Sunday, December 29, 2019

Analysing the performance of the Kamdar BHD business in Malaysia - Free Essay Example

Sample details Pages: 6 Words: 1932 Downloads: 5 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Kamdar Sdn Bhd was established in Malaysia since 1972, and has since achieved a dominant position in the garment and textile departmental store industry. The Kamdar brand stands for quality of service, history and value for money. Kamdar stores specialize in textile fabric, furnishing fabric, in-house designed garments for ladies, men and childrens clothes, Indian clothing and school uniforms. Don’t waste time! Our writers will create an original "Analysing the performance of the Kamdar BHD business in Malaysia" essay for you Create order In 2004, Kamdar Group (M) Berhad was established as the holding company for the group in order to facilitate its listing on the main board of the KLSE. After more than 50 years of growth, Kamdar has 21 outlets around Malaysia and employs about 1,200 staff. Ratio Analysis What is Ratios Analysis? Ratio analysis is a tool used by individuals to compute a quantitative analysis of information in a companys financial statements and evaluate the performance of company. According to Groppelli, Angelico A., In finance, a financial ratio or accounting ratio is a ratio of two selected numerical values taken from an enterprises financial statements. There are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Comparison Ratio analysis is generally calculated from current year numbers and then used to compare the performance or position of a single company with other companies or with an industry. Trend analysis is compared the companys current performance with previous years or even current performance against the budget. It is use to identify the companys strength and weakness with financial situation. Besides that, it acts as a guide for manager to improving with proper action. Industry comparison is compared the companys performance with the competitors companies which is similar nature companies or with the industry average. It is helps to point out deviation from norms in industry. The users of ratios analysis are group of people which related with company such as investors, employees, lender, suppliers, customers, government and public. Financial ratios can be divided into 5 categories: Profitability Ratios Measure the overall effectiveness of the company. It can help an organization manage the funds such as increase the return with control the expenses. Liquidity Ratios Measure how quickly an organization can obtain the cash to meet its short-term requirements. Which means ability of an organization generates revenues to cover the obligations. Capital Structure Ratios Analyses how assets financed. Means assess the firms long-run ability to meet its obligation. Asset Management Ratios Measure efficiently and intensively a firm uses its assets to generate sales. Market Value Ratios Measure the market value for companys stock compared with accounting values. But it can only calculate for shares that are traded in the market. Ratio Analysis for the Kamdar Group (M) Berhad: Formula: 2008 2007 Profitability Ratios :- Gross Profit Margin = Gross ProfitÃÆ'Æ’-100% Sales = 68,343,838ÃÆ'Æ’-100% 182,416,634 = 37.47% = 62,576,977ÃÆ'Æ’-100% 177,442,850 = 35.27% Operating Profit Margin = Earnings Before Interest TaxÃÆ'Æ’-100% Sales = 19,683,440ÃÆ'Æ’-100% 182,416,634 = 10.79% = 18,544,992ÃÆ'Æ’-100% 177,442,850 = 10.45% Net Profit Margin = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Sales = 8,481,844ÃÆ'Æ’-100% 182,416,634 = 4.65% = 7,918,897ÃÆ'Æ’-100% 177,442,850 = 4.46% Return on Assets (ROA) = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Tota l Assets = 8,481,844ÃÆ'Æ’-100% 295,336,768 = 2.87% = 7,918,897ÃÆ'Æ’-100% 289,549,467 = 2.73% Return on Equity (ROE) = Net Earnings Available to Common StockholdersÃÆ'Æ’-100% Common Stockholders Equity = 8,481,844ÃÆ'Æ’-100% 151,992,341 = 5.58% = 7,918,897ÃÆ'Æ’-100% 143,510,497 = 5.52% Return on Capital Employed = Operating ProfitÃÆ'Æ’-100% Capital Employed (*Capital Employed = Total Assets Current Liabilities) = 19,683,440ÃÆ'Æ’-100% 174,741,198 = 11.26% = 18,544,992ÃÆ'Æ’-100% 229,418,962 = 8.08% Liquidity Ratios :- Current Ratio = Current Assets Current Liabilities = 127,341,176 120,595,570 = 1.06 times = 123,842,363 60,130,505 = 2.06 times Quick Ratio = Current Assets less Inventory Current Liabilities = 28,978,154 120,595,570 = 0.24 times = 35,171,965 60,130,505 = 0.58 times Capital Structure Ratios :- Total Debt to Total Asset Ratio = Total Long-Term Debt + Current LiabilitiesÃÆ'Æ’-100% Total Asset = 143,344,427ÃÆ'Æ’-100% 295,336,768 = 48.54% = 146,038,970ÃÆ'Æ’-100% 289,549,467 = 50.44% Long Term Debt to Equity Ratio = Long-Term Debt ÃÆ'Æ’-100% Total Shareholders Equity = 22,748,857x 100% 151,992,341 = 14.97% = 85,908,465x 100% 143,510,497 = 59.86% Times Interest Earned = Earnings Before Interest Tax Interest Expense = 19,683,440 4,630,469 = 4.25 times = 18,544,992 5,192,861 = 3.57times Asset Management Ratios :- Average Collection Period = Account ReceivableÃÆ'Æ’- 365 days Credit Sales = 7,218,271ÃÆ'Æ’- 365days 182,416,634 = 14.44 days = 8,347,582ÃÆ'Æ’- 365days 177,442,850 = 17.17 days Inventory Turnover = Inventory ÃÆ'Æ’- 365 days Cost of Sales = 98,363,022ÃÆ'Æ’- 365days 114,072,796 = 314.73 days = 88,670,398ÃÆ'Æ’- 365days 114,865,873 = 281.76 days Average Payment Period = Creditor ÃÆ'Æ’- 365 days Purchases (*Purchases = Cost of goods sold) = 5,124,727ÃÆ'Æ’-365days 114,072,796 = 16.40 days = 7,547,495ÃÆ'Æ’-365days 114,865,873 = 23.98 days Total Asset Turnover = Sales Total Assets (*Total Assets = Capital Employed) = 182,416,634 295,336,768 = 0.62 times = 177,442,850 289,549,467 = 0.61 times Market Value Ratios :- Earnings per Share (EPS) = Earnings Available to Shareholders Number of Ordinary Shares (*units) (*given by notes 25.b) = 8,771,828 198,049,026 = 4.4 sen / share = 8,348,542 197,990,002 = 4.2 sen / share Dividend per Share = Dividend Paid Number of Ordinary Shares (*units) (*given by notes 26) = nil (*did not declare dividend) = 4 sen Dividend Cover = Earnings per Share (EPS) Dividend per Share = nil (*did not declare dividend) = 4.2 sen 4.0 sen = 1.05 times Price Earning (P/E) Ratio = Market Price per Share Earnings per Share (EPS) = RM 0.200 RM 0.044 = 4.55 times (*Market Price as at 31/12/08) = RM 0.530 RM 0.042 = 12.62 times (*Market Price as at 2/1/08) Dividend Yield (% return of invest) = Dividend per share ÃÆ'Æ’- 100% Market Price / Share = nil (*did not declare dividend) = RM 0.040ÃÆ'Æ’- 100% RM 0.530 = 7.55% Performance Evaluation Profitability Ratios In order to analyze the profitability of the Kamdar Group (M) Berhad, we will look into several profitability ratios. The gross profit margin at year 2008 is at 37.47% higher compare to year 2007 is at 35.27%. This could be either at year 2008 has selling the product at a higher price or the purchasing cost at year 2008 is lower than year 2007. The operating profit margin for year 2008 is at 10.79% however for year 2007 is at 10.45%. This is indicated that the company has control the expenses at reasonable level, selling has increase with higher rate than expenses. Return on total assets ratio (ROA) for year 2007 is 2.73% increasing to 2.87% at year 2008. It is represents management has use assets efficiently and effectively ways to generate their profit and sales compare with year 2007. Return on equity (ROE) for year 2007 is 5.58% increasing to 5.52% at year 2008. It is represents the company has use the investors money to generate profit with more efficie ncy. Liquidity Ratios The current ratio and the quick ratio help to access the liquidity position of the company. The current ratio at year 2008 is lower at 1.06 times compare to year 2007 at 2.06 times. The quick ratio for year 2008 is 0.24 times comparing to year 2007 at 0.58 times. Both this ratios indicate that year 2007 has a better liquidity position compare to year 2008, because at year 2008 the increasing in current assets is less than increasing in current liabilities Thus, ability to handle their short-term obligation of year 2008 are poor than year 2007. Capital Structure Ratios The total debts to total assets ratio is lower for year 2008 at 48.54% compare to year 2007 which is at 50.44%.The long-term debts to equity ratio is 14.97% comparing to year 2007 at 59.86%. This indicate that year 2007 is more highly geared which means that quite a high proportion of a financing come from debts. In other words, Kamdar Group has improving the financing at year 2008. Th e time interest earns is higher for year 2008 at 4.25 times compare to year 2007 which is at 3.57 times. This indicates that there are more earnings available to meet interest payment and business is more stable to reduce the interest rate. Asset Management Ratios The average collection period for year 2008 is 14.44 days compare to year 2007 which is at 17.17 days. The ratios indicate that the year 2008 has strong credit management compare to year 2007. The stock turnover period for year 2008 is 314.73 days for year 2007 is 281.76 days. We can assume the Kamdar Group has estimated that the sales volume will increase at following year. The creditor payment period is shorter for year 2008 at 16.40 days compare to year 2007 which is at 23.98 days. This ratio indicates that company has sufficient cash to settling debts in time. At year 2008, company generates a higher sale at 0.62 times for every Ringgit invested in assets however at year 2007 only generate 0.61 times. Company has improving the efficiency to uses of its assets to generate revenue. Market Value Ratios The earnings per share of year 2008 is at 4.4 sen compare to year 2007 which is at 4.2 sen. Year 2008 earns a higher return per share. When we look at dividend per share, at year 2007 paid out RM0.04 for every share but at year 2008 company did not declare any dividend for every share. The dividend shown the dividend cover at year 2007 is 1.05 times but year 2008 never have dividend cover because company did not declare dividend. Therefore, the P/E ratio for year 2007 is 12.62 times but year 2008 is only at 4.55 times. Limitation of Ratio Different Accounting Policies Since the ratios are based on the figures taken from the financial statements, the results of the ratio analysis are dependent on the quality of the underlying statements. The choices of accounting policies may distort intercompany comparisons. For example, different company may use different depreciation method such strait-line method or reducing balance method, it may affected the figure in financial statement. Creative accounting The financial statement is very easy to manipulating. Company may manipulate the financial statement and trying to show the better financial performance or position which can be misleading to the users of financial accounting. Interpretation of the ratios Ratios need to be interpreted carefully and take time to understand it. It is difficult to generalize about a performance condition of particular ratio. It should not be considered in isolation. It is meaningless without making comparison with others. Rat ios are not definitive measures Ratios can provide clues to the companys performance or financial situation. Ratios cannot show whether performance is good or bad. It is just only guides for the users to estimate condition of company in future date. Historical or outdated information in financial statement The figures in a set of accounts are likely to be out of date, and so might not give a proper indication of the companys current financial position. It was represented in the conditions that ignore the economics issue. Different financial and business risk profile No two companies are the same, even when they are competitors in the same industry or market. Using ratios to compare one company with another could provide misleading information. Businesses may be within the same industry but having different financial and business risk. One company may be able to obtain bank loans at reduced rates and may show high gearing levels while as another may not be successful i n obtaining cheap rates and it may show that it is operating at low gearing level. To uninformed analyst he may feel like company two is better when in fact its low gearing level is because it cannot be able to secure further funding. Different capital structures and size Different size of companies may have different capital structures. Make comparison of performance when one is all equity financed and another is a geared company it may not be a good analysis. Conclusion Ratio analysis is useful, but analysts should be aware of these problems and make adjustments as necessary. Kamdar Groups ratio analysis shown it is growth in stable and health condition. The revenue earned by group has increased over the year. Companys total short-term debt has increasing because the company was converted part of long-term borrowing to short-term borrowing in order to reduce the total long-term debt. It can be help to survive in long run business especially economic slowdown period, but company will facing high gearing level in following year. It may affect investors to continue investing in the company. Based on the P/E ratio, the current investors will start to lose their confidence in the share of the company and choose to reduce the amount of investment in the company. Due to the continuously decreasing in the P/E ratio, it will be difficult to attract the new investors and it may cause the share price to be decreased. A slowdown in the stock exchange will affect the overall sales of the company. Therefore, the profit that earned by the company will be reducing. As a result, the dividends that paid to the stockholders will decrease. This will cause the current investors does not have confidence in the stocks and also make the stocks to be unattractive to the new investors.

Saturday, December 21, 2019

Why Stalin Emerged as the Sole Leader of the U.S.S.R. and...

Why Stalin Emerged as the Sole Leader of the U.S.S.R. and Not Trotsky Trotsky was a leading Bolshevik and played a pivotal role in the revolution, persuading Lenin to delay the revolution until the Bolshevik’s had a much stronger place in the country. He also was crucial to the civil war, as he organised the troops and motivated them. Stalin on the other hand was in charge of all the dull jobs within the Bolshevik party and In Lenin’s last Testament, he was referred to as rude and he needed to be removed. So why did Stalin, and not Trotsky emerge as Lenin’s successor. It’s a mixture of Stalin’s luck and skill, and Trotsky’s misfortune, which will be explained in the following paragraphs.†¦show more content†¦These Were:  · Factionalism  · The N.E.P.  · Socialism In One Country/ permanent Revolution  · His Power Base Factionalism was the Idea that if a member of the party discusses ideas which did not have the majority vote by the party. There were 2 main Ideas about the N.E.P. , these were the left wing and the right wing. The left wing said it should go and the right wing said it should stay as it would aid Industrialisation, as it allowed free trade to sell goods on the open market which would give money into the open market. Stalin’s powerbase was due to him being the general secretary, who was in charge of recruiting people, so when the Lenin enrolment scheme was introduced, Stalin recruited â€Å"malleable recruits who wouldn’t be impressed by Trotsky’s intellect. This was skill on Stalin’s part, but also a mistake on Trotsky’s behalf, as he had paid no attention previously to Stalin, calling him a â€Å"grey blur† Permanent Revolution was the idea that Russia would change, but at the same time help other countries to change and receive their help. Stalin had an opposing idea to this, which was socialism in one country, which was basically that Russia revolutionise on it’s own with no input from other countries. 1924 was the first stage of the power struggle When Zinoviev, Kamenev and Stalin sided against Trotsky, as Zinoviev and

Friday, December 13, 2019

Human Population Growth Free Essays

The two types of population growth of any species are exponential growth and logistic population growth (Simon, Reece and Dickey, 2010). Exponential population growth is defined as the rate of which a population grows constantly over a period of time resultant of continuous birth rate and ideal environmental conditions. In other words, the quality and quantity of resources is available at an overall higher standard, (Otherwise, 2012). We will write a custom essay sample on Human Population Growth or any similar topic only for you Order Now The second type of population growth is logistic population growth. Most environments do not have unlimited resources. Limiting factors such as â€Å"carrying capacity† come into play. Carrying capacity is an environment that sustains a maximum population size (Simon, Reece and Dickey, 2010). When the population size begins to reach carrying capacity, there is a decrease in growth rate. When the population size is at its maximum for carrying capacity, it yields a zero growth rate (Simon, Reece and Dickey, 2010). As the population grows it can cause a number of serious problems such as food-scarcity, overcrowding, poverty, increased consumption, excess waste, and exploitation of natural resources such as land, water, fossil fuels, and vegetation. The combined effects of population growth, consumption, overuse, wastage and misuse of resources will strain the capacity of the earth to sustain life (Simon, Reece and Dickey, 2010). Human population exceeding its natural resources will limit access to basic needs such as adequate housing from overcrowded areas as lack of space will become evident. Building materials require resources such as timber from forests which results in deforestation. Means of transport require more consumption of fossil fuels, thus pollution of air, land and water result from greenhouse gas emissions. Scarcity of food and potable water will incur as more mouths to feed require agricultural production, also a result in deforestation, thus the need for increased water usage, and the application of pesticides and fertilizers that make the soil infertile and water scarce and non-potable. Generation of waste increase will require critical attention to proper waste management in order to prevent the spread of disease or epidemics (Simon, Reece and Dickey, 2010). Population will rise most rapidly in places least able to handle it, developing nations where hunger, political instability and environmental degradation are already pervasive (Otherwise, 2012). Massive efforts are in great need to keep social and economic conditions from deteriorating further. When the number in population exceeds the natural resources available to sustain it, there will be a profound effect on the overall quality of life and the degree of human suffering on Earth. How to cite Human Population Growth, Papers

Thursday, December 5, 2019

Examination of Cohesiveness Strategies

Question: Discuss about the Examination of Cohesiveness Strategies. Answer: Introduction: The patient having the capability to consent can decline the health care treatment even it contradicts the recommendation of the medical expert. The patient may at any time withdraw the consent either orally or by writing. The decision of the patient to withdraw the consent should be communicated to the medical practitioner (Scarborough et al., 2015). The decision of the patient should be respected. Whenever there is a withdrawal of consent, it is the responsibility of the nurse to: Checking whether the patient has ability to make an informed decision; Evaluating the understanding of the patient and considering issues related to health literacy or communication; Reasons that has lead the patient to make such decision should be explored; The other health care option that might be acceptable to the patient should be considered; The process of withdrawing consent by patient that has the capacity to make the decision are as follows: The consent should be orally either written or orally. The consequences of the decision should be discussed with the patient. The risk and the effect on the outcome is discussed with the patient. The patent has the option to obtain second opinion regarding the treatment form a different medical practitioner. It is important that the decision to withdraw consent should be for a specific treatment or procedure. The decision of the patient to withdraw consent should be properly documented along with the reason for such decisions. In case the patient is unable to make the decision then substitute decision maker can also decline the treatment. This decision should be evaluated and acted in a manner that the patient id making the decision (Cheema et al., 2014). Reference Cheema, B. S., Robergs, R. A., Askew, C. D. (2014). Exercise physiologists emerge as allied healthcare professionals in the era of non-communicable disease pandemics: a report from Australia, 20062012.Sports Medicine,44(7), 869-877. Scarborough, J., Eliott, J., Miller, E., Aylward, P. (2015). Equity in primary health care delivery: an examination of the cohesiveness of strategies relating to the primary healthcare system, the health workforce and hepatitis C.Australian Health Review,39(2), 175-182.