Sunday, December 12, 2010

Freight Management

I did mention Freight Management before at my previous blog:

Now I will go more details for it.
Revenue was improving from time to time from RM 83 million (year 2005) to RM 229 million (2009)
Gross profit was improving from 17.9% (year 2005) to 24.1% (year 2009)
Administrative expenses is about 15% if compare with revenue
Financial cost is very low, which is less than 1% compare with revenue
Net profit margin is improving from 4.3% (year 2005) to 6.6% (year 2009) ~ a bit low

Trade receivables turnover rate is highest among all the logistic player, this mean that Freight Management operates on a cash basic, receive cash other than give extension of credit.

Beside that, receivable period and payable period are getting less, this also shows that management is doing the business with cash basic, they receive cash from client and then pay faster to their contractors.

I think this is the reason why their net profit margin can stand so low but yet is still surviving and improving.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.