Profitability Ratio Of Poh Kong

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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

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