Profitability Ratio The gross profit margin of Poh Kong in year 2014 had increased from 24.88% to 24.91% in year 2015 and then decreased to 24.25% in year 2016. This indicates that the financial health of Poh Kong is good from year 2014 to 2015 but it retrogressed in year 2016. The net profit margin of Poh Kong in year 2014 had increased from 1.67% to 1.80% in year 2015 and had dropped to 1.42% in year 2016. This shows that the net profit obtained from net sales is increased from year 2014 to 2015 but decreases from year 2015 to 2016. Form year 2014 to 2015, Poh Kong’s return on assets had increased 0.3%, from 1.67% to 1.97% and decreased to 1.48% in year 2016. Poh Kong is more effective in using its assets to generate earning before the obligation paid from year …show more content…
It helps Poh Kong to secure the standard and quality of the products and lower down the production cost such as saving cost on rental fee, increase in profit earning. It helps to enhance customer satisfaction. Weakness Traditional branding strategy The overall branding strategy for Poh Kong is more traditional compared to others modern jewelry brand such as Tiffany & Co. Its brand name is better known by the generation X but not younger age group consumers since the price is not affordable for younger generation. Their purchasing power is much lower than generation X. Lack of outlets Poh Kong has no any outlet located at West Malaysia but that area is also having high demand of Poh Kong products. Those who live at West area are only available for online platform to purchase. Although online platform available for West area, but it will be limited to consumer’s selection because someone might like to try the product physically and those products are having high value is not available for online transaction. Opportunity New product design and enhanced customer
2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.
• 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
The gross profit margin and operating profit margin also suffered at 29.5 % (23.49%) and 5.8% respectively (Morning Star, 2014).
Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit
First of all, return on asset (ROA) is a ratio used to measure how efficient a company generates profit using its assets, which is the invested capital. We noticed that HH’s ROA was increasing from 2006 to 2010. However, HH’s ROA for 2011 dropped dramatically from 18.41%(year
J. Net profit margin ratio is 5.04% means the company makes 5 cents profit for every dollar it generates in revenue or sales.
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.
IFP, Indonesia profit margin ratio is above the industry average. This could be resulted from the company able to press the operational cost as low as they could. Labour cost in Indonesia is as low as USD 4 per day.
The 5 year average for Operating Margins is 15.61% over the industry average of (-2.22%). I would once again reference that the operating margins are high because of HD’s foot hold in their industry which is also echoed in their Net Profit margin ratio of 7.86% over the industry comparison of (-0.48%). Comparisons for Pre-Tax Margin Ratios are 12.5% to the industries (-0.46%). This is a good indication
In 2015, CAH earned $102,531,000,000 in revenue and in 2014 earned $91,084,000,000 in revenue. In 2015, CAH COGS were $96,819,000,000 and in 2014 were $85,923,000,000. “A gross profit margin is the difference between sales and the cost of goods sold divided by revenue. This represents the percentage of each dollar of a company 's revenue available after accounting for cost of goods sold.”
The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net profits after taxes despite the fact that there was a slight decrease in revenues.
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 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%).
Old Chang Kee (OCK) commenced its commercial history as a café in 1956 in Mackenzie Road, and had been prodigiously known as offering “Rex Curry Puff”. Han Keen Juan, had determined to buy over the brand and further establish a MNC for OCK. With the objective to produce high-quality hygienic curry puff with favorable flavor, a standardized manufacturing process and merchant vision was implemented to achieve speedier merchant success. In 1992, as a Managing Director, William Lim took in control of the corporation and introduced innovative thoughts, marketing strategies, and management to capture the fast-changed client tastes. (Oldchangkee.com, 2016).
Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue.