Gross Profit Margin - Assignment
Added on 2020-11-02
11 Pages3444 Words88 Views
Calculus and Analysis
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Gross profit margin 2019: 111708622121837392135778 * 100% = 13%Gross profit margin 2018: 118902404448848424341813 * 100% = 14.01%From $1 in revenue, the business gets $ 0.13 in gross profit.Gross profit in 2019 is higher than 2018, proving that the company has generated better profit.This index also reflects the efficiency of production cost management of the firm. We can seethat 2019 is less efficient than 2018. The oil and gas equipment company petrolimex has theadvantage of being in the Petrolimex Group, so the supply to the market will be easier. However,it can be seen that the company experienced a decrease compared to the previous year due tocompetition from many competitors. The company should improve costs as well as moremarketing strategies for further growth next year.Net profit margin 2019: 23331564179837392135778 * 100% = 2.78%Net profit margin 2018: 27387897311848424341813 * 100% = 3.22%$ 1 in revenue for 2019 generates $ 0.02 profit. In 2018, $ 1 in revenue generated $ 0.03 inprofit. That shows that net profit margin of 2019 is lower than that of 2018. We can see that Netprofit of 2019 decreased sharply compared to 2018 from 27387897311 to 23331564179 VND.while revenue decreased slightly. To increase net profit margin, the company needs to reducerelated costs such as: Financial expenses, Administration expenses.Levarage ratio 2019 : 44000000088952711182=0.004Levarage ratio 2018: 354729100077610970900=¿0.045The financial leverage of 2018 and 2018 is both less than 1, which proves that the business caneasily borrow. Long-term debt of the company in 2 years has high disparity. In 2018, thecompany owes more than 3 billion VND, however by 2019, the company only owes 440 millionVND. This proves that the company has settled its long-term debts effectively. However, in
2019, this index is only 0.004, this can be considered that the company has not taken advantageof the debt mobilization channel, has not exploited the financial leverage well.Current ratio 2019: 11501388416663937691903 = 1.79Current ratio 2018: 11438212975073856424544=¿1.54Short-term debt has decreased by more than 10 billion VND from 2018 to 2019. while short-termassets increased only about 1 billion VND. this causes the coefficient to slightly increase from1.54 to 1.79. This coefficient increases showing that the business has the ability to pay off duedebts.Quick ratio 2019: 115013884166−6200706601163937691903 = 0.82Quick ratio 2018: 114382129750−6802487742273856424544 = 0.62The firm's quick ratio has increased from 0.62 to 0.82. Because the quick ratio is less than 1, thecompany will not be able to pay all short-term debts immediately or more accurately, thecompany will face more difficulties if they have to pay off short-term debts immediately. term.This also shows that short-term assets heavily depend on inventories. In this case, the liquidity ofshort-term assets over 2 years is relatively lowTrade receivable turnover a day 2019: 23256811918837392135778∗365=10.13Trade receivable turnover a day 2018: 17789390613848424341813 * 365 = 7.65This metric tells us: how long does the business make money from selling. The number of dayshas increased from 7.65 to 10.13. Because it is an oil and gas equipment company, it is not toohigh to let customers buy it for 2 years. This also helps to retain loyal customers of the companyas well as not affect the use of money for production and business.Inventory turnover in day 2019: 62007066011725683513657∗365=31.18
Inventory turnover in day 2018: 68024877422729521937365∗365=34.03The number of two years' inventory storage days is quite high. However, this is an oil and gasequipment company so they can see the price of raw materials is falling, they will step up thematerial stockpiling. Then, the inventory in stock will increase. The purchase of raw materials atlow prices will reduce production costs, thereby increasing profitsTrade payable turnover 2019: 2975604931984062865983∗365=¿129.2Trade payable turnover 2018: 4271863476387685505937∗365 = 177.8Viết2016201720182019P/E2.995.84.1410.79Eps (1000Vnd)4.624.917.794.17The EPS index is used by analysts as an indicator of the profitability of a business. Within 4years, the quality of the business had many changes. from 2016 to 2018 Eps increased from 4.62to 7.97. however in 2019 Eps is only 4.17 (the lowest in 4 years). That shows that the businesshas a decrease compared to the previous yearComparison with VVMI Mechanical and Pressure Equipment (APL) company. 3-year companyEps from 2016 to 2018 had a slight decrease from 1.6 to 1.57. by 2019, the company's Epsincreases to 1.9. As can be seen, APL's Eps has grown. However, we can see that PEQ's Eps ishigher than APL, so Petrolimex Petroleum Equipment Company is more attractive to investors.P/E ratio of the company has fluctuations from year to year. with 10.79, 2019 is considered theyear with the highest P/E index in 4 years. The company's outlook in the future is very good, sothe investor is willing to pay more than $ 10 for a $ 1 profit.
PestelLegal THÊM TÊN LUẬTFrom July 1, 2018, the petrol and oil gauge must be fitted with a sales voucher printing deviceReceipt printing equipment must meet the following requirements: Ensure the technicalcondition according to the manufacturer's instructions and work well; document printing is onlypossible at the end of the fuel injection process for customers; Mandatory information printed onthe sale voucher includes: Name of the establishment, address; model, symbol, serial number ofthe fuel gauge; minutes, hours, days, months and years of sales; type of petrol and oil, quantity,unit price, total amount of petrol and oil sold; There is no structure or function to changeinformation printed on sales vouchers or to change technical metrological characteristics of thepetroleum gauge.The Circular stipulates that the traders importing, manufacturing, preparing, distributing, storingand transporting petroleum must comply with the regulations on measurement. Specifically, themeasuring instrument used to determine the amount of petroleum in the purchase, sale andpayment between organizations and individuals must satisfy the following requirements: theparts and details of the measuring device must be in line with the sample. has been approvedaccording to regulations; parts, details and functions capable of interventions that change thebasic technical metrological properties of a measuring device must be sealed or leaded by theverification organization; have measuring ranges suitable to the amount of petroleum to bemeasured; has been tested in accordance with the law on measurement; the inspection certificatemust be valid.EconomicThe Vietnam-EU Self-Trade Agreement (EVFTA) is forecasted to bring a strong investmentwave from EU countries to Vietnam, of which retail distribution is one of the potential areas.However, besides the benefits that EVFTA brings, the company will have to face competitionfrom foreign enterprises to assert its position in domestic and foreign markets.
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