Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the calculation for financial ratios, interpret, and compare the performance for the year 2022 on the companies on the following categories of ratio:

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
  1. Based on the calculation for financial ratios, interpret, and compare the performance for the year 2022 on the companies on the following categories of ratio:

Liquidity:

i. Current ratio

ii. Quick ratio

references :
1. http://www.bldpb.com.my/downloads/AR2022.pdf
2. https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=221844&name=EA_DS_ATTACHMENTS
3. https://www.klk.com.my/wp-content/uploads/2023/01/Annual-Report-2022-1.pdf
4. https://www.bursamalaysia.com/market_information/announcements/company_announcement?company=1899&cat=AR,ARCO

5. https://www.malaysiastock.biz/Listed-Companies.aspx?type=S&s1=12

Liquidity ratios Current Ratio The current ratio is calculated as current assets / current liabilities (Madushanka and Jathurika, 2018). The current ratio for BLD Plantation Bhd for the last two years would be calculated as- The current ratio for the company is less than the ideal ratio which is 2:1, which means that the company doesn't possess enough assets to pay off the liabilities of the company. Quick Ratio The formulae for the quick ratio is quick assets / current liabilities. The ratio for the company can be calculated as- FinancialratioLiquidity:i.Currentratio=CA/CLii.Quickratio=CA-inventories/CL202210,504,811/5,148,094=2.04x10,504,8114,024,16315,148,094=1.26x202110,022,820/6,500,054=1.54x10,022,8202,991,02616,500,054=1.09xPerformance Liquidity ratios Current Ratio The current ratio is calculated as current assets / current liabilities (Madushanka and Jathurika, 2018). The current ratio for BLD Plantation Bhd for the last two years would be calculated as- The current ratio for the company is less than the ideal ratio which is 2:1, which means that the company doesn't possess enough assets to pay off the liabilities of the company. Quick Ratio The formulae for the quick ratio is quick assets / current liabilities. The ratio for the company can be calculated as- FinancialratioLiquidity:i.Currentratio=CA/CLii.Quickratio=CA-inventories/CL202210,504,811/5,148,094=2.04x10,504,8114,024,16315,148,094=1.26x202110,022,820/6,500,054=1.54x10,022,8202,991,02616,500,054=1.09xPerformance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forecasting Principles And Practice

Authors: Rob J Hyndman, George Athanasopoulos

3rd Edition

0987507133, 978-0987507136

More Books

Students also viewed these Finance questions

Question

Why are page sizes always powers of 2?

Answered: 1 week ago

Question

1. Is method a multinational company? Explain.

Answered: 1 week ago