BALIK PULAU CONSTR Industry average

1) Current Ratio 0.494 times 0.30 times

2) Quick ratio 0.30 times 0.30 times
3) Account Receivables Turnover 13.07 times 11 times
4) Average collection period 28 days 67 days
5) Inventory Turnover 8.47% 5.7%
6) Gross profit margin 31.41% 16.69%
7)Net Profit margin 3.6% 4%
8) Total debt ratio 54.65% 67%
9) Long term debt ratio 40.81 times 45%
10) Time Interest Earned Ratio 1.44 times 1.33 times

Current Asset
1) 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =
Current liability

853
current ratio =
1725

𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒓𝒂𝒕𝒊𝒐 = 0.49

Curren Asset − inventory

2) 𝑞𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =
Current liability
853 − 328
quick ratio ratio =
1725

𝒒𝒖𝒊𝒄𝒌 𝒓𝒂𝒕𝒊𝒐 = 0.30 times

310
3)𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑟𝑎𝑡𝑖𝑜 = = 27.92 𝑑𝑎𝑦𝑠
4053/365

Credit sales
4) 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
account receivable

4053
turnover ratio ratio =
310

𝒓𝒆𝒄𝒆𝒊𝒗𝒂𝒃𝒍𝒆 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒓𝒂𝒕𝒊𝒐 = 13.074 times

1
 cogs
5) 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
inventory

2780
inventory turnover ratio =
328

𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒓𝒂𝒕𝒊𝒐 = 8.48 times

𝑠𝑎𝑙𝑒𝑠 − 𝑐𝑜𝑔𝑠 4,053 − 2,780 1,273

6) 𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 = = = (100) = 31.41%
𝑠𝑎𝑙𝑒𝑠 4,053 4,053

net income 146

7) 𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 = = = 0.03602(100) = 3.60%
𝑠𝑎𝑙𝑒𝑠 4053

total asset − total equity

8) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
total asset

7,380 − 3,347 4,033

8) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 = = 0.5465(100) = 54.65%
7,380 7,380

long term debt

9) 𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
long term debt + equity

2,308 2,308
9) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 = = (100) = 40.81%
2,308 + 3,347 5,655

Ebit 723
10) 𝑡𝑖𝑚𝑒𝑠 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 𝑟𝑎𝑡𝑖𝑜 = = = 1.44
lnterest 502

2
 Perlis Road Industry Norms

Transport
Firm Liquidity
Current Ratio 0.544 times 0.72 times
Quick ratio 0.30 times 0.40 times
Inventory turnover 6.839 times 12 times
Average collection period 27.38 days/27days 40 days
Receivable turnover 13.33 times 16 times
Financing decision
Total debt ratio 55.20% 60%
Long term debt ratio 41.60% 45%
Times interest earned ratio 1.44 times 1.97 times
Net profit margin 3.47 % 2.7%
Gross profit margin 30.31% 27%

Current Asset
2. Perlis Road 1) 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =
Current liability

950
current ratio =
1745

𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒓𝒂𝒕𝒊𝒐 = 0.544

Curren Asset − inventory

2) 𝑞𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =
Current liability
950 − 428
quick ratio ratio =
1745

𝒒𝒖𝒊𝒄𝒌 𝒓𝒂𝒕𝒊𝒐 = 0.30 times

cogs
3) 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
inventory

2927
inventory turnover ratio =
428

3
 𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒓𝒂𝒕𝒊𝒐 = 6.839 times

365
4)𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑟𝑎𝑡𝑖𝑜 = = 27.38 𝑑𝑎𝑦𝑠
13.33

Credit sales
5) 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
account receivable

4200
turnover ratio ratio =
315

𝒓𝒆𝒄𝒆𝒊𝒗𝒂𝒃𝒍𝒆 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒓𝒂𝒕𝒊𝒐 = 13.33 times

total asset − total equity

6) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
total asset

7,477 − 3,347
6) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 = = 0.552(100) = 55.20%
7,477
long term debt
7) 𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
long term debt + equity

2,385
7) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 = = (100) = 41.60%
2,385 + 3,347

Ebit 723
8) 𝑡𝑖𝑚𝑒𝑠 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 𝑟𝑎𝑡𝑖𝑜 = = = 1.44
lnterest 502

net income 146

9) 𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 = = = 0.0347(100) = 3.47%
𝑠𝑎𝑙𝑒𝑠 4200

𝑠𝑎𝑙𝑒𝑠 − 𝑐𝑜𝑔𝑠 4200 − 2927 1,273

10) 𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 = = = (100) = 30.31%
𝑠𝑎𝑙𝑒𝑠 4200 4200

4
LIQUIDITY RATIOS SUHAIR TEXTILE Industry ratio/peer group
CORPORATION

a)Current ratio 1.27 times 1.2 times

b) Quick ratio 0.53 times 0.40 times

SOLVENCY RATIO/ LEVERAGE

c) Total debt ratio 0.28 % 0.20 %
d) Debt-equity ratio 0.38 times 0.12 times
e) Long term debt ratio 14.99% 0.10 times
f) Time interest earned ratio 4.9times 3.0 times

TURNOVER RATIO/ ASSET UTILIZATION

g) Inventory turnover 3.58 times 2.0times
h) Receivable Turnover 12.77 times 10 times
i) Average collection period (ACP) 29 days 35 days
j) Fixed assets turnover 0.83 times 0.60 times
k) Total assets turnover 0.67 times 0.58 times
PROFITABILTY RATIOS
Net profit margin 15% 6%
Operating profit margin 28.79% 8%
Return on assets(ROA) 10.11% 10%
Return on equity(ROE) 14% 12%
MARKET VALUE RATIO
EPS 6.05 4
Price earnings ratio 4.13 3.2
Book value per share 43.18 0.30
Market to book ratio 0.58 0.90

Current Asset
2. Suhair Textile 𝑎) 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =
Current liability

686
current ratio =
540

𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒓𝒂𝒕𝒊𝒐 = 1.27

Curren Asset − inventory

𝑏) 𝑞𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =
Current liability

5
 686 − 400
quick ratio ratio =
540

𝒒𝒖𝒊𝒄𝒌 𝒓𝒂𝒕𝒊𝒐 = 0.53 times

Total Asset − total equity

𝑐) 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
total asset

3,588 − 2,591 997

total debt ratio = = = 0.28𝑥(100) = 28%
3,588 3,588

Total debt
𝑑) 𝑑𝑒𝑏𝑡 𝑒𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =
total equity

997
𝑑) 𝑑𝑒𝑏𝑡 𝑒𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 = = 0.385(100) = 38.50%
2591

Long term debt

𝑒) 𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
total long term debt + equity

457
𝑒) 𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 = (100) = 14.99%
457 + 2,591

Ebit 691
𝑓) 𝑡𝑖𝑚𝑒𝑠 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 𝑟𝑎𝑡𝑖𝑜 = = = 4.9𝑥
lnterest 141
cogs
𝑔) 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
inventory

1433
inventory turnover ratio =
400

𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒓𝒂𝒕𝒊𝒐 = 3.58 times

receivable
ℎ)𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑟𝑎𝑡𝑖𝑜 =
annual sales/365

6
 188
ℎ)𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑟𝑎𝑡𝑖𝑜 = = 28.59 𝑑𝑎𝑦𝑠 = 29 𝑑𝑎𝑦𝑠
2400/365

365
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑟𝑎𝑡𝑖𝑜 = = 28.59 𝑑𝑎𝑦𝑠 = 29 𝑑𝑎𝑦𝑠
12.766

Credit sales
𝑖) 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
account receivable

2400
receivable turnover ratio = = 12.766
188

𝑠𝑎𝑙𝑒𝑠
𝑗) 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
fixed asset

2400
fixed asset turnover = = 0.83
2902

𝑠𝑎𝑙𝑒𝑠
𝑘) 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
Total asset

2400
Total asset turnover = = 0.67
3588

net income 353

𝑙) 𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 = = = 0.147(100) = 14.7% = 15%
𝑠𝑎𝑙𝑒𝑠 2400

EBIT 691
𝑚) 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑚𝑎𝑟𝑔𝑖𝑛 = = = 0.2879(100) = 28.79%
𝑠𝑎𝑙𝑒𝑠 2400

Net income 363

𝑛) 𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑎𝑠𝑠𝑒𝑡 = = = 0.1011(100) = 10.11%
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 3588

Net income 363

0) 𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑒𝑞𝑢𝑖𝑡𝑦 = = = 0.140(100) = 14%
𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 2591

7
 Net Income
𝑝) 𝐸𝑃𝑆 =
No of shares outstanding

363,000
𝑝) 𝐸𝑃𝑆 = = 6.05
60,000

Price of share
𝑞) 𝑃𝐸 =
𝐸𝑃𝑆

25
𝑞) 𝑃𝐸 = = 4.13
6.05

Total Equity
𝑟) 𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 =
No of shares outstanding

2,591,000
𝑟) 𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 = = 43.18
60,000

market price per share

𝑠) 𝑚𝑎𝑟𝑘𝑒𝑡/𝐵𝑜𝑜𝑘 𝑟𝑎𝑡𝑖𝑜 =
book value per share

𝑚𝑎𝑟𝑘𝑒𝑡 25
𝑠) 𝑟𝑎𝑡𝑖𝑜 = = 0.58
𝐵𝑜𝑜𝑘 43.18