preview

Marketing

Better Essays

Accounting and Decision Making (ADM)

Student’s Name

Date of Submission

Contents

1. Analysis of profitability of Waldron 3

Divisional analysis: 3

A. Durafit Division 3
What Happened? 3
Why sales decreased? 3
B. Contracts 4
What Happened? 4
Reason of this growth 4
C. Elite 4
What Happened? 4
Reason of this growth 4
Stellex 5
Over all Waldron analysis 6
Issues with Waldron: 6
RECOMMENDATION: 8

2. CASH FLOW ISSUES: 8

• Operating activities: 8
• Financing activities: 8
• Investing activities: 9
• Working capital cycle: 9
Recommendations: 9

3. STELLEX OVER ALL PERFORMANCE 10

Recommendations: 12

4. LIMITATIONS OF STELLEX’S CURRENT APPROACH TO …show more content…

Another reason was its bids conversion ratio which was falling year by year which can be seen from following table:

| |2011 |2012 |2013 |
|Number of tenders submitted |10,811 |11,825 |12,447 |
|Total size of contracts under tender (£m) |£5.2bn |£5.5bn |£6.2bn |
|Accepted orders (number) |4,216 |4,176 |3,961 |
|Conversion rate (%) |39% |35% |32% |

Bid conversion ratio which was 39% in 2012, fell down to 35% in 2012 and futher down to 32% in 2013.

Over all Waldron analysis

According to the financial statements being provided it shows the position and stability of Waldron’s:

• The year of 2013 shows much better performance with its profits being twice what they used to be in 2012.Waldron revenue inclines by 60% as compared to 2012. Share prices also show improvement after the announcement of £400 as a final dividend of 2013.

• In 2013 we went on to develop our products and to replace our outdated material with new customized tools. Elite is also working its best to cope up

Get Access