Campbell competition position and retain in top position of the soup business counter on the base of ratio analysis and financial performance of the company in the past three years. The last three years financial performance of Campbell is shown in the company’s income statement and balance sheet. Campbell income statement indicates the company financial performance is not good because its revenue and sales are declined in the past three years as it income is $774,000, $805,000 and $844,000 in 2012, 2011 and 2010 respectively (Yahoo, 2014). It indicates Campbell financial situation is decreased continuously in the last three years.
Profitability ratio indicates that profit margin of the Campbell is low and low ratio shows the bas position of the company in the food industry. Low profit margin ratio (9.12%) and low operating margin ratio (16.32%) of Campbell compare to standards 12% and 20% respectively presents that company income is low or declined around the world and weak financial position of it in the competitive market. In addition, return on assets ratio (10.83%) and return on shareholder equity ratio (62.08%) of Campbell indicates the positive aspect of the shareholders (Yahoo, 2014). Management efficiency high rate of ratio indicates the company management able to utilize its resources and able to achieve competition position in the market. It indicates the management is performed well but increased in the food prices in the market decreased the operation and profit margin of the company. High return on assets and return on equity ratio represents that Campbell may have lead the industry and remain its top soup business position in the market through effectively run its business or operations and expanding their business globally.