Financial statement analysis10 liquidity

FINANCIAL AFFIRMATION ANALYSIS1. zero LIQUIDITY RATIOSLiquidity ratios measure the extent where a firm has adequate funds flows or liquid assets. 1 . 1 Current Ratio Current ratios can be one seeks to look at the firm’s resources that are comparatively liquid in nature and match these to the initial liabilities in the firm. Current assetsCurrent ratio = Current liabilities Years 2016 (RM’000) 2017 (RM’000)Current ratio = 1, 336, 738690, 909= 1 . 93 times = 1, 251, 356795, 738= 1 . 57 times1. 2 Quick RatioQuick ratios or acid test ratio measures exactely current possessions less stock to current liabilities. Current assets ” inventoryQuick percentage = Current liabilitiesYears 2016 (RM’000) 2017 (RM’000)Quick percentage = 1, 336, 738 ” 263, 679690, 909= 1 .

55 occasions = you, 251, 356 ” 315, 775795, 738= 1 . 18 times2. zero ASSET MANAGEMENTThis section reveals four portions of asset management which is inventory turnover, days sales exceptional (DSO), fixed assets turnover and total asset proceeds. 2 . 1 Inventory Turnover RatioInventory turnover ratio or stock yield ratio implies the comparative liquidity of stocks in a firm, since measured by number of occasions a firm’s stock can be purchased that replaced during the year. It might be taken as a measure of a firm’s performance in turning its products on hand into revenue.

Sales Inventory turnover ratio = Inventories Years 2016 (RM’000) 2017 (RM’000)Inventory turnover ratio = two, 888, 515263, 679= twelve. 95 instances = several, 409, 176315, 775= 12. 80 times2. 2 Days and nights Sales Outstanding (DOS)The days sales outstanding (DOS) is referred to as the average collection period or days’ sales in receivables, it also steps the number of times that a organization needs to acquire cash from the credit sales. This computation shows the liquidity and efficiency with the collection office of the firm. Receivables Days sales exceptional = Normal sales each day Years 2016 (RM’000) 2017 (RM’000)Days product sales outstanding = 326, 4827, 913. 74= 41. 26 days = 393, 4339, 340. 21= 42. doze days2. several Fixed Assets Turnover RatioFixed asset yield ratio may be the efficiency percentage that steps the company to return its purchase in resources, plants and equipment by comparing net sales to fixed possessions. In other words, this calculates how efficiently a business produces revenue with its machinery and equipment. Sales Set assets proceeds ratio sama dengan Net set assets Years 2016 (RM’000) 2017 (RM’000)Fixed assets yield ratio = 2, 888, 5151, 312, 404= installment payments on your 20 times = three or more, 409, 1761, 684, 897= 2 . 02 times2. four Total Resources turnover RatioTotal assets turnover ratio can be described as financial efficiency ratio calculating a business ability to work with its resources to generate sales. The total advantage turnover proportion is determined by separating net product sales by the average total resources. Sales Total assets yield ratio = Total property Years 2016 (RM’000) 2017 (RM’000)Total possessions turnover rate = 2, 888, 5152, 649, 142= 1 . 2009 times sama dengan 3, 409, 1762, 936, 253= 1 . 16 times3. 0 PERSONAL DEBT MANAGEMENTThis section shows two elements of online debt management which is total debt to perform assets and times curiosity earned (TIE). 3. you Total Financial debt To Total Property RatioTotal personal debt to total resources ratio is known as a leverage rate that procedures the total amount of assets financed by lenders and not traders. Total financial debt Total debts to total possessions ratio sama dengan Total property Years 2016 (RM’000) 2017 (RM’000)Total financial debt to total possessions ratio sama dengan 823, 3032, 649, 142= 31. ’08 % sama dengan 923, 7722, 936, 253= 31. 46 %3. two times Interest Earned Ratio (TIE)Times interest gained ratio (TIE) or fascination cover proportion is gauge the extent that the business EBIT may meet curiosity expenses. EBIT Times interest earned proportion = Interest charges Years 2016 (RM’000) 2017 (RM’000)Times interest received ratio sama dengan 442, 20279, 763= five. 544 times = 383, 10554, 669= 7. 008 times4. zero PROFITABILITY RATIOSProfitability ratios studies the ability of management to generate adequate profits from utilization of the business’s capital and assets. some. 1 Functioning Margin RatioOperating margin or operating revenue margin measures how much a good earns from the revenue much less its working expenses. EBIT Operating margin ratio = Sales Years 2016 (RM’000) 2017 (RM’000)Times interest attained ratio = 442, 2022, 888, 515= 15. thirty-one % = 383, 1053, 409, 176= 11. twenty four %4. a couple of Profit Margin RatioThe revenue margin percentage shows what percentage of sales will be left over after all expenses happen to be paid by business. Net gain Profit margin ratio sama dengan Sales Years 2016 (RM’000) 2017 (RM’000) Profit margin ratio = 360, 7292, 888, 515= 12. 49 % sama dengan 328, 5713, 409, 176= 9. sixty four %4. several Return On Total Possessions Ratio (ROA)Return on the property ratio is actually a profit percentage that steps the net profits generated simply by total property over the period by assessing net income together with the average volume of possessions. Additionally , go back on property ratio or perhaps ROA actions how corporations can control their assets to generate profits over the certain period of time. Net income Return on total assets rate = Total assets Years 2016 (RM’000) 2017 (RM’000) Return on total assets ratio = 360, 7292, 649, 142= 13. 62 % sama dengan 328, 5712, 936, 253= 11. nineteen %4. four Basic Generating Power Ratio (BEP)Basic earning power percentage (BEP) can be described as measure to calculate the strength of business profits before the effects on it is corporate tax and economic leverage. EBIT Basic making power percentage = Total assets Years 2016 (RM’000) 2017 (RM’000) Basic earning power proportion = 442, 2022, 649, 142= 16. 69 % = 383, 1052, 936, 253= 13. 05 %4. 5 Return On Common Equity Proportion (ROE)Return in accordance equity percentage (ROE) may be the profit proportion that actions the business’s ability to boost profits through the investment of shareholders inside the company. Net income Return common equity percentage = Prevalent equity Years 2016 (RM’000) 2017 (RM’000) Return prevalent equity percentage = fish hunter 360, 7291, 825, 839= nineteen. 76 % = 328, 5712, 102, 481= sixteen. 33 %

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