Introduction

This project need us to calculate the financial ratios about SPRITZER company, explain the use of financial ratio of SPRITZER company, value the SPRITZER company’s performance and to encourage students to be familiar with real practice of industry financial standards.

SPRITZER is company that most integrated and largest bottled water producer in Malaysia, starting from a small set-up in Taiping, Perak, in the late 1980’s, the SPRITZER Group of Companies today comprises five subsidiaries which are involved in the manufacturing and distribution of natural mineral water, sparkling natural mineral water, distilled drinking water, carbonated fruit flavored drink, non-carbonated fruit flavored drink, functional drink, toothbrushes, performs and packaging bottles. The brand, SPRITZER, Malaysia best selling natural mineral water is produced and bottled out of a vast 300 acre site with plentiful natural mineral water resources in an environmentally friendly site surrounded by lush tropical rainforests greenery, away from pollution. Our production lines are completely automated and equipped with the state-of-the-art bottling technologies. The plant is manned by highly qualified professionals such as food technologists, chemists, microbiologists and engineers. The superior quality of SPRITZER bottle water products has garnered many awards and set many milestones through the years.

PROFITABILITY RATIOS

Gross profit margin states the gross profit earned on sales. If the ratio is higher,it becomes more better because it means efficient purchase management and related cost with purchases is reduced. All data given in the diagram shown above presents a decrease in value for 3 consecutive years. We can assume that the purchasing management and the cost are not efficient enough to attract customers into buying their products. Reason for the situation maybe