COMPANY ANALYSIS
1 | P a g e
Company Analysis
Tony Guys Hairdressing
COMPANY ANALYSIS
2 | P a g e
Abstract
Tony and Guys is one of best hairdressing salons in the States, it provides top
notc...
COMPANY ANALYSIS
3 | P a g e
Introduction
The purpose of this report is to do a company analysis of the Tony Guys hairdres...
COMPANY ANALYSIS
4 | P a g e
Tony Guys has one of the best hair dresser, who use the TIGI products in best way and
they ar...
COMPANY ANALYSIS
5 | P a g e
organization. Credit Unions were launched in1992 in Scotland and till now more than 2000
cred...
COMPANY ANALYSIS
6 | P a g e
Discuss some key data from the balance sheets. What does the term current
assets mean? Give e...
COMPANY ANALYSIS
7 | P a g e
Suggest some ways of assessment of investment appraisal techniques, making
reference to the e...
COMPANY ANALYSIS
8 | P a g e
Payback period
Payback period is also very important investment appraisal technique,
frequent...
COMPANY ANALYSIS
9 | P a g e
(a) Income Statement
Income statement is a type of financial statement that calculates busine...
COMPANY ANALYSIS
10 | P a g e
Income Statement (Little scissors Hair saloon)
For The Year 2012 and 2013
2012 2013
Haircut ...
COMPANY ANALYSIS
11 | P a g e
What is the top line growth?
According to financial experts top line means the year by year ...
COMPANY ANALYSIS
12 | P a g e
Bibliography
Balkenhol, B., 1999. Credit Unions and the Poverty Challenge: Extending Outreac...
COMPANY ANALYSIS
13 | P a g e
COMPANY ANALYSIS
14 | P a g e
Upcoming SlideShare
Loading in …5
×

Tony guys is an american based hair salon

747 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
747
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Tony guys is an american based hair salon

  1. 1. COMPANY ANALYSIS 1 | P a g e Company Analysis Tony Guys Hairdressing
  2. 2. COMPANY ANALYSIS 2 | P a g e Abstract Tony and Guys is one of best hairdressing salons in the States, it provides top notch beauty brands products such as TIGI to its clients. Company is really progressing, but it has to keep an eye on the direct as well indirect costs. As company is planning to invest heavily in the infrastructure and equipment, so it must use investment appraisal techniques effectively
  3. 3. COMPANY ANALYSIS 3 | P a g e Introduction The purpose of this report is to do a company analysis of the Tony Guys hairdressing. It discusses the direct and indirect costs of the company. It also studies the different types of investment appraisal techniques and what are their advantages/disadvantages for the company. At the end financial analysis of company has been done. Give outline of their organization. Where do them trade-location. What is there main business? How long have they traded? Copy a graphic of their website. Detailed description of the direct and indirect costs to this organization Tony Guys is an UK based hair salon formed some years ago, which also offers beauty products in its salons. It was started is single salon with few employees , but now employing 5000 employees with salons located all over the United Kingdom. It offers beauty product and salon services for both men and women. Another amazing thing about Tony Guys is that, they use beauty products of well-known brands such as TIGI.TIGI products used by the Tony Guys are the following: Bed Head (including B for Men) Catwalk Hair Reborn Rockaholic S Factor
  4. 4. COMPANY ANALYSIS 4 | P a g e Tony Guys has one of the best hair dresser, who use the TIGI products in best way and they are one of the best hairdressers in the country. They use products such as shampoos, curl enhancers, mousses, and gels to conditioners, texturizers, shine enhancers in very effective way through their professional hairdressers working in their salons. According to the various experts the main costs of salons are mostly related to their equipment. So direct costs of the Tony Guys includes equipment used in daily salon operations ,TIGI beauty products used in the daily operations and also the professional services of professionals. The indirect costs includes Salon employees, telephone expenses, mobile expenses,lighting,heating,rent,utilities,advertising,marketing,insurance , Income taxes, Sales taxes and wealth taxes. Classification of Fixed and Variable costs It is true that costs can be easily classified into fixed and variable costs. Direct Costs Direct costs are the types of costs, which are directly traceable to the products. For example: Direct labor, direct material etc. (Steven A. Finkler, 2007) Various sources for finance available. Where finance can come for day to day activities and where it can be generated for large expenditures? Tony Guys has following sources of finance available. Credit Unions Credit unions comprises of democratically elected members, who are chosen by votes of other members. Its membership doesn’t depend upon investment, like other financial
  5. 5. COMPANY ANALYSIS 5 | P a g e organization. Credit Unions were launched in1992 in Scotland and till now more than 2000 credit unions are working all over the world with more than 2.2 million members (Balkenhol, 1999) Venture Capital Venture capital is a very important source of funding for small and medium businesses like Tony Guys. Venture capitalists provide easy funding to firms and businesses. Money invested by investors in the new or old businesses with expectations of good future earnings. This is a very important source of funding for startups that do not have access to capital markets. Mostly it involves high risk for the investor, but it has all the ability to get excellent earnings. Angel Investing An angel investor or angel is a wealthy person, who offers capital for a business start-up, usually in exchange for convertible debt or ownership equity Angel Investing is a really popular all over the world, especially UK and USA. Entrepreneurs, as it consists of educated and experienced professionals. They can help them great deal making their business a success. Banks Banks are also very good source of funding. Companies who want to buy latest equipment or want to invest more in the venture needs bank financing. Companies have to pay interest on the loan monthly or annually.
  6. 6. COMPANY ANALYSIS 6 | P a g e Discuss some key data from the balance sheets. What does the term current assets mean? Give examples from accounts i.e. how much stock do they have? What does the term current liabilities mean? Give an example from the accounts. Current Assets Current assets are one of the most important balance sheet items, and they are very important for the decisions makers and investors. Current assets are the assets which can be easily converted to the cash in less than one year. According to financial experts, current assets contains currency, accounts receivable, bonds, stocks, prepaid costs and other fluid assets. It also shows the financial strength of any company. Current Liabilities Current liabilities are one of the most important balance sheet items, and they are very important for the decisions makers and investors. Lenders such as banks and other financial institutions, mostly use this ratio to assess the financial strength and credit worthiness of any company. Current liabilities are the liabilities, which are due in less than one year and business has to pay them on every cost. According to financial experts, current assets short term debt, accounts payable, accrued liabilities and other debts. It also shows the financial strength of any company.
  7. 7. COMPANY ANALYSIS 7 | P a g e Suggest some ways of assessment of investment appraisal techniques, making reference to the effectiveness of net present value and payback. What is investment appraisal and why do we need it? Explain and reference your source. Why might your company organization need to use it? Explain and reference your source. Investment appraisal Investment appraisal is a very useful technique used to gauge the attractiveness of the investment for the business. It helps in setting future financial goals and then achieving them through proper planning.Net present value and IRR are the two most popular investment appraisal techniques. Net Present value Net present value is very important measurement used for investment appraisal. Actually it is calculated by taking difference between the present value of cash inflows and the present value of cash outflows. (Röhrich, 2007) It is frequently used to calculate the usefulness of a capital investment or large project.Most of financial experts prefer it over the payback period ,because its uses time value of money which is very important for investment proposals. It can be easily calculated by the following formula: Net Present Value (NPV)
  8. 8. COMPANY ANALYSIS 8 | P a g e Payback period Payback period is also very important investment appraisal technique, frequently used by the financial experts. It is the time duration required by an investment to cover its cost. (Röhrich, 2007)The longer the time duration, the most it should be avoided. According to most financial experts, it is a important tool to determine the profitability of an investment, but still it has some drawbacks because it neglects the time value of money. Calculated as: Payback Period = Cost of Project / Annual Cash Inflow Explain briefly the main content financial statements-ie income statement and balance sheet. What does your income statement show? What is the top line? Has revenue increased? Work out % from previous years. Profits. Have the profits increased? Calculate% change. What is gross profit? Financial Statements is a very useful and effective tool, to calculate the performance of a company .They are very beneficial and vital for investors and all the major stakeholders of the business, because it gives a comprehensive overview of the performance of the company. (Spurga, 2004) Following are the three most important financial statements, which are used all around the world. (a) Income Statement (b) Balance Sheet (c) Cash Flow Statement
  9. 9. COMPANY ANALYSIS 9 | P a g e (a) Income Statement Income statement is a type of financial statement that calculates business’s financial performance during a financial period. It provides details about the sales, that how they are made by the company and what were expenses incurred while earning those revenues. At the end we calculate the net profit/net loss, which is an exact representation of the financial performance of the company .Net profit/net loss is calculated by subtracting the costs incurred from the revenue earned by the business. (Warren, 2010) Revenue and costs included in the statement are through accrual basis accounting, which means revenue and expenses are recognized in the period, in which they occurred. In British accounting, this statement is also knows as Profit and loss statement. (b) Balance Sheet Balance sheet is a type of financial statement that abridges business's assets, liabilities and owner’s equity at the end of a financial year or quarter. Balance sheet information provides enough information to the investors and business stakeholders for decision making puposes. Although balance provides very limited information, but still it is a quite useful for getting an overview of the business. Actually whole balance sheet is based on the following accounting equation Assets = Liabilities + Shareholders' Equity Gross Profit Gross profit is an important measure of a company’s profitability. It is calculated by subtracting the cost of goods sold from the revenue. It is actual shows how successful the business in covering its direct costs and expenses.
  10. 10. COMPANY ANALYSIS 10 | P a g e Income Statement (Little scissors Hair saloon) For The Year 2012 and 2013 2012 2013 Haircut Revenue Rent Wages insurance Utilities Licenses fees taxes Supplies/maintenance Advertising/Marketing Net income $262,080.00 $ 300000 $12,000.00 $12000 $112,320.00 $150000 $2,500.00 $3000 $3,000.00 $ 4500 $9,000.00 $ 10000 $6,000.00 $ 7000 $5,000.00 $ 6000 $112,260.00 $ 107500 Net Profit Ratio 42 % 35 %
  11. 11. COMPANY ANALYSIS 11 | P a g e What is the top line growth? According to financial experts top line means the year by year increase in the revenue by the company Conclusion: Tony and Guys is one of the top most salons in the United States, which offers beauty products of TIGI. If it has to progress and develop, it should have control its costs such as direct and indirect costs. They also have to employ investment appraisal techniques such as net present value and payback period to its advantage.
  12. 12. COMPANY ANALYSIS 12 | P a g e Bibliography Balkenhol, B., 1999. Credit Unions and the Poverty Challenge: Extending Outreach, Enhancing Sustainability. s.l.:International Labour Organization. David Gladstone, L. G., 2004. Venture Capital Investing: The Complete Handbook for Investing in Private Businesses for Outstanding Profits. s.l.:FT Press. Röhrich, M., 2007. Fundamentals of Investment Appraisal: An Illustration Based on a Case Study. s.l.:Oldenbourg Verlag. Spurga, R. C., 2004. Balance Sheet Basics: Financial Management for Nonfinancial Managers. s.l.:Penguin. Steven A. Finkler, D. M. W. J. J. B., 2007. Essentials of Cost Accounting for Health Care Organizations. s.l.:Jones & Bartlett Learning. Warren, C. S., 2010. Financial Accounting. s.l.:Cengage Learning.
  13. 13. COMPANY ANALYSIS 13 | P a g e
  14. 14. COMPANY ANALYSIS 14 | P a g e

×