Scribd
Upload
87 views10 pages

Financial Ratios Analysis 2017-2019

1. The document analyzes various financial ratios of a company from 2017-2019, including liquidity ratios like current and quick ratios, asset management ratios like average collection period and inventory turnover, leverage ratios like debt ratio, and profitability ratios like net profit margin, return on assets, and earnings per share. 2. Most ratios declined slightly from 2017 to 2019, with current ratio decreasing from 2.26 to 1.96 times and quick ratio decreasing from 1.92 to 1.64 times. 3. Earnings per share also declined each year over this period, from 5.56 sen in 2017 to 5.19 sen in 2019.

Uploaded by

otaku hime
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
87 views10 pages

Financial Ratios Analysis 2017-2019

1. The document analyzes various financial ratios of a company from 2017-2019, including liquidity ratios like current and quick ratios, asset management ratios like average collection period and inventory turnover, leverage ratios like debt ratio, and profitability ratios like net profit margin, return on assets, and earnings per share. 2. Most ratios declined slightly from 2017 to 2019, with current ratio decreasing from 2.26 to 1.96 times and quick ratio decreasing from 1.92 to 1.64 times. 3. Earnings per share also declined each year over this period, from 5.56 sen in 2017 to 5.19 sen in 2019.

Uploaded by

otaku hime
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

2.

Methodology

1. Liquidity ratios

a. Current ratio

Current ratio = Current Asset / Current Liabilities

2017:

RM 165,141,426
¿
RM 73,219,187

= 2.26 times

2018:

RM 157,477,699
¿
RM 72,281,699

= 2.18 times

RM 147,362,198
2019: ¿
RM 75,175,460

= 1.96 times
b. Quick ratio

Current Asset - Inventory


Current Liabilities

2017:

RM 165,141,426 - RM 24,857,496
¿
RM 73,219, 187

= 1.92 times

2018:

RM 157,477,699 - RM 25,414,315
¿
RM 72,281,699

= 1.83 times

2019:

RM 147,362,198 - RM 24,297,063
¿
RM 75,175,460

= 1.64 times
2. Asset management ratios

a. Average collection period

365 days
Accounts receivables ratio

2017:

365 days
¿
7.39

= 49.39 ≅ 49 days

2018:

365 days
¿
8.74

= 41.76 ≅ 42 days

2019:

365 days
¿
8.4

= 43.45 ≅ 43 days

b. Receivable turnover

Sales
Accounts Receivables

2017:

RM 299,665,032
¿
RM 40,535,186

= 7.39 times
2018:

RM 307,372,915
¿
RM 35,166,990

= 8.74 times

2019:

RM 309,539,034
¿
RM 36,833,962

= 8.40 times

c. Inventory turnover

Cost of Goods Sold


Inventory

2017:

RM 186,463,785
¿
RM 24,857,496

= 7.50 times

2018:

RM 197,610,952
¿
RM 25,414,315

= 7.78 times

2019:

RM 204,250,655
¿
RM 24,297,063

= 8.41 times
d. Total asset turnover

Sales
Total Assets

2017:

RM 299,665,032
¿
RM 243,081,251

= 1.23 times

2018:

RM 307,372,915
¿
RM 236,464,405

= 1.30 times

2019:

RM 309,539,034
¿
RM 234,205,813

= 1.32 times

e. Fixed asset turnover

Net Sales
Net Fixed Assets

2017:

RM 299,665,032
¿
RM 77,939,825

= 3.83 times

2018:

RM 307,372,915
¿
RM 78,986,706

= 3.89 times
2019:

RM 309,539,034
¿
RM 86,843,615

= 3.56 times

3. Leverage ratios

a. Debt ratio

Total Liabilities
Total Assets

2017:

RM 79,563,584
¿
RM 243,081,251

= 0.33 times

2018:

RM 78,193,912
¿
RM 236,464, 405

= 0.33 times

2019:

RM 82,404,831
¿
RM 234,205,813

= 0.35 times

b. Debt equity ratio

Total Debts
Total Equity
2017:

RM 6,344,397
¿
RM 163,517,667

= 0.04 times

2018:

RM 5,912,213
¿
RM 158,270,493

= 0.04 times

2019:

RM 7,088,825
¿
RM 151,800,982

= 0.05 times

c. Time interest earned

Earnings before Interest and Tax


Interest Expense

The time interest earned ratio for the year 2017 and 2018 could not be calculated because

there is no information provided on interest expense for 2017 and 2018 in the annual report.

2019:

RM 56,120,619
¿
RM 21,614

= 2596.49 times
4. Profitability ratios

a. Operating profit margin

Operating Income
Revenue

2017:

RM 41,760,417
¿ x 100
RM 299,665,032

= 13.95 %

2018:

RM 45,994,712
¿ x 100
RM 307,372,915

= 14.96 %

2019:

RM 51,192,430
¿ x 100
RM 309,539,034

= 16.54%

b. Net profit margin

Net Income
Net Sales

2017:

RM 44,446,946
¿ x 100
RM 299,665,032

= 14.83 %

2018:

RM 42,959,378
¿ x 100
RM 307,372,915

= 13.98 %
2019:

RM 41,530,489
¿ x 100
RM 309,539,034

= 13.42 %

c. Return on asset

Ne t Income
Total Assets

2017:

RM 44,446,946
¿ x 100
RM 243,081,251

= 18.28 %

2018:

RM 42,959,378
¿ x 100
RM 236, 464,405

= 18.17 %

RM 41,530,489
¿ x 100
RM 234,205,813

= 17.73 %

d. Return on equity

Net Income
Total Equity

2017:

RM 44,446,946
¿ x 100
RM 163,517,667

= 27.18 %
2018:

RM 42,959,378
¿ x 100
RM 158,270,493

= 27.14 %

2019:

RM 41,530,489
¿ x 100
RM 151,800,982

= 27.36 %

5. Market value ratio

a. Earnings per share (EPS)

Net Income
Average Outstanding Shares of Company

2017:

RM 44,446,946
¿ x 100
800,000,000

= 5.56 sen

2018:

RM 42,959,378
¿ x 100
800,000,000

= 5.37 sen

2019:

RM 41,530,489
¿ x 100
800,000,000

= 5.19 sen

You might also like