CHAPTER 8

Case Study 3—Ratio Analysis

Cuthbert & Co is an established menswear retailer that also offers bespoke tailoring services. The company runs its operations from downtown Manhattan premises and offers an extremely high level of customer service. Cuthbert & Co have discerning customers who are willing to pay premium prices and take advantage of exceptional credit terms (60 days) that are available only after $75,000 of purchases have been made in one transaction or over a 12-month period.

Clothes NOW! is a recent start up created by two friends from a leading New York business school. The company specializes in low cost but fashionable menswear and has a limited range which is updated every quarter. Clothes NOW! operates from a self-service ...

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