EAST COAST YACHT

COMPANY

Group – II
Gurpreet Kaur
Navjot Kaur
Jasmine Kaur Gujral
Content
 Introduction
 Overview
 Strategic Initiative
 Company’s Vision and Mission
 Ratio Comparison
 Recommendations for 20% Growth
 Thoughts on the Company’s Financials
 Would you Consider working in this company
 Conclusion
Introduction

East Coast company was established by

Larissa Warren a decade ago.

This company is a producer of midsize

and high-quality performance yachts
for clients.
They are well known for its safety and
reliability.
Overview

Products
The company offers wide variety of
yachts.
Luxury Yachts

Sports Yachts

Fishing Boats
Market Segments East Coast Yacht Company targets:

Yacht Luxury Adventure

Events
Enthusiasts Travel and Sports
Strategic Initiative

The strategic initiative of this company includes

their high marketing but also eco-friendly yachts by
enhancing customer services.
 Vision
The mission of East Coast Company is to
make midsize and high-quality yachts to
meet customer satisfaction and by
ensuring their safety.
Mission
The mission of East Coast Company is to exceed
the customer’s expectations by designing and
manufacturing high-performance yachts.
Ratios with Industry Comparisons
Calculate Ratios Industry Ratios
Current Ratio 0.76 1.43
Quick Ratio 0.44 0.38
Total Asset Turnover 1.79 0.85
Inventory Turnover 23.34 9.15
Receivable Turnover 35.61 11.81
Debt Ratio 0.49 0.52
Debt – Equity Ratio 0.95 1.08
Equity Multiplier 1.95 2.08
Interest Coverage 6.27 8.06
Profit Margin 7.49% 6.98%
Return on Assets 13.4% 10.53%
Return on Equity 26.2% 16.54%
Ratios With Industry Comparisons
Ratio's comparison with Industry

The company’s profit margin is more than the industry it simply shows that the company
makes more money from its sales.

As East Coast’s ROA is higher than the industry median it means the company is using
their assets more efficiently.

ROE is higher than the industry which means the company is better at generating profit
from shareholder’s equity.
 Recommendations on 20%
Growth

Spend Increase Launch Work

Company can spend Company can The company can The company can
money on increase launch new work with its new
marketing and sales profitability if they products and vendors and
to gain new clients. cut expenses like services to its suppliers to grow
waste reduction and customers. the business.
improve the
production process.
 Current Ratio - Low current ratio suggesting
Thoughts on Company's East Coast Yachts might struggle to meet short-
Financial term obligations using its current assets.
Quick Ratio – Quick ratio is higher than
industry which mean company can cover its
immediate debts.
Total Asset Turnover – The company is
generating revenue efficiently by using its
assets.
Inventory Turnover – The company is
successfully controlling the inventory rather
than industry.
Receivable Turnover – The company is
successfully collecting its debts.
Debt Ratio - As the company's debt ratio is below the industry average, there is less debt total in its
capital structure. This means it reduces risk to the finance.
Debt–Equity Ratio - Compared to its competitors, the company has a lower debt-to-equity ratio,
which could assist in reducing interest rates and financial risk because it represents a lower
dependency on debt financing.
Equity Multiplier - There is a balanced use of debt and equity financing, and the return on equity is
modestly more than the industry average
Interest Coverage - The company's interest coverage ratio is below the industry average, covering
its interest payments. Compared to others in the sector, it is not as capable.
Profit Margin - The business is better at converting income into actual profit, as shown by the
higher margin of profit over the industry average.
Return On Assets (ROA) - A higher return on assets (ROA) above the industry average shows that
the company is making better use of its assets to make a profit.
Return On Equity (ROE) - Due to its excellent profitability and efficient use of shareholders' equity,
the company's return on equity (ROE) is higher than the industry average.
However, there are some concerns regarding company's capacity to pay short-term
obligations because of the liquidity ratios, particularly the current ratio.

The company’s leverage ratios reflect a serious approach to debt, which reduces
financial risk but may limit potential growth that could be supported by further debt.

East Coast Yachts maintains impressive profitability and productivity policies, showing a
solid financial position. The organisation must expand its current ratio to increase
instant liquidity and continue using its operational skills to maintain its reputation in the
market.
WOULD YOU
CONSIDER
WORKING FOR
THIS COMPANY?
Working at East Coast Yacht requires an in-depth review of the company’s financial
standing and other aspects of quality that may impact your growth and level of job
satisfaction.

 East Coast Yachts expects its in-depth net income in 2023 to be $17,413,466
increasing from $1,38,77,140 in 2022. This growth shows strong performance and
future earnings potential.

 The company leads many of its competitors by its profit margin of 8.16%, which is
higher than the industry average of 6.98%. Profit margin growth can result in high
business reinvestment as well as possibly improved employee perks and salary.
 In comparison with the industry average of 0.85, the company's total turnover of
assets of 1.79 is greater. This suggests that East Coast yachts generate sales by
making the most of its assets.
 With a 20% sustainable growth rate, east coast yachts shows great progress. Many
opportunities for skill development, career promotion, and involvement in projects
can arise from high growth rates.

 The company's inventory turnover ratio, which is 23.34 as compared with the
industry average of 9.15, shows that it controls its inventory very well. Reducing its
holding cost and stock wastage.
 The organization seems to be in a strong position in the industry based on its ratios.
Your professional reputation will be better when you worked for a leading company
also it will open door to your future job opportunities.
Based on detailed analysis, East Coast Yacht
maintain high profitability, operational efficiency
and growth potential. The company is well-
managed and has a bright future. Moreover, the
increased ratios show that the company is
financially stable.