a) Comment on overall financial performance of the company.

Answer:

Ratios is one phase for judging the financial performance of the company this may have a different
situation if we analysis in different perspective, so above calculated ratios have these overall
interpretations in my opinion.

 Company is inefficient because its efficiency ratio is decrease by 0.18 and 0.26 from FY10 to
FY14 that indicates company is not efficiently utilizing its asset to generate the revenue.

 Company liquidity may improve from FY10 but overall it is a bad sign for a company because
current ratio of 0.75 indicates that the company is not fully equipped with exactly enough assets
to be instantly liquidated to pay off its current liabilities.

 Company with low solvency ratio means it is at risk with defaulting its debt and possibly
bankruptcy. Moreover, lowers the confidence of creditors in extending credit to the company,
which might also disrupt its short-term and long-term operational goals. The firms is not enough
to satisfy its obligations, debt ratio in FY10 company have low interest coverage ratio with 10.55
and debt to total asset ratio of 0.42, and in FY14 of interest coverage ratio is 8.39 and debt to
total asset ratio is 0.49.of 8.39 in FY14. Change of 2.16.

 A decrease of 5% in net profit margin indicates that the firm is generating less money by not
selling enough of its product than its expense or it may have risen its COGS, tax or other factor
that is why firm profitability is decline.

Despite the company's liquidity improving over the five-year period, the company posted a poor
financial performance as evidenced in its declining profitability, solvency, and efficiency. The declining
profits indicate that the company is making losses, which might not be sustainable in the end increasing
risks of bankruptcy.