Tiffany & CoA Financial Presentation
ByTiffany jewelry life
contents Background of Tiffany’s Financial Analysis
Liquidity Activity Leverage Profitability
Accounting Methods Auditor’s Report Contingencies Employee Benefits Conclusions
Background Founded in 1837 by Charles
Lewis Tiffany There are over 150 Tiffany
& Co. Stores in 17 countries Revenue for the past 12
months is $2,307, 876,000 Little Switzerland & Iridesse Direct Sourcing relationship Design, Manufacture, Sell The main Tiffany’s stores
accounted for 82% of net sales in 2004.
BackgroundProducts
BackgroundProducts
Background
1837 – Non-negotiable Prices 1865 - Civil War Supplier 1873 – Museums 1885 – Great Seal of the U.S. Silver and Platinum Standards 1950-1961 – Breakfast at Tiffany’s (Book &
Movie) 1967 – Super Bowl 2004 – NASCAR
BackgroundCompetitors
A&GARC InternationalBlue NileBrown-FormanBulgariBulovaCartierChanelChristie'sElizabeth ArdenEstée LauderFortunoffArmaniGucciH. SternHermès
Inter ParfumsL'OréalSociété du LouvreLVMHRolexMovado GroupNeiman MarcusNordstromParlux FragrancesRevlonRichard-Ginori 1735
RichemontRoyal DoultonSaks Fifth AvenueShiseidoSignetUnion DiamondVan Cleef & ArpelsWaterford WedgwoodYves Saint-Laurent GroupeZale
Financial Analysis
Liquidity
4.00
2.23
1.25 1.40
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Current Ratio Quick Ratio
Tiffany's & Co2004
Industry 2004
Financial Analysis
Activity
10.48
35.00
17.00
21.50
38.50
6.52
56.00
28.15
13.00
39.00
-
10.00
20.00
30.00
40.00
50.00
60.00
Inventory Turnover Days to sell inventory Receivables turnonver Days to collect AccountsReceivable
Cash Operating Cycle
Tiffany's& Co
Industry
Solvency
0
0.36
0.23
0.30
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Tiffany's & CoIndustry
Long Term Debt to Equity Debt to Assets
Financial Analysis
Financial Analysis
Solvency
12.91
20.10
-
5.00
10.00
15.00
20.00
25.00
Cash Interest Coverage
Tiffany's & Co
Industry
Financial Analysis
Profitability
2.08
3.54
1.48
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Earnings per share
Tiffany & Co 2004Industry 2004Tiffany & Co 2003
Financial Analysis
Profitability
55.8%
13.4% 13.8%
43.9%
14.0%
10.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Gross Margin Operating Margin Net Profit Margin
Tiffany's & Co
Industry
Accounting Methods U.S. Inventory Valuation = LIFO method. LIFO Conformity Rule Foreign Subsidiaries and Japan = Average Cost Depreciation = Straight Line Method. Amortization of Intangible Asset = Straight Line
Method.
Auditor’s Report
The Auditing Firm was PricewaterhouseCoopers LLP
The financial statements were presented fairly and in accordance with the Generally Accepted Accounting Principals.
Qualified Opinion- SFAS No. 123R “Share Based Payment”
Contingencies
Office, warehouse, manufacturing facility, and retail facility Leases.
Routine Litigation
Employee BenefitsHEALTHMedical, Dental, Vision, and Prescription Drug Plan
RETIREMENTRetirement Savings [401(k)] Plan (with company match) Pension PlanEmployee Stock Ownership Plan
DISABILITY BENEFITSLong Term Disability PlanShort Term Disability Plan
SURVIVOR PROTECTIONGroup Term Life InsuranceAccidental Death & Dismemberment InsuranceBusiness Travel Accident InsuranceSupplemental Group Term Life Insurance
Conclusions I would invest in the Firm. Gross Profit Margin is considerably
higher than the Industry average. Net Profit Margin is greater than the
Industry Average. I would seek employment in this firm
Recap Background of Tiffany’s (1831) Financial Analysis
Liquidity Good Activity Good Solvency Good Profitability Good
Accounting Methods LIFO and WAC
Auditor’s Report - PricewaterhouseCoopers LLP Unqualified Opinion
Contingencies New Accounting Standards, New Assets, Paying off debts, Accelerated
Depreciation, Stopping development Employee Benefits
Health, Retirement, Disability, Survivor Protection Conclusions
Invest Yes Job Yes
