Western Wear

Industry

• 19th century clothing style

• Offer comfort, durability, and variety
• Products: Jeans, t-shirts, jackets, and
accessories
Our Products
 • African-American cowboys and cowgirls
Our Customers
• Hispanic communities
• Visitors during Rodeo season
Our Competitors
 Cash Flow

600000 Subtotal Cash Received Subtotal Cash Spent

500000
480290
• Cash Inflow Growth
400000
during 3 years of
369460 372255
operation
300000 • Cash Outflow Growth
284200 296403 during 3 years of
200000 221869 operation
• Increase in Taxes
100000 • Net Cash Flow Increase

0
Year 1 Year 2 Year 3
 Gross Profi t Margin
MAMLAKA Industry
Gross Profit Margin
60%

50%
50% 50% 50% • Mamlaka Western Wear
40% reached its objective of
38.00% 50% profit.
35.40% 34.00% • Selling and Purchase
30%
costs stayed the same
(30%)
20%

10%

0%
Year 1 Year 2 Year 3
 Operati ng Profi t Margin
Profitability ratios 35% 33%

30%
30%
25%
25%
• Comparison to  National 20%
Industry figures
• Reasons for increasing 15%
Operating Profit Margin 10%

5%

0%
Year 1 Year 2 Year 3

Mamlaka Industry
 Return on Capital Employed
Mamlaka Industry
Profitability ratios
140%

120%
• The ROCE has declined.
100%
• Capital has increased as a result of
more retained earnings.
80%
• The company has not invested in
60% 123% its long term assets

40% 84%
67%
20%
20% 20% 20%
0%
Year 1 Year 2 Year 3
 Net Asset Turnover
Net Asset Turnover 6
Mamlaka Industry
5
4.87
4
•Net Asset Turnover has
decreased. 3
•The company's profits do not 2.83
increase by the same amount 2
2.02
as the retained earnings.
1.35 1.35 1.3
•The company should invest 1
in NCA or paid dividends.
0
Year 1 Year 2 Year 3
 Current or Working Capital
10
Mamlaka Industry
Current or Working
9 Capital
8

6 •Assets are increasing

5 •The levels of cash are high
4

0
Year 1 Year 2 Year 3
 Quick Rati on
Quick ratio 10
Mamlaka Industry
9
8

7
• The levels of raito are
6
increasing
• The company can pay the 5
debts 4
• The business has 3
sufficient amount of cash
to settle its liabilities. 2

0
Year 1 Year 2 Year 3
 Inventory Turnover Period
Inventory turnover
Malaka Industry
120
period

100
• The level has stayed the
80
same.
• It would be difficult to
achieve 80 % of the
60
market share.
• If the company creates
40 credit facilities for its
customers, it will be able
20 to decrease the number
of days.
0
Year 1 Year 2 Year 3
 Receivables Receivables collecti on period
7
collection period Mamlaka Industry
6

5
• The company works with
cash only. 4
• It does not have the risk
of irrecoverable debt. 3

• If the company starts

2
working with credit also,
the demand can rise.
1

0
Year 1 Year 2 Year 3
 Mamlaka Payables Collection
Mamlaka Period
40.55
40.5
40.45 • The period has stayed the
same.
40.4
• The company has the
40.35
chance to stay liquid
40.3 • This can create a bad
40.25 reputation among
suppliers
40.2
40.15
40.1
40.05
Year 1 Year 2 Year 3
 Measuring Gearing
Gearing Mamlaka Industry
2.5

• The number is decreasing 2

and it's very low.
• The external debt of the 1.5
company is very low
compared to its equity.
• The company has not 1
difficulty in covering its
debt.
0.5

0
Year 1 Year 2 Year 3
 Interest Cover
Mamlaka Industry Interest cover
200
180
160 • The company's ability to
140 pay interests is very high.
120 • The default probabilities
100 are low
80
60
40
20
0
Year 1 Year 2 Year 3
Conclusion
Reference
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