China Power International Development Limited

• 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

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.

1. Based on your review of the most recent annual financial statements and notes only, briefly assess the company’s performance for this potential investor. (Analyze based on data from Financial reports P71, 73, 74)

The profit margin ratio demonstrates the ability of a company to increase the percentage of net income earned for every dollar of sales. For example: “this ratio shows the percentage of each sales dollar earned as net income”. (Harrison Jr., Horngen, Tomas, 2013) The Hershey Company was able to increase the profit margin ratio from 10 percent in 2012 to 11 percent in 2013. The increase in profit margin from the previous year 2012 shows that the performance of the company is increasing which means that revenue is increasing or expenses are decreasing. Furthermore, The Hershey Company is managing their performance efficiently and this is directly reflected in profit margin ratio.

20.20% in 2011. The company's operating margin has declined 374 basis points (bps) over 2011 which may indicate

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance

The return on equity ratio for the company is -66.01%, K12’s is 3.7%, and the industry is 21.35%, This is another indication that the company is not operating well and that the shareholders are currently not earning from their investments in the company. On the other hand, the competitor -K12- is also operating poorly with comparison to the industry’s average percentage, but it is performing better than Learning Tree International, Inc. Also, using another profitability ratio, which is return on assets. The company’s ratio is -13.3, K12’s ratio is 2.74, and the industry’s ratio is 11.85; consequently, the company has a negative percentage while the percentages for the industry and K12 are positive. So the company is not employing its total asset to generate profit as the same as K12. In short, when comparing the profitability ratios of the company with industry and K12, it shows that the company is in unstable condition with its investors.

The return on capital employed (ROCE) ratio is a profitability ratio that measures how well profits are being generated based on capital employed. RadioShack’s ROCE dropped down to -34% in 2013 in comparison to 10% in 2012. For every dollar of capital employed, RadioShack is losing $0.34. The dramatic dip stems from 2012’s positive earnings before interest and taxes (EBIT) of 155.1 million dollars to 2013’s EBIT of -344 million dollars (see Appendix A for financial statement data). Capital employed is determined by subtracting current liabilities from total assets. In 2013, capital employed decreased by 79 million dollars. ROCE is used to view the long-term profitability of firms (“Financial Dictionary”). A more in-depth trend analysis done over several years would need to be done to determine the longevity of RadioShack.

Profitability ratios are used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For the majority of these ratios, a higher value relative to a competitor’s ratio or the same ratio from a previous period indicates that the company is doing well. The gross profit margin is a measurement of a company 's manufacturing and distribution efficiency during the production process. A company that boasts a higher gross profit margin than its competitors and industry is more efficient. KO has a gross profit margin of 63.86% compared to DPS’s 60.20%. I

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

In 2009, the operating profit was 3.56% which was slightly above than the previous year. After deducting all the expenses, the left amount is the net profit and the proportion of net profit in respect to total revenue is the net profit margin. Sainsbury’s net profit margin for the years 2009, 2008 and 2007 were 1.53%, 1.84% and 1.89% respectively. The management thinks that the tough market condition and the other competitors with very cheap pricing have pushed them to squeeze their profit margin ratio. The graph below shows the Return on Capital Employed as well. The ROCE gives the idea about how much return a company is making on its used capital. (investorwords.com) The ROCE for the company was 9.46%, 7.10% and 7.59% for the years 2009, 2008 and 2007 respectively. The year 2009 proved to be a little bit more in context of return on capital employed.

Clearly, Net profit margin is decreased in 1994. In 1992 it was the highest then it is showing downward trend. It is the only cause which is lowering Return over Equity (ROE).

The above ratios indicates a declining performance for Tesco in 2015. Margins which measures the return of profit on all invested capital has declined significantly and may be as a result of tense competition and other supply chain management issues. ROCE of -23.54% is indicating that shareholders are paying heavily for Tesco’s investment in current assets and

After that, I will present the financial position of the company by analysing its revenue, net operating profit less adjusted taxes(NOPLAT), invested capital and free cash flow, return on investd capital (ROIC) and other ratios. Some fundamental analysis such as its growth trend, capitalised operating lease will also be included.