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Need an argumentative essay on Financial Analysis of Capilano Honey Limited. Needs to be 6 pages. Please no plagiarism.The main competitor of Capilano Honey Limited is Bega Cheese Limited, which is en
Need an argumentative essay on Financial Analysis of Capilano Honey Limited. Needs to be 6 pages. Please no plagiarism.
The main competitor of Capilano Honey Limited is Bega Cheese Limited, which is engaged in producing both natural and processed cheese products. Bega Cheese Limited deals in dairy products, kids snacking and nutritional powders. The components which are necessary to assess the competitive strengths of a company are revenue, EBITDA (earnings before interest, tax, depreciation, and amortization), profit before and after tax, net assets and earnings per share. The revenue of Capilano Honey Limited for the year 2014 was $86,003 only (Capilano, 2014), whereas Bega Cheese Limited provides revenue of $1,069,392 in 2014. The increased revenue of the competitor indicates that Bega Cheese Limited is efficiently managing its business operation and because of that, they are able to generate more revenue than Capilano Honey Limited. The EBITDA of Capilano Honey Limited was $9,054 and that of Bega Cheese Limited was $122,506 in 2014 (Bega Cheese, 2014). EBITDA provides an idea of core profitability position of an organization. As EBITDA of CZZ is less than Bega Cheese Limited, it reflects that the operating profitability of the company is not as good as its competitor (Kaplan & Atkinson, 2015). Therefore, CZZ needs to improve its operating profitability position to maintain its position in the market. Comparing the profit before tax (PBT) and profit after tax (PAT) of both the companies, it has been analyzed that the PBT of CZZ was $6,490 and that of Bega Cheese Limited was $93,580 in 2014 (Bega Cheese, 2014).