Investment Analysis for Jewellery BusinessExecutive SummaryBabushka’s Baubles is a company producing jewellery at the budget end of the market and has seen a sharp decline in its financial position, in 2008. Despite this, sale levels are consistently high and gross profit margins are healthy. This report has uncovered potential problems in the costs attached to inventory such as administration and also in the way that the working capital is managed.However, the investors are confident that the company has a positive future and is, therefore, maintaining an earnings-to-price ratio which is far higher than the industry average.IntroductionThis report aims to give a summary of the position of Babushka’s Baubles as reflected in the accounts of the company, year ending September 2008, with reference to the accounts for the previous year. The aim of the report is to provide investors with a snapshot of the current financial position of the company and to draw conclusions in relation to the previous period.
