DHL financial Performance

Horizontal Analysis of DHL

The main elements in the income statement of DHL for the past years are

Details 2006 2005 2004 2003 2002 2001 2000

Revenue 60 ,545 44 ,594 43 ,168 40 ,017 39 ,255 33 ,379 32 ,708

EBIT 3 ,872 3 ,764 2 ,977 2 ,656 1 ,972 2 ,547 2 ,235

Net Profit 2 ,282 2 ,448 1 ,740 1 ,342 1 ,590 1 ,587 1 ,527

Note : EBIT is Profit from operating activities

1 .2Ratio Analysis of DHL

The three main profitability ratios , being return on

capital employed operating income margin and net profit margin were applied in this respect . The results from such ratios are shown below

Details 2006 2005 2004 2003 2002 2001 2000

ROCE 2 .12 2 .67 2 .36 2 .05 1 .43 1 .63 1 .49

OPM 6 .40 8 .44 6 .90 6 .64 5 .02 7 .63 6 .83

NPM 3 .77 5 .49 4 .03 3 .35 4 .05 4 .75 4 .67

Financial Performance of DHL

The horizontal analysis conducted in the first section show that the key income variables of the corporation are increasing , namely revenue which rose by 85 from 2000 to 2006 . The accounting ratios determined in the next section portray an overall growth in the efficient utilization of the firm 's resources till 2005 , as indicated by the overall increase in return on capital employed of 1 .18 . The operating profit and net profit generated by ever 100 of sales also increased till 2005 by 1 .61 and 0 .82 complimenting the return on capital employed figure . However from 2005 to 2006 , the financial performance of the company diminished as indicated by the fall in all the aforesaid ratios , even though the sales revenue rose by 36 . This may indicate lower control on operating costs and /or lower prices charged to clients in to penetrate the market

References

Investors .dpwn . Financial Publications (on line . Available from http /investors .dpwn .com /en /investoren /publikationen /berichte /2001 /inde x .html (Accessed 5th June 2007

Randall H (1999 . A Level Accounting . Third Edition . Great Britain Ashford Colour Press Ltd

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FINANCIAL PERFORMANCE OF DHL...