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Our findings ar relevant because they show a simple centering of evaluating the finances and the possible outcomes on the finances by ever-changing a few variables. Why are they relevant to Roddick? The incident that profits are going to steadily increase everyplace the next 3 forecasted years. They are forecasted to grow at approximately 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 capability focus on the social actions the company likes to pursue. This in itself should pick up the attention of Roddick. She is going to have excess notes distri aloneively year that she buttocks use toward the goodwill projects she likes so much.
The implications of the findings are that the company should not take on any virgin debt. It should focus on clutchesing the COGS and expenses low. By care the COGS at 38% of sales for the next 3 years, the company can stay out of debt and have excess cash.
charge must(prenominal) focus on improving operating 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 can steer clear of debt. Management needs to keep cost cutting initiatives as the chief(prenominal) focus because this way they can expect excess cash for the 3 projected 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 get a salutary essay, order it on our website: Orderessay



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