Case Study Of DG Khan Cement Company

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

David Jones’ gross profit margin for the past three years has remained stable with minimal fluctuations. The following calculated figures are for the year 2010, 2011, 2012, and 2013; 39.73%, 39.10%, 37.50% and 37.8% respectively. Such an observation is desirable as it is indicative that the company is financially stable as it is generating enough income to cover its operating expenses and make savings. It suggests that the industry in which the company operates has not experienced drastic economic fluctuations that can affect the company’s cost of goods sold. However,

If the company decided to sell the new product at price of D.Cr. 8.20, that means the full fixed expense of 1.20 is covered and the company will make high profit. However, the selling price of D.Cr. 8.20 is very high and under this price the company will sell the new product at a lower volume than what the company planned sale volume in the budget and that will affect the company in the market as a strong competitor in the food manufacturing. According to the case, the company sales volume drop to 30 tons when the product was sold at the price of D.Cr. 8.2. Thus, my recommendation are as follows:

A typical Gross profit margin depending on the industry may be 25 to 30%. Nucor’s Gross profit margin ratio indicates that industry is intense and cost of goods is one of the main of factor in profitability. After examining the five year

The gross profit margin for CC is right around the industry average. Although the numbers seems to be decent, the costs of goods sold are too high. Next, looking at the operating profit margin, the numbers don’t look as great as they should. The numbers are low compared to the industry average in years 2001, 2004, and 2005. This may indicate that CC should look into their prices and costs. In 2001 the net profit margin was very low compared to the industry average. I am assuming this is due to the major expansion. It is also important to look more deeply into the numbers though because the net profit margin is lower compared to the industry average in all of the years. Once again CC should look into their costs and how efficient they are converting sales into actual profit.

Gross profit of 60% has not increased much over past three years it will affect

The gross profit margin is a critical indicator for a retailer and it is slightly increase to 30.38 % in 2012 from 29.27 % in 2011. The reason of increase is due to selling price and increase by 7%. This indicated Next plc is able to control its discounting strategy very well. The total mark down cost of next directory and retail is only 0.6 % of overall sales.

DMC needs to identify their main business problems and develop a new strategy along with procedures to address it. Although DMC had grown into a multi-billion dollar company and regularly ranks in the top of the industry, gross margins have decreased steadily between 2010 and 2012. Depicted the Table 1 below, margins ranged from a net income loss of $2.6 billion in 2010, $1.7 billion in 2011, down to just $940 million.

The company facing the different competitive situations between the products, gross margin of values are maintained at 35% and produce in standered.

GC3 financials show that they had a gross margin of $110,580 and went up to $111,922 in 2013 (Great Cups of Coffee, n.d.). From 2013 to 2014, you also see a decrease in long-term debt to equity ratio. When having a lower debt to equity ratio, demonstrates financial health for the company. Keeping a gross profit margin of 50% is every company’s goal (Smith, n.d.). Currently, GC3 has a gross profit that is less than the

Presentation generally, developed industry trend. Cooper tire has notable increase in profit margin during 2011 to 2012 totalled 76% and attain the best results during period of 100 operations Cooper year 2012 and margin experiences slight drop of 3% in 2013 but still it have been deposited with margin 15 and bring profit that is strong. meanwhile for industrial market leader Goodyear, Bridgestone and Michelin instead showed stable comparison increase totalled 15%, 8% and 1% margin their gross profit respectively. To back ratio, income statement 2011, 2012 and 2013 will be

As show in the graph above, Debel’s operating profit is consistently follows industry trends. The drop in year 12, the peak in year 16, and the valley in year 17 are due to exchange rate adjustments. Debel’s drop below industry average beginning in year

In 2017, the firm had a higher percentage of cost of sales in term of revenue than 2016, the cost of sales was 30.11% which was higher than 2016 for 0.21%, that means the firm’s gross margin in 2017 (69.89%) will also lower than the gross margin in 2016 for 0.21%. Burberry had a higher net operating expenses in 2017. The net operating expenses was 55.63% which was higher than 2016 for 1.56%, that also lower the operating margin, therefore the operating margin for the firm has decreased from 16.02% to 14.26% (-1.76%).

GP ratio was decreased to 18.02% in 2014 from 21.49% (2013) mainly due to energy crisis (The Nation, 2014) and political instability in the country (Dawn, 2014). Although sales increased as compared to 2013 but the increase in cost due to hike in the price of resources like energy and prices of raw material

(BESSONG, 2012) Study the importance of historical value and fair value cost accounting on reported profit. The study discussed how fair value accounting and historical cost accounting will have effect on the reported profit. However it is said that key objective of any business is to earn profit and it is also equally important to report the profit. Especially it is more important to record profit carefully during inflationary period. However they have study the reported profit and effects of fair and historical value by collecting data from both primary and secondary source. Therefore it is found that historical and fair value both is equally important and both have significant effect on the reported profit. Therefore operating profit of the company is influenced by the amount that is paid for taxes, dividend and depreciation.