Professional Documents
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Name Company Address and Liquidity Ratio
Name Company Address and Liquidity Ratio
Analysis:
Current Ratio
12
10
0
2016 2017 2018 2019 2020
RATIO
i. For 2016, it shows that the company’s ability to pay is RM5.55 for RM1 of its
short-term liability.
ii. For 2017, it shows that the company’s ability to pay is RM9.74 for RM1 of its
short-term liability.
iii. For 2018, it shows that the company’s ability to pay is RM10.70 for RM1 of
its short-term liability.
iv. For 2019, it shows that the company’s ability to pay RM8.12 for RM1 of its
short-term liability.
v. For 2020, it shows that the company’s ability to pay RM5.49 for RM1 of its
short-term liability.
vi. Overall, the year 2018 has better performance compared to the year 2016,
2017, 2019 and 2020 as the company has the increase in the liquidity of its
assets to meet short-term obligations due within one year. The ratio that more
than one indicates that the company has good financial resources and good
performance to settle down its short-term obligations such as current debt.
Analysis:
Current Ratio
4
3.5
2.5
1.5
0.5
0
2016 2017 2018 2019 2020
i. For 2016, it shows that the company’s ability to pay is RM3.37 for
RM1 of its short-term liability.
ii. For 2017, it shows that the company’s ability to pay is RM2.73 for
RM1 of its short-term liability.
iii. For 2018, it shows that the company’s ability to pay is RM2.12 for
RM1 of its short-term liability.
iv. For 2019, it shows that the company’s ability to pay is RM2.41 for
RM1 of its short-term liability.
v. For 2020, it shows that the company’s ability to pay is RM3.05 for
RM1 of its short-term liability.
vi. Overall, the year 2016 has better performance compared to the year
2017, 2018, 2019 and 2020 as the company has the increase in the
liquidity of its assets to meet short-term obligations due within one
year. The ratio that more than one indicates that the company has good
financial resources and good performance to settle down its short-term
obligations such as current debt.
Analysis:
Quick Ratio
10
9
8
7
6
5
4
3
2
1
0
2016 2017 2018 2019 2020
i. For 2016, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM4.41 for RM1 of its short-term liability.
ii. For 2017, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM8.38 for RM1 of its short-term liability.
iii. For 2018, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM9.48 for RM1 of its short-term liability.
iv. For 2019, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM7.33 for RM1 of its short-term liability.
v. For 2020, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM4.74 for RM1 of its short-term liability.
vi. Hence, the year 2018 has better performance compared to the year 2016,
2017, 2019 and 2020 in term of the company ability to pay it short-term
obligation without having to rely on its illiquid current assets. This ratio
excluded the inventory from the assets because the company need to give
discount to the customer to buy quickly in order to finish it below 90 days if
they wish to liquidate the asset through the inventory.
ORIENTAL
Analysis:
Quick Ratio
3
2.5
1.5
0.5
0
2016 2017 2018 2019 2020
RATIO
i. For 2016, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM2.77 for RM1 of its short-term liability.
ii. For 2017, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM2.04 for RM1 of its short-term liability.
iii. For 2018, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM1.51 for RM1 of its short-term liability.
iv. For 2019, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM1.55 for RM1 of its short-term liability.
v. For 2020, it shows that the company’s ability to pay without having to rely on
illiquid current assets is RM2.00 for RM1 of its short-term liability.
vi. Hence, the year 2016 has better performance compared to the year 2017,
2018, 2019 and 2020 in term of the company ability to pay it short-term
obligation without having to rely on its illiquid current assets. This ratio
excluded the inventory from the assets because the company need to give
discount to the customer to buy quickly in order to finish it below 90 days if
they wish to liquidate the asset through the inventory.
Analysis:
Net Working Capital
RM,450,000,000
RM,400,000,000
RM,350,000,000
RM,300,000,000
RM,250,000,000
RM,200,000,000
RM,150,000,000
RM,100,000,000
RM,50,000,000
RM,0
2016 2017 2018 2019 2020
RATIO
i. For 2016, the net working capital is RM212,832,438 derived from the
difference of its current assets and current liabilities.
ii. For 2017, the net working capital is RM396,048,120 derived from the
difference of its current assets and current liabilities.
iii. For 2018, the net working capital is RM363,208,668 derived from the
difference of its current assets and current liabilities.
iv. For 2019, the net working capital is RM399,605,814 derived from the
difference of its current assets and current liabilities.
v. For 2020, the net working capital is RM320,139,140 derived from the
difference of its current assets and current liabilities.
vi. Overall, the increase in the company net working capital from
RM212,832,438 in 2016 to the RM396,048,120 in 2017 and from
RM363,208,668 in 2018 to the RM399,605,814 in 2019 indicate that the
company is relatively liquid and able to meet its short-term obligations as it
come due. The increase in net working capital shows that the company have
good financial health and efficient in its business operational. Thus, it can
have the potential to invest and grow and able to pay back creditors. In the
2017 has decrease from RM396,048,120 to RM363,208,668 in 2018 and also
decrease RM399,605,814 in 2019 to RM320,139,140 in 2020.
ORIENTAL
Analysis:
RATIO
i. For 2016, the net working capital is RM70,987,00 derived from the difference
of its current assets and current liabilities.
ii. For 2017, the net working capital is RM70,987,00 derived from the difference
of its current assets and current liabilities.
iii. For 2018, the net working capital is RM70,987,00 derived from the difference
of its current assets and current liabilities.
iv. For 2019, the net working capital is RM70,987,00 derived from the difference
of its current assets and current liabilities.
v. For 2020, the net working capital is RM70,987,00 derived from the difference
of its current assets and current liabilities.
vi. Overall, the increase in the company net working capital from RM53,930,860
in 2018 to the RM70,097,981 in 2020 indicate that the company is relatively
liquid and able to meet its short-term obligations as it come due. The increase
in net working capital shows that the company have good financial health and
efficient in its business operational. Thus, it can have the potential to invest
and grow and able to pay back creditors. In the 2016 has decrease from
RM83,099,828 to RM53,930,860 in 2018.