Ted Baker Plc Ratio Analysis Essay Example | Topics and Well Written Essays - 1250 words

Ted Baker Plc Ratio Analysis - Essay ExampleThe P/E ratio for Ted baker Plc shows that the phoner has 1 worth of annual- per partake in boodle for every 17.4 in the share price. The companys P/E ratio is lower than that of the companies in the same firmament.This ratio reveals the percentage of dividends paid to shareholders in dividends. Ted baker Plcs dividend payout is 39.92% of the win per share and the retail apparel industrys average for dividend payout is 20.93%, therefore the company has more potential for investment in terms of dividend paid by the company.The gross coast assesses the companys profit after accounting for production and distribution costs. The companys gross margin is 59% of the total turnover, which is slighter than the industrial average for this ratio. This shows that the company is incurring less cost of sales than the other companies in the industry, which is influencing its gross margin of profit.The ope localise margin is assesses the profitabi lity of a company after accounting for all told the operating costs. The operating margin for the retail apparel sector is showing as negative, whereas the operating margin for Ted baker Plc is 16.5% of the total turnover. It is much attractive for an investor to invest in a company with high profit margins.The Earning Per Share analysis is important for the investors who are beted in the market of price of companys shares. The EPS of Ted baker Plc is higher than the sector average, therefore has potential for investment than the other companies in the industry.EPS GrowthSectorTed baker Plc97.1120.7The Earning Per Share of Ted baker Plc is growing at a slower rate than that of the industry. This shows that although the company has offered more EPS than the other companies in the same sector for the year 2005, but it has a much slower growth rate of EPS than its competitors in the industry. Dividend per shareSectorTed baker Plc0.030.108The dividend per share paid by the company is more than that of the other companies in the sector. Therefore, Ted baker Plc offers investment potential for the investors that invest in the company to gain return out of dividends paid by company. Dividend estimate YieldSectorTed baker Plc2.412.49The dividend yield ratio is calculated by comparing the in style(p) dividend paid by the company with the current market price of the companys shares. The dividend yield of Ted baker Plc is almost the same as paid by the other companies in the industry. Interest expense coverageSectorTed baker Plc108.6676.71This ratio reveals the ability of a company to cover its interest expense after accounting for all the operating costs incurred by the company. Ted baker Plcs interest cover ratio is lesser than the sector average. In the year 2005, the company generated returns of about 76.71% of the total interest expense, not enough to cover the interest even a single time.CONCLUSIONAfter the above analysis, it is clear that Ted baker Plc off