Dutch lady financial ratio analysis

Thus, no diluted EPS in Dutch Lady Milk Industries Berhad can be interpreted that there were no reduction of the basic earnings per share for every share issued. This is because 1.

Thus, duringDutch Lady Milk Industries Berhad is able to pay dividend which is more than the net profit as they have plenty of cash in hand.

From the chart above, we can see that the trend of the quick ratio is similar with the trend of current ratio.

Analysis Of Dutch Lady Milk Industries Berhad Finance Essay

However, there are certain industry like auto manufacturing industry has higher debt-equity ratio due its high capital intensive industry. Basically, net profit is the key indicator for the company performance. As mentioned earlier, the reduction in cost of goods sold is the main reason of the increment in net profit.

Dutch Lady Milk Industries Bhd.

Diluted earnings per share seen as a bad thing for the shareholders because it will reduce the amount of the basic EPS that belongs to their stock.

However, high PE ratio may bringing the risk of overprice by investor. Quick Ratio Higher figure shows the business has enough quick assets to cover its short-term debt immediately. It also believes in product innovation and commitment to its consumers, which lead it to a constant efforts to improve its processes in order to serve its customers with high quality nutritious products.

Gross profit Gross profit is the sum left after revenue minus the cost of goods sold. Security analysts use financial ratios to compare the strengths and weaknesses of various companies.

Dutch lady milk industry berhads financial statement analysis

In booming economic condition, the volume will be high as investor and speculator are busy involved in transaction. For long-term outlook, keeping the shares is still better then selling them. This also shows that the company has the ability to pay up their liabilities and due to this its shows that this company has a low financial risk where the percentage of debt ratios is decreasing after the coming year.

For example, let say the share price for a company is RM The main reason of Dutch Lady Milk Industries Berhad has higher debt to equity ratio is due to the increasing of current liabilities. Both business firm has no problem to cope with the short-term debt.

Financial Statement Analysis of Dutch Lady

It is a good sign for a company, as it is considered as a sign of healthy and growing company. On that day, the share price is dropped from RM This is because company has higher current liabilities in Base from the calculation, it was show that the net profit margin is decrease from 8.

Dutch Lady Milk Industries Bhd.

For example, company shares the benefits of milk to more than 30, school children annually by participating in the Programe Susu 1 Malaysia PS1M. Thus, quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.

Diluted earnings per share seen as a bad thing for the shareholders because it will reduce the amount of the basic EPS that belongs to their stock.

For Dutch Lady Milk Industries Berhad, the share prices generally keep increasing start from mid of until In terms of leverage, both business firms has high leverage as quite a lot of money is borrowed to financed their business operation.

Refer to table 2. Net Profit Margin Higher ratio is better because it shows the reducing in expenses or cost in producing sales. The products of Dutch Lady Malaysia are all halal-certified whereby Muslim can consume their products without worrying. Besides that, 5 years ratios are computed to look at the trend of the performance and justifications will be made.

Comparing with industry indicator, Dutch Lady Milk Industries Berhad is a well performer as its profit margin is beyond the industrial standard which is Nestle M Berhad net profit margin is only 8.

Dutch Lady Milk Industries Bhd.

From the chart above, we can see that the current ratio of Dutch Lady Milk Industries Berhad keep increasing from 1. Return on assets RoA declines from Brand awareness is important to encourage customer buy the product.This table contains critical financial ratios such as Price-to-Earnings (P/E Ratio), Earnings-Per-Share (EPS), Return-On-Investment (ROI) and others based on Dutch Lady Milk Industries Bhd's latest financial reports.

According to these financial ratios Dutch Lady Milk Industries Bhd.'s valuation is way below the market valuation of its sector.

The EV/EBITDA NTM ratio of Dutch Lady Milk Industries Bhd. is significantly lower than its historical 5-year average: FINANCIAL RATIO ANALYSIS 1. Liquidity Ratios The Current Ratio Year Current ratio 2 Documents Similar To financial report Dutch lady.

Dutch Lady Milk Industries Berhad in Malaysia is a Manufacturer of Full Range of Dairy Products. Uploaded by/5(7). chose is Dutch Lady Milk Industries Berhad (DLMI). Dutch Lady Milk Industries Berhad (DLMI) is incorporated in and operating based on dairy business. Dutch Lady is the first dairy company who listed in Bursa Malaysia and the top three companies in Malaysia which produce dairy product.

According to these financial ratios Dutch Lady Milk Industries Bhd.'s valuation is way below the market valuation of its sector. The EV/EBITDA NTM ratio of Dutch Lady Milk Industries Bhd. is significantly lower than its historical 5-year average: In conclusion, Dutch Lady Milk Industries Berhad Malaysia's liquidity has becomes better from the year to Although the current ratio has decrease from to which is from times to times but the ratio increases from year to which is from times in year raise to times in year

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Dutch lady financial ratio analysis
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