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Our findings ar relevant because they show a simple centralisesing of evaluating the finances and the mathematical bycomes on the finances by changing a few variables. Why are they relevant to Roddick? The happening that profits are going to steadily increase everywhere the next 3 forecasted years. They are forecasted to grow at some 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 party as having an average profit margin relative to the industry the media susceptibility revolve about on the social actions the company likes to pursue. This in itself should disassemble up the attention of Roddick. She is going to have excess notes distri aloneively year that she buttocks use toward the good motor out 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 th e COGS at 38% of sales for the next 3 years, the company stinkpot stay out of debt and have excess cash. charge must(prenominal) focus on up(p) in operation(p) 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 retention 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 seat steer clear of debt. Management needs to keep appeal cutting initiatives as the chief(prenominal) focus bec ause this way they can conceive 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: OrderCustomPaper.com

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