Peformance Assessment

Abstract

Percentage Change in [Name] Table 1: A Table Showing the Percentage Change in Revenue. 2016 2017 2018 2019 2020 [Author] [phone]1[phone]49 515872 Percentage Change in [Author] -13.23 -7.39 5.43 -13.83 The Operating Profit Margin for 2016 to 2020 Table 2: A Table Showing the Operating Profit Margin for 2016 to 2020 2016 2017 2018 2019 2020 [Author] [phone]1[phone]49 515872 Cost of Sales [phone]30 [phone]04 366107 Selling General and Administrative expenses [phone]23 [phone]10 134860 Operating earnings 17106 -49542 -29426 -1865 14905 Firm Operating profit margin -8.08 -5.18 -0.31 2.89 Describe the trend in the firm’s revenue over the years 2017-2020. Table 1 shows an unstable revenue trend of the firm over the years 2017 to 2020. The percentage change in net sales in 2017 was -13.23 meaning that there was a decrease in the total revenue for the year 2017 when compared to the revenue of the year 2016. In the year 2018, there was also a decrease in revenue by a rate of -7.39%. In the year 2019, there was a notable increase in the percentage change in net sales to 5.43%. However, there is a decrease in the percentage change in revenue as shown by the rate of -13.83%. Therefore, we can conclude that the revenue of the firm is decreasing over the years 2017 to 2020. How does the firm’s ability to create value for its market (i.e. to generate revenues) compare with the overall industry average? Table 3: A Table Showing the Comparison of Firm and Industry Average Revenue Growth Rates 2016 2017 2018 2019 2020 Firm’s Percentage Change in [Author] -13.23 -7.39 5.43 -13.83 Industry Revenue Growth Rate -3.8 -4.4 1.7 -6.7 The firm is also operating below the industry average revenue growth rate as shown in table 3 above. The comparison between the firm and the industry revenue growth rate implies that the firm’s current strategic choices are not creating a competitive advantage for its sustainability and performance. The average economic performance of the firm is decreasing. Describe the trend in the firm’s profitability over the years. Table 2 shows that the firm’s profit margin for the year 2016 was 2.42%, meaning that the...