Financial Management
Part A
The case study solution will be based on the Hallenstein Company. The different goals of the company including the financial goals and objectives of the company will be analyzed in this report. Different methods of analyzing the financial statements will be analyzed here. The business of HallensteinCompany will be discussed. The main business of the company is for the retail clothing for men and women. This is a New Zealand based company. The company operates total 112 stores. It also operates 3 stores in Australia and the company also possesses an online e-commerce platform for selling different clothing. The financial statement of this company will be analyzed to understand the profitability of the company.
Part B
Stakeholders mean the people to whom the profitability of the company matters. There are two types of stakeholders available.
Internal stakeholders
The internal stakeholders are employees, stakeholders and owners. The focus of the employees is to improve the financial and operational health of the company. The company operates through the third party retailer as well as their flagship store.
External stakeholders
Customers are the external stakeholders of the company. The major focus of the company is to provide best services to the customers of the company. The company is mainly dependent on its customers. The company tries to provide the best services for the customers and it gives values to its employees. The company always concentrates on maintaining their customers. The quality of services of the company is high. It keeps the online store also upgraded. Suppliers are the external stakeholders of the company.
This company has its some principals such as its shareholders. Shareholders are the one who invested their money in our company.
The agents of the corporation are considered as the board of directors, Chief Executive Officers, Chief Financial Officer,other officers and some other persons, who are officially authorized to deal with the situations on its behalf.
Part C
There are different economic factors available that impact the business environment. The tax rate, inflation of the economy affects the business of the organization in different ways. The demand of supply and the elasticity of the market help to decide the productivity and cost of the business. Economic factors have a huge impact on every business. The sales and the revenue of the business are dependent on different economic decisions of the country (Mellon,2016). The regulation of the country also affects the business in several ways. The rules and regulation of the business should be made according to the rules and legislation of country. There are different rules and regulation that should be maintained by the business for the good of the society.The company deals with various several financial institutions such as banks, super market, and foreign exchange. These institutions decide financialgrowth and transactions.
Part D
Debt and Equity Consideration
| Debt Equity Ratio | Total liabilities/ Total equity | 0.25815 | 0.31196 | 0.28935 |
| Years | 2018 | 2017 | 2016 |
| Total liabilities | 23,781 | 26,671 | 22,751 |
| Total equity | 68,340 | 58,823 | 55,877 |
WACC:
| WACC | = | E / (E + D) | * | Cost of Equity | + | D / (E + D) | * | Cost of Debt | * | (1 – Tax Rate) |
| = | 0.5735 | * | 4.49% | + | 0.4265 | * | 2.7197% | * | (1 – 27.645%) | |
| = | 3.41% |
Table 1: WACC calculation
Part E
Calculation of the profit of the firm:
| Month | Amount (In $) | Seasonal funding (In $) | Permanent Requirement(In $) |
| January | 2,000,000 | 2,000,000 | 0 |
| February | 2,000,000 | 2,000,000 | 0 |
| March | 2,000,000 | 2,000,000 | 0 |
| April | 4,000,000 | 2,000,000 | 2,000,000 |
| May | 6,000,000 | 2,000,000 | 4,000,000 |
| June | 9,000,000 | 2,000,000 | 7,000,000 |
| July | 12,000,000 | 2,000,000 | 10,000,000 |
| August | 14,000,000 | 2,000,000 | 12,000,000 |
| September | 9,000,000 | 2,000,000 | 7,000,000 |
| October | 5,000,000 | 2,000,000 | 3,000,000 |
| November | 4,000,000 | 2,000,000 | 2,000,000 |
| December | 3,000,000 | 2,000,000 | 1,000,000 |
| Total | 24,000,000 | 48,000,000 | |
| Average | 2,000,000 | 4,000,000 |
As per above table, it is identified that the average permanent requirement is $2,000,000 and average seasonal requirement is $4,000,000.
Aggressive Strategy
Formula: Permanent funding * fix capital
= 2,000,000*17% = 340,000
Formula: Seasonal funding * short term funding
=4,000,000*12%= 480,000
Conservative Strategy
Formula: (permanent funding + seasonal fund) * fixed of capital
= (2,000,000+4,000,000) * 17% = 1,020,000
Aggressive Strategy total of cost = 340,000+480,000= 820,000
In addition, the Conservative Strategy total of cost = 1,020,000
Recommendation-As per the above calculation, it can be recommended that the aggressive strategy is appropriate for the firm due to having less cost. In this, the conservative strategy has cost of $1020000which is higher than aggressive strategy $820000.
Part F
| Acquisition cost per user | New customers | Total customers | Average revenue per user | Cost per user | Fixed costs | Inflows | |
| Year 0 | ($100,000) | ||||||
| Year 1 | $100 | 100 | 100 | $360 | $100 | $1,000 | $35,000 |
| Year 2 | $100 | 200 | 300 | $360 | $100 | $1,000 | $35,000 |
| Year 3 | $100 | 300 | 600 | $360 | $100 | $1,000 | $35,000 |
| Year 4 | $100 | 400 | 1000 | $360 | $100 | $1,000 | $35,000 |
| Year 5 | $100 | 500 | 1500 | $360 | $100 | $1,000 | $35,000 |
| Totals | 1500 | NPV | $414,730.43 | ||||
| IRR | 72% |
Table 4: NPV and IRR calculation
| Formula
NPV = F / [ (1 + i)^n] PV = (Cash Flow/ (1 + i )^n) F = Future payment (Cash flow) i = Discount rate (or interest rate) n = the number of periods in the future cash flow IRR = Ct = Net cash inflow during the period t C0 = total initial investment cost r = the discount rate
|
The above table explains the NPV and IRR of the company. The NPV of the company is positive and it denotes that the company is in good situation. The IRR of the company is also high. The amount of NPV and IRR of the company denote that the inflow of the company is higher than the outflow of the company.
Part G
Liquidity ratios:
| Ratio analysis | Hallenstein brothers | 2018 | 2017 | 2016 |
| Liquidity ratios | Formula | |||
| Current ratio | Current Assets/Current Liabilities | 1.91 | 1.43 | 1.74 |
| Calculation | ||||
| Current assets | 4,53,46,000 | 3,80,47,000 | 3,96,17,000 | |
| Current liabilities | 2,37,81,000 | 2,66,71,000 | 2,27,51,000 | |
| Quick ratio (Acid test) | (Total current assets-inventory-prepaid expenses)/Total Current liabilities | 1.03 | 0.65 | 0.86 |
| Calculation | 45346000/23781000 | 38047000/26671000 | 39617000/22751000 | |
| Inventory | 2,09,59,000 | 20605000 | 2,00,01,000 | |
| Current assets | 4,53,46,000 | 3,80,47,000 | 3,96,17,000 | |
| Current liabilities | 2,37,81,000 | 2,66,71,000 | 2,27,51,000 | |
| Prepaid expenses | 3,871 | 3,873 | 3,419 | |
| Proprietary ratio | Equity/Total assets | 0.74 | 0.69 | 0.71 |
| Calculation | 68340000/92121000 | 58823000/85494000 | 55877000/78628000 | |
| Total equity | 6,83,40,000 | 5,88,23,000 | 5,58,77,000 | |
| Total assets | 9,21,21,000 | 8,54,94,000 | 7,86,28,000 |
(Source: Annual Report, 2017 and 2018).
The amount of liquidity in the company is standard. It denotes the company is capable enough to maintain the balance of the current assets and current liabilities. The company can invest the assets in the beneficiary funds and the liquidity amount of the company is also maintained. From the above liquidity ratios, it can be determined that current ratio of the firm is more than one showing the ability of the firm to meet its short term obligations. There is fluctuation in the current ratio as but overall this ratio is showing an increasing trend from year 2016 to year 2018 indicating the increasing ability of the firm to meet its short term obligations. It may be due to increasing cash and cash equivalents. Apart from this, quick ratio increased from 0.86 in year 2016 to 1.03 in year 2018 with a decline to 0.65 in year 2017. Overall, it shows an increasing trend in this ratio indicating the increasing ability of the firm to meet its short term obligations in even contingency. In addition, proprietary ratio increased during this period indicating the increasing ability of the firm to have amount of capitalization currently used to support its business. However, it is lower than 1 showing risk of having the financial difficulty.
Efficiency ratios:
| Efficiency ratios | Formula | 2018 | 2017 | 2016 |
| Days inventory outstanding | (Inventory /Costs of goods sold) *365 | 71.12 | 76.47 | 75.32 |
| Calculation | (20959000/107567000)*365 | (20605000/98350000)*365 | (20001000/96920000)*365 | |
| COGS | 107567000 | 98350000 | 96920000 | |
| Inventory | 2,09,59,000 | 20605000 | 2,00,01,000 | |
| Days receivable outstanding | (Avg. account receivable/Sales) *365 | 0.24 | 1.19 | 2.71 |
| Calculation | (182000/277642000)*365 | (779000/239004000)*365 | (1660000/223510000)*365 | |
| Account receivable | 182000 | 779000 | 1660000 | |
| Sales | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Pay outstanding period | (Avg. account payable/Sales) *365 | 7.24 | 14.00 | 12.94 |
| Calculation | (5506000/277642000)*365 | (9169000/239004000)*365 | (7921000/223510000)*365 | |
| Account payable | 55,06,000 | 91,69,000 | 79,21,000 | |
| Sales | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Assets turnover | Net sales/ Average total assets | 3.01 | 2.80 | 2.84 |
| Calculation | 277642000/92121000 | 239004000/85494000 | 223510000/78628000 | |
| Sales | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Total assets | 9,21,21,000 | 8,54,94,000 | 7,86,28,000 | |
| Fixed asset turnover ratio | Net sales/ fixed assets | 5.94 | 5.04 | 5.73 |
| 277642000/46775000 | 239004000/47447000 | 223510000/39011000 | ||
| Fixed assets | 4,67,75,000 | 4,74,47,000 | 3,90,11,000 | |
| Sales | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 |
(Source: Annual Report, 2017 and 2018).
From the above calculated ratios, it can be depicted that days inventory outstanding declined from 75.32 days in 2016 to 71.12 days in 2018 means the management efficiency of the company declined in managing the inventory and converting it into the sales. At the same time, days receivable outstandingalso declined from 2.71 days to 0.24 during this period as the firm have started to collect the payment from customers quickly to maintain the cash position. In addition, decline in pay outstanding period shows that the firm has reduced its time duration of paying to suppliers to maintain good relationship. At the same time, assets turnover shows that it has increased from 2.84 in 2016 to 3.01 in 2018 indicating the improving efficiency of the management to convert or utilize the assets to generate revenues. In addition, fixed asset turnover also increased showing the improvement in efficiency of the company to utilize the fixed assets to convert into sales. Overall, efficiency ratios show the improving efficiency of the management to utilize its resources to generate sales.
Profitability ratios:
| Profitability ratios | Formula | 2018 | 2017 | 2016 |
| Gross profit margin | (Gross profit/ Revenue)*100 | 61.26% | 58.85% | 56.64% |
| Calculation | (170075000/ 277642000)*100 | (140654000/239004000)*100 | (126590000/223510000)*100 | |
| Gross profit | 17,00,75,000 | 14,06,54,000 | 12,65,90,000 | |
| Revenue | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Net profit margin | (Net profit/Revenue)*100 | 9.85% | 7.23% | 6.12% |
| Calculation | (27361000/277642000)*100 | (17269000/239004000)*100 | (13679000/223510000)*100 | |
| Net profit | 2,73,61,000 | 1,72,69,000 | 1,36,79,000 | |
| Revenue | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Operating profit margin | (Operating profit/Revenue)*100 | 13.62% | 9.97% | 8.39% |
| Calculation | (37819000/277642000)*100 | (23831000/239004000)*100 | (18743000/223510000)*100 | |
| Operating profit | 3,78,19,000 | 23831000 | 1,87,43,000 | |
| Revenue | 27,76,42,000 | 23,90,04,000 | 22,35,10,000 | |
| Return on equity ratio | (Net income/ Shareholder’s equity)*100 | 40.04% | 29.36% | 24.48% |
| Calculation | (27361000/68340000)*100 | (17269000/58823000)*100 | (13679000/55877000)*100 | |
| Net income | 2,73,61,000 | 1,72,69,000 | 1,36,79,000 | |
| Shareholder’s equity | 6,83,40,000 | 5,88,23,000 | 5,58,77,000 |
(Source: Annual Report, 2017 and 2018).
Based on the above calculated ratios, it can be analyzed that all the profitability ratios including gross profit margin, net profit margin, operating profit margin and return on equity ratio increased from year 2016 to year 2018. Regarding this, it can be depicted that the ability of the firm to keep the operating expenses to low has improved as firm has reduced the operations costs during this period that has improved the profits of the firm. At the same time, return on equity has increased from 24.48% to 40.04% showing the improved ability of the firm to generate sufficient returns for the shareholders. So, it can be stated that the firm is quite effective to generate profits or returns on investment made by the investors.
Leverage Ratios:
| Leverage ratios | ||||
| Debt ratio | Total liabilities / total assets | 0.26 | 0.31 | 0.29 |
| Calculation | 23781000/92121000 | 26671000/85494000 | 22751000/78628000 | |
| Total liabilities | 23781000 | 26671000 | 22751000 | |
| Total assets | 9,21,21,000 | 8,54,94,000 | 7,86,28,000 | |
| debt to equity | Total liabilities / total equity | 0.35 | 0.45 | 0.41 |
| Calculation | 23781000/68340000 | 26671000/58823000 | 22751000/55877000 | |
| Total liabilities | 23781000 | 26671000 | 22751000 | |
| Total equity | 6,83,40,000 | 5,88,23,000 | 5,58,77,000 | |
| Debt-to-capital Ratio | Total Debt / (Total Debt + Total Equity) | 0.26 | 0.31 | 0.29 |
| Calculation | 23781000/(23781000+68340000) | 26671000/(26671000+58823000) | 22751000/(22751000+55877000) | |
| Total liabilities | 23781000 | 26671000 | 22751000 | |
| Total equity | 6,83,40,000 | 5,88,23,000 | 5,58,77,000 | |
| Asset-to-Equity Ratio | Total Assets / Total Equity | 1.35 | 1.45 | 1.41 |
| Calculation | 92121000/68340000 | 85494000/58823000 | 78628000/55877000 | |
| Total assets | 9,21,21,000 | 8,54,94,000 | 7,86,28,000 | |
| Total equity | 6,83,40,000 | 5,88,23,000 | 5,58,77,000 |
From the leverage ratio, it can be determined that how the firm uses the capital to finance its activities. Based on the calculated leverage ratios, it can be determined that company uses more equity than debt to enhance the creditworthiness in the future contingency. However, this ratio declined from 2016 to 2018 showing the more focus on the equity to finance its operational and investment activities. At the same time, the assets values are more than equity with declining pattern with some fluctuations showing the ability of the firm to pay shareholders with sufficient assets in downsizing or closure of the business.
Part H
There are several factors that impact the business decisions. The decision-making is always a dependent variable. The decision-making of a business is highly influenced by different factors.
Capital rationing vs. unlimited funds
Types of funds impact the company in different ways. There are two types of funds that impact the business of the organization. One type of fund is capital rationing and the unlimited funds. The capital rationing helps to make the spending structure in a limited way but the unlimited funds of the company helps the company to use the spending in several ways.
Independent vs mutually exclusive projects
The business type is influenced by the types of projects. There are mainly two types of projects. One is independent projects and the other project is the mutually exclusive projects (FOOK, 2016). The independent project do not bounded by any rule. It can operate independently and the mutually exclusive projects are dependent on each other and the starting of this kind of project is dependent on the ending of other types of projects.
Expansion vs replacement projects
Another important factor that influences the projects are the expansion and the replacement. The decision of expansion needs new market and new strategy of expansion. On the other hand, some loss making company wants to replace their projects.
Part I
| Delphi | |||
| Probability | Return in $m | Returns | |
| 1 | 0.2 | 20 | 4 |
| 2 | 0.6 | 40 | 24 |
| 3 | 0.2 | 60 | 12 |
| Average | 13.3333333 | ||
| Standard Deviation | 10.0664459 |
| Oracle | ||
| Probability | Return in $m | Returns |
| 0.5 | 30 | 15 |
| 0.3 | 40 | 12 |
| 0.2 | 65 | 13 |
| Average | 13.33333 | |
| Standard Deviation | 1.527525 |
Part J
Taxation
In concern of taxation, it is analyzed that taxes play an important role in the organization as it creates the huge impact over the organization in concern of its financial decision making. At the same time, the most crucial objective of taxation is to raise the needed revenues in respect to meet the organizational expenditures. In addition, tax rates vary to the different countries and that is why, taxation has favorable as well as unfavorable effects on the distribution of income and wealth of an organization. Hallenstein operates business in NZ and Australia. The company tax rates vary as 28% in New Zealand and 30% in Australia. It means difference in tax rates may also impact the profitability of the company in different countries. When Hellenstein invests in different projects in other countries, when tax rate is higher, they will get less return and less cashflow from the project similar to AU subsidiary. For example, in New Zealand, the firm pays less tax as it enhances the returns and cash flows as compared to Australia. In this way, company has to pay the tax on their incomes which reduces the net profit of the company or profits attributed to the shareholders.
Part K
The students have engaged the stakeholders by their research methodology and the other questionnaire. The students have mainly engaged the employees and the customers of the company. The students have made interesting questionnaire for the stakeholders as in the customers and the employees.The students interviewed all the stakeholders of the company. It has helped the students to engage the stakeholders for the research.
Internal stakeholders like fashion designers were interviewed. The questions are:-
Operation:How the Hallensteins brothers manage to stay according to the latest fashion trends?
Accounting: how does the accountant manage or handle the accounts of every Hallensteins store?
Sales and marketing: how do you promote your products or your store?
Human resources: what qualities do you look while hiring a new staff?
Risk management: how do you identify the risk and how do you mitigate it?
| Mail
Hallensteinsbrothers.co.nz Subject: regarding the important questions to fashion designer Hi sir I am sending you a mail related to the assignment project. I just want you to ask that the Hallensteins brother is a very famous fashion retail company so how do you manage to stay according to the latest trends or how do you maintain your company according to the customer’s preference or choice. Thanks Regards Pankaj |
Mail to main stakeholder:
| Supplier
Subject: regarding the supply of the goods Hi sir I am sending you an email related to the assignment project. I have got the permission from the Hallensteins company manager regarding this. I just wants to know that how do you supply the goods and products in terms of quantity, price and need. Thank you Regards Pankaj |
Part L
Students need to ensure that all the organizational policies and procedures are feasible as per the internal as well as external requirements of the business entity while accomplishing the process of decision making process and forecasting process clearly. A direct meeting was conducted by the student to the management to accomplish the decision making process and forecasting. At internal level, the student contacted with the employees and managers and ensured them about the privacy and confidentiality of their data which they provided. It was assured them that their information will be used only for the academic purpose and will not be disclosed to another party without their permission.
In addition, information provided in the documents and reports was not used for non-academic purpose and harming the reputation of the company in the market. There will no harm to the company and its members through this study as all the information given will be used only for completing the assignment given by the University.
For this, ethical policy or code of conduct of the company was considered as evidence at internal level that reflects the consideration of the ethics while studying (See: Appendix 3). At external level, Audit – Companies Act 1993 and Financial reporting act 2013 are complied during this study.
Audit report of the annual report considers the fair financial reporting of the company to comply with the acts and laws related to financial reporting (See: Appendix 4).
From the independent auditor’s report given by PWC, it is evaluated that the firm has complied with NZ IFRS and IFRS along with internal standards on auditing and ethical standards while reporting its transactions in the financial report.
Part M
The creativity of the student has been applied in the questionnaire of the stakeholders. The annual report analysis has been portrayed the analytical skills of the students. The critical thinking of the students has been applied in the other calculations.
The data analysis and research has been done to find out the information related to the company. The communication skills of the students have been applied at the time of questioning the stakeholders.
Analytical skills:
Communication: The communication skills have been applied at the time of getting the permission from the tutors to select the organization and at the time of questioning the stakeholders and the organizations employees regarding the performance of the organization.
Problem solving skills:
Data analysis and search: Data analysis and search skills have been applied during the time of gathering the information about the company. The skills helped to get the information which is essential for the project and during the research I also get the more knowledge about company
performance in the market.
References
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., &Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.
FOOK, Z. (2016, June). Business & Economics. In 24th Annual Beacon Conference June 3, 2016 (Vol. 113, p. 64).
Mellon, A. W. (2016). Taxation: the people’s business. Pickle Partners Publishing.
Gorisek, A. and Pahor, M., 2017. Missing Value Imputation Using Contemporary Computer Capabilities: An Application to Financial Statements Data in Large Panels. Economic and Business Review for Central and South-Eastern Europe, 19(1), p.97.
Manea, L., 2017. How to use financial statements within the global economic analysis trend. Internal Auditing and Risk Management, 45(1), pp.16-24.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan Page Publishers.
Eruemegbe, G.O., 2015. Impact of Business Environment on Organization Performance in Nigeriaa Study of Union Bank of Nigeria. European Scientific Journal, ESJ, 11(10).
Annual Report (2018). Hallenstein brothers. Retrieved from: https://www.hallensteinglasson.co.nz/content/reports/Annual%20Report%202018.pdf
Annual Report (2017).Hallenstein brothers. Retrieved from: https://www.hallensteinglasson.co.nz/content/reports/Annual%20Report.pdf
Appendices
Financial Statements:
| Income Statement | 2018 | 2017 | 2016 |
| Total Revenue | 277,642 | 239,004 | 223,510 |
| Cost of Revenue | 107,567 | 98,350 | 96,920 |
| Gross Profit | 170,075 | 140,654 | 126,590 |
| Operating Expenses | |||
| Research Development | – | – | – |
| Selling General and Administrative | 133,076 | 117,777 | 108,631 |
| Non Recurring | – | – | – |
| Others | -780 | -781 | -784 |
| Total Operating Expenses | 239,863 | 215,346 | 204,767 |
| Operating Income or Loss | 37,779 | 23,658 | 18,743 |
| Income from Continuing Operations | |||
| Total Other Income/Expenses Net | 291 | 412 | 318 |
| Earnings Before Interest and Taxes | 37,779 | 23,658 | 18,743 |
| Interest Expense | – | – | – |
| Income Before Tax | 38,070 | 24,070 | 19,061 |
| Income Tax Expense | 10,709 | 6,801 | 5,382 |
| Minority Interest | – | – | – |
| Net Income From Continuing Ops | 27,361 | 17,269 | 13,679 |
| Non-recurring Events | |||
| Discontinued Operations | – | – | – |
| Extraordinary Items | – | – | – |
| Effect Of Accounting Changes | – | – | – |
| Other Items | – | – | – |
| Net Income | |||
| Net Income | 27,361 | 17,269 | 13,679 |
| Preferred Stock And Other Adjustments | – | – | – |
| Net Income Applicable To Common Shares | 27,361 | 17,269 | 13,679 |
| Balance Sheet | 2018 | 2017 | 2016 |
| Current Assets | |||
| Cash And Cash Equivalents | 17,453 | 12,552 | 14,191 |
| Short Term Investments | – | – | – |
| Net Receivables | 182 | 779 | 1,660 |
| Inventory | 20,959 | 20,605 | 20,001 |
| Other Current Assets | 2,881 | 238 | 346 |
| Total Current Assets | 45,346 | 38,047 | 39,617 |
| Long Term Investments | – | – | – |
| Property Plant and Equipment | 36,811 | 36,400 | 36,227 |
| Goodwill | – | – | – |
| Intangible Assets | 560 | 539 | 493 |
| Accumulated Amortization | – | – | – |
| Other Assets | 9,404 | 10,508 | 2,291 |
| Total Fixed Assets | 46,775 | 47,447 | 39,011 |
| Deferred Long Term Asset Charges | 940 | 2,044 | 2,291 |
| Total Assets | 92,121 | 85,494 | 78,628 |
| Current Liabilities | |||
| Accounts Payable | 5,506 | 9,169 | 7,921 |
| Short/Current Long Term Debt | – | – | – |
| Other Current Liabilities | 13,489 | 13,002 | 10,901 |
| Total Current Liabilities | 23,781 | 26,671 | 22,751 |
| Long Term Debt | – | – | – |
| Other Liabilities | – | – | – |
| Deferred Long Term Liability Charges | – | – | – |
| Minority Interest | – | – | – |
| Negative Goodwill | – | – | – |
| Total Liabilities | 23,781 | 26,671 | 22,751 |
| Stockholders’ Equity | |||
| Misc. Stocks Options Warrants | – | – | – |
| Redeemable Preferred Stock | – | – | – |
| Preferred Stock | – | – | – |
| Common Stock | 29,279 | 29,279 | 29,279 |
| Retained Earnings | 23,019 | 17,271 | 17,826 |
| Treasury Stock | 16,042 | 12,273 | 8,772 |
| Capital Surplus | – | – | – |
| Other Stockholder Equity | 17,503 | 14,282 | 10,402 |
| Total Stockholder Equity | 68,340 | 58,823 | 55,877 |
| Net Tangible Assets | 67,780 | 58,284 | 55,384 |
| Cash Flow | 2018 | 2017 | 2016 |
| Net Income | 27,361 | 17,269 | 13,679 |
| Operating Activities, Cash Flows Provided By or Used In | |||
| Depreciation | 7,652 | 7,294 | 7,220 |
| Adjustments To Net Income | 390 | -778 | 670 |
| Changes In Accounts Receivables | 599 | 427 | -3,762 |
| Changes In Liabilities | -787 | 3,798 | -1,887 |
| Changes In Inventories | -354 | -604 | -174 |
| Changes In Other Operating Activities | – | – | – |
| Total Cash Flow From Operating Activities | 35,312 | 29,195 | 14,101 |
| Investing Activities, Cash Flows Provided By or Used In | |||
| Capital Expenditures | -9,312 | -12,138 | -5,917 |
| Investments | – | – | – |
| Other Cash flows from Investing Activities | 499 | 105 | 228 |
| Total Cash Flows From Investing Activities | -8,325 | -11,970 | -5,556 |
| Financing Activities, Cash Flows Provided By or Used In | |||
| Dividends Paid | -22,069 | -18,491 | -17,895 |
| Sale Purchase of Stock | – | – | – |
| Net Borrowings | – | – | – |
| Other Cash Flows from Financing Activities | 177 | 175 | 149 |
| Total Cash Flows From Financing Activities | -22,086 | -18,864 | -18,074 |
| Effect Of Exchange Rate Changes | – | – | – |
| Change In Cash and Cash Equivalents | 4,901 | -1,639 | -9,530 |
Ratio calculation:
(Source: Annual Report, 2017 and 2018)
| 2018 | 2018 | 2018 |
| 277,642 | 239,004 | 200,366 |
| 107,567 | 98,350 | 89,133 |
| 170,075 | 140,654 | 111,233 |
| – | – | – |
| 133,076 | 117,777 | 102,478 |
| – | – | – |
| -780 | -781 | -782 |
| 239,863 | 215,346 | 190,829 |
| 37,779 | 23,658 | 9,537 |
| 291 | 412 | 533 |
| 37,779 | 23,658 | 9,537 |
| – | – | – |
| 38,070 | 24,070 | 10,070 |
| 10,709 | 6,801 | 2,893 |
| – | – | – |
| 27,361 | 17,269 | 7,177 |
| – | – | – |
| – | – | – |
| – | – | – |
| – | – | – |
| 27,361 | 17,269 | 7,177 |
| – | – | – |
| 27,361 | 17,269 | 7,177 |
| 2018 | 2017 | 2016 |
| 17,453 | 12,552 | 7,651 |
| – | – | – |
| 182 | 779 | 1376 |
| 20,959 | 20,605 | 20,251 |
| 2,881 | 238 | -2,405 |
| 45,346 | 38,047 | 30,748 |
| – | – | – |
| 36,811 | 36,400 | 35,989 |
| – | – | – |
| 560 | 539 | 518 |
| – | – | – |
| 9,404 | 10,508 | 11,612 |
| 46,775 | 47,447 | 48,119 |
| 940 | 2,044 | 3148 |
| 92,121 | 85,494 | 78,867 |
| 5,506 | 9,169 | 12,832 |
| – | – | – |
| 13,489 | 13,002 | 12,515 |
| 23,781 | 26,671 | 29,561 |
| – | – | – |
| – | – | – |
| – | – | – |
| – | – | – |
| – | – | – |
| 23,781 | 26,671 | 29,561 |
| – | – | – |
| – | – | – |
| – | – | – |
| 29,279 | 29,279 | 29,279 |
| 23,019 | 17,271 | 11,523 |
| 16,042 | 12,273 | 8,504 |
| – | – | – |
| 17,503 | 14,282 | 11,061 |
| 68,340 | 58,823 | 49,306 |
| 67,780 | 58,284 | 48,788 |
| 2018 | 2017 | 2016 |
| 27,361 | 17,269 | 7,177 |
| 7,652 | 7,294 | 6,936 |
| 390 | -778 | -1946 |
| 599 | 427 | 255 |
| -787 | 3,798 | 8383 |
| -354 | -604 | -854 |
| – | – | – |
| 35,312 | 29,195 | 23,078 |
| -9,312 | -12,138 | -14,964 |
| – | – | – |
| 499 | 105 | -289 |
| -8,325 | -11,970 | -15,615 |
| -22,069 | -18,491 | -14,913 |
| – | – | – |
| – | – | – |
| 177 | 175 | 173 |
| -22,086 | -18,864 | -15,642 |
| – | – | – |
| 4,901 | -1,639 | -8,179 |
Ethical policy:
(Source: Annual Report, 2018)
Auditor’s Report:
(Source: Annual Report, 2018)
