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With additional RM3 million investment of assets, the CEO of a company was able to increase sales to RM13 million from RM12 million last year.
The annual profit has also increased from RM2.9 to RM3.0 million behind a shareholding of RM10.2 million and a total assets of RM4 million last year.
However, costs has gone up from RM9.10 to RM10.0 million.
How do you measure the performance of the CEO?.
Answers:
last yr current yr
ROS 0.242 0.231
ROA 0.207 0.176
ROE 0.284 0.229
Conclusion: The CEO has not performed. ROS has dropped from 24% to 23%
The ROA has dropped by 3% and ROE by 5%.
Net Profit margin has dropped by 1% while turnover has reduced by 0.10 and equity multiplier has dropped by 0.07.
Arriffin Mansor 012-2786282
With additional RM3 million investment of assets, the CEO of a company was able to increase sales to RM13 million from RM12 million last year.
The annual profit has also increased from RM2.9 to RM3.0 million behind a shareholding of RM10.2 million and a total assets of RM4 million last year.
However, costs has gone up from RM9.10 to RM10.0 million.
How do you measure the performance of the CEO?.
Answers:
last yr current yr
ROS 0.242 0.231
ROA 0.207 0.176
ROE 0.284 0.229
Conclusion: The CEO has not performed. ROS has dropped from 24% to 23%
The ROA has dropped by 3% and ROE by 5%.
Net Profit margin has dropped by 1% while turnover has reduced by 0.10 and equity multiplier has dropped by 0.07.
Arriffin Mansor 012-2786282
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