1.1 (10%) (Kasper)
Explain which internal and external factors have had an impact on Søstrene Grenes Holding APS’s financial development:
When looking into the financial development of Søstrene Grene, there are some internal and external factors that have contributed positively to their growth of around 50%.
One of the internal factors has contributed positively to this growth is their expansion of stores, which has increased ten times throughout the years.
1.2 (15%) (Kasper)
Analyse how the internal and external factors have influenced the development in the index figures for earnings and asset use efficiency (capital adjustment) from 2015/16 to 2017/18. The key figures can be found in Appendix 1 of the Excel file:
Søstrene Grene Holding APS’s net revenue has doubled from approximately 440.000.000 DKK in 2015/16 to almost 900.000.000 DKK in 2017/18, which means that the net revenue increased 104 percentage points.
The return on equity shows that the owners have achieved a return on the capital that they have invested in the company.
From the financial year 2016/17 to 2017/18, the return on equity increased by 68%, while increasing from 31.9% in 2015/16 to 41.3% in 2017/18, which ends up being an increase of 9.4 percentage-points or a total of a 29% increase throughout the period.
The actual equity has a larger percentage increase from 2016/17 to 2017/18 and leads to the large increase in return on equity.