Analyze the firm's financial statements from the past 3 years? Is the firm currently profitable? Is the division profitable? What debts and obligations is the firm under? Is the analysis important to the firm's financial position now? How does this relate to Management?

 

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Financial Statement Analysis • The trends over the years regarding net income are negative and have decreased. In the knobs and pulls division, as well as the research division, cost increased from 2016 to 2017 but then decreased by the end of 2018; however in the hinge's division, there is a steady increase in cost. • The net sales and revenue are lower than the cost and expenses which is an overall loss for the company. • In 2017 and 2018, debt has increased for both the knobs and pulls division and the hinge's division. This is including both short and long-term debt. • Overall gross margin...... • Overall firm metrics.... Brand Profitability in 2018 Observations: . Elements is less profitable than Jeffrey Alexander (JA). Recommendation • Focus on decreasing the costs/revenue ratio in "Elements" product Revenue, Cost, and Profit Over Time Observations: Revenue, cost, and profit rise over time. • Profit rises less than revenue or cost. Recommendation: • Decrease the costs/revenue ratio. Sum of GrossProficy Profitability Percentage T 42.00% 40.00% 38.00% brand collection L 16.00 34.00% 32.00% 30.00% MENGAGE M 840 utaks Brand Profitability in 2018 Elements Brands Revenue, Cust, and Profit Over Time Yes Jeffrey Alexander Financial Statement Analysis • The trends over the years regarding net income are negative and have decreased. In the knobs and pulls division, as well as the research division, cost increased from 2016 to 2017 but then decreased by the end of 2018; however in the hinge's division, there is a steady increase in cost. • The net sales and revenue are lower than the cost and expenses which is an overall loss for the company. • In 2017 and 2018, debt has increased for both the knobs and pulls division and the hinge's division. This is including both short and long-term debt. • Overall gross margin...... • Overall firm metrics.... Brand Profitability in 2018 Observations: . Elements is less profitable than Jeffrey Alexander (JA). Recommendation • Focus on decreasing the costs/revenue ratio in "Elements" product Revenue, Cost, and Profit Over Time Observations: Revenue, cost, and profit rise over time. • Profit rises less than revenue or cost. Recommendation: • Decrease the costs/revenue ratio. Sum of GrossProficy Profitability Percentage T 42.00% 40.00% 38.00% brand collection L 16.00 34.00% 32.00% 30.00% MENGAGE M 840 utaks Brand Profitability in 2018 Elements Brands Revenue, Cust, and Profit Over Time Yes Jeffrey Alexander Financial Statement Analysis • The trends over the years regarding net income are negative and have decreased. In the knobs and pulls division, as well as the research division, cost increased from 2016 to 2017 but then decreased by the end of 2018; however in the hinge's division, there is a steady increase in cost. • The net sales and revenue are lower than the cost and expenses which is an overall loss for the company. • In 2017 and 2018, debt has increased for both the knobs and pulls division and the hinge's division. This is including both short and long-term debt. • Overall gross margin...... • Overall firm metrics.... Brand Profitability in 2018 Observations: . Elements is less profitable than Jeffrey Alexander (JA). Recommendation • Focus on decreasing the costs/revenue ratio in "Elements" product Revenue, Cost, and Profit Over Time Observations: Revenue, cost, and profit rise over time. • Profit rises less than revenue or cost. Recommendation: • Decrease the costs/revenue ratio. Sum of GrossProficy Profitability Percentage T 42.00% 40.00% 38.00% brand collection L 16.00 34.00% 32.00% 30.00% MENGAGE M 840 utaks Brand Profitability in 2018 Elements Brands Revenue, Cust, and Profit Over Time Yes Jeffrey Alexander Financial Statement Analysis • The trends over the years regarding net income are negative and have decreased. In the knobs and pulls division, as well as the research division, cost increased from 2016 to 2017 but then decreased by the end of 2018; however in the hinge's division, there is a steady increase in cost. • The net sales and revenue are lower than the cost and expenses which is an overall loss for the company. • In 2017 and 2018, debt has increased for both the knobs and pulls division and the hinge's division. This is including both short and long-term debt. • Overall gross margin...... • Overall firm metrics.... Brand Profitability in 2018 Observations: . Elements is less profitable than Jeffrey Alexander (JA). Recommendation • Focus on decreasing the costs/revenue ratio in "Elements" product Revenue, Cost, and Profit Over Time Observations: Revenue, cost, and profit rise over time. • Profit rises less than revenue or cost. Recommendation: • Decrease the costs/revenue ratio. Sum of GrossProficy Profitability Percentage T 42.00% 40.00% 38.00% brand collection L 16.00 34.00% 32.00% 30.00% MENGAGE M 840 utaks Brand Profitability in 2018 Elements Brands Revenue, Cust, and Profit Over Time Yes Jeffrey Alexander

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According to the financial statement analysis currently the firm is in loss because the net sales an... View the full answer