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Assets Turnover Ratio
Assets Turnover Ratio
Year
2012
2013
2014
KBC
2.39%
7.93%
8.19%
FLC
73.19%
83.01%
38.19%
17%
20%
24%
Industry
83.01%
73.19%
70.00%
KBC
60.00%
FLC
50.00%
38.19%
40.00%
30.00%
10.00%
8.19%
7.93%
2.39%
24%
20%
17%
20.00%
Industry
0.00%
1
Interpretation:
It is clear from the chart the Total Assets Turnover Ratio of KBC is much lower than
average of the Real Estate industry. That means the using of company assets in business
operations inefficient compared with the industry average. In the contrast, Total Assets
Turnover Ratio of FLC is much higher than the industry average. This means the using of
company assets much more efficiently than many of the competitors in the industry.
For KBC, from 2012 to 2013 ratio is increased because of companys total assets is
increased by 14.89%, but sales is increased by 281.3%, so the ratio is increased by about
3.3 times. And, in 2014 it is increased to 8.19% because sale decreasing by 0.35% and
Total Assets decreasing by 3.57%.
For FLC, the ratio is increased from 73.19% in 2012 to 83.01% in 2013 due to the
increasing by 12.21% in Sales and the decreasing by 1.07% in Total Assets. Although the
Sales increased by 18.32%, the ratio still reduced to 38.19% because of Total Assets
increasing by 157.21%.
1.1.1 Net fixed asset turn over
2012
Year
2013
2014
KBC
12.82%
42.19%
44.55%
FLC
183.60%
156.66%
113.84%
43.3%
48.6%
52.8%
Industry
200.00%
180.00%
160.00%
140.00%
120.00%
KBC
100.00%
FLC
Industry
80.00%
60.00%
40.00%
20.00%
0.00%
1
Interpretation:
It is clear that the Net Fixed Asset Turnover Ratio of KBC is lower than industry
averages because of its fixed assets are quite high. And the ratio of FLC is much
higher than the average of industry. It indicates that the FLC maximizes the use of
its fixed assets to earn profit in the business so that whatever amount is invested by
company in fixed asset, gives maximum productivity which helps to increase sales
as well as profit.
The ratio of Net Fixed Asset Turnover of KBC is continuously increasing up by the
time from 2012 to 2014. It's the same tendency with the industry average. Net Fixed
Assets Turnover Ratio is increasing year by year because of Sale is increasing
2011
KBC
2012
0.059
FLC
2013
0.027
0.032
2014
0.079
0.003
0.059
0.064
0.025
0.079
0.080
0.070
0.060
0.059
0.059
0.064
KBC
FLC
0.050
0.040
0.032
0.030
0.027
0.025
0.020
0.010
0.003
0.000
1
KBC
6,107.3
13,373.6
4,529.
4
5,642.5
FLC
11,104.
60
133,284.
26
6,078.
16
14,154.
78
2012
2013
2014
KBC
38.31%
11.16%
21.33%
FLC
566.16%
294.20%
16.83%
6.00
5.00
4.00
KBC
2.94
3.00
2.00
1.00
2.00
1.00
0.38
0.11
FLC
3.00
0.210.17
2
Iterpretation:
Account Receivable turnover indicates how quickly the company can collect
its credit sales revenue. The ratio of KBC is much lower, so that the
companys collection of credit sale is efficient.
Here the ratio of FLC is continuously decreasing, so that the companys
collection of credit sales is efficient management is improved its collection
period every year so it shows that the management have an ability to collect
its money from his debtors.
The Du-Pont table
Company
Ratio
ROE
KBC
2012
2013
2014
-10%
2%
6%
-173%
8%
32%
2.39%
7.93%
8.19%
ROE
14%
8%
5%
2%
8%
22%
73.19%
83.01%
38.19%
Financial Leverage
FLC