Finance and Business : Analysis of Delta Corporation Limited

Jun 21st, 2015
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i. Net Sales rose by 13.7% from 2012 to 2013 while the Cost of Goods Sold (COGS) increased by 5.8%. The COGS as a fraction Net Sales decreased 42% to 39%. ii. Gross Profit Margin rose to 61% from 58% as a fraction of net sales. This was an increase of 19.5% from 2012 figures.

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Finance and Business Appreciation assignmentQuestion 1Analysis of Delta Corporation Limited Annual Report 2013i. Net Sales rose by 13.7% from 2012 to 2013 while the Cost of Goods Sold (COGS) increased by 5.8%. The COGS as a fraction Net Sales decreased 42% to 39%.ii. Gross Profit Margin rose to 61% from 58% as a fraction of net sales. This was an increase of 19.5% from 2012 figures. Net operating costs surged by 8.7% between the two years. They, however, decreased to 91% of the net sales from 95%.iii. Interest and tax rose by 58.2% and 36% respectively. Profit for the year (distributable earnings) increased by 38.5%. In 2012, Net Profit after Tax was 16% of Net Sales but jumped to 19% in 2013.iv. Even though plant and equipment increased by 19.9%, they still remained stagnant at 57% as a fraction of Total Assets (TA). Total Non-Current Assets decreased slightly to 62% of TA from 63% in the previous year.v. Inventories remained stagnant at 17% of TA. Overall, Current Assets (CA) rose by 24.4% from 2012 levels. The Current Ratio remained at 2:1 while the Acid Test Ratio also remained at 1:1 in both years.vi. Return on Assets(ROA) rose to 18.5% from 16.1% and Return on Equity(ROE) increased from 28% to 30%vii. The Average Collection Period from debtors decreased to 20 days from 21 days while the Average Creditor Payment days fell from 57 to 45 days.viii. Asset Turnover declined to 97.1% from102%. Inventory turnover rose to 157 days from 141 days. Consequently, wor

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