Financial Analysis
1.Profitability As for net profit margin, the industry’s average margin in 2010 was 13%, while VYP had net profit margin – 7,2%, so it is not profitable enough in comparison with other companies, but this rate is reasonable enough, as company has a market share of 1,4%, which means it doesn’t have advantage on scale. In 2011 net profit margin of VYP amounted to 7,3%, that means that 7,3 pence of every pound is profit. In 2011 in comparison with 2010 sales revenue of the company had growth amounted to 7,900 pounds, which means VYP took actions to increase sales revenue (launched drama series). Though the company had a drop in operating profit margin from 12,1% in 2010 to 11,8% in 2011, it is quite successful, but has increasing overheads. 2. Risk position Interest coverage ratio of the company amounts to 25,4 which This equation provides the company with an extremely high margin of safety. Appendix 6. Profit and Margin for 3 variants of actor’s salary. НОМЕР!!!)
*) 40%*£2,800+60%*£4,800=£4,000
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