Conclusion and recommendations

Why do we analyze financial statement? A firm s financial statement can be analyzed internally (employees, managers) and externally (by banker,investor,custome and other interested).Financial ratio provide a second metod for standardizing the financial information on the income statement and balance sheet. There is comparison done for two companies that is company Ekowood and Company khind. Based on on the calculation, a table is formed above to make the conclusion easier. The calculation is done based on for 5 years that is from year 2003 until 2007. Firstly, let us start conclusion of the analysis with the liquidity of the two company .There are few ratio of liquidity that is current ratio ,quick ratio and net working capital .As we can see the table above Khind Company the liquidity ratio there is always increasinment according to year 2003 to 2007,but although company khind has an

constant increase in liquidity ratio but Company Ekowood has an higher ratio of liquidity compare to khind for year 2003 to 2007 .So I felt hat Ekowood has higher liquidity ratio because higher liquidity is better due to higher liquidity the short the time taken to convert its account received and inventories into cash . Activity ratio consist of average collection and inventory turnover ratio based compare to the above table it shows an decreasing amount in company Ekwood compare it¶s average collection is increasing constant. It shows average company activity ratio. Besides that Khind has a higher average collection period rather than Ekwood.This shows KHINDS has a good statics in activity ratio compare to year 2003 to 2007. There are few elements of ratio of the profitability ratio, that are net profit margin, operating profit margin, written on asset, and equity.Profitibility is profit which predict the ability of a firm to control it expenses and the written it investment, as we compare khind has a lower profit then ekowood.This shows ekowood has higher profitability ratio as compare from year 2003 to 2007 of its net profit margin. Operating profit margin, written on asset, and equity based on the table shown above although there is decrease in 2005 in ekowood but the amount is higher compare to khind.

1. from my point of view the company Khind deserves additional working capital loan. Overall. So based on the conclusion. 2. From a point of view of an investor.Lastly dept ratio measures the proportion of firms as asset that is financed by borrowing or dept financing. In a nut shell. it is not eligible because it has lower financial leverage of ratio which makes it not eligible for additional working capital loan. the analysis shows that company ekowood is better compare to khind. . debt ratio of company Ekowood is higher than Khind although has constant increasing amount but Ekowood has higher amount of ratio. we are always concern with the ability of company to pay the debt of goods on time. does the company deserve additional working capital loan? Justify your recommendation As a banker. is this company considered as a good investment? Justify your recommendation. It is because ekowood has higher ratio of financial leverage that measures the ability of a firm to pay the interest on its borrowing rather than the company khind. this is shown that company ekowood is eligible for additional working capital loan whereas when compared with the company khind. Hence. From a point of view of a banker.

From a point of view as a citizen. Khind Holding Berhad¶s philosophy is to share. They also said an organization that care and help tsunami and earthquake victims. . we also concerned with the potential investment. From the point of view as a citizen. They has carried many activities such as helping the tsunami victims by providing foods and cash. we think that both Khind Holding Berhad and Ekowood International Berhad. both firms play an important role in contributing to the welfare and social development of the country. we feel that ekowood can be considered as a good investor in a good investment way which makes it be a in a good way due to it has higher ratio of liquidity compared to khind based on the year 2003 to 2007. do you think that the organization has been contributing to the welfare and social development of our country? Justify your recommendation. Based on the analysis done we can conclude that from the point of view of an investor. Same goes to Ekowood International Berhad. 3.As an investor. to care. The liquidity of the company Khind is increasing from year to year. As a nutshell.

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