Carpetright plc financial comparison Coursework

Carpetright plc financial comparison - Coursework Example Mohawk Industries is a company in the US producing floor covering products for commercial and residential applications lines distributed in the United States and Europe. It has a total of 36,200 employees and a recent reported market capitalization of. 1.77billion US dollars. It has total outstanding share of 68.4million US dollars. Carpetright specializes on floor covering and has more than 300 stores all over Great Britain. It is based in United Kingdom, sells and retails a range of carpets, rugs, vinyl and laminates together with associated accessories. Recent addition to their line of business is linoleum and wooden floorings. As of 2007, the company has 3,273 employees. Recent financial figures of Carpetright shows market capitalization of 402.69M, with a total share outstanding of 67.2M The growth rates, price ratios, profit margins, financial condition, investment returns, management efficiency as of 2007 year end and a ten year summary of financial data of these companies will be presented in tables to show relative relation of Carpetright with the others on the same industry. First, we will have the price ratios of the three carpet makers in the market. Price earning ratio gives us the valuation ratio of the company’s current share price compared to it’s per share earning. In this case, current ratio is 6.2 for Carpetright, and for the carpet industry, 7.6, Mohawk has no available figure. With P/E ratio investors expect a higher earning growth compared to a company with lower P/E. Comparing the P/E ratio of Carpetright to the industry on a 5 year level, Carpetright maintains a high P/E. Investors should not base investment decisions on P/E measures alone, as Investopedia says the earnings is based on an accounting measure of earnings that is susceptible to manipulation. Being so, rightful decision should