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the following is the ratios of 2017 and 2018, will you invest this company, justify your answer? 1. Ratios for 2018 1.1Liquidity Ratios 1.1.1 Working

  1. the following is the ratios of 2017 and 2018, will you invest this company, justify your answer?
  2. 1. Ratios for 2018
  3. 1.1Liquidity Ratios

1.1.1 Working capital = current assets -current liabilities = RM1073112000 RM1622058000= -548946000

1.1.2 Current ratio = 0.66

1.1.3. Current cash debt coverage=0.44

1.1.4Inventory turnover =7.21

1.1.5Days in inventory =50.62

1.1.6Accounts receivable turnover = 8.96

1.1.7Average collection period =40.74

    1. Solvency ratios
      1. Debt to assets ratio =0.75
      2. Cash debt coverage =0.37
    2. Profitability ratios for 2017
      1. Earnings per sale = 275.4 (already given)
      2. Price earnings ratio = 37.47 (already given)
      3. Gross profit ratio=0.37
      4. Profit margin =0.0066
      5. Return on assets =0.014
      6. Asset turnover =2.08
  1. Ratios for 2018
    1. Liquidity Ratios
      1. Working capital = current assets -current liabilities = RM1215416000 RM1782079000= -566663000
      2. Current ratio =0.68
      3. Current cash debt coverage=0.61
      4. Inventory turnover =6.78
      5. Days in inventory =53.83
      6. Accounts receivable turnover =8.99
      7. Average collection period =40.6
    2. Solvency ratios
      1. Debt to assets ratio =0.77
      2. Cash debt coverage =0.50
    3. Profitability ratios for 2017
      1. Earnings per sale = 281 (already given)
      2. Price earnings ratio = 52.46 (already given)
      3. Gross profit ratio=0.35
      4. Profit margin =0.0072
      5. Return on assets =0.014

6.Asset turnover =2.02

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