D'Leon Inc. Case Study

EXECUTIVE SUMMARYD?Leon Incorporated is a sm both(prenominal) aliment producer that specializes in high-quality pecan and other nut products exchange in the snack-foods market. In 2004, D?Leon?s president, Al Watkins, inflexible to under weigh a study refinement to become to a greater extent competitive within their market. The following promulgate 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 spick-and-span sales offices, and investing in an pricey advertising campaign. Watkins mat that they had superior products to the competition and that he could delegacy a bounteousness price for their products to result in increase sales, doughs, and stock price. The results, however, were unsatisfactory. sales were below and costs were above all initial projections. These results meet 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 any(prenominal) of the effects of the expansion on the financials of the company and some of the problems that collect arisen with their current financial position. Net in operation(p) profit fall, just operating working superior and total operating capital have shown increases. Sales had a considerable increase, alone illuminate income cliffd.

D?Leon?s financials also indicated a decrease in cash flow due to the company outlay more cash than they were taking in. These changes are subsequently resulting in d ecreased stock prices and a deteriorating fi! nancial position which is concerning both wariness and shareholders. Part II of this report discusses the ratio epitome 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, bless it on our website: OrderEssay.net

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