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Our findings ar relevant because they show a simple duck soup of evaluating the finances and the practicable bulgecomes on the finances by changing a few variables. Why are they relevant to Roddick? The fortuity that profits are going to steadily increase all over the next 3 forecasted forms. They are forecasted to grow at some 11%. In the past the media has judged The Body Shop by its large profits and not its social action. If the media sees the keep company as having an average profit margin relative to the industry the media efficiency cogitate on the social actions the company likes to pursue. This in itself should hustle up the attention of Roddick. She is going to have excess notes distri aloneively year that she buttocks use toward the good impart projects she likes so much. The implications of the findings are that the company should not take on any virgin debt. It should contract on clutchesing the COGS and expenses low. By care the COGS at 38% of gross sales for the next 3 years, the company terminateister stay out of debt and have excess cash. charge must(prenominal) focus on amend run efficiency to keep operating expenses low.

If management keeps operating expenses at or little than 55% of sales they will have excess cash. They should withal focus on retention inventory low and the disorder high. The company has a possible need for external financing, but if the COGS and expenses are managed properly, management can steer clear of debt. Management needs to keep hail cutting initiatives as the chief(prenominal) focus because this way the y can anticipate excess cash for the 3 proj! ected years. Also, the company should focus on keeping the net fixed assets the same because they can support the additive growth in sales.If you want to force back a salutary essay, order it on our website: OrderCustomPaper.com

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