Top Glove Corporation Berhad from Malaysia, performance interpretation
Top Glove Corporation Berhad was founded in 1991 by Tan Sri Lim Wee Chai. It has been growing rapidly since then and has become the world 's largest rubber glove manufacturer (“Corporate profile”, n.d.). Due to the increasing demand in market, Top Glove Corporation Berhad decided to undergo expansion on its output and to increase its number of branches at the beginning of 2000s. In 2012, the company withholds the following data within its current operating system.
(Data extracted from Top Glove Corporation Berhad)
The company has been practicing 4 fundamental rules which ultimately assisted to earn the title of being the top of rubber glove industry. They are, “Do not waste our shareholder’s money”, “Do not lose our health”, “Do not lose our temper” and finally, “Do not lose our customer”, as mentioned by the chairman of Top Glove Corporation Berhad, Tan Sri Lam Wee Chai (“Mission & Vision”, n.d.). In order to maintain their customer’s loyalty and shareholder’s faith, Top Glove has and will continue to put in lots of hard work and effort in investing in their researches to bring a product that is worth the money paid. As stated in their company profile, the final objective of Top Glove is to pursue for an extensive and complete range of high-quality, high value-added and cost-effective rubber gloves (“Corporate profile”, n.d.).
Subsequently, we aim to evaluate the company with ratios of profitability, liquidity, efficiency and some other ratios, and to analyze the outcome to provide Mr. Alex for constructive advice whether it is appropriate to invest his capital in Top Glove.
Firstly, the profitability ratios are used to evaluate the Top Glove Corporation Berhad. There are 3 ratios involved and they are gross profit margin, net profit margin and return of capital employed (ROCE).
Gross Profit Margin, in others word it calls gross profit as a percentage of sale. This represents the gross profit before deducting any
(Data extracted from Top Glove Corporation Berhad)
The company has been practicing 4 fundamental rules which ultimately assisted to earn the title of being the top of rubber glove industry. They are, “Do not waste our shareholder’s money”, “Do not lose our health”, “Do not lose our temper” and finally, “Do not lose our customer”, as mentioned by the chairman of Top Glove Corporation Berhad, Tan Sri Lam Wee Chai (“Mission & Vision”, n.d.). In order to maintain their customer’s loyalty and shareholder’s faith, Top Glove has and will continue to put in lots of hard work and effort in investing in their researches to bring a product that is worth the money paid. As stated in their company profile, the final objective of Top Glove is to pursue for an extensive and complete range of high-quality, high value-added and cost-effective rubber gloves (“Corporate profile”, n.d.).
Subsequently, we aim to evaluate the company with ratios of profitability, liquidity, efficiency and some other ratios, and to analyze the outcome to provide Mr. Alex for constructive advice whether it is appropriate to invest his capital in Top Glove.
Firstly, the profitability ratios are used to evaluate the Top Glove Corporation Berhad. There are 3 ratios involved and they are gross profit margin, net profit margin and return of capital employed (ROCE).
Gross Profit Margin, in others word it calls gross profit as a percentage of sale. This represents the gross profit before deducting any
Bibliography: Corporate Profile. (n.d.). Retrieved January 1, 2013, from Top Glove: http://www.topglove.com.my/about.htm Mission & Vision