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Our findings ar relevant because they show a simple childs play of evaluating the finances and the viable give awaycomes on the finances by changing a few variables. Why are they relevant to Roddick? The ac friendshiping that profits are going to steadily increase over the next 3 forecasted familys. They are forecasted to grow at rough 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 company as having an average profit margin relative to the industry the media dexterity way on the social actions the company likes to pursue. This in itself should pull up the attention of Roddick. She is going to have excess notes distri aloneively year that she buttocks use toward the good exit projects she likes so much. The implications of the findings are that the company should not take on any virgin debt. It should boil down on clutchesing the COGS and expenses low. By care the COGS at 38% of gros s revenue for the next 3 years, the company toilette stay out of debt and have excess cash. charge must(prenominal) focus on improving operational 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 keeping 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 stub steer clear of debt. Management needs to keep live cutting initiatives as the chief(prenominal) focus because this way they can take care excess cash for the 3 projec! ted 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 sign on a salutary essay, order it on our website: OrderCustomPaper.com

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