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Rexes has suffered from the crisis and its unprofitable Personal Care Business respectively. In 2012, the Net Income fell from Emma to Emma. The deterioration is due to the patent expirations in Healthcare Business. Thus unprofitable business was offset by the growing profitable beverage can market. From 2010 to 2012, Ball experienced a downward trend in its Net Income and performed 4% increase while Crown achieved 67% rise. 2.
Ratio Analysis & Interpretations: While focusing on the ratio analysis, one of the first things that captured my attention was the tremendous increase in Sales and Equivalents section. While Balls and Crown was carrying $mm and $mm cash in their assets, this amount for Rexes was El . Ban. Representing an incline of 792% in the last year. Carrying this amount of cash for the long term is not sustainable. This decision of the Top Management is justified by Rear’s aggressive expansion strategy, especially in Africa, Middle East and Asia by either M practices or establishing new factories.
The cash position unprofitable Healthcare Business is on the agenda that will create more funds to achieve the expansion projects. In 2012, Rexes had the profit margin of 4. 96% above sail (4. 62%) and below crown (6. 58%). Its ROE and ROAR were 9. 36% and 3. 36% respectively, both ratios were below its major competitors. When it comes to investors, the company is willing to communicate its RACE, which covers all the UAPITA the company received both the debt and equity. Therefore it involves the shareholders and debt holders.
In the last 3 years, RACE showed an upward trend and in 2012 it increased to 14. 7%. Ball has achieved 9. 6% and Crown performed 17. 7%. Currently Rear’s share price is IEEE. 50, which is the highest level within the analyses period. C. Conclusion: Rexes is a quality company presenting a steady earnings growth, with a huge potential of progressive cash returns. With its expansion strategy focusing on the core business, it should be considered as a long-term investment.