Thursday, June 20, 2019
Strategic Analysis - Dunkin Brands Group, Inc Research Paper
strategic Analysis - Dunkin Brands Group, Inc - Research Paper ExampleStrategic Analysis - Dunkin Brands Group, IncThe caller-up needs to improve its liquidity position in order to avoid any certain liquidity crisis. Gross profit security deposit of the company has slightly decreased over the years and net profit margin of the company has change over the years. It indicates that the effectiveness and efficiency of the company has improved in generating net profit out of its numerate sales revenue. Return on equity of the company has decreased over the year, which indicates the efficiency of the company has decreased in generating income out of its total equity. However, return on capital employed has increased over the years, which indicate that the company has generated more revenue out of its total capital employed as compared to the year 2012. Average settlement period for debtors has improved over the years, which indicate that the company is now efficient enough in collecti ng receivables from is debtors. Nevertheless, the average settlement period for creditors has decreased over the years, which indicate that the company is delaying its payments to the creditors.Thus from the above analysis it can be said that the company needs to improve its liquidity ratio to meet the necessity of liquid funds. The profitability of the company is average and it can be improved by improving the gross profit margin and the return on equity. Apart from these, payment to creditors should be made quickly in order to improve the brand learn among creditors and shareholders.
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