BUNZL COMPANY

Bunzl Company

Bunzl Company

Fiduciary Responsibility

Fiduciary responsibility is one of the most important features within the financial sector. It has been described through Arthur Meidan as "the responsibility of any financial services organisation to guard the interests of its customers". This feature is very vital because if customers wont have the confidence and the trust in financial institutions, then they wont come back. But once they have gained the trust from the customer it is likely that they would remain with the organisation.

Consumers' expectation is that they will be able to rely on well known financial services organisations taking all steps necessary to meet their fiduciary responsibility. As this is very important there is a substantial framework in place to ensure that customers can expect financial institutions to meet their fiduciary responsibility.

Two-way Information Flows

This characteristic emphasises of the contact that takes place between customer and provider and how it is dealt with. We are not talking here about the amount of times a provider speaks with its clients but that such a contact provides the opportunity for the service providers to give and obtain information from the customer that can help in understanding and therefore meeting customers needs effectively.A regular one-to-one meeting could help, so that the provider has the opportunity to obtain substantial amount of useful information about their clients' financial needs.

In order for financial analysts to make investment recommendations, there are a number of factors to be considered. A good reputation or a low stock price is not an adequate indicator of a stock's value or a company's future financial success. Through an examination of a variety of financial ratios and in-depth financial analysis, investors and analysts can gather quantifiable data to compare and contrast with other companies within a similar industry and from that information decipher how well managed a company's finances are.

We have chosen to compare two retailers based upon two key ratios and industry standards. Each company is recognized as a clothing retailer. We shall examine each company's profit margin, current ratio and debt-to-equity ratio. From our analysis we hope to gather enough data that allows us to get a thorough understanding of each company's current financial position and whether or not each would be a wise investment.

Test Of Profitability: Profit Margin Ratio

Profit margin measures how efficiently the company is being managed. It tells how many cents are left over from every dollar of sales. The profit margin ratio "measures the percentage of each sales dollar, on average, that represents profit" (Libby, p. 713, 2004). Bunzl profit margin for 2004 was 7.1%, the Bunzl CompanyCompany had a ratio of 5.6%. MSN's Money Central reports the industry average for the last 12 months to be 4%. Both retail companies are showing good profit margin ratios compared to industry. This means their net incomes to sales revenues are enough to generate a profit as opposed to a loss. A higher profit margin can give the companies a cushion during slower economic ...