BALANCE SHEET

INTERPRETATION: In summary, the balance sheet totals for the company over three
consecutive years indicate a relatively stable financial position with minor fluctuations. The
company has maintained a consistent level of assets and liabilities, suggesting effective
management of financial resources.
P/L A/c
INTREPRETATION: The company's profit/loss (P/L) account shows negative values for
three consecutive years: -7289.63, -2395.44, and -1390.86. This indicates that the company
has incurred losses during those years. However, there is a trend of improving financial
performance as the magnitude of the losses has decreased over the three-year period.
CASH FLOW

INTREPRETATION: For the Cash Flow Statement we can see the company had a cash
outflow from Operating Activities for the all the three years 2019-20, 2020-21, & 2021-22.
As for the Investing the company had a negative balance for the years 2019-20; and a positive
inflow for the year 2020-21 & 2021-22, and Financing Activities all the years suffer an
outflow as a result a negative balance. Overall, the company is having a profit since the cash
and its equivalents at the end of the years are all positive.
 Current Ratio
4.5
4
4
3.5
3
2.5
2
1.5
1
0.6 0.58
0.5
0
1

2020 2021 2022

INTREPRETATION: The company's current ratio, which measures its ability to meet short-
term obligations, was below 1 for the three consecutive years of observation. This suggests
that the company may have faced challenges in covering its current liabilities with its current
assets during this period. However, there is a positive trend in the current ratio, showing
improvement over the three years from 0.53 to 0.85.

Quick Ratio

0.39
0.49

0.54

2020 2021 2022

INTREPRETATION: The quick ratio, also known as the acid-test ratio, measures a
company's ability to pay off short-term liabilities with its most liquid assets, excluding
inventory. In this case, the company's quick ratio has been consistently below 1 for three
consecutive years: 0.49, 0.54, and 0.39. This indicates that the company may face difficulties
in meeting its short-term obligations using only its readily available assets. The declining
trend in the quick ratio suggests a worsening liquidity position, which could be concerning

Absolute Cash Ratio

0.44

1 0.43

0.38

0.35 0.36 0.37 0.38 0.39 0.4 0.41 0.42 0.43 0.44 0.45

2022 2021 2020

INTREPRETATION: The company's absolute cash ratio for three consecutive years is 0.38,
0.43, and 0.44. These ratios indicate that the company has consistently maintained a relatively
low absolute cash ratio over the three-year period. A low absolute cash ratio suggests that the
company may have a lower ability to meet its short-term liabilities using its most liquid
assets, such as cash and cash equivalents. It could imply that the company has a higher
proportion of illiquid or non-cash assets, which could present challenges in fulfilling
immediate financial obligations.

Debt to Equity Ratio

0.85
1

1.04
2020 2021 2022
INTREPRETATION: In summary, the company's debt-to-equity (D/E) ratios for three
consecutive years suggest the following: The company has an equal amount of debt and
equity financing, indicating a balanced capital structure and moderate reliance on debt. The
company's debt has slightly increased compared to equity, implying a higher level of leverage
and potentially increased financial risk. The company's debt has decreased relative to equity,
indicating a reduced reliance on debt financing and potentially lower financial risk.

Overall, the decreasing trend from 1.04 to 0.85 suggests that the company is moving towards
a more conservative capital structure, reducing its debt relative to equity. This trend may
imply improve financial stability and a lower level of financial risk.

Debt to Total Asset Ratio

0.715
0.71 0.71
0.71

0.705

0.7

0.695
0.69
0.69

0.685

0.68

0.675
2020 2021 2022

INTREPRETATION: The company has a relatively high level of debt compared to its total
assets, indicating a significant portion of its assets is financed through borrowing, the ratio
has remained relatively stable over the three-year period, with only a slight decrease from
0.71 to 0.69. The company appears to have consistent debt management, as the ratio has not
shown significant fluctuations. This suggests that the company has maintained its debt levels
relative to its asset base.
 Proprietary Ratio

0.31

1 0.29

0.29

0.275 0.28 0.285 0.29 0.295 0.3 0.305 0.31 0.315

2022 2021 2020

INTREPRETATION: The company has a consistent and stable financing structure over the
three years. It shows a moderate reliance on equity or owner's capital to finance its assets.
The proprietary ratio indicates that the company has a relatively low dependence on external
debt for its operations and investments. This suggests a lower risk of financial distress
associated with debt obligations. In summary, the company maintains a stable and balanced
capital structure with a moderate emphasis on equity financing.

Equity Ratio

0.54

0.52 0.54
0.5
0.52
0.48
0.47
0.46

0.44

0.42

2020 2021 2022

INTREPRETATION: In summary, the company has shown a relatively stable equity ratio
over the three-year period, ranging from 0.47 to 0.54. This indicates that a significant portion
of the company's assets is financed by shareholders' equity. With a moderate to high level of
equity financing, the company suggests a strong financial position and potentially lower
financial risk compared to companies relying more on debt.

NOTE: The Net Profit and Gross Profit are Not Available since the company is having a loss
in the profit and loss statement.