Analyze and discuss all of the above critically.

The basic method to determine the company performance are based on basic financial statements which calculating and interpreting financial ratios. The fundamental inputs to ratio analysis are the companys income statement and balance sheet. The nearest competitor to the Gdex is Pos Malaysia which are categories as industrials in freight & logistics services.

Commonly, the greater the current ratio, the more liquid the company is. For example, a current ratio of 1.0 would be deemed acceptable for a public utility. The more predictable a companys cash flows, the lower the acceptable current ratio. It due to Poslaju is in a industrials business with a relatively predictable annual cash flow, its current ratio of 0.70 should be quite normal.

A quick ratio of 1.0 or greater is occasionally recommended, but with the current ratio, the value is acceptable varies largely on the industry. The quick ratio provides a better measure of overall liquidity only when a companys inventory cannot be easily converted into cash. If inventory is liquid, the current ratio is a preferred measure of overall liquidity.

It takes the company up to 124 days to collect an account receivable. The average collection period is meaningful only in relation to the companys credit terms. If Poslaju extends 4 month-5 months credit terms to customers, an average collection period of 124 days may indicate a weakly managed credit or collection department, or both. It is also possible that the lengthened collection period resulted from an intentional relaxation of credit-term enforcement in response to competitive pressures. If the firm had extended 150-day credit terms, the 124-days average collection period would be quite acceptable.

Obviously, if there are an additional information it helps to evaluate the effectiveness of the firms credit and collection policies.

The company turns over its assets 0.74 times a year. Generally, the higher a companys total asset turnover, the more efficiently its assets have been used. This measure is probably of greatest interest to management because it indicates whether the companys operations have been financially cost-effective.

This value of debt ratio of 64% indicates that the company has financed more than a half of its assets with debt. The higher this ratio, the greater the firms degree of indebtedness and the more financial leverage it has.

The times interest earned ratio for Poslaju Company seems unacceptable. A value of at least 3.0and preferably closer to 5.0is often suggested. The gross profit margin is 0.12 while operating profit margin is 0.110.