A level Case Study
.zip file containing all required file for the case…including the excel file for calculation…
Charles Voegele is a Swiss company which operates in stores in Austria, Belgium,
Germany, the Netherlands and Switzerland selling clothes to the general public.
More than half of the sales are ladies’ fashion, a third men’s fashion and the
remaining proportion is children’s clothing.
In 1999 the company opened operations in Belgium and the Netherlands
During 1999 venture capitalists placed Voegele shares on the Swiss and Frankfurt
stock exchanges and the publicly available share exceeds 88%. The shares were
issued at a price that was at the lower end of expectation due to market conditions
the management view this as fortunate in the long term in that the share price could
develop favourably in comparison with share indices. This is seen as an important
feature given past experience of flotations in Switzerland such as that of Tag Heuer
which was floated in 1996.
At the year end of 31 December 2000 the number of stores had increased by 26%
and the floor area by 27.1% compared with the previous year.
In calculating ratios for Voegele, you should use ‘net sales’ for ‘sales’, ‘interest
charge’ should be taken as the three items between EBIT and EBT in the Income
Statement, ‘Trade payables’ should be used to calculate the creditors age, and all
the ‘Long term liabilities’ in the balance sheet (including provisions) should be used
for ‘long term liabilities’.
The Income Statement is presented according to International Accounting Standards
(IAS), so it does not include dividends paid or payable. Also, IAS/USA terms tend to
be used in the Income Statement and Balance Sheet.