Introduction of Apollo food holdings berhad Essay

The Apollo Food Industry Company which is manufacturing compound coffee confectionery products and layer cakes based in Malaysia. Apollos product principally divided into two main categories. They ar drinking chocolate Wafer products and Layer cake, Chocolate Layer Cake and Swiss roll products. Apollo Company is the leading phoner in Malaysia which construct layer cakes and chocolate confectionery products.These cakes are exported real senior high schoolly to Singapore, Indonesia, Thailand, Philippines, Vietnam, China, Hong Kong, Taiwan, Japan, India, Middle East, Mauritius, and Maldives. The family aim is to always fulfill the client needs and requirement by using the latest equipments and technology.Introduction of oriental solid nutrient industry berhad oriental Food Industries Sdn Bhd was established in 1978. instantly the caller-up is in the leading position in the snack intellectual nourishment and confectionery industry in Malaysia. The community make believe four colossal categories of junk feeds they are snack food, wafer, potato snacks and bakery products. The fellowship dissimilar product has brand names like Rota, Super Ring, Jacker and oriental are well-known household brand names in Malaysia. The ac ac follow manufacturing plants are located in air keroh industrial estate in Malacca. In addition year by year the party spend a lot of property for research and development to meet the customers taste.Lately they were make producing potato chips and snacks, potato crisps, soft and layer cakes, water cubes, prawn crackers, Swiss rolls, cream wafers, cheese balls, chicken rings, vegetable and chicken flavoured products, corn snacks, fountain pea snacks, rice crackers, cheese snacks, cuttlefish flavoured snacks, and onion rings. The alliance exported those products to roughly(prenominal) Middle East countries and European countries. symmetry ANALYSISLIQUID RATIOLiquidity representation that the amount of money available to the company to brook off its short bound debts. The high liquidity proportionality is the rightr the company is. The common liquidity balances are stream ratio and the quick ratio. original ratio =Apollo food holdings berhad200920102011=179.25 propagation= 118.15 multiplication= 193.16 timesOriental food 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 lower current ratio so that more of the firms pluss are workings to grow the business. One drawback of the current ratio is that blood line may let in many items that are difficult to liquidate quickly and that have suspicious liquidation values.Quick ratio =Apollo food holdings berhad200920102011=179.25 times= 118.15 times= 193.16 timesOriental food industries berhad200920102011=169.00 times= 140.57 times= 0.92 timesThe quick ratio is an alternative verse of liquidity that does not include inventor y 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 oft is referred to as the acid test ratio. ASSET MANAGEMENT RATIOS asset commission ratios are the key to analyzing how effectively and efficiency your small business is managing its assets to produce sales. Asset circumspection ratios otherwise called dollar volume ratios or efficiency ratios. When the company spends huge amount to buy assets then the companys run capital allow for be high. If the company do not tog then the sales will reduce and will affect the company lot through cash flow bring in and stock prices. Asset management ratio will tell how efficiently and how effectively the company is using the assets to generate the revenue.They indicate the ability of a company to see its assets into the sales. Common examples of asset turn all over ratios include fixed asset turnover, inventory turnover, accounts payable turnover ratio, accounts receivable turnover ratio, and cash conversion cycle. These ratios show important insights into different fiscal areas of the company and its highlights its strengths and weaknesses. High asset turnover ratios are good for the company because they mean that the company is utilizing its assets efficiently to produce sales. Low mean vies versa. Total 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 using the assets at its disposal to promote sales. The ratio helps to measure the productiveness of a companys assets.Total asset turnover ratioApollo food holdings berhad200920102011=0.046 times= 0.047 times= 0.150 timesOriental food industries berhad200920102011=0.040 times= 0.096 times= 0.061 timesLEVERAGE RATIOFinancial leverage ratios append an indication of the long-term sol vency 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, honor, assets and pastime expenses. Debt ratioA ratio that indicates what proportion of debt a company has relative to its assets . A debt ratio of great 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 muchsuppliers, lenders, creditors and obligors have committed 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 can result in volatile earnings as a result of the additional delight 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 cope ratioThe autoe cope ratio tells us the safety marge that the business has in terms of being able to meet its use up obligations. The higher interest go forward means that the company is in the safe side to meet the interest from the company makes. 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=*thither is zero % interest cover ratio since there is no interest in Apollo food holdings berhad *there is zero % interest cover ratio since there is no interest in Oriental food industries berhadPROFITABILITY RATIOSEach and every company wil l most concern about their favorableness. So these netability ratios will help those lots. clear sugar valuation reserve, net profit border, happen on assets, and return on equity are some profitability ratios. The profitability ratios will show how profitable the company is. These ratios will measure the general 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 past years. sodding(a) profit marginThe raw profit margin ratio tells us the profit a business makes on its constitute of sales, or cost of goods sold. It is a very simple root word 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 be rhad cannot calculate 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.Net 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 pricing policies, cost structure and return efficiency. Net profit margin is an indicator of how efficient a company is and how well it controls its costs. Net profit margin is mostly used to match companys results over time. The higher net 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% topic on assetsWhere asset turnover tells an investor the extreme 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 developing 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