Activity Ratio  

  2020 2019

1 Inventory Turnover 21.25 19.75

2 Receivable Turnover 5.31 5.26
3 Payable turnover 5.02 5.16
$ $
  Working capital 5,90,103.00 5,28,981.00
4 Working capital Turnover 6.13 6.21
5 Fixed asset turnover 6.74 5.90
6 Total Asset Turnover 1.60 1.56
         
Liquidity ratio        
1 Current ratio 1.61 1.61
2 Cash Ratio   0.97 1.08
         
Solvency ratios        
Debt Ratio        
1 Debt-to-assets ratio   0.62 0.62
2 Debt-to-capital ratio   0.62 0.62
3 Debt-to-equity ratio   1.66 1.61
Financial leverage
4 ratio   2.66 2.61
       
Profitability ratio        
Return on Sales        
1 Gross profit margin   0.10 0.10
Operating profit
2 margin   0.03 0.05
3 Net profit margin   0.01 0.02
Return on
Investments        
1 Operating ROA   0.04 0.08
2 ROA 0.02 0.04
3 ROE 0.062 0.096
Net profit% 1.62%
 On analyzing the balance sheet the company is marginally making profit even though they are
able to develop a demand for their services which is indicative as their inventory turnover is
considerably higher in the present year and the previous year. Amount received via trades and the
amount transferred via purchases and payable are almost equaling there by reducing the net profit for
the firm and this trend is also be traced to the previous year when compared. As per ROCE (Ratio of
capital employed) an average company produces a profit of 9% yearly considering the present situation
whereas this firm produced a profit percentage of 1.62%. The debt of company probably accounts to
60% of the total asset indicating a lack of planning in expenditures. But the company is planning their
best to solve the issues that indicating the liquidity ratio being significantly higher even though their
cash in hand is comparatively lower than the previous year which can be related to the pandemic
situation and also ship being stuck on the Suez Cannel can also be a reason for the relatively slow
progress of the company.

In my recommendation the company must work harder to upraise from the current situation
and they have to work on reducing there liabilities both the current and non-current one. The
expenditures of the company have risen above than the previous year even though the unpredicted
lockdown events have reduced the number of working days and hence the situation should be analyzed
internally and should bring down the direct cost and expenses.