COMPANY RATIO ANALYSIS AND INTERPRETATION

1) LIQUIDITY RATIO GRAPH

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
IJM MHC SARAWAK BLD TH
PLANTATION PLANTATION PLANTATION PLANTATION PLANTATION
CURRENT RATIO 4.05 1.7 1.91 1.36 1.07
QUICK RATIO 3.33 0.33 1.63 0.99 0.9

CURRENT RATIO QUICK RATIO

FIGURE 2.1

From the figure 2.1, overall we can conclude that IJM Plantation Bhd has the
most strongest current ratio value compare to other companies. While TH Plantation
Bhd has most lowest current ratio value than the other companies. Highest current
ratio is good because its indicates the coverage level of current debts by current
assets.
For quick ratio, the figure 2.1 shows that IJM Plantation Bhd has the most
highest quick ratio followed by Sarawak Plantation Bhd and MHC Plantation Bhd has
the most weak quick ratio value compare to other companies. Quick ratio with high
ratio is better because its reflects the potential of company in selling inventory.
2. ASSET MANAGEMENT RATIO

100%

95%

90%

85%

80%

75%
2011 2012 2013 2014 2015
ASSET TURNOVER 0.05 0.03 0.02 0.02 0.02
INVENTORY TURNOVER 7.9 8.78 12.77 12.83 11.04
AVERAGE COLLECTION PERIOD 78 81.38 65.31 108.58 105.31

AVERAGE COLLECTION PERIOD INVENTORY TURNOVER ASSET TURNOVER

FIGURE 2.2