Corporate-finance-partC.docx

# Net profit margin net profit sales rm 100399000 rm

• 7

This preview shows pages 2–5. Sign up to view the full content.

Net profit margin = Net Profit Sales RM 100,399,000 RM 793,655,000 × 100 = 12.65% RM 150,248,000 RM 933,099,000 × 100 = 16.10% RM 147,091,000 RM 1,043,120,000 × 100 = 14.10% Inari Amertron Berhad In 2014, the gross profit margin for Inari is 19.95% which means 19.95% of the sales generated are utilized for the cost of goods sold. In 2016, 20.75% of the sales generated are used to finance the cost of goods sold. The operating profit margin in 2014 indicates that for every RM1 of sales, RM0.14 is left after taking into consideration of the cost of goods sold and operating expenses. In 2016, for every RM1 of sales generated, RM0.15 is left after deducting the cost of goods sold and operating expenses. As for the net profit margin, in 2014, for every RM1 of sales the company produces, RM0.12 is created for the shareholders. In 2016, for every RM1 of sales the company generates, RM0.14 is created for the shareholders. Activity Ratios 2014 2015 (Rights Issue) 2016 Asset turnover = Sales Total Assets RM 793,655,000 RM 497,175,000 = 1.60 times RM 933,099,000 RM 836,683,000 = 1.12 times RM 1,043,120,000 RM 875,795,000 = 1.19 times Inventory turnover = Cost of GoodsSold Inventory RM 635,298,000 RM 137,832,000 = 4.61 times RM 736,047,000 RM 145,318,000 = 5.07 times RM 826,715,000 RM 164,641,000 = 5.02 times Account receivable turnover = Sales Account Receivable RM 793,655,000 RM 123,147,000 = 6.44 times RM 933,099,000 RM 134,203,000 = 6.95 times RM 1,043,120,000 RM 151,155,000 = 6.90 times

This preview has intentionally blurred sections. Sign up to view the full version.

Assets turnover of 1.60 times in 2014 indicates that for every RM1 of asset owns, Inari can generate RM1.60 of sales. In 2016, the company able to create RM1.19 of sales for every RM1 of asset owns. The inventory turnover of 4.61 times in 2014 means that the assets were replenished 4.61 times in a year, which is equivalent to stocks being turned over once every 79 days (365÷4.61). In 2016, the inventories were restocked 5.02 times in a year, in other words, once every 72 days (365÷5.02). Inari’s receivables turnover in 2014 is 6.44 times which signaled that on average, the receivables were fully collected 6.44 times during the year or once every 56 days (365÷6.44). In 2016, the receivables were fully collected 6.90 times on average or once every 52 days (365÷6.90). Solvency Ratios 2014 2015 (Rights Issue) 2016 Debt-to-equity ratio = Total Debt Total Equity RM 238,608,000 RM 258,567,000 × 100 = 92.23% RM 301,593,000 RM 535,090,000 × 100 = 56.36% RM 194,787,000 RM 681,008,000 × 100 = 28.60% Debt-to-asset ratio = Total Debt Total Assets RM 238,608,000 RM 497,175,000 × 100 = 47.99% RM 301,593,000 RM 836,683,000 × 100 = 36.05% RM 194,787,000 RM 875,795,000 × 100 = 22.24% In 2014, Inari’s debt-to-equity ratio is 92.23% indicates that 92.23% of shareholders’ equity is used to finance the assets. In 2016, 28.60% of the shareholders’ equity is used to finance the assets. Debt-to-asset ratio of 47.99% in 2014 showed that total liabilities constitute 47.99% of Inari’s total assets whereas in 2016, the total liabilities accounts for 22.24% of the company’s assets. EG Industries Berhad Profitability Ratios 2014 2015 (Rights Issue) 2016 Gross profit margin = Gross Profit Sales RM 31,783,000 RM 993,376,000 × 100 = 3.20% RM 33,993,000 RM 636,075,000 × 100 = 5.34% RM 50,702,000 RM 712,689,000 × 100 = 7.11% Operating profit margin = Operating profit Sales RM 15,104,000 RM 993,376,000 × 100 = 1.52% RM 32,832,000 RM 636,075,000 × 100 = 5.16% RM 31,440,000 RM 712,689,000 × 100 = 4.41%
Net profit margin = Net Profit Sales RM 2,284,000 RM 993,376,000 × 100 = 0.23% RM 26,355,000 RM 636,075,000 × 100 = 4.14% RM

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.
• Summer '17
• ms lau
• Finance, Revenue, Financial Ratio, Generally Accepted Accounting Principles, INARI AMERTRON BERHAD

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern