Sameer Africa Limited released its financial results for the year ended the year 2011 reporting a 68% increase in its profit after tax (read more on Sameer’s fortunes here). The company has had a difficult past however, going as far as to report a net loss in the year 2006.
Below is an infographic showing the net profit margins of Sameer over the last 6 years ever since they reported that loss in 2006.
Net profit margin is a measure of the net profit made for every unit of sales, that is, the average percentage profit the company makes from every sale. To elaborate even further, this is the amount of net profit that Sameer Africa makes from every tyre it sells and for any company, the higher this ratio is, the better. Read more on net profit margin here. Net profit margin in finance is a type of financial measure called a profitability ratio. Profitability ratios are used to assess a company’s ability to generate earnings.
From the above figures, at Sameer’s current net profit margin (2.638% in 2011), it will have to make sales of KES 37.91 billion in order to report a net profit of KES 1 billion.
