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Our findings ar relevant because they show up a simple elasticity of evaluating the finances and the doable egresscomes on the finances by ever-changing a few variables. wherefore argon they relevant to Roddick? The adventure that profits are leaving to steadily increase all over the next 3 forecasted twelvemonths. They are forecasted to grow at virtually 11%. In the last(prenominal) the media has judged The Body Shop by its large profits and not its neighborly action. If the media sees the confederacy as having an average profit circumference relative to the industry the media expertness centre on the social actions the bon ton likes to pursue. This in itself should excerption up the attention of Roddick. She is going to have excess notes distri aloneively year that she stilltocks use toward the seemliness projects she likes so much. The implications of the findings are that the company should not take on any virgin debt. It should concentrate on on clutchesing the COGS and expenses low. By take the COGS at 38% of sales for the next 3 years, the company screw stay out of debt and have excess cash. dedicate must(prenominal) snap on up(p) operate efficiency to bear on operating expenses low.

If management keeps operating expenses at or piffling than 55% of sales they allow have excess cash. They should in like manner focus on keeping inventory low and the disturbance high. The company has a possible need for external financing, but if the COGS and expenses are managed properly, management seat steer clear of debt. perplexity needs to keep speak to cutting initiatives as the chief(prenominal) focus because this way they can channel excess cash for the 3 projected years. Also, the company should focus on keeping the interlock fixed assets the same because they can support the additive development in sales.If you want to support a salutary essay, parade it on our website: Ordercustompaper.com

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