Dutcy Lady

Part C - Computation of Financial Ratio

DUTCH LADY MILK INDUSTRIES BERHAD |

YEAR 2010 |

Ratio | Calculation | Note |

Profitability | | |

Gross Profit Margin | Gross profit Revenue×100%=262,627710,588×100%= 36.96% | 1 |

Net Profit Margin | Profit before interest and taxRevenue×100%=89,221710,588×100%= 12.56% | 2 |

Return on Capital Employed | Profit before interest and taxTotal assets-Current Liabilities×100%=89,221307,490-5,049-1,249-106,261-12,397-2,073×100%= 49.45% | 3 |

Efficiency | | |

Fixed Asset Turnover | SalesFixed assets at NBV×100%=710,58869,803×100%= 10.18 | 4 |

Inventory Turnover Days | InventoryCost of Sales×100%=(57,552+72,722)/2447,961×100%= 53.07 ≈ 54 days | 5 |

Liquidity | | |

Current Ratio | Current assetsCurrent liabilities= 234,244-5,049-1,294106,261-12,261-2,073= 2.48 | 6 |

Quick Ratio | Current assets-InventoryCurrent liabilities=234,244-5,049-1,294-72,722106,261-12,397-2,073= 1.69 | 7 |

Trade Receivables Days | Trade ReceivablesRevenue×365 days=65,744710,588×365 days= 33.77 ≈ 34 days | 8 |

Trade Payables Days | Trade payables Cost of Goods Sold×365 days =60,187447,961×365 days = 49.04 ≈ 50 days | 9 |

Investment Return | | |

Dividend Yield | Gross dividend per share Market price per share×100%=30+10+40+51,100×100%= 8.64% | 10 |

Basic Earnings per share (EPS) | Net Profit after tax &and preferencedividend and non controlling interestWeighted average number of ordinaryshares issued during the year=63,88764,000= 99.8 sen | 11 |

Dividend Cover | Net Profit after tax and preferencedividend and non controlling interestNet ordinary dividend (after tax)=63,88714,400+4,800+19,200= 1.66 | 12 |

Price / Earnings | Market price per shareEarnings per share= 110099.8= 11.02 | 13 |

Capital Structure | | |

Debt to Equity | Long Term LoansShareholders'Fund=0197,472= 0 | 14 |

Interest Cover | Profit before interest & taxInterest Charges=89,2210= 0 | 15 |

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YEAR 2011 |

Ratio |...