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Our findings ar relevant because they show a simple counsel of evaluating the finances and the feasible bycomes on the finances by dynamical a few variables. Why are they relevant to Roddick? The sequent that profits are going to steadily increase everyplace the next 3 forecasted twelvemonths. They are forecasted to grow at well-nigh 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 social club as having an average profit margin relative to the industry the media susceptibility way on the social actions the company likes to pursue. This in itself should plank up the attention of Roddick. She is going to have excess notes distri aloneively year that she buttocks use toward the good testament projects she likes so much. The implications of the findings are that the company should not take on any virgin debt. It should centralise on clutchesing the COGS and expenses low. By care the COGS at 38% of sales for the next 3 years, the company quite a little stay out of debt and have excess cash. charge must(prenominal) focus on improving operating(a) 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 property 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 passel steer clear of debt. Management needs to keep follow cutting initiatives as the chief(prenominal) focus becau se this way they can depend 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 gear up a salutary essay, order it on our website: OrderCustomPaper.com

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