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…
