So, I love graphs! As I am still getting a handle on the meaning of each of the economic drivers I thought, why not pop it in a graph to see if it shows me anything interesting visually rather than in numbers. I’m glad that I did. While I believe that I have touched on them above I thought it best to confirm that I think the economic drivers for Britvic are the return on equity and asset turnover. It appears that Britvic are very good at generating profit from their shareholders equity and have done this consistently for the four years. What I can’t help but wonder is; do they do this because this is their only option? This graph also confirmed for me what I knew from the start in the fact that Britvic have a high asset turnover which means that they deploying their products quickly and in high volumes. While I believe this is due to the nature of their business (retail) it definitely helps Britvic look good in an investors eyes because they are constantly turning over their products and generating revenue. However it appears that they are still not generating enough revenue to start paying back their debts hmm….
Looking at this graph the key economic drivers for Britvic are definitely the return on equity (use of investors money) and asset turnover (generating sales revenue).
How is your company fairing? I’d love to compare!