| Ratio | Apix | R. R Donelly & Sons | CCL Industries Inc | |||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
|
Current ratio (Current assets/ current liabilities) |
= 20450/18100 = 1.13 |
= 14500/11200 =1.29 |
=3561.6/2228.7 =1.59 |
=2977.4/2053.9 =1.45 |
= 770.993/544.549 = 1.41 |
=476.909/322.155 = 1.48 |
|
Debt to equity ratio (total liabilities/ shareholder equity) |
=54950/84550 = 0.65 |
=100000/63300 = 1.58 |
= 4355.8/ 653.7 =6.66 |
=5140.1/ 68.7 =74.82 |
=665.0/1018.1 =0.65 |
=244.3/887.2 =0.27 |
|
Gross margin percentage (gross profit/ sales) |
=97850/450000 = 21.74% |
=74500/475000 = 15.68% |
=2330.5/10480.3 =22.24% |
=2332.9/10221.9 =22.82 |
= 475.435/1344.2 =35.37% |
= 312.44/1126.9 =27.72% |
|
Net profit margin percentage (net profit/ sales) |
=68750/450000 = 15.27% |
=42500/475000 = 8.95% |
=218.2/ 10480.3 =2.08% |
= -653.6/10221.9 = -6.39 |
= 103.6/1344.2 =7.7% |
=97.5/1126.9 =8.65% |
|
Return on Equity percentage (earnings after tax/ total s/ holders’ equity) |
=26250/84550 = 31.05% |
=6500/63300 = 10.26% |
=211.2/653.7 =32.31% |
=-651.4/68.7 = -948.18% |
=103.6/1018.1 =10.17% |
=97.5/887.2 =10.98% |
RRD annual figures retrieved from RR Donelley (2013).
CCL annual figures retrieved from CCL Inc (2013).
Current ratio – this ratio measures the ability of a company to meet its short term obligations. At 1.13, Apex’s 2013 current ratio is lower than that of RRD and CCL Inc at 1.59 and 1.41 respectively. A higher current ratio is good for investors thus Apex looks less favorable. In addition, the ratio is dropping from the previous year thus not looking good for the company compared to competitors.
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(Long-term) debt to equity ratio – Used to determine to what degree debt is being used to finance the company’s operations as compared to equity. From 1.58 in 2012 to 0.65 in 2013, Apex is experiencing a downward trend in its debt to equity ratio meaning the company’s operations are increasingly being funded by equity rather than debt which is good for the company. Its competitors showed mixed results with RRD also showing a downward trend, 74.82 to 6.66, while CCL’s ratio had an upward trend at 0.65 from 0.27 placing Apex at a better position in the comparison.
Gross margin percentage – Usually indicates the gross profits as a percentage of sales and shows the ability of a company to make profits. The higher the percentage the better. Despite having an upward trend in the growth of the percentage, Apex still had lower numbers than its competitors although the upward trend was promising to investors. CCL had the best figures growing from 27.72 to 35.37% and RRD was relatively constant at 22% in the two-year period.
Net profit margin percentage – Similar to gross profit margin but in this case the net profit is used instead. Apex posted the most promising figures growing from 8.95 to 15.27% to look the most favorable for investors. RRD also had a favorable upward trend but way lower than Apex while CCL experienced a downward trend which does not favor investors.
Return on equity percentage – the figure is used by shareholders to determine how much money they can expect as a percentage of their investment in the company. RRD edged out Apex just slightly with 32.31% to Apex’s 31.05% in 2013 with both companies experiencing a favorable upward trend in the two-year period from 2011 to 2013. Despite RRD having a bigger change in ROE, one may be inclined to pick Apex as a better investment due to the relative stability as opposed to RRD which had a negative ROE percentage the previous year.
References
CCL Inc (2013). CCL INDUSTRIES INC. 2013 ANNUAL REPORT http://www.annualreports.com/HostedData/AnnualReportArchive/c/TSX_CCL.BCA_2013.pdf
RR Donelley (2013). RR Donelley 2013 Annual Report http://www.annualreports.com/HostedData/AnnualReportArchive/r/NASDAQ_RRD_2013.pdf
