Profit margin trend between stilsim and competitor

Info icon This preview shows pages 25–29. Sign up to view the full content.

Profit Margin trend between StilSim and competitor. The profit margin of StilSim’s has been showing a decline since 2013 with a difference of 6.2% less from 2014 to 2015, and a projection of 2.4% from 2015 to 2016. In the other hand, the StaffAces has been showing a dramatic reduction in profit margin, working on almost half compared to StilSim. In the past three years, StilSim profit margin demonstrated a considerable decline of 10.8% since their last rise, which was from 2011 to 2012. Strength or Weakness . Analyzing the profit margin of StilSim, I can assure that the decline of 10.8 in the in the past three years is alarming, and it poses a weakness situation that needs to be addressed
Image of page 25

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

STRATEGIC PORTFOLIO Page 26. immediately. Even though the competitor StaffAces has not been showing a huge raise, they have been increasing their profit margin little by little. This is another good reason to reinforce the need of a strategic plan implementation for StilSim to change positively this scenario . ROA & ROE comparisons between StilSim and competitor. The analysis of return on assets is conducted to measure how profitable a company is compared to its assets, and it also demonstrates how efficiently the management uses its assets to generate earnings. To calculate it, you would need to use the company’s annual earning and divide it by its total assets. According to the numbers of StilSim balance sheet, I can conclude that the company is declining on its ROA and ROE, which means that the management of the company needs to be reorganized, whereas; the competitor’s balance sheet has been demonstrating a slight growth since 2011, in other words; it means that the company has a good management, and the company has been growing. The StilSim ROA has dropped 12.7% since the last growth, which was in 2012, whereas StaffAces had a growth of 3.2% since 2012. Strength or Weakness The situation showed with the ROA & ROE of StilSim tells me that the company is not making a profit and that the management of the company is not doing their job properly. Even though StaffAces has been showing a slight growth, you can be sure that the company is growing and that they are making the right move. Branch profitability comparison. To illustrate the branches profitability comparison, the graphs below will give us an idea of where we stand. The profit margin, revenue, labor and expense growth, will provide the perfect idea of how we are doing and how our branches are succeeding, and the places we are not, we will be able to place a well-planned strategy.
Image of page 26
STRATEGIC PORTFOLIO Page 27. 2011 2012 2013 2014 2015 2016 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Revenue Growth Cap City Lakeside Mountainview 2011 2012 2013 2014 2015 2016 2.8% 2.4% 2.0% 0.9% 2.2% 3.7% 0.0% 0.9% 1.1% 1.5% 2.4% 0 -0.01 0.01 Labor Expense Growth Cap City Lakeside Mountainview
Image of page 27

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

STRATEGIC PORTFOLIO Page 28. 2010 2011 2012 2013 2014 2015 2016 2017 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Profit Margins Total Cap City Lakeside Mountainview Implications.
Image of page 28
Image of page 29
This is the end of the preview. Sign up to access the rest of the document.
  • Summer '17
  • StilSim

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern