Operational Performance Evaluation of Meghna Petroleum Limited (MPL) - A Case Study (original) (raw)
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The purpose of the study to analyze financial ratio and economic value added (EVA) used to knowing the company's financial performance in PT Unilever Indonesia Tbk. The analytical method used are financial ratios (Liquidity ratio, Solvability ratio, Profitability ratio, and Activity ratio) and economic value added (EVA) methods. The results showed that the results of the company's financial performance were measured by financial ratio analysis for highly liquid profitability ratio values, liquid solvency ratio values, liquid activity ratio values, but for illiquid liquidity ratio values because it was below the standard ratio value. Overall the results of financial ratio analysis can be said that the financial performance of liquid companies. While the results of EVA, obtained a positive result (EVA > 0) from 2014 to 2018. It meant that company management had increasing its performance in 2014-2018 such that it successfully created economic value added for company and shareholders.
Evaluation of Operational Performance - A Case Study on Summit Power Limited (SPL)
IOSR Journal of Business and Management, 2014
Evaluating performance through ratio analysis is a sin-qua-non for sustainable growth and measuring future risk of liquidation of a manufacturing company. The current study is an attempt to evaluate the status of the financial performance of Summit Power Limited (SPL) through liquidity, profitability and productivity position of SPL. The study found that the financial performance in terms of liquidity and profitability is considered to be above satisfactory level. In case of activity ratio accounts receivables turnover indicates satisfactory which means the policy and management for collecting credit from customers is efficient. Inventory turnover ratio indicates the worse that means the stock is not rapidly turned over. Total asset turnover ratio is not satisfactory which means inefficient utilization of investment in generating more revenue. The study also depicted that SPL's long term solvency position in terms of debt to total asset ratio was not satisfactory which means SPL carried higher debt and had been incurring a heavy burden of interest and risk during 2004 to 2012. The value of Z also indicates the financial soundness and less risk of bankruptcy of SPL. The study suggest some policy implications for future growth and development of SPL like; introduction of modern technologies and research and development, modern marketing techniques to boost up revenue, suitable pricing policy and the like.
Financial Ratio Analysis as a Determinant of Profitability in
2013
Financial ratio analysis is a vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of appropriate financial ratio is one of the key elements of the firm's financial strategy. Hence, proper care and attention need to be given while such decision is taken. The purpose of this study is to examine the relationship between the financial ratio analysis and profitability of the Nigerian Pharmaceutical industry over the past eleven (11) years period from 2001-2011. These financial ratio analyse have immense potentials to help organizations in improving their revenue generation ability as well as minimization of costs. The researcher used five (5) variables for the analyses such as: Inventory turnover ratio (ITR); Debtors' turnover ratio (DTR); Creditors' velocity (CRSV); Total assets turnover ratio (TATR) and Gross profit margin (GPM). Profitability as a dependent variable is represented by Gross profit margin (GPM) while financial ratio analysis stands as ITR, DTR, CRSV and TATR for independent variables. Secondary data were obtained from the financial statements (Balance sheet and Profit and Loss account) of the selected quoted pharmaceutical companies' financial statement. The data have been analyzed using descriptive research method and multiple regressions to find out the relationship between the variables. The results of the analysis showed that there is a negative relationship between all independent variables with profitability in the Nigerian pharmaceutical industry. It also revealed that debtors' turnover ratio, creditors' velocity and total assets turnover ratio have no significant relationship on the profitability of the company while only inventory turnover ratio shows a significant relationship with profitability. The results further suggested that only 17.8% of the independent variables are determinant factors of profitability in the enterprises sampled while 82.2% of the major factors are determine from other factors outside the independent variables. Based on the above premises, the researcher recommended that the inventories of the company should be checked and monitored more frequently by management to prevent out of stock syndrome or over stocking of their products. It is also recommended that creditors' velocity should be at a point where the creditors and purchases are equal in order to take the advantage of credit facility and any discount associated with prompt payment for goods to increase the profitability of the company. The management should utilize its assets efficient in generating more income for the company.
Journal of Social Commerce
Two of the most significant KPIs, liquidity and profitability, are used to gauge a company's success. In order to examine the financial health and profitability of selected Indian oil and gas businesses, this study was performed. From 2016-17 through 2020-21, the top five listed firms by market capitalization are Reliance Industries Ltd., Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Gas Authority of India Ltd. (GAIL). Four ratios have been used to evaluate the financial and profitability positions of chosen organizations, including the current ratio, the quick ratio, the net profit ratio, and the return on invested capital. An ANOVA with a 5% threshold of significance was employed to test the hypotheses. The study's main conclusion is that Reliance industries Ltd's liquidity and profitability performance is superior to those of other chosen oil and gas firms.
Asian Journal of Multidimensional Research (AJMR), 2019
Owners and Managers are naturally interested in financial soundness of their Business Enterprise. Financial soundness can be measured in terms of operating efficiency. Operating efficiency of an enterprise means its ability to earn adequate returns to owners and depends ultimately on the profits earned by the enterprise. The profitability of an enterprise is measured by profitability ratios. In this paper, an attempt is made to do Profitability Analysis of Naga Hanuman Solvent Oils Private Limited. Naga Hanuman Solvent Oils Private Limited is a thirty years old Enterprise located in West Godavari District of Andhra Pradesh state in India. It is engaged in Production, processing and preservation of meat, fish, fruits, vegetables oils and fats. Profitability analysis was done through analyzing various profit margins, Profitability ratios relating to investments and Profitability ratios relating to various expenses. Profit margins covered include Gross Profit Margin, Operating Profit Margin and Net Profit Margin. Profitability ratios relating to investments include Return on Assets (ROA), Return on Capital Employed (ROCE) and Return on Share holder‟s equity (ROSE). Profitability ratios relating to various expenses include Cost of Goods sold Ratio, Operating Expenses Ratio, Administrative Expenses Ratio, Selling Expenses Ratio and Financial Expenses Ratio. Chi-square test is used for testing the hypotheses formed.
An Evaluative Study on Measuring Financial Performance of Ashok Leyland Limited
International Journal of Science and Research (IJSR) ISSN: 2319-7064, 2020
This paper attempts to evaluate the financial performance of Ashok Leyland Limited. For this purpose data were collected through secondary sources that consist of annual reports, articles, journals and consolidated financial statements for the period of 2014-15 to 2018-19. The data were analyzed through different accounting ratios. Statistical tools Mean, Standard Deviation and Coefficient of variance were also used to analyze the data. For a better understanding different charts were used in this study. This study concludes that profitability shows company generated a good amount of profit but, liquidity ratios show week liquidity position of company further management efficiency ratios shows good strategies and dynamic policies for inventory management and also assets are efficiently used by the company and at the last solvency ratios shows the company is strong enough to afford the debt and taking the benefits of trading on equity. So, it shows the overall good financial performance of the company during the study period.
Financial Ratio Analysis as a Determinant of Profitability in Nigerian Pharmaceutical Industry
International Journal of Business and Management, 2013
Financial ratio analysis is a vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of appropriate financial ratio is one of the key elements of the firm's financial strategy. Hence, proper care and attention need to be given while such decision is taken. The purpose of this study is to examine the relationship between the financial ratio analysis and profitability of the Nigerian Pharmaceutical industry over the past eleven (11) years period from 2001-2011. These financial ratio analyse have immense potentials to help organizations in improving their revenue generation ability as well as minimization of costs. The researcher used five (5) variables for the analyses such as: Inventory turnover ratio (ITR); Debtors' turnover ratio (DTR); Creditors' velocity (CRSV); Total assets turnover ratio (TATR) and Gross profit margin (GPM). Profitability as a dependent variable is represented by Gross profit margin (GPM) while financial ratio analysis stands as ITR, DTR, CRSV and TATR for independent variables. Secondary data were obtained from the financial statements (Balance sheet and Profit and Loss account) of the selected quoted pharmaceutical companies' financial statement. The data have been analyzed using descriptive research method and multiple regressions to find out the relationship between the variables. The results of the analysis showed that there is a negative relationship between all independent variables with profitability in the Nigerian pharmaceutical industry. It also revealed that debtors' turnover ratio, creditors' velocity and total assets turnover ratio have no significant relationship on the profitability of the company while only inventory turnover ratio shows a significant relationship with profitability. The results further suggested that only 17.8% of the independent variables are determinant factors of profitability in the enterprises sampled while 82.2% of the major factors are determine from other factors outside the independent variables. Based on the above premises, the researcher recommended that the inventories of the company should be checked and monitored more frequently by management to prevent out of stock syndrome or over stocking of their products. It is also recommended that creditors' velocity should be at a point where the creditors and purchases are equal in order to take the advantage of credit facility and any discount associated with prompt payment for goods to increase the profitability of the company. The management should utilize its assets efficient in generating more income for the company.
Analysis of financial performance at heavy equipment companies in Indonesia using financial ratios
2016
To determine the health of a company can be determined by looking at the financial statements published by the company within a certain period. This study aims to determine the financial performance of the two companies engaged in the heavy equipment industry which have a sizeable market share in Indonesia, namely PT HexindoAdi Perkasa. United Tractors and PT Hexindo using financial ratio analysis of the financial statements of each company over the period 2011-2015. The research method is using quantitative and descriptive method using the financial statements issued by the respective companies. The ratio used three kind of ratio, first ratio is the ratio of liquidity consisting of current ratio, second ration is solvency ratio consisting of debt to asset ratio and debt to equity ratio, and the last is a profitability ratio that consists of the gross profit margin, net profit margin, return on investment, and return on equity. From the results of the study, researchers found that t...
2011
In an era of tight competition, competitive advantage has been developed and involves the impor tance of the company's financial performance. It is therefore important to further deepen the study of corporate financial performance. ROA is one indicator to measure the financial perfor mance of companies and is a profitability ratio that is used to measure the effectiveness of the company in making a profit by exploiting the total assets owned. Companies are selected to become the object of this study are automotive companies and allied products listed on the Indonesia Stock Exchange (BEi) in the period of study (periode 2004 - 2009). From a population of 19 companies, gained as much as 17 perusahaanOtomotit and allied products that meet the criteria for the sample. Which Include Current Ratio, Inventory Turnover, DER, Size and ROA, financial padalaporan during the period of study (periode2004 2009). Coefficient of determination (Adjusted R2) of 0246 or 24. 6%, ROA halterse...