Five year report for the JD sports Coursework Example | Topics and Well Written Essays - 3250 words

Five year report for the JD sports - Coursework ExampleThe accompanys business model involves significant reliance on acquisition and organic growth. Cash flow from investing and financing activities properly reflect the strategies adopted. The company has tardily broadened its services to Spain, France and Ireland by acquiring fully and partially owned subsidiaries. The business model may be practically supported by 2012 results which show that 67% of cash used in investing activities relate to acquisition of brands.The regular losses in re-measurements, revaluation and impairment of assets raise certain questions on the viability of the companys depreciation and asset management policies. The exceptional items are seen at almost steady amounts throughout the 5 years period under review. The executable reason for such losses seem to be acquired assets which need to be revalued and losses recognized.The exist controls at JD Sports seem managed and properly monitored. The 2008 gro wth of cost of gross sales at 8% was lower than the growth in sales of 12%. This shows, apparently, a strong cost controlling mechanism working at JD Sports. The cost growth of 2009-2023 seems to be in line with the growth in revenue showing a direct relationship between cost and revenue. This further illuminates the near direct cost control system of JD sports which maintains the levels of earnings and expenses as much as possible.The gross margin growth is relatively steady due to a linear increase in sales and cost of sales. The companys performance, however, can be appreciated in keeping the costs stable and and then the gross profit.The operational margin in 2011 is 9% as compared to the competitor, Marks & Spencer, at 8.6%. Moreover, the operating margin in 2012 is 7.2% as compared to the Marks & Spencers operating margin at 7.5%1. This shows that comparing to the competitor no significant fluctuations have been observed in the trend. In aggregate, the operating margin bef ore exceptional items seems sort of stable and