PRINCIPLES OF FINANCE

BFN10103

INDIVIDUAL ASSIGNMENT

LECTURER NAME:MISS SYAFIQAH HANANI BINTI MASTATOR

DUE DATE:6 MAC 2023

NAME: MUHJD HAFIZ BIN SHARIN

COURSE:
DIM

MATRIC ID: 2122021070007

A)Use the following ratios to compare the financial performance from 2017 and 2018 of John
Brown.Give your answer to a maximum of two decimal places.

(2017)

I. Gross profit ratio:

Gross profit X 100
Sales

= 520 X100
1920
= 0.27 x 100
=27%

Gross profit ratio:

(2018)

Gross profit X 100

Sales

= 650 X100
2180
= 0.30x 100
=30 %

(2017)

II. NET PROFIT RATIO = Net Profit X 100

Sales

= 320 X100
1920
= 0.167
=16.7 %

(2018)
NET PROFIT RATIO = Net Profit X 100
Sales

= 390 X100
2180
= 0.178 X 100
17.8%
 (2017)

Return on Equity(ROE) :

iii. Return on Equity = Net Profit X 100

Total Equity

= 320 X100
940
= 0.34 X100
=34 %

(2018)

Return on Equity = Net Profit X 100

Total Equity

= 390 X100
1120
= 0.348 X100
=34.8%

(2017)
Return on Assets (ROA) :

iv. Return on Assets = Net Profit X 100

Total Assets

= 320 X100
1090
= 0.30 X100
=30%

(2018)

Return on Assets = Net Profit X 100

Total Assets

= 390 X 100
1315
= 0.296 X 100
=29.7%
 (2017)
Total Assets turnover :

v. Total Assets Turnover = Sales

Total Assets

= 1920
1090
= 1.77x

(2018)

Total Assets Turnover = Sales

Total Assets

= 2180
1315
= 1.67x

(2017)
Inventory Turnover Ratio :

vi. Total Assets Turnover = COGS

Inventory

= 1400
200
= 7x

(2018)

Total Assets Turnover = COGS

Inventory

= 1530
250
= 6.12x
 (2017)
Account Receivable Turnover :

vii. Account Receivable Turnover = Sales

Account Receivable

= 1920
130
= 14.77x

(2018)

Account Receivable Turnover = Sales

Account Receivable

= 2180
166
= 13.13x

(2017)
Average Collection Period :

viii. Average Collection Period = Account Receivable X 365 days

Sales

= 130 X 365 days

1920
= 25 days

(2018)

Average Collection Period = Account Receivable X 365 days

Sales

= 166 X 365 days

2180
= 28 days
 (2017)
Current Ratio :

ix. Current Ratio = Current Assets

Current Liabilities

= 370
150
= 2.45x

(2018)

Current Ratio = Current Assets

Current Liabilities

=420
195
= 2.15x

(2017)
Quick Ratio :

x. Quick Ratio = Current Assets – inventory

Current Liabilities

= 370 - 200
150
= 1.13 x

(2018)
Quick Ratio :

Quick Ratio = Current Assets – inventory

Current Liabilities

= 420 - 250
195
= 0.87 x