Report Analysis
This report provides an analysis and evaluation of the current prospective profitability, liquidity, stock market performance and current trends of the Nuplex Industries Ltd.
The methods of analysis include trend analysis, ratio analysis of profitability, efficiency, liquidity and financial structure and an analysis of the stock market performance against NZX50. All calculations can be found in the appendices of the report.
Results of the data analyzed show that the trend for Nuplex Industries Ltd. has showed that there was a slight decrease due to the fluctuation in 2010, but in 2011 it has increased despite of the fluctuation. This shows that Nuplex has not performed badly during this difficult economic period.
The results of the data acquired from the Ratio analysis:
• Profitability ratios show there was a slight decrease in gross profit margin and net profit margin, this was due to the competition on the industry and the increased expenses in marketing.
• Efficiency ratios show that the asset turnover ratio increased from 1.44 to 1.52 in the year period from 2010-2011. This shows that the management capabilities of Nuplex have improved.
• Liquidity ratio show that the current ratio has decreased since 2010(1.99) to amount of 1.53(2011) and the quick ratio has also decreased from 1.32 – 1.02 in the year period 2010-2011. The results show that Nuplex’s ability to meet short time financial obligations has declined in the period.
• Financial structure ratio shows that the equity ratio has increased this means that the solvency risk of the company has been reduced.
The stock market performance of Nuplex against the performance of NZX50 shows that Nuplex has always been better than NZX50 throughout the whole period.
The report finds the prospects if Nuplex Industries Ltd. are in a positive position. Even though their have negative results due to the decrease trend may continue into 2012 and it has worsened in terms profitability and liquidity
The methods of analysis include trend analysis, ratio analysis of profitability, efficiency, liquidity and financial structure and an analysis of the stock market performance against NZX50. All calculations can be found in the appendices of the report.
Results of the data analyzed show that the trend for Nuplex Industries Ltd. has showed that there was a slight decrease due to the fluctuation in 2010, but in 2011 it has increased despite of the fluctuation. This shows that Nuplex has not performed badly during this difficult economic period.
The results of the data acquired from the Ratio analysis:
• Profitability ratios show there was a slight decrease in gross profit margin and net profit margin, this was due to the competition on the industry and the increased expenses in marketing.
• Efficiency ratios show that the asset turnover ratio increased from 1.44 to 1.52 in the year period from 2010-2011. This shows that the management capabilities of Nuplex have improved.
• Liquidity ratio show that the current ratio has decreased since 2010(1.99) to amount of 1.53(2011) and the quick ratio has also decreased from 1.32 – 1.02 in the year period 2010-2011. The results show that Nuplex’s ability to meet short time financial obligations has declined in the period.
• Financial structure ratio shows that the equity ratio has increased this means that the solvency risk of the company has been reduced.
The stock market performance of Nuplex against the performance of NZX50 shows that Nuplex has always been better than NZX50 throughout the whole period.
The report finds the prospects if Nuplex Industries Ltd. are in a positive position. Even though their have negative results due to the decrease trend may continue into 2012 and it has worsened in terms profitability and liquidity