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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
- 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 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
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- Solvency ratios
- Debt to assets ratio =0.75
- Cash debt coverage =0.37
- Profitability ratios for 2017
- Earnings per sale = 275.4 (already given)
- Price earnings ratio = 37.47 (already given)
- Gross profit ratio=0.37
- Profit margin =0.0066
- Return on assets =0.014
- Asset turnover =2.08
- Solvency ratios
- Ratios for 2018
- Liquidity Ratios
- Working capital = current assets -current liabilities = RM1215416000 RM1782079000= -566663000
- Current ratio =0.68
- Current cash debt coverage=0.61
- Inventory turnover =6.78
- Days in inventory =53.83
- Accounts receivable turnover =8.99
- Average collection period =40.6
- Solvency ratios
- Debt to assets ratio =0.77
- Cash debt coverage =0.50
- Profitability ratios for 2017
- Earnings per sale = 281 (already given)
- Price earnings ratio = 52.46 (already given)
- Gross profit ratio=0.35
- Profit margin =0.0072
- Return on assets =0.014
- Liquidity Ratios
6.Asset turnover =2.02
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