D'Leon Inc. Case Study

EXECUTIVE SUMMARYD?Leon Incorporated is a sm some(prenominal) victuals producer that specializes in high-quality pecan and other nut products change in the snack-foods market. In 2004, D?Leon?s president, Al Watkins, unflinching to under arrive at a major(ip) refinement to become to a greater extent competitive within their market. The following account statement describes few of the fiscal effects that this expansion has had on the company. D?Leon began its expansion by doubling its sow capacity, opening new-fangled sales offices, and investing in an pricey advertising campaign. Watkins felt up that they had superior products to the competition and that he could delegacy a agio price for their products to result in increase sales, scratchs, and stock price. The results, however, were unsatisfactory. gross sales were below and costs were above all initial projections. These results rear raised questions about the expansion and as well as caused concern among the Board of Directors and the major shareholders about the future of the company. take leave I of this report analyzes D?Leon?s financial statements from 2004 and 2005. It describes many of the effects of the expansion on the financials of the company and some of the problems that come arisen with their current financial position. Net run profit fall, just operating working superior and total operating capital have shown increases. Sales had a considerable increase, hardly illuminate income ebbd.

D?Leon?s financials also indicated a decrease in cash flow due to the company expenditure more cash than they were taking in. These changes are subsequently resulting in decreased stock prices and a deteriorating financial ! position which is concerning both wariness and shareholders. Part II of this report discusses the ratio synopsis of D?Leon?s financial statements. It begins by explaining the five major categories of financial ratios: Liquidity, Asset Management, Debt Management, Profitability, and Market Value. While most of the 2005 ratios have shown remarkable declines... If you want to get a full essay, tell it on our website: OrderEssay.net

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