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25 Simple Numbers To Help Investors Understand SATS Ltd’s Historical Financial Performance

Source: SATS

SATS Ltd (SGX: S58) is a company providing food solutions and gateway services solutions.

The Food Solutions covers airline catering, food distribution and industrial catering whereas Gateway Solutions is involved in ground handling services of passengers, flights and cargo.

Investors or potential investors in SATS will need to have a good understanding of its historical financial performance (at least five years worth of data) before investing in the company.

Doing so might help investors to forecast its future financial performance, which in turn, will aid their investment decisions.

With that, let’s look at some numbers below.

Source: SATS FY2016/17 Annual Report

From the above, we can draw a few observations.

In terms of revenue, the overall trend was down from FY2012-13 to FY2015-16 before going up slightly in FY2016-17. Still, revenue was down by around 5% in the last five years.

Despite the negative revenue trend mentioned above, there are three positive things that investors should note.

Firstly, operating profit has been growing in each of the last five years due to better cost efficiency. Secondly, share of results of associates/joint ventures grew by a total of 24% from FY2012-13 to FY2016-17. Lastly, profit after tax also grew by 40% during the last five years.

A Foolish conclusion

We see that SATS has grown its profitability in the last five years despite facing difficulties in growing revenue. The growth in profitability was driven by improvements in cost efficiency and growth in SATS’s share of associates/joint ventures.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for SATS Ltd.