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Ecomm ROI Growth Analysis 2015-2016

Capital employed decreased from 2015 to 2016 due to a decrease in long-term debt, which outweighed an increase in shareholder's equity. The banker's ratio increased from 2015 to 2016 due to an increase in equity and decrease in long-term debt. Sales growth increased significantly from 2015 to 2016, indicating improved profitability, while Mattel saw decreased sales.

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48 views2 pages

Ecomm ROI Growth Analysis 2015-2016

Capital employed decreased from 2015 to 2016 due to a decrease in long-term debt, which outweighed an increase in shareholder's equity. The banker's ratio increased from 2015 to 2016 due to an increase in equity and decrease in long-term debt. Sales growth increased significantly from 2015 to 2016, indicating improved profitability, while Mattel saw decreased sales.

Uploaded by

Joele sh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2015 2016 2016 ( Mattel )

Capital employed $ 3,211,017.00 $ 3,061,415.00 $ 4,542,053

Capital employed decreased from 2015 to 2016 by 4.66%. This reduction was due to a decrease
in LTD (22.52%) which dominated the increase in shareholder’s equity (11.94%). This means
that the company paid some of its long term debt and had a growth in terms of equity.
Compared to Mattel, this number is lower since Mattel is dealing with higher LTD and equity.

2015 2016 2016 ( Mattel )


Banker’s ratio 51.82% 60.85% 53.01%

The banker’s ratio increased from 2015 to 2016 by 17.42%. This raise is generally due to an
increase in equity and/or decrease in long term debt. In our situation, shareholder’s equity
increased (11.94%) and long term liabilities decreased (22.52%). This growth means that our
company is safer compared to last year and compared to our competitor too.

VIII. Growth ratios

2015 2016 Mattel (2016)


Sales growth $ 170,302.00 $ 572,313.00 $ -245,963
Profit growth $ 33,562.00 $86,279.00 $ -51,394
Equity growth $ 198,242.00 $198,834.00 $-225,472

The sales growth has increased by 236.06% from 2015 to 2016 this shows the difference in net
operation revenue between these 2 years and this increase indicates the sign of profitability for
our company while Mattel has a loss in sales which is negative for its existence and profitability.
Our company is showing a significant improvement in its sales which is so good.

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