Sustainability of the Clients Investments Assignment

Sustainability of the Clients Investments - Assignment ExampleThe caller-ups broad product line is comprised of wall and root word tiles, natural stone, and laminate and solid wood flooring. Toops Tiles also offers underfloor heating, tools, adhesives, grouts, accessories, and cleaning products to complement the major product lines. These additional offerings enable each customer to finish any pedigree involving tile installation.Through this memo, the medium and long term sustainability of Toops Tiles PLC will be assessed with an analysis of its financial statements. I will also provide a SWOT analysis to get a deeper insight on the companys internal performance and external environment.Table 1 shows a two-year comparative motif on the Toops Tiles PLCs major accounts. During the fiscal year 2005, the company recorded total sales of 175.64 million compared to the previous years 159.43 million. It can be noted that the companys revenue ballooned by 10% despite the weak consumer environment in the United Kingdom. Profit before taxes also leaped by 16% to 39, 232 and net income totaled 30, 189. Toops Tiles resources also grow by almost 3% which is due to the harvest-home in tangible fixed asset, and short term receivables. The company was able to pay off a huge portion of its debts as evidenced by the 6.15% drop in total liabilities. Toops Tiles preference for low risk financing is also indicated by the growth in equity by 17.10% (Annual Report 2005).As a minority shareho... As we know, an investor gains in stock investments through capital gains and dividends.Table 2 shows the companys dividend for its ballpark stockholders is escalating throughout the five-year-period of 2001-2005. Dividends increased almost tenfold from 1.00p to 9.50p. This growth in dividend per share indicates companys profitability as it is capable of paying its stockholders from the companys net income and still sustains its operation through its retained earnings.The companys sto ck price is volatile indicated by periods of ups and downs which indicate the investors perception of the companys profitability. Toops Tiles PLC has experienced an annual 3.85% slump in stock prices during 2005. However, the five-year-period wraped in the analysis indicates a generally positive perception of the companys stocks as price rose by 160%. SWOT AnalysisStrengths Toops Tiles capitalizes on its strong brand equity as it is the largest tile and wood flooring specialist group. The companys operation is also supported by its wide distribution channel which provides accessibility to their customers. This also enables Toops Tiles to cover a larger geographical area. Offering products which complements to their major product line is also a plus as it provides more value to the customers. Weaknesses The major failing of the company is its inability to create a better image to its investors like its stockholders. This is mirrored by the drop of the Toops Tiles stock price amidst its good financial position. The company should consider launching a marketing program which will highlight the companys accomplishments. Another weakness lies in the companys supply chain. Toops Tiles delivers inventory to its distribution facilities twice in a week.