Analyzing Financial Data
|
|
2009 |
2010 |
2011 |
2012 |
2013 |
|
Total Profit Margin |
2% |
3% |
6.3% |
7.7% |
9.7% |
|
Asset Turnover |
1.19 |
1.18 |
1.21 |
1.16 |
1.19 |
|
Return on Assets |
2.5% |
3.6% |
7.7% |
8.9% |
11% |
|
Return on Net Worth |
4.2 |
6.2 |
14.3 |
16.3 |
20.11 |
Analysis:
The total profit margin has increased significantly in the last five years which shows that they have managed to improve expense management. They are well above the industry standard of 5%. Return on assets has also made a significant jump over the last five years. In 2009 they were well below the industry standard of 4.8%, but are currently significantly above that with each dollar of assets generating 11 cents in profit. Return on net worth has also made a significant jump over the years and are currently significantly above the industry standard of 8.4% with Jiranna at 20.1% .