D'Leon Inc. Case Study

EXECUTIVE SUMMARYD?Leon Incorporated is a sm both food producer that specializes in high-quality pecan and other nut products sold in the snack-foods market. In 2004, D?Leon?s president, Al Watkins, decided to concentrate a major ending to become to a great extent competitive within their market. The following account statement describes a few(prenominal) of the pecuniary effects that this expanding upon has had on the company. D?Leon began its expansion by doubling its fertilise capacity, opening new gross revenue offices, and investing in an costly advertising campaign. Watkins felt that they had passkey products to the competition and that he could bureau a premium expense for their products to result in profit sales, profits, and stock price. The results, however, were unsatisfactory. Sales were to a lower place and costs were above totally initial projections. These results digest increase questions close to the expansion and as well as caused refer among the Board of Directors and the major sh arholders about the future of the company. take forsake I of this report analyzes D?Leon?s financial statements from 2004 and 2005. It describes whatever of the effects of the expansion on the financials of the company and some of the problems that stupefy arisen with their current financial position. interlocking operating profit fall, scantily operating working tiptop and total operating ceiling have shown increases. Sales had a considerable increase, but solve income diminish.

D?Leon?s financials overly indicated a decrease in cash flow delinquent to the company spending more than cash than they were taking in. These changes are subsequently resulting in decreased stock prices and a deteriorating financial position which is concerning both solicitude and shareholders. Part II of this report discusses the ratio analysis 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. magic spell most of the 2005 ratios have shown strange declines... If you want to get a full essay, order it on our website: Orderessay

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