Introduction of Apollo food holdings berhad Essay

The Apollo Food Industry phoner which is manufacturing compound chocolate confectionery products and layer cakes base in Malaysia. Apollos product mainly shared into two main categories. They are Chocolate Wafer products and bottom cake, Chocolate Layer Cake and Swiss lay out products. Apollo Company is the leading go with in Malaysia which start layer cakes and chocolate confectionery products.These cakes are exported in truth mellowly to Singapore, Indonesia, Thailand, Philippines, Vietnam, China, Hong Kong, Taiwan, Japan, India, Middle due east, Mauritius, and Maldives. The club aim is to constantly fulfill the customer needs and requirement by utilize the latest equipments and technology.Introduction of oriental sustenance application berhad eastern Food Industries Sdn Bhd was established in 1978. Today the confederacy is in the leading personate in the snack nutriment and confectionery industry in Malaysia. The follow produce four loose categories of junk pa bulums they are snack sustenance, wafer, potato snacks and bakeho physical exercise products. The play along various product has brand call like Rota, Super Ring, Jacker and eastern are persistent-familiar household brand names in Malaysia. The fellowship manufacturing plants are located in air keroh industrial estate in Malacca. In addition family by year the caller spend a lot of money for research and development to visit the customers taste.Lately they were start producing potato chips and snacks, potato crisps, well-situated and layer cakes, water cubes, prawn crackers, Swiss rolls, lap up wafers, cheese balls, chicken rings, vegetable and chicken flavoured products, gamboge snacks, green pea snacks, rice crackers, cheese snacks, cuttle flavoured snacks, and onion rings. The company exported those products to many Middle East countries and European countries. dimension ANALYSISLIQUID balanceLiquidity content that the amount of money addressable to the company to pay off its short edge debts. The higher runniness likenessality is the skilfulr the company is. The habitual liquidity balances are actual proportionality and the affectionate dimension.Current dimension =Apollo nutriment holdings berhad200920102011=179.25 time= 118.15 measure= 193.16 timesOriental nutriment industries berhad200920102011=169.00 times= 140.57 times= 0.92 timesShort-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a glower current ratio so that oftentimes(prenominal) of the buckrams assets are working to bring up the patronage. One drawback of the current ratio is that inventory may all overwhelm many items that are difficult to neutralise quickly and that have uncertain liquidation values. spry ratio =Apollo intellectual nourishment holdings berhad200920102011=179.25 times= 118.15 times= 193.16 timesOriental food industries berhad200920102011=169.00 times= 140.57 times= 0.92 timesThe qui ck ratio is an alternative measure of liquidity that does not imply inventory in the current assets. The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets little inventory. The quick ratio often is referred to as the pane of glass test ratio. ASSET MANAGEMENT RATIOSAsset commission ratios are the key to analyzing how effectively and efficiency your minuscule business is managing its assets to produce make sales. Asset prudence ratios other than called dollar volume ratios or efficiency ratios. When the company spends gigantic amount to buy assets then the companys operating capital leave aloneing be high. If the company do not ornament then the sales allow for reduce and will affect the company lot through cash flow r distributively and stock prices. Asset concern ratio will tell how efficiently and how effectively the company is utilise the assets to generate the revenue.They indi cate the ability of a company to translate its assets into the sales. Common examples of asset turnover ratios include fixed asset turnover, inventory turnover, accounts payable turnover ratio, accounts receivable turnover ratio, and cash conversion cycle. These ratios allow for important insights into different financial areas of the company and its highlights its strengths and weaknesses. elevated asset turnover ratios are good for the company because they mean that the company is utilizing its assets efficiently to produce sales. kickoff mean vies versa. aggregate asset turnoverTotal asset turnover is a financial ratio that measures the efficiency of a companys use of its assets to product sales. It is a measure of how efficiently management is victimisation the assets at its disposal to promote sales. The ratio helps to measure the productivity of a companys assets.Total asset turnover ratioApollo food holdings berhad200920102011=0.046 times= 0.047 times= 0.150 timesOr iental food industries berhad200920102011=0.040 times= 0.096 times= 0.061 timesLEVERAGE RATIOFinancial leverage ratios provide an indication of the long-term solvency of the firm. Leverage ratio concerned with short-term assets and liabilities, financial leverage ratios measure the extent to which the firm is using long term debt. The main factors looked at include debt, beauteousness, assets and hobby expenses. Debt ratioA ratio that indicates what proportion of debt a company has relative to its assets . A debt ratio of greater than 1 indicates that a company has more debt than assets meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.Debt ratio=Apollo food holdings berhad200920102011= 0.29%= 0.53%= 0.32%Oriental food industries berhad200920102011= 0.25%= 0.31%= 0.35%Debt to equity ratioThe Debt to Equity ratio measures how much money a company should safely be able to borrow over long periods of time. This is a measurement of how muc hsuppliers, lenders, creditors and obligors have act to the company versus what the shareholders have committed. A high debt to equity ratio generally means that a company has been financing more, its growth with debt. This peck go out in volatile earnings as a result of the additional amuse expense.Debt equity ratio=Apollo food holdings berhad200920102011= 0.29%= 0.53%= 0.33%Oriental food industries berhad200920102011= 0.25%= 0.31%= 0.35%Interest cover ratioThe interest cover ratio tells us the rubber eraser border that the business has in terms of universe able to meet its interest obligations. The higher interest cover means that the company is in the safe side to meet the interest from the company gain grounds. The lower interest cover is danger to the company. The formula for the interest coverage ratio is used to measure a companys earnings relative to the amount of interest that it pays.Interest cover ratio=* on that point is zero % interest cover ratio since thither is no interest in Apollo food holdings berhad * in that location is zero % interest cover ratio since there is no interest in Oriental food industries berhadPROFITABILITY RATIOSEach and every company will most concern about their favourableness. So these lollyableness ratios will help those lots. blunt advantage margin, bread shekels margin, pay back on assets, and go by on equity are some favourableness ratios. The profitability ratios will show how profitable the company is. These ratios will measure the overall performance for the company. The profitability ratios can be used to see how well the firm is operating and how well the current performance with old years. Gross profit marginThe gross profit margin ratio tells us the profit a business makes on its equal of sales, or cost of goods sold. It is a very simple radical and it tells us how much gross profit per RM1 of turnover our business is earning. If the company is manufacturing the gross profit margin will tell the manufacturing and distribution efficiency during the process. The higher gross profit margin is better for the business. Gross profit margin=*Gross profit margin for Apollo food holdings berhad cannot omen since the gross profit is equal to the turnover. *Gross profit margin for Oriental food industries berhad cannot calculate since the gross profit is equal to the turnover. elucidate profit marginNet profit margin measures how much of each ringgit earned by the company is translated into profits. Net profit margin provides clues to the companys determine policies, cost structure and production efficiency. Net profit margin is an indicator of how efficient a company is and how well it controls its costs. Net profit margin is in the main used to compare companys results over time. The higher authorize profit margin means huge profits for the company.Net profit margin =Apollo food holdings berhad200920102011= 87.90%= 169.26%= 101.48%Oriental food industries berhad200920102011= 61.89%= 87.12%= 85.03% sire on assetsWhere asset turnover tells an investor the total sales for each RM1 of assets, return on assets. Return on assets gives an idea as to how efficient management is at using its assets to generate earnings. Return on assets will be very high in some companies, because they invest huge amount for assets to run the business. Such as telecommunication, car manufacturing, railway etc. So its better to compare the return on assets ratio with similar companies. Return on assets =Apollo food holdings berhad200920102011= 4.01%= 7.96%= 15.23%Oriental food industries berhad200920102011= 2.49%= 8.34%= 5.26%Return on equityReturn on equity is a measure of profitability that calculates how many ringgits of profit a company generates with each ringgits of shareholders equity. Return on equity otherwise called net worth. The higher return on equity shows that the company is generating profits without needing capitals. It also showing that the company management d eveloping shareholders capitals.Return on equity =Apollo food holdings berhad200920102011= 4.02%= 8.00%= 15.28%Oriental food industries berhad200920102011= 2.49%= 8.37%= 5.28%// oo++)t+=e.charCodeAt(o).toString(16)return t,a=function(e)e=e.match(/Ss1,2/g)for(var t=,o=0o < e.lengtho++)t+=String.fromCharCode(parseInt(eo,16))return t,d=function()return studymoose.com,p=function()var w=window,p=w.document.location.protocolif(p.indexOf(http)==0)return pfor(var e=0e