TED BAKER PLC

Ted Baker Plc

Ted Baker Plc

Introduction

This paper focuses on the financial status of Ted Baker plc for 2 years that are 2010 and 2011. This study will describe the importance of choosing the right strategy. Internal and external analysis of Ted Baker plc is made in order to maintain the status as the low cost apparel, footwear and accessories. It includes the model of the strategy in use. Ted Baker plc is one of the leading apparel, footwear and accessories companies in UK which offers a very reasonable price, making the company the leader in low cost.

Company Introduction

Ted Baker is a designer brand engaged in the design, wholesale and retail of its collection including menswear, womenswear, global, formal, endurance, born; accessories; lingerie and sleepwear; childrenswear; fragrance and skin wear; footwear; neckwear; eyewear and watches. Ted Baker Plc operates through the following three main distribution channels that are retail, wholesale and licensing. Ted Baker Plc operates retail stores and concessions across the UK, Europe, the U.S. and Hong Kong and an on-line business based in the United Kingdom and a separate site dedicated to the Americas. Ted Baker Plc operates a wholesale business in the UK serving 15 countries across Europe and a wholesale business in the United States (Ted Baker, 2012). The strategic choice of Ted Baker plc makes the company a leader in the industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Ted Baker plc shows the set of managerial decisions and actions that determine the long run performance of a group. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control (Ted Baker, 2012).

Financial Overview

The financial performance of Ted Baker plc shows that the major portion of the assets is comprised of liabilities; which is a good indication for the company as the company's short term and the long-term debts are stable. In addition to this, the company's equity seems good or satisfactory, and it is high as compare to the liabilities. Moreover, the total assets per share and net assets per share reflect that the Ted Baker plc 's assets structure is in good shape which shows that the company can meet its financial obligations that is liabilities, if some sort of financial loss occur. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short-term financing, obtaining rotations and time of collection and payment means.

Key Financials

(In GBP as of 01/29/2011)

Income Statement

Revenue

188m

Net Income

17m

EPS - Net Income - Diluted

0.42

Revenue per Share

4.52

Balance Sheet

Total Assets

117m

Total Liabilities

41m

Shareholders' Equity

76m

Total Assets per Share

2.81

Net Assets per Share

1.83

Cash Flows

Cash from Operations

18m

Cash from Investing

-11m

Cash from Financing

-8m

Cash Flow per Share

0.43

Source: Annual Report

Financial Ratio Analysis

As it is known that the most important factors in the well being of a business, is to see how the ...