Financial Ratio Analysis Victoria s Secret - 1706 Words

Financial Ratio Analysis In review of Victoria’s Secret’s financial ratios, it can be concluded that they are capable of fulfilling consumer demands and maintain financial stability. Liquidity Measures ratios advocates that Victoria’s Secret is also capable of sufficiently paying for its liabilities as well as invest assets in a tactical way. Net Working Capital to Total Assets show that Victoria’s Secret is able to turn assets and cover their short term liabilities efficiently. Fixed Asset Turnover for Victoria Secret indicates that they know how to use their fixed assets effectively towards its sales revenues. They have the capability to generate $4 to $5 of sales for every $1 that is invested into the fixed assets. Debt/ leverage†¦show more content†¦Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attrac tive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d). Victoria’s Secret have focused on important segmentations such as women from the ages of 18-34 yrs. who are looking to feel confident and sexy and men who shop for their wife or girlfriend in hopes to promote confidence and fun fantasy as the market segments for lingerie and undergarments would be the best to effectively target the ideal consumer for this product. Noting that the average age of consumers is between the ages of 18 – 34 yrs. among middle class women. Industry information gathered also revealed that 61% of consumers are female and 39% are male who generate 46% of sales in bras and 22% in panties. Financial Analysis 8 Segments that are vital to Victoria’s Secret success are the VS stores and direct sales which includes the online Victoria’s Secret website. Research found on Victoria’s Secret net sales worldwide in both segments from 2011 to 2015 shows steady growth over time with both global net sales and direct segment totaling nearly $1.5 billion in US dollars. The Statistics PortalShow MoreRelatedFinal Analysis of Victoria Secret1755 Words   |  8 PagesFinancial Analysis of Victoria Secret 7 Final Analysis of Victoria Secret Karissa Keller Colorado Technical University Financial Statement Analysis Professor Alan Fowler September 18, 2014 INITIAL ASSESSMENT INCOME STATEMENT ANALYSIS Victoria Secret appears to be a profitable company. Victoria Secret is part of L Brands whose operating income was at $ 211 million, up by $24 million from the last quarter. 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