Orient Dis Ratios

RATIO ANALYSIS

TIME SERIES ANALYSIS

ORIENT:

From the above table of profitability ratios it can be seen that almost all the ratios of Orient are showing downward trend except Earnings per share which is stable at 4.40. EPS represents the number of dollars earned during the period on behalf of each outstanding share of common stock. As can be seen from the ratios chart Orient’s gross profit margin has fallen from 46.1% to 44.5%, this could be because of the inability of Orient to pass on the cost of expensive material/goods purchased to its customers, company being forced to make purchases from multiple suppliers at higher prices, or due to a failure of company not being able to increase its sales volume or set higher prices for its goods because of cut throat competition in the market. Operating margin reduced to 17.6% from 19.7% of 2014 figure, and this reduction might be attributable to increasing operating expenses of Orient over which it had no effective control. Net margin came at 11.71% during 2015 from a 2014 ratio of 13.10%. This reduction might be because of higher interest rates or higher taxes paid by the company during 2015. Further, return on assets decreased by 17.66% and return on equity by

This could be because Orient was quite successful in increasing its sales revenue either from its ability to increase sales volume or success in selling products at higher prices to consumers, or the reason could be less cost of sales than the others which provided an opportunity to Orient electronics to earn more gross profit than other two rivals. The operating and net profit margins of Orient again were showing greater figures for both of the years than other two in the industry. It indicates that Orient had a better control over its operating expenses, was paying less in taxes and was less liable to make interest payments than the other of its