DILMAH CEYLON TEA COMPANY PLC_CTEA N0000_2025_Financial Analysis

追加: 2026-05-07

[00:00:00]Hello everyone. Uh I'm Jani Koshalia.

[00:00:04]I'm a final year accountancy student of state. Today I'm going to explain a ratio analysis of Dilma salon tea company PLC. It is Sri Lankan iconic tea brand. In this video, I'm going to explain company details, ratio analysis and comparing calculation in 2024 and 2025.

[00:00:35]Uh uh they are incorporated in 1985 and their main business is manufacture, export and market of tea bags and packets. Their main shareholder is MJF Group and Mr. Delhi Fernando is the CEO of this company and he is the son of founder and for the 2025 they got 28 uh,900 millions of assets and their EBIT is 1,451 million and their taxation 79 million and profit after tax is uh 726 million. And for the 2025 they got 21,158 millions of revenue and they have 822 staff members.

[00:01:48]Ratio analysis. What is this ratio analysis? Ratio analysis is a method used to evaluate a company's financial performance by analyzing relationship between figures in financial statement and it helps to understand profitability, liquidity, solency of business and support better decision making.

[00:02:20]In this video I'm going to explain five analysis. First one is profitability and the second one is liquidity and the third one is efficiency. Fourth one is solveny and the last one is investor valuation.

[00:02:39]First one profitability.

[00:02:41]In profitability I'm going to calculate three uh ratios and the first one is profit gross profit margin and the second one is net profit margin and the third one is return on assets. Uh for the liquidity I calculate current ratio and liquid ratio. Those are the formulas for liquidity analysis.

[00:03:11]And third one is efficiency. For the efficiency I calculate inventory turnover and total assets turn over. Uh for the solveny I calculate debt ratio and interest coverage ratio. And the last one investor valuation I calculate EPS, DPS and dividend payout ratio.

[00:03:38]Let's move on to the comparing calculation with 2024 and 2025.

[00:03:46]First one profitability. For the profitability gross profit margin of 2024 is 39.4.

[00:03:57]But for the 2025 it is declining to 36.4 and for the net profit margin in 2024 is 4.1 and it is also dec uh decline in 2025 into 3.43 and return on assets of 2024 is 6.4. 41 but it is also dropped in 2025 into 2.5 and the second one is liquidity. In liquidity their current ratio of 2024 is 6.41 and their liquidity or uh reduced in 2025 into 5.24 2 4 and their quick ratio of 2024 is 5.54 and 2025 4.39 and uh efficiency uh first one inventory turnover uh for the 2024 4.1 and it is improved in 2025 into 4.55 and their total assistant over also improved shows better utilization. Uh for the 2024 they got uh 68 and 2025 they got 73.

[00:05:46]Uh and the fourth one is solveny.

[00:05:50]uh depth ratio of 2024 is uh.17 and for the 2025 is 21. The their leverage increase and it shows very little financial risk and interest coverage ratio also got uh strong improvement in 2025.

[00:06:16]uh they got 11.43 but for the 2024 is 7 uh 35 and the last one is investor valuation.

[00:06:30]First one earning per share we all know we call it EPS for the 2024 they got the 36.27 27 and for the 2024 it reduced into 34.68 68 and DPS dividend per ratio for the 2024 is 50 and for the 2025 is 8. It got major dropped in 2025 and their dividend payout ratio is uh.14 for the 2024 and for the 2024 they got uh 32.

[00:07:17]It is got small improvement increased.

[00:07:24]Uh overall the company shows mix performance in 2024 compared to the 2024 and profitability also decline and indicating cost of pricing challenges and liquidity remains strong. partly reduced uh efficiency improve and show up in better use of their resources and solveny is stable. Uh investor return weak due to lower EPS and major drop in dividends in 2025.

[00:08:09]Uh the company is financially stable but they need to focus on improving profitability and maintaining investor confident.

[00:08:21]And here is the end of my video. Uh thank you for listening and I happy happy to have uh happy to take your question. Um you may have