MEDIA PRIMA

2015 2016
Internal Liquidity Ratios

Internal liquidity ratios = Internal liquidity ratios =

314,266 364,401
= 339,049 = 366,292

= RM0.93 = RM1.01

Quick Ratio Quick Ratio

= =

314,26653,266 364,40155,244
= =
339,049 360,292

= RM0.77 = RM0.86

Cash Ratio = Cash Ratio =

136,797 126,842
= 339,049 = 360,292

= RM0.40 =RM 0.35

Receivables Turnover = Receivables Turnover =
173,177 239,091
= (1,170+4,831)/2 = (3,504+1,170)/2

= 209.53 times = 58.47 times

Average Receivables Collection Period Average Receivables Collection Period
365 365
= =
365 365
= 209.53 = 58.47

= 1.74 days = 6.24 days

Internal liquidity ratio for 2016 higher than 2015, the company has RM 1.01 in current assets
for every RM1 in current liabilities. For quick ratio 2016 also higher than 2015 that mean it
has RM0.86 in cash and account receivable per RM1 in current debt. Receivable turnover for
2016 is lower than 2015, that mean for 2016 the company collect its account receivable more
slowly than 2015. Besides that, 2016 also slow than 2015 in average receivable collection
period.
 Inventory turnover
Inventory turnover Inventory turnover

= =
143,973 144,066
= (53,266+74,313)/2 = (55,244+53,268)/2

= 2.26 times =2.66 times

Average inventory processing period Average inventory processing period

365 365
= =
365 365
= 2.26 = 2.66

= 161.5 days =137.2 days

Payables Turnover Ratio Payables Turnover Ratio

= =
143,973 144,066
= (14,045+15,782)/2 = (14,460+14,045)/2

= 9.7 times =10.1 times

Payables Payment Period Payables Payment Period

365 365
= =
365 365
= = 10.1
9.7

= 37.6 days = 36.1 days

In inventory turnover it measures how many days of firm inventories are held on average
before being sold the more (less) days required, the lower (higher) the quality of the
inventory. The number of times a firm inventory is sold and replace during the year, as with
days in inventory, serve as an indicator of the quality of the inventories. The higher the
number, the better the inventory quality. This company has good inventory turnover in 2016
because it higher than 2015. Payables payment period for 2016 also better than 2015.
Evaluating operating performance
Operating Efficiency Ratios
Total asset turnover Total asset turnover

= =
173,177 239,091
= (1,977,969+2,126,830)/2 = (2,030,274+1,977,969)/2

= 0.08 times = 0.12 times

Fixed asset turnover Fixed asset turnover

= =
173,177 239,091
= (1,663,703+1,665,777)/2 = (1,665,873+1,663,703)/2

=0.10 times = 0.14 times

Equity turnover Equity turnover

= =
173,177 239,091
= (1,638,920+1,631,318)/2 = (1,669,982+1,638,920)/2

= 0.11times = 0.14 times

Operations management how effectively management is performing in the day to day
operation in terms of how well management is generating revenues and controlling cost and
expenses, in other words, how well is the firm managing the activities that directly affect the
income statement. In 2016 is using asset its assets are more efficiently than 2015 because it
has higher turnover in total and fixed assets. Equity turnover for 2016 also better than 2015.
Evaluating operating performance
Operating profitability ratios
Gross profit margin Gross profit margin

= =

143,973 144,066
= 173,177 = 239,091

= 0.83 = 0.60

Operating profit margin Operating profit margin

= =

128,876 130,890
= 173,177 = 239,091

= 0.74 = 0.55
Net profit margin Net profit margin

= =

118,362 130,890
= 173,177 = 239,091

= 0.68 = 0.55

Return on total invested capital Return on total invested capital

+ +
= =
118,362+15,097 130,890+13,176
= (1,638,920+1,631,318)/2 = (1,669,982+1,638,920)/2

= 0.08 = 0.09

Return on total equity Return on total equity

= =
118,362 130,890
= (1,638,920+1,631,318)/2 = (1,669,982+1,638,920)/2

=0.07 = 0.08

Return on owners equity Return on owners equity

= =

118,3620 130,8900
= 1,638,920+1,631,318)/2 = (1,669,982+1,638,920)/2

= 0.07 = 0.08

ROE ROE

= =

= =

118,362 130,890
= 1,638,920 = 1,669,982

= 0.072 = 0.078

Operating profit margin measure of day to day operating effectiveness. Its show how well
revenues are being generated and cost and expenses control. A higher (lower) margin means
a firm is better (worse) at managing is day to day operational. For gross profit margin,
operating profit margin and net profit margin in 2015 are more better than 2016 because its
more highest. Return on equity indicates the rate of return that management has earned on the
capital provided by stockholders after accounting to all other capital suppliers. The
shareholders accounting return on their investment, which is the result of how well
management does at generating a good operating return on assets and how the firm is finance.
We can conclude that 2016 is better than 2015 in Operating profitability ratios.
Financial risk
Debt-equity ratio Debt-equity ratio

= =

+ +
+ +
= =

300,108 =
= 1,638,920

= 18%

Interest coverage ratio Interest coverage ratio

= =
128,876 130,890
= =
15,097 13,176

= 8.54 times = 9.93 times

The percentage debt ratio tells the percentage of equity that financed with debt. The higher
(lower) the debt ratio, the more (less) financial risk the firm assuming. There are only on
2015 that have 18% of debt equity ratio.
Analysis of growth potential
Retention rate Retention rate

= 1- = 1-

110,925 88,736
=1- = 1 130,890
118,362

= 0.06 = 0.32

The analysis of sustainable growth potential examines ratios that indicate how fast a firm
should grow. Analysis of a firms growth potential is important for both lenders and owners.
It increasing from 0.06 in 2015 to 0.32 in 2016.