Trend Analysis
In terms of the levels of TCA and PCA, Louie Ltd. employs a conservative financing method with a marketable securities approach in financing its shot-term debt. This tells us that their PCA is financed by long-term debt, such as new equity issued, which we can see that their shareholder equity has increased consistently over the periods. On the other hand, a portion of short-term debt and a portion of market securities, which are Associated Coys, to fund its TCA.
Trend Analysis,
The absolutes values of turnover are in declining trend generally. The biggest absolute deficit can be seen in the year 2009 to 2010, where the turnover has the biggest percentage change of -10.71%. This decrease can be explained by the significant fall in the net profit margin, which has steadily declined from 6.04% to 5.16% or by -14.49%. This generally tells us for every dollar of turnover, the company has loss 88 cents of NPAT. Nonetheless, from 2010-2011, the company has rebounded and improved its turnover by 4.13%, which significantly improves their profit margin by 53.57% or from 5.16% to 7.93%. This indicates that the company has become more profitable. However, throughout the rest of periods of 2011 to 2013, the company has again struggled and its turnover has deteriorated rapidly with the biggest deficit arise in the year 2012 to 2013 by -7.12%, but the drop does not concern the company too much since it has been offset by the significant improved in its profit margin by 299.77% or from -0.75% to 1.50%. On the other hand, the lowest deficit in turnover from 2011 to 2012 tends to do more harm to the company because the profit margin is in deficit of -109.49% in percentage change or from 7.93% to -0.75%, which indicates the company is selling at loss.
The absolutes values of fixed assets are in declining trend generally; except for the year 2010 to 2011, which has the biggest fixed assets gained by 5.58% in percentage change. This increase can be explained by the
Trend Analysis,
The absolutes values of turnover are in declining trend generally. The biggest absolute deficit can be seen in the year 2009 to 2010, where the turnover has the biggest percentage change of -10.71%. This decrease can be explained by the significant fall in the net profit margin, which has steadily declined from 6.04% to 5.16% or by -14.49%. This generally tells us for every dollar of turnover, the company has loss 88 cents of NPAT. Nonetheless, from 2010-2011, the company has rebounded and improved its turnover by 4.13%, which significantly improves their profit margin by 53.57% or from 5.16% to 7.93%. This indicates that the company has become more profitable. However, throughout the rest of periods of 2011 to 2013, the company has again struggled and its turnover has deteriorated rapidly with the biggest deficit arise in the year 2012 to 2013 by -7.12%, but the drop does not concern the company too much since it has been offset by the significant improved in its profit margin by 299.77% or from -0.75% to 1.50%. On the other hand, the lowest deficit in turnover from 2011 to 2012 tends to do more harm to the company because the profit margin is in deficit of -109.49% in percentage change or from 7.93% to -0.75%, which indicates the company is selling at loss.
The absolutes values of fixed assets are in declining trend generally; except for the year 2010 to 2011, which has the biggest fixed assets gained by 5.58% in percentage change. This increase can be explained by the