Current ratio

The current ratio measures a company's ability to pay its current liabilities with its
current assets such as cash, accounts and stocks. The higher the current ratio, the greater
the ability of a company to pay its obligations because it is a higher percentage of short-
term assets in relation to the value of its short-term liabilities.
Current ratio = Current Assets
Current Liabilities

Tomei Poh Kong

Current ratio = 385,621,000 Current ratio = 643,636,142

195,323,000 239,822,252

=1.97：1 = 2.68:1

Quick ratio

The company's ability to meet its short-run obligations with its most liquid assets and
thus excludes inventories from its current assets measures by the quick ratio.
Quick ratio = (Current Assets-Inventories)
Current Liabilities

Tomei Poh Kong

Quick ratio = (385,621,000-333,552,000) Quick ratio = (643,636,142-558,793,631)

195,323,000 239,822,252

= 0.27:1 = 0.35:1
 Cash ratio

The cash ratio that indicates a company’s capacity to pay off short-term debt
obligations with its cash and cash equivalent.
Cash ratio = Cash
Current Liabilities
Tomei Poh Kong

Quick ratio = 11,645,000 Quick ratio = 39,107,816

195,323,000 239,822,252

= 0.06:1 = 0.16:1

Total debt ratio

Total debt ratio shows a company’s ability to pay off its liabilities with its assets. In
other words, this shows how many assets the company must sell in order to pay off
all of its liabilities.
Total debt ratio = Total Liabilities
Total Assets

Tomei Poh Kong

Total debt ratio = 198,425,000 Total debt ratio = 279,446,457

405,287,000 802,789,499

= 0.49:1 = 0.35:1
Debt to equity

The debt to equity ratio shows percentage of financing the company receives from
creditors and investors. A high debt to equity ratio shows that a company has taken
out many more loans and has had contributions by shareholders or owners.
Debt to equity = Total Liabilities
Total Equity

Tomei Poh Kong

Debt to equity = 198,425,000 Debt to equity = 279,446,457

206,862,000 523,343,042

= 0.96:1 = 0.53:1

Equity Multiplier

Equity multiplier measures the amount of a firm’s assets that are financed by its
shareholders by comparing total assets with total shareholder’s equity. In other words,
the equity multiplier shows the percentage of assets that are financed or owed by the
shareholders.
Equity Multiplier = Total Assets
Total Equity

Tomei Poh Kong

Equity Multiplier = 405,287,000 Equity Multiplier = 802,789,499

206,862,000 523,343,042

= 1.96:1 = 1.53:1
Profit Margin
Profit Margin that measures the amount of net income earned with each dollar of sales
generated by comparing the net income and net sales of a company. In other words,
the profit margin ratio shows what percentage of sales are left over after all expenses
are paid by the business.
Profit Margin = Net Income
Sales

Tomei Poh Kong

Profit Margin = 4,922,000 Profit Margin = 23,401,468

564,024,000 1,003,521,807

= 0.87% = 2.33%

Return on assets
ROA is an indicator of how profitable a company is relative to its total assets. The
return on assets ratio measures how efficiently a company can manage its assets to
generate profits during a period.
Return on assets = Net Income
Total Assets

Tomei Poh Kong

Return on assets = 4,922,000 Profit Margin = 23,401,468

405,287,000 802,789,499

= 1.21% = 2.92%
Return on equity

ROE measures the ability of a firm to generate profits from its shareholders
investments in the company. ROE is also and indicator of how effective management
is at using equity financing to fund operations and grow the company.

Return on equity = Net Income

Total Equity

Tomei Poh Kong

Return on equity = 4,922,000 Return on equity = 23,401,468

206,862,000 523,343,042

= 2.38% = 4.47%
Du Pont Identity

Du Pont Identity is a financial ratio based on the return on equity ratio that is used to
analyze a company’s ability to increase its return on equity. The dupont analysis
looks at three main components of the ROE ratio.

 Profit Margin
 Total Asset Turnover
 Financial Leverage


Du Pont Identity = Profit Margin x Total Asset Turnover x Equity Multiplier

= Net Income × Sales × Total Assets
Sales Total Assets Total Equity

Tomei Poh Kong

Du Pont Identity Du Pont Identity

= 4,922,000 × 564,024,000 × 405,287,000 = 23,401,468 × 1,003,521,807 × 802,789,499
564,024,000 405,287,000 206,862,000 1,003,521,807 802,789,499 523,343,042

= 2.38% = 4.47%