1 / 14

Luxottica Group

Luxottica Group. Luxottica Group Megan Gomes ACG2021-002. Executive Summary.

catrin
Download Presentation

Luxottica Group

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Luxottica Group Luxottica Group Megan Gomes ACG2021-002

  2. Executive Summary • The Luxottica Group is made up of three different world-renown eyeglass wear companies. The performance of retail chains LensCrafters, Sunglass Hut and those of OPSM Group, especially in terms of profitability, was above that of the rest of their respective markets. Their wholesale division further strengthened its competitive position in key eyewear markets worldwide, confirming the strength of a portfolio that includes some of the most recognized house and license brands, including the most recognized sun and prescription brand in the world, Ray-Ban. • http://annual-report-2004.luxottica.com/print-risultati_en.asp

  3. Part A. Introduction • Chief Executive Officer: Luca Biondolillo • Location of home office: Milano, Italy • Principal Products: The Luxottica Group is the leader in optical and sunglass wear in North America and Asia Pacific. • Europe remains it’s overall powerhouse for whole sale business.

  4. Part A. Audit Report • The company has not released the names of the independent auditors as of right now. • Due to the fact there was no information on the auditors, there is no opinion to what they would say on the company.

  5. Part A. Stock Markey Information • 52 week high: 28.80 • 52 week low: 19.60 • Dividends per share: .28 annually • According to the information received, I would BUY a share as an investment

  6. Part B. Industry Situation and Company Plans • In my opinion, I feel that this company is booming. Their stocks are up, and show no signs of weakening. If I were an investor, I would without a doubt invest my money in this stock. • The companies future plans are to continue to expand worldwide. They have been around since the late 60’s and tend to keep on growing into a powerful cooperation. • The letter to the stockholders states that 2004 was their “best year to date”. The CEO plans to keep the business at a continual, yet steady and successful growth rate. • http://annual-report-2004.luxottica.com/files/AR2004_GB-Full.pdf • http://today.reuters.com/stocks/overview.aspx?ticker=LUX.N

  7. Part C. Income Statement • This format is most like a single-step format • It is clear to see that the profits are climbing. The increase from these charts shows a bright future for this company.

  8. Part C. Balance Sheet • Assets= Liabilities + Stockholders’ Equity • 2003: 1,323,278+1,374,534=2,687,812 • 2004: 1,316,753+ 1,495,607=2,812,360 (In Euros) • The balance sheet was clear to show that everything involved with these calculations has increased. The stockholders’ equity account has changed the most.

  9. Part C. Statement of Cash Flows • Cash flows are more than doubled from operations over the coarse of 2003 and 2004. • The company is growing through investing activities such as buying property to put factories on world wide. • The companies primary source of financing is stock sales • Overall, cash has increased over the past two years (2003&2004).

  10. Part D. Accounting Policies • There are no significant accounting policies relating to revenue recognition, cash, short-term investments, inventories and property plant equipment.

  11. Part E. Financial Analysis Liquidity Ratios • Working Capital: 2003-.958; 2004-1.099 • Current Ratio: 2003- 1.00; 2004- 1.28 • Receivable turnover: 2003- 2004- • Average days’ sales uncollected: N/A • Inventory turnover: 2003- 2004- • Average days’ inventory on hand: N/A • From the information provided, I was able to calculate the working capital and the current ratio. Both show a steady increase.

  12. Part E. Financial Analysis Profitability Ratios • Profit Margin: 2003- 9.4%; 2004- 8.8% • Asset turnover: 2003- 4.7%; 2004- 5.8% • Return on assets: 2003- 1.3%; 2004- 1.4% • Return on equity: 2003- 4.1%; 2004- 5% • The only decrease this area shows would be the profit margin. Although it was not a significant drop, it still effects the companies overall income.

  13. Part E. Financial Analysis Solvency Ratio • Debt to equity: • 2003- .916 • 2004- .841 • Debt to equity has decreased due to the increase in Total Equity.

  14. Part E. Financial Analysis Market Strength Ratios • Price/Earnings per share: • 2003- .60 • 2004- .64 • Dividend Yield: • 2003- .210 • 2004- .230 • The price/earning per share has increased therefore pushing up the dividend yields.

More Related