Summary

Accordingly to the current ratio and the quick ratio, Apollo Food Holdings Bhd get a
higher rate for both of the ratio in the measurement of ability to pay back the debt obligation
using current assets for the pass 3 years. There is a vast difference of the ratios between two
companies which Apollo has a very good in performance. All in all, Apollo Food Holdings
Bhd have a better ability to pay the debt obligation compared to London Biscuits Bhd.
In order to generate good revenue, a company should manage their assets well to
generate sales. The total asset turnover and the average collection period for Apollo Food
Holdings Bhd has better performance compared to London Biscuits Bhd. Apollo Food
Holdings Bhd management team had managed their asset very well to generate higher sales
in the past three years. Moreover, both companies had successfully collected their debt
within the stated debt collection period respectively. However, Apollo Food Holdings Bhd is
more confident to collect the debts in shorter time as they have shorter stated debt collection
period. So, Apollo Food Holdings Bhd has a lower risk in incurring bad debts.
According to the profitability ratios, Apollo Food Holdings Bhd has a better result in
the profitability measurement. This mean that Apollo Food Holdings Bhd has a better ability
to generate earnings using their assets and equities. It is more favourable to invest in Apollo
Food Holdings Bhd as they has higher earnings per share which means higher return on every
share invested.
According to the analysis of the debt ratio, London Biscuits Bhd has a higher debt
ratio compared to Apollo Food Holdings Bhd. London Biscuits Bhd has a lower ability to pay
its debts using its assets. For each unit of assets contained higher obligations in London
Biscuits Bhd. Moreover, London Biscuits Bhd has a higher debt-to-equity ratio. They assets
is mainly financed by debts instead of companys equities. London Biscuits Bhd is more
leverage than Apollo Food Holdings Bhd, and this implies greater financial risk at London
Biscuits Bhd. However, both companies are still considered in optimum level in managing
their debts and equities.
According to the free cash flow, Apollo Food Holdings Bhd was performing gradually
better throughout the 3 years, however London Biscuits Bhd do not turn up very well in
performance. Apollo Food Holdings Bhd has a higher ability to pay debts and dividens.

In conclusion, Apollo Food Holdings Bhd performed better in overall compared to

London Biscuits Bhd. It is advisable to invest in Apollo Food Holdings Bhd because of their
better management and the ability to generate returns to the shareholders.