MBPM 5023: FINANCIAL MANAGEMENT

MBPM 5023: FINANCIAL MANAGEMENT

EXERCISE 1:
Q1: Please calculate the financial ratios given below based on the ABC
BHDs financial statement.
a. Profitability Ratios
i.
Gross profit margin
ii.
Operating profit margin
iii.
Net profit margin
iv.
Net profit margin (time lapse)
b. Liquidity ratios
i.
Current ratio
ii.
Acid Test Ratio (Quick Ratio)
iii.
Stock Turnover Ratio
iv.
Stock turnover days
v.
Debtors Turnover Ratio
vi.
Debtors turnover days
vii.
Creditors Turnover Ratio
viii.
Creditors turnover days
c. Leverage Ratios
i.
Debt ratio
ii.
Total long term Debt ratio

MBPM 5023: FINANCIAL MANAGEMENT

iii.
iv.

Total Short term Debt ratio

Interest cover ratio

d. Efficiency Ratios
i.
Earnings per share (EPS)
ii.
Return on capital employed (ROCE)
iii.
Return on assets (RoA)
iv.
Return on equity (RoE)
e. Market Ratios
i.
Price earnings ratio (P/E)
ii.
Market-to-book ratio