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