This website uses cookies to ensure you have the best experience.

# Higher Value Equates To Higher Profit

2642 words - 11 pages

A higher value of return on equity employed indicates the company is able to generate a higher profitability while lower value shows that the company is generating a lesser earning and lower profitability.
Therefore, from the bar chart we know that HupSeng is able to generate high profitability then other two companies with have highest value of return on capital employed, 28.03% compare to other two companies. For Hwa Tai, who have -2.86% on return on capital employed, it show that Hwa Tai was generating a loss in business and lowest profitability compare to other two companies.
For London Biscuits which have 7.30% in return on capital employed, it means that London biscuits able to generate earning but less than HupSeng and have higher profitability than Hwa Tai but lower than HupSeng. It was because London Biscuits return on capital employed value is between on HupSeng and Hwa Tai.

Gross Profit Margin
Definition
Gross Profit Margin is a financial metric that is used to evaluate a firm financial health by acknowledging the proportion of money left over from revenue after accounting for the cost of goods sold.(Deb Katula, 2013) It function as the main source for paying additional expenses and future savings.
Formula
Gross Profit Margin= (Gross Profit)/Revenue×100
NOTE: Gross Profit = Revenue – Cost of Goods Sold (COGS)

Company Calculation Interpretation
Hwa Tai = (66,446,623-49,501,691)/66,446,623 X 100
=16,944,932/66,446,6230 X 100
= 25.50% The gross profit margin of Hwa Tai is 25.50%. So, the company gained RM25.50 gross profit for every RM100 of sales revenue generated before operating expense was paid.
HupSeng = (247,818,145-159,924,152)/247,818,145 X 100
=87,893,993/247,818,1450 X 100
= 35.47% The gross profit margin of HupSeng is 35.47%. So, the company gained RM35.47 gross profit for every RM100 of sales revenue generated before operating expense was paid.
London Biscuits = (182,055,132-135,814,139)/182,055,132 X 100
=46,240,993/182,055,132 X 100
= 25.40% The gross profit margin of London Biscuits is 25.40%. So, the company gained RM25.40 gross profit for every RM100 of sales revenue generated before operating expense was paid.

Compare & Comment

From the bar chart shown above, the highest gross profit margin is HupSeng, with 35.47% compare to other two companies and the lowest gross profit margin is London Biscuits,with 25.40%. Hwa Tai gross profit margin is just more than London Biscuits about 0.10%, so it gross profit margin value was 25.50%.
Gross profit margin is able to reveal the financial health of a certain company. Low margin shows that the company unable to cope with the cost of production whereas high margin indicate that the company is in a good financial health as well as showing that the company is efficient in manufacturing and distributing processes.
For the bar chart shown that HupSeng is gaining RM35.47 gross profit of every RM100 of sales revenue generated before the operating expenses. It more than Hwa Tai...

## Find Another Essay On Higher Value Equates to Higher Profit

1200 words - 5 pages particular person is. The US would like to think that it has moved on from racial discrimination, but it is still present. A cost free education would be the one thing that every person in the US has the privilege of partaking in. No one could judge another by their race and prevent them from a higher education. “With free higher education, people have the ability to improve their own future utility, irrespective of their present economic standing

### Transcending to a Higher Place: Spirituality

1083 words - 5 pages influence on some aspects of the natural world and reverence towards it. Usually nature worshipers believe in a nature deity, which is different for every naturally occurring phenomenon. Many people find that being spiritual transcends them to a higher place. There are many types of spirituality and many ways in which one can be spiritual. Many people find their spirituality in religion. Others find that a religion is not needed to be

### I Must Work to Make Higher Education Affordable to All

996 words - 4 pages accomplishing his first task of controlling the whole European continent. In my quest, is to create a system that shall improve and advance college education and decrease student loan debt. I named this system “The National Bank for Colleges and Universities.” Before I explain further, I would like to explain about the background of why I want this to be created. Higher education, since its founding in the Old World, was considered a privilege. Now in

### Higher Education: To Go or Not To Go?

1314 words - 5 pages do not require any level of higher education. In America, it comes as a shock when a high school graduate chooses not to go to college. We assume that after high school comes college, and those who don't go to college are often looked down upon. The last, and possibly largest myth that must be debunked is that college is for everyone. When everyone goes to college, colleges lose their credibility (Wood). When colleges first began, they

### Internal Marketing - Motivating Personnel Leads To Higher Company Performance

2237 words - 9 pages time. As a result, it will lead to higher company performance.ConclusionTo sum up, theoretically, higher company performance would be achieved when everyone in the company could achieve their individual goal, and shares the same vision, where they trust and value each other's contribution, then, the motivated and satisfied employees will provide quality service to external customers in order to satisfy them as well, thus, repeat customers could

### Alternatives to Outcome Assessment Testing in Higher Education

2137 words - 9 pages . In order to assess student learning accurately and completely, objectives must be in place, along with a way to collect and measure data. Assessment History Assessment is a study in evolution within higher educational institutions. The history of assessment is traceable to as early as the Middle Ages. For instance, in medieval Paris at the University of Bologna, Master of Arts in either law or theology taught incoming students. Only when

### Higher Nurse-to-Patient Ratios Improves the Quality of Care

2212 words - 9 pages illnesses (Gordon, Buchanan, and Bretherton 190). Higher workloads not only were related to burnout, but also impacted both the nurses’ and the patients’ safety (Gordon, Buchanan, and Bretherton 191). Job dissatisfaction as a result of insurmountable workloads and unreasonable demands, such as inappropriate nurse staffing levels, was cited as the number one reason that drove many experienced nurses to leave the profession (Sanford 38). The

### International Students in Higher Education: How to Cope?

792 words - 4 pages Having international students attending higher education here in the United States can be very beneficial not only for the college or university but also for the other students that attend the school. International students help bring diversity to campus life. These students also help to bring different and fresh perspectives to the classroom. Another benefit of having international students attend higher education here in the United States is

### ‘Altruism Gene’ Associated With Higher Willingness to Donate

940 words - 4 pages Option 1: 'Altruism Gene' Associated With Higher Willingness to Donate, Researches FindBased on the article, 100 study subjects were paid for an assigned task and asked to decide if they wanted to donate their earnings. Prior to the test, they were asked to undergo a cheek swab. The DNA extracted from the study subjects' cheek swab was analysed for the COMT gene which contains the construction manual for an enzyme which renders dopamine inactive

### "Using Assessment in Higher Education to Improve Success for Minority Students"

1811 words - 7 pages entitled, Involvement in Learning shifted the focus from K-12 to post-secondary education, citing that higher education was in no better shape than the "sub-standard" conditions found in the nations elementary and secondary school systems. This report challenged higher education institutions to improve quality by strengthening student learning through a model which included student involvement in learning, communicating high expectations, and

### Do More Androgynous Self-Images Lead to Higher Levels of Moral Development?

1828 words - 8 pages Do More Androgynous Self-Images Lead to Higher Levels of Moral Development? Throughout our lives we undergo many developmental changes. Two developmental areas of interest are self image and moral development. As we move through the developmental stages, the way we interpret sex roles and our self-image according to those changes, as does the way we interpret moral dilemmas. There are several theories that claim different forms of development

## Similar Essays

### The Value Of Higher Education Essay

937 words - 4 pages In the United States attending a four year university has become a standard for many young adults. It has presumably become this way because in the current economy more and more jobs require a college degree. This is due to the increase of fields that need higher education as well as attending a university becoming more accessible to the masses thanks to financial aid. Financial aid opened the floodgates for college graduation, giving many

### The Value Of Critical Research In Higher Education

2296 words - 10 pages critical research adding a great deal to our knowledge of higher education, I can especially see its value when combined with other types of research. Critical research uses a quantitative study to dive deeper into the nuances of a topic to reveal a concept like stereotype threat, or a qualitative study launches based on critical research revealing some issue within higher education. The most important lesson I think I have learned is that each

### Tangibles Versus Intangibles, Which Ones Bear A Higher Value Today?

799 words - 4 pages Tangibles versus intangibles, which ones bear a higher value today? Since the first human economic relations, tangible goods, those one can feel and touch, were playing a predominant role as objects of trade. Over time, with the course of history, intangible aspects of products (those one cannot touch or feel) such as personal attachment attributes, place of goods origin, appearance and visual design, aesthetic, status or social properties rose

### Higher Education Level Can Lead To Higher Wages

1189 words - 5 pages 330,000 graduates by 2020 to meet 40% population for tightening and strengthen the quality control of the future workforce (Slattery, L 2008). According to PC report, early school leavers are most likely to receive a lower pay compared to those of higher education level (McLachlan, R, Gilfillan, G & Gordan, J 2013). Based on that statement, the present research analysis was conducted to investigate whether is there any factual indication that there