Veuve Clicqout - Return Dynamics Analysis

Return Dynamics analysis

Veuve Clicqout showed volatile and unstable ROE and ROA during past 3 years while its competitors kept these figures at the same rate or demonstrated stable growth. Such volatility has caused by significant changes in Net Earnings which were less stable than VC's Revenues and Gross Income due to the various accounting decisions and other factors. Based on ROE decomposition let's analyze the components of VC's performance compared with its main competitors.

The two largest champagne producers demonstrated the average ROE level of 5.8-9.6% during 1963 and 1964 with Veuve Clicquot suffering levels lower than 5.0%. In 1963 Veuve Clicqout showed strong profit margin growth from 11.6% to 13.0% - higher than the average industry level. With the large deferred tax repayment VC drops its profit margin to 4.79% in 1964, which was the main factor of the 2.6 times ROE decrease this year (from 4.71 to 1.81%). We cannot state that net profit margin fairly represents the financial position of VC. It would be better to investigate operating results compared with the industry leaders. Since such an important data is missing, let's analyze net profit margin within the scope of gross profit margin and net income to gross income ratio.

Return Dynamics analysis

Veuve Clicqout showed volatile and unstable ROE and ROA during past 3 years while its competitors kept these figures at the same rate or demonstrated stable growth. Such volatility has caused by significant changes in Net Earnings which were less stable than VC's Revenues and Gross Income due to the various accounting decisions and other factors. Based on ROE decomposition let's analyze the components of VC's performance compared with its main competitors.

The two largest champagne producers demonstrated the average ROE level of 5.8-9.6% during 1963 and 1964 with Veuve Clicquot suffering levels lower than 5.0%. In 1963 Veuve Clicqout showed strong profit margin growth from 11.6% to 13.0% - higher than the average industry level. With the large deferred tax repayment VC drops its profit margin to 4.79% in 1964, which was the main factor of the 2.6 times ROE decrease this year (from 4.71 to 1.81%). We cannot state that net profit margin fairly represents the financial position of VC. It would be better to investigate operating results compared with the industry leaders. Since such an important data is missing, let's analyze net profit margin within the scope of gross profit margin and net income to gross income ratio.

Return Dynamics analysis

Veuve Clicqout showed volatile and unstable ROE and ROA during past 3 years while its competitors kept these figures at the same rate or demonstrated stable growth. Such volatility has caused by significant changes in Net Earnings which were less stable than VC's Revenues