Final Essay Example | Topics and Well Written Essays - 2000 words - 4

Final - Essay Example The company commenced its manufacturing and retail operations over 40 years ago, and according to the message from the CEO, Jules Di Bartolomeo, the company’s operations still continue to do well up to today. There is a lot of more innovation that the company gets from the fact that it has remained in manufacturing for a long time rather than if it was outsourcing and just being in retail. This is because manufacturing keeps the company struggling to keep up with the ever changing technology, hence increasing innovativeness and improvements in the line of products. Those companies that major in oversees products, majorly the company’s competitors, do end up filling the market with copied products, hence lack of innovativeness. Looking at the income statement, the company had a gross profit of 70.29% in 2012 and 70.92% in 2013. This shows that the company’s expenses such as cost of goods sold decrease as its income increased. Looking at the operating expenses, the company had 42.01% in 2012 and 40.46% in 2013. This again shows that the company has engaged in ways that are able to reduce its cost of operations in order to maximize on the operating income. The great reduction in the cost of operation therefore led to an increase in net income to up to 30.46% in 2013 from 28.28% in 2012. The god performance of the company by reducing its cost of operations made it to record an income before taxes of 1.79% in 2013 from 0.10% only in 2012. This shows a great improvement in the company’s income before taxes which therefore increases the company’s ability to meet its short term financial obligations. Even though the tax liability increased from -0.61% in 2012 to 0.27% in 2013, the net income of the company has still proved to increase despite it all. The net income therefore increased from 0.71% in 2012 to 1.52% in 2013. The company therefore closed the 2013 year with a net income of 1.51% after the