Insiders Ratio
ANALYSIS FOR INSIDERS RATIOS
1. Manufacturing Cost per Unit
The ratio demonstrated that how much Polycon is spending in producing one unit. It helps business owners determine when they'll turn a profit and helps them price their products with that in mind. It provides a dynamic overview of the relationships among revenues, costs and profits As little as company incurs on producing one unit, it will goes to the company's goodwill. In order to review the ratio under consideration, it has been noted that from 2011(Rs.13,364) to 2013(Rs.12,410) this per unit cost trend is decreasing which shows company is incurring less cost with every successive year, so we can interpret from this decrease in unit manufactured during the year may be due to the;
Decrease in Material consumed for the production of tanks, which results in less purchases in 2013.
Decreased in fuel and lubricants (Factory overhead), which used in production of tanks in 2013.
Increased in company’s efficiency to utilize its inputs into outputs. This may be due to increased use of technological software or improvements in technical assistance for improving the quality/efficiency of moulds and plastic products.
2. Average Cost per Unit in Beginning Finished Goods Inventory
This ratio demonstrates the average cost per unit in beginning finished goods inventory. In 2011, the figure was Rs.14,404, which was increased to Rs.14,504 in 2013. A higher cost per the beginning inventory is not desirable as higher the cost the higher is the price charged to end consumers and thus, the profitability of the firm is likely to decrease.
3. Average Cost per Unit in Ending Finished Goods Inventory
This ratio demonstrates the average cost per unit in ending finished goods inventory. In 2011, the figure was Rs.14,462, which decline to Rs.14,462. This lower cost for end-finished goods is a good sign for the company. As the end finished goods inventory is the inventory sold at the end of the period and at lower
1. Manufacturing Cost per Unit
The ratio demonstrated that how much Polycon is spending in producing one unit. It helps business owners determine when they'll turn a profit and helps them price their products with that in mind. It provides a dynamic overview of the relationships among revenues, costs and profits As little as company incurs on producing one unit, it will goes to the company's goodwill. In order to review the ratio under consideration, it has been noted that from 2011(Rs.13,364) to 2013(Rs.12,410) this per unit cost trend is decreasing which shows company is incurring less cost with every successive year, so we can interpret from this decrease in unit manufactured during the year may be due to the;
Decrease in Material consumed for the production of tanks, which results in less purchases in 2013.
Decreased in fuel and lubricants (Factory overhead), which used in production of tanks in 2013.
Increased in company’s efficiency to utilize its inputs into outputs. This may be due to increased use of technological software or improvements in technical assistance for improving the quality/efficiency of moulds and plastic products.
2. Average Cost per Unit in Beginning Finished Goods Inventory
This ratio demonstrates the average cost per unit in beginning finished goods inventory. In 2011, the figure was Rs.14,404, which was increased to Rs.14,504 in 2013. A higher cost per the beginning inventory is not desirable as higher the cost the higher is the price charged to end consumers and thus, the profitability of the firm is likely to decrease.
3. Average Cost per Unit in Ending Finished Goods Inventory
This ratio demonstrates the average cost per unit in ending finished goods inventory. In 2011, the figure was Rs.14,462, which decline to Rs.14,462. This lower cost for end-finished goods is a good sign for the company. As the end finished goods inventory is the inventory sold at the end of the period and at lower