level of inventory on hand. We will be paying off our AccountsPayable in accordance with sale of inventory. Therefore, as we begin to sellmore soap, we will be increasingly capable of meeting our obligations in a moretimely manner, ensuring that we have enough cash on hand to cover our shortterm liabilities.
  • 30. Pro Forma Balance Sheet Year 1 Year 2 Year 3AssetsCurrent AssetsCash Rs29,455 rs31,775 Rs115,239Accounts Receivable Rs98,432 Rs187,021 rs355,340Inventory Rs119,146 rs34,927 Rs60,193Other Current Assets Rs0 Rs0 rs0Total Current Assets Rs247,032 rs253,723 Rs530,772Long-term AssetsLong-term Assets Rs0 rs0 Rs0Accumulated Depreciation Rs0 Rs0 rs0Total Long-term Assets Rs0 rs0 Rs0Total Assets Rs247,032 Rs253,723 rs530,772Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable Rs77,422 rs12,384 Rs38,150Current Borrowing Rs0 Rs0 rs50,000Other Current Liabilities Rs0 rs0 Rs0Subtotal Current Liabilities Rs77,422 Rs12,384 rs88,150Long-term Liabilities Rs0 rs0 Rs0
  • 31. - 31 -Total Liabilities Rs77,422 Rs12,384 rs88,150Paid-in Capital Rs250,000 rs250,000 Rs250,000Retained Earnings (rs123,300) (rs80,389) (rs8,661)Earnings Rs42,911 rs71,728 Rs201,282Total Capital Rs169,611 Rs241,339 rs442,621Total Liabilities and Capital Rs247,032 rs253,723 Rs530,772Net Worth Rs169,611 Rs241,339 rs442,621
  • 32. Business RatiosThe following table compares our ratios with standard ones from the soap anddetergents industry. Our current and quick ratios are much higher than industryaverages. This is due in part to the substantial difference between our assetscompared to our liabilities. Considering that we will be able to avoid any largeloans and fund the company almost entirely independent of commercialcreditors, there will necessarily be a discrepancy between our fairly large assetscompared to our considerably smaller liabilities. Our business model and trulyunique product allows us to outsource the manufacturing of the product, sinceour added value comes in the soon to be patented dye/soap formula. So, unlikeother commercial-use soap makers in our industry, we do not need to purchasemajor capital assets, funded by loans.
  • 33. - 33 -Ratio Analysis Industry Year 1 Year 2 Year 3 ProfileSales Growth n.a. 90.00% 90.00% -2.19%Percent of Total AssetsAccounts Receivable 39.85% 73.71% 66.95% 29.49%Inventory 48.23% 13.77% 11.34% 23.24%Other Current Assets 0.00% 0.00% 0.00% 21.00%Total Current Assets 100.00% 100.00% 100.00% 73.73%Long-term Assets 0.00% 0.00% 0.00% 26.27%Total Assets 100.00% 100.00% 100.00% 100.00%Current Liabilities 31.34% 4.88% 16.61% 34.96%Long-term Liabilities 0.00% 0.00% 0.00% 8.33%Total Liabilities 31.34% 4.88% 16.61% 43.29%Net Worth 68.66% 95.12% 83.39% 56.71%Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 60.00% 60.42% 62.50% 33.85%Selling, General & Administrative 27.20% 24.35% 26.33% 26.71%Expenses
  • 34. Advertising Expenses 7.08% 5.33% 4.09% 0.73%Profit Before Interest and Taxes 25.85% 22.74% 33.88% 0.81%Main RatiosCurrent 3.19 20.49 6.02 1.78Quick 1.65 17.67 5.34 1.06Total Debt to Total Assets 31.34% 4.88% 16.61% 46.64%Pre-tax Return on Net Worth 36.14% 42.46% 64.96% 1.89%Pre-tax Return on Assets 24.81% 40.39% 54.18% 3.54%Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 18.09% 15.92% 23.51% n.aReturn on Equity 25.30% 29.72% 45.48% n.aActivity RatiosAccounts Receivable Turnover 2.41 2.41 2.41 n.aCollection Days 40 116 116 n.aInventory Turnover 1.78 2.32 6.75 n.aAccounts Payable Turnover 2.66 12.17 12.17 n.aPayment Days 27 109 20 n.aTotal Asset Turnover 0.96 1.78 1.61 n.aDebt RatiosDebt to Net Worth 0.46 0.05 0.20 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 n.a
  • 35. - 35 -Liquidity RatiosNet Working Capital rs169,611 rs241,339 rs442,621 n.aInterest Coverage 0.00 0.00 116.02 n.aAdditional RatiosAssets to Sales 1.04 0.56 0.62 n.aCurrent Debt/Total Assets 31% 5% 17% n.aAcid Test 0.38 2.57 1.31 n.aSales/Net Worth 1.40 1.87 1.93 n.aDividend Payout 0.00 0.00 0.00 n.a

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