preview

Financial Impacts Of Pioneer Foods

Decent Essays

The following financial indicators were used to comment on the return made by the shareholders of Pioneer Foods: Basic Earnings per share; Dividends per share; Return on shareholders’ equity. The basic Earnings per share = Net profit after taxNumber of issued shares×100c= 912.1cents in 2016 (increased from 612.8cents in 2015 which shows that the company was able to generate a greater profit and the shareholders were able to ‘earn more’ even though more shares were issued). The Dividends per share = Dividends paid & declaredNumber of issued ordinary shares×100c= 260cents in 2016 (increased from 237cents in 2015). To further comment on the EPS and DPS, I calculated the %Amount distributed to the shareholders = DPSEPS×100=260912.1×100=28.51% (which is a …show more content…

This ratio is more favourable when it is low as it indicates the number of cents an investor will have to invest in order to currently earn 1 cent. DV - Day’s Volume = this is the indication of the number of shares that were traded during the course of the day = 170 083 shares Market Capitalisation – this is calculated by multiplying the current market share price by the unissued shares = 38.07 Billion The following graphs are of the share prices over two weeks of Pioneer Foods’s main competitors (Tiger Brands; Rhodes Food Group Holdings; AVI Limited & OCE Limited) and also, and more especially, of Pioneer Foods: MXOLISI MCEBO MAGWAZA ACCOUNTING ORAL TASK PAGE 7 of 10 The following is an account of Pioneer Foods’s performance over the above two-week period in relation to its competitors: Pioneer Foods showed consistent increase over the two weeks, unlike its competitors This reflects that the company is performing well There is a growing demand for shares of Pioneer Foods Potential shareholders (YOU) should, therefore, be more inclined to buy shares in Pioneer

Get Access