DHL Financial Analysis

RATIO 1999 2000 2001 2002

Gross Profit /Margin Ratio Gross profit

sales

10702 100

313575 3 .41 28868 100

558942 5 .16 45180 100

918671 4 .92 1471 .7 100

9428 .4 15 .61

2003 2004 2005 2006

1550 .7 100

9070 .0 17 .1 5257 100

19723 26 .7 7879 100

29181 27 3872 100

63366 6 .11

Net profit margin ratio Net profit after tax

Sales Revenue

1999 2000 2001 2002

5977 100

313575 1 .91 20694 100

558942

3 .70 36083 100

918671 3 .93 1111 100

9428 .4 11 .8

2003 2004 2005 2006 (1223 .5 100

90700 (13 .5

5307 100

19723 26 .9 1449 100

29181 4 .97 2282 100

63366 3 .60

Return on Investment Net profit after tax

20694 100

171016 12 .10 36083 100

285648 12 .63 1111 100

13764 .2 8 .07

2003 2004 2005 2006 (1223 .5 100

12796 .0 906 5307 100

12601 7 .31 2448 100

114749 2 .13 2282 100

217698 13 .05

Return on Equity Net profit after tax

Equity 1999 2000 2001 2002 20694 100

171016 12 36083 100

285648 12 .63 1111 100

3131 .5

35 .4

2003 2004 2005 2006 (1223 .5 100

1679 .1 (72 .8 ) 5307 100

29054 18 .3 1449 100

12415 11 .67 2282 100

13952 9 .19 RATIOS 1999 2000 2001 2002

CURRENT

RATIOS Current Assets

Current Liabilities 163368

82815 1 .97 :1 272313

136792 2 :1 13764

4499 2003

2004 2005 2006 12796

5077 .7 2 .5 :1

41217

18638 2 .2 :1

147417

139030 1 .06 :1

191624

180733 1 .06 :1 Acid Test Ratio Current Assets-Stock

Current Liabilities

1999 2000 2001 2002

82815 1 .39 :1

p 136792 1 .41

13764-17 .7

4499 3 .06 :1 2003 2004 2005 2006 12796-18 .4

5077 .7 2 .5 :1 41217

18638 147417-282

139030 1 .06 :1

191624-268

180733 1 .06 :1 From the financial ratio calculations , the following can be inferenced

The profitability of the firm

This is measured by the profitability ratios i .e . the gross profit /margin ratio and the net profit margin ratio . Profitability can also be measured in relation to investments

In 1999 , DHL gross profit margin was the lowest at 3 .41 . There was a slight improvement in 2001 with the gross profit margin ratio being 5 .16 before a decline was witnessed in 2001 . Between 2002 and 2004 profitability of DHL improved with a record of 15 .61 , 17 .1 26 .7 respectively . However , in 2006 , the ratio declined to 6 .11

This ratio is an indicator of how the firm controls its cost of goods sold expenses . For instance , in 1999 , of the 100 revenue generated 3 .41 resulted into gross profits while the remaining were cost of goods sold

The net profit margin ratio was 1 .91 in 1999 improving to 3 .93 and 11 .8 in 2001 and 2002 respectively . There was a decline in profits in 2003 as shown by a negative ratio of -13 .25 . In...