Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
7 million at the end of the 2011 fiscal year 2011 to $25.2 million in 2012.
Moreover, the company has been able to increase the shareholder's value over the years. Typically, the company records ROE growth of 14% and EPS growth of 26% at the end of the fiscal year 2012. The company has been able to increase its total assets within the past 5 years. For example, the company total assets in 2011 were $168 million while the total assets increased to $178 at the end of 2012 fiscal year.
Table 1: KMG Financial Ratios Between 2006 and 2012
2012
2011
2010
2009
2008
2007
2006
Earnings/Share
0.96
0.85
1.34
0.91
0.48
0.80
0.40
Profit Margin, %
3.93
3.65
7.35
5.35
3.48
9.85
5.31
Return on Equity, %
11.34
10.07
18.08
14.39
8.43
15.67
8.04
Return on Assets, %
6.30
5.21
8.71
7.11
3.45
10.88
5.19
Price/Sales
0.68
0.71
0.76
0.36
1.07
1.40
0.00
Price/Earnings
17.66
19.40
10.54
6.78
31.19
14.57
0.00
Price/Book
1.86
1.93
1.87
0.97
2.59
2.23
0.00
Debt/Equity
0.27
0.43
0.61
0.55
0.84
0.19
0.30
Interest Coverage
13.62
7.48
11.90
6.77
4.45
16.11
6.66
Book Value, $
9.21
8.53
7.55
6.39
5.78
5.24
4.45
Dividend Payout, %
10.59
10.49
5.87
8.72
16.39
9.16
20.95
Source: Barhart (2012)
Additionally, the KMG has been able to identify the hidden business value by focusing on its vision and strategy. As being revealed Table 1, the company has been able to improve its financial ratios through various business strategies adopted within the last 5 years.
Conclusion
The report provides the strategies that KMG could use...
The report reveals the financial ratios of the company for the past 5 years and based on the past financial records of the company, KMG has been able to improve its financial performances based on the company financial ratios. Typically, the company ROA and ROE have increased over the years. Based on the company financial ratios provided in Table 1, KMG is a good potential company to invest.
Works Cited
Barhart. KMG Chemicals. (KMGB).2012.
Forbes. KMG Chemicals. Forbes Fortune. 2012.
Allebach, M.A. Small Business, Equity Financing, and the Internet: The Evolution of a Solution? Virginal Journal of Law and Technology.4(3). 1999.
Continual Improvement
Our Continual Improvement (CI) operational philosophy is centered on the premise that performance management is the responsibility of everyone at KMG. As a mindset, CI is a way of approaching work so that a culture of innovation and creativity is encouraged. Our CI Vision is to aggressively stamp out waste and improve the efficiency of the work environment in our continual endeavor to improve employee and customer satisfaction. To this end, we ensure that every employee has the tools, training and direction to achieve this vision.
KMG's CI process:
Empowers all levels of the organization to make positive, rapid change towards a defined strategic end;
Significantly improves teamwork and enhances communication at every level; and Aids KMG in becoming a Lean Company, rather than a company that simply undertakes lean projects.
History of Success
KMG's consolidation strategy has a proven track record: Since our founding in 1986, KMG has established itself as a leading provider of chemicals for the industrial wood treatment market and a top supplier of high purity electronic chemicals.
Over the past ten years, KMG's shareholders' equity has grown at a compound annual rate of 14% while our diluted earnings per share have grown at a 12% compound annual rate over the same time frame.
Team
KMG's executive management team possesses extensive experience in the chemicals and energy sectors, including leadership positions with firms such as Zeneca Agrichemicals, Dow Chemical and Novistar. KMG's executive team has led the successful integration and optimization of numerous businesses during their tenure at KMG.
Our dedicated employees are committed to providing the highest quality products with an unwavering focus on delivering exceptional customer service. KMG is proud to have a motivated, diverse and skilled workforce that is always guided by our core values of safety, reliability, efficiency and…
Works Cited
Barhart. KMG Chemicals. (KMGB).2012.
Forbes. KMG Chemicals. Forbes Fortune. 2012.
Allebach, M.A. Small Business, Equity Financing, and the Internet: The Evolution of a Solution? Virginal Journal of Law and Technology.4(3). 1999.
Continual Improvement
Small Business Scalability Scalability can be delineated as how easy or simple it is for a business to grow and extend its business model and at the same time cultivate its revenues substantially devoid of similarly increase its level of costs incurred. Scalability is of great importance to small businesses. In relation to the fixed costs and expenses, the revenues of small businesses have the potential to rise exponentially and as
Small business owners should consider numerous business ratios. The measures of liquidity enable the business to live within the day-to-day expenses. These short-term obligations must be fulfilled by the business. Measures of liquidity are obtained through the two main features in the current ratio and net working capital. The ratio between the current assets and current liabilities should be considered by the business. Activity ratios are another business ratio that
Venture capital is the money that businesses get from investors to start or continue a business. Ironically the advantages of a business plan are also correlated with some of the disadvantages of a business plan. For instance, a book entitled Under the Radar: Starting Your Net Business without Venture Capital, Venture capitalists often find that many business plans are too optimistic (Kling 2001). The book asserts that, Trying to obtain venture
Video Tape and Disc Rental Rentals Catalog/Mail Order Retailing Health and Personal Care Stores Retailing Table 2: Comparisons of Most Risky Small Business (BizStats.com, cited by Telberg, 2003) An Engine of Economic Growth More and more, Craig, Jackson and Thomson (2007) argue, policymakers perceive the small business sector "as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs." These authors stress that encouraging lending
The same goes for business-related periodicals and magazines. (Dratch 2008, p. 2) Mileage: Once again, this involves careful bookkeeping, but the deductions can add up. Keep a dated log of all business-related mileage, tolls, and parking costs. According to the IRS website, the 2009 IRS deduction rate for business-related mileage was 55 cents per mile. Travel, Entertainment, and Meals: For the small business, 100% of travel and entertainment expenses are deductible,
Small-Business Management & Entrepreneurship The fruition of many years of dreaming and planning will be realized through the opening of a restaurant in the Tri Cities area. Opening any business requires serious planning and calculations, yet the special needs of a restaurant are particular to the idea that many restaurants have gradual and long-term returns on investment. Start-up costs are often very significant with hard goods and food costs making up