LIQUIDITY RATIOS is usually used to analyze the ability of a company or firm to pay off

both its current liabilities as they become due and long term liabilities as they become current. It
is also a measure of how fast and easy for the company to raise money and also convert it into
cash.

CURRENT RATIO
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its
short-term liabilities with its current assets. It means that companies with more current assets can
easily pay its current obligations.
Current ratio=

2015

Current Ratio =

Current asset s
Current Liabilities

2014

16,677,942
7 , 713,231

Current ratio=2.16

Current Ratio=

2013

20,611,470
2,114,567

Current Ratio=9.75

Current Ratio =

14,601,036
1 , 308,963 8

Current Ratio=11.15

In the table above, it is obvious that the ratios is decreased each year. In year 2013 and
2014, there are a lot of cash that entered into the business. Inventories are sold more in years
2013 and 2014. Year 2015 is considered a difficult year for the company. There are less money
that can be used by the company to pay its present obligations. There is a lot more inventories for
year 2015 which means that products are not all distributed or sold to customers. In the other
hand, there are other liabilities charged also in year 2015. Other current liability pertains to
deposits for future stock subscription which represents proceeds for stock subscription where
actual issuance is not yet made. Even though the current ratio decreased by 7.59, the ratio is
considered normal in the companys industry hence there is no nothing to worry about.

QUICK RATIO
The quick ratio or acid test ratio is a liquidity ratio that measures the ability of a company to pay
its current liabilities when they come due with only quick assets. Quick assets are current assets
that can be converted to cash within 90 days or in short term. It includes cash and cash
equivalents. Short term investment and current receivables.

Quick ratio=

Current asset sInventoriesPrepayments

Current Liabilities

2015

Quick Ratio =

2014

16,677,9423,211,269417,432
7 ,713,231

Quick Ratio=

Quick Ratio=1.69

20,611,4702,281,632473,774
2,114,567

Quick Ratio=8.17

2013

Quick Ratio=

14,601,0362,044,469225,412
1 ,308,963 8
Quick Ratio=9.42

Quick ratios talks about assets which can be easily turn into cash. Trade and Other
receivables decrease directly with cash and cash equivalent in year 3 which probably means that
there is a decrease in sales as well. Besides the changes in current assets, it is also important to
focus with current liabilities made a huge rule in computing liquidity ratios. In the table above,
the current liabilities on year 3 is much higher than past two years. On 2015, the company
engaged to for on short term debts and also the long term debts from previous years are due that
year which made the companys liquidity ratios to decrease dramatically.

CASH RATIO
The cash ratio or cash coverage ratio is a liquidity ratio that measures a firm's ability to pay off
its current liabilities with only cash and cash equivalents. It is more restrictive than current and
quick ratio because there is no other currents assets to be used to pay current debt other than
cash. Many investors check the cash ratio to see if the company maintains adequate cash to pay
off all their current debts.
Cashratio=

Ca sh+cash equivalents
Current Liabilities

2015

Cash Ratio=

2014

7,073,171
7 , 713,231

Cash Ratio=

Cash Ratio ratio=.92

2013

13,561,803
2,114,567

Cash Ratio=6.41

Cash Ratio=

10,234,336
1 , 308,9638

Cash Ratio=7.82

Cash and cash equivalents in year 2014 and 2013 is a lot more than year 2015. There
were 13 million short term investments occurred in year 2014 while in year 2015 there are only
5.5 million of this kind of investment which is a big factor in this ratio analysis. In the other
hand, Year 2013 had a lot of cash on hand in back amounted to five million while in year 2015 it
is only 1.5 million. Cash and cash equivalent is an important matter for investors as said earlier.
So the company must take necessary actions to it for the betterment of the company.

WORKING CAPITAL
Working capital is defined as being the capital of a business which is used in its day-to-day
operations. It ensures whether or not a business organization has sufficient cash flow in
order to meet its short term obligations and operating expenses. If the companys
current liabilities exceeded its current assets, it may run into trouble paying back
creditors in the short term. If not immediately resolve, it may lead to bankruptcy.
Working Capital=Current AssetsCurrent Liabilites

2015

2014

Working Capital=16,677,9427 , 713,231

Working Capital=20,611,4702,114,567

WorkingCapital=8,964,711

WorkingCapital=18,496,903

2013

WorkingCapital=14,601,0361 , 308,963 8
Working Capital=13,292,073

Working Capital as said earlier is the capital of a business which will be used for the day
to day operations. The results of the equation is expected because of all the factors that was said
in above ratios. All the either small or big transactions made during a year is significant to all the
users especially the investors. The company must pay attention on those differences and see what
plan to be implemented to make the current and future years more successful.

ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Available-for-sale (AFS) financial
assets
Prepayments and other current
assets
Total Current Assets

2015
P
7,073,17
1
962,151
3,211,26
9
5,013,91
9

2014
2013
P
P
13,561,8 10,234,3
03
36
1,431,08
0 839,449
2,863,18 2,044,46
1
9
2,281,63 1,257,37
2
0

417,432
16,677,
942

473,774
20,611,
470

225,412
14,601,
036

P7,125,
713
180,000
113,939

P1,483,6
40
0
513,598

P
928,113
0
263,381

124,521
118,329
7,713,2
31

118,329
0
2,114,5
67

117,469
0
1,308,9
63

Current Liabilities
Trade and other payables
Short-term debt
Income tax payable
Current portion of long-term
debt
Other current liability
Total Current Liabities

http://www.investopedia.com/terms/w/workingcapital.asp
https://www.linkedin.com/pulse/importance-good-working-capital-management-business-fareed
http://www.nickelasia.com/AnnualReport/AnnualReport-2015.pdf
http://www.nickelasia.com/AnnualReport/AnnualReport-2014.pdf
http://www.myaccountingcourse.com/financial-ratios/liquidity-ratios