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...
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