KAWAN FOOD BERHAD

Liquidity Ratios
Current Ratio 188,446,081 ÷ 50,223,764 = 3.75 times

The current ratio measures a company's ability to meet its short-term obligations using it
Analysis
receivable, and inventory. Kawan Food Berhad appears to have a stronger liquidity

Acid-Test / Quick Ratio (188,446,081-32,732,220) ÷ 50,223,764 = 3.10 times

The acid-test or quick ratio measures a company's ability to meet its short-term obligations us
Analysis equivalents, and accounts receivable. Kawan Food Berhad has a stronger ability to meet sh
inventory liquidation.
Activity Ratios
Inventory Turnover 161,232,739 ÷ 32,732,220 = 4.93 times
The inventory turnover ratio measures how many times a company's inventory is sold and rep
Analysis
is more efficient in managing its inventory and selling its products, compared

Average Collection Period 55,949,928 ÷ (251,769,749/365Days) = 81.11 days

The Average Collection Period ratio measures the number of days it takes for a company to
Analysis
Berhad is collecting its accounts receivable more efficiently than Ka

Total Assets Turnover 251,769,749 ÷ 434,957,167 = 0.58 times

The total assets turnover ratio measures how efficiently a company is using its assets to gener
Analysis
more revenue per RM of assets than Kawan Food Ber

Fixed Asset Turnover 251,769,749 ÷ 246,511,086 = 0.10 times

The fixed asset turnover ratio measures a company's efficiency in generating sales from its in
Analysis
plant, and equipment (PP&E). Lay Hong Berhad is generating more revenue from its investme
Profitability Ratios
Gross Profit Margin 90,537,010 ÷ 251,769,749 x100 = 35.96 %
The gross profit margin measures the percentage of sales revenue that exceeds the cost of g
Analysis
efficient in generating profits from its sales revenue than Lay H

Operating Profit Margin

36,315,531÷ 251,769,749 x100 = 14.42 %
(OPM)
The operating profit margin (OPM) measures how much profit a company generates from eac
Analysis expenses. Kawan Food Berhad is more profitable than Lay Hong Berhad, as it generates m
deducting its operating expenses.
Net Profit Margin 31,784,866 ÷ 251,769,749x100 = 12.62 %
 The net profit margin ratio measures the profitability of a company by comparing its net prof
Analysis
has a much higher net profit margin than Lay Hong Berhad, indicating th

Return on Equity 31,784,866 ÷ 369,002,223x100 = 8.61%

ROE measures a company's net income relative to its shareholders' equity, indicating how mu
Analysis of shareholder's equity invested. Kawan Food Berhad generated more profit for every RM o
Berhad.

Return on Assets 31,784,866 ÷ 434,957,167 x100 = 7.31%

Analysis

Leverage Ratios
Debt-to-Equity 65,954,944 ÷ 369,002,223 = 0.18 times

Analysis
Debt-to-Assets 65,954,944 ÷ 434,957,167 = 0.15 times

Analysis
 LAY HONG BERHAD Difference
Liquidity Ratios
295,058,052 ÷ 335,689,887 = 0.88 times 2.87 times

ability to meet its short-term obligations using its current assets, such as cash, accounts
Food Berhad appears to have a stronger liquidity position than Lay Hong Berhad.

189,173,843 ÷ 335,689,887 = 0.56 times 2.54 times

any's ability to meet its short-term obligations using its most liquid assets, such as cash, cash
wan Food Berhad has a stronger ability to meet short-term obligations without relying on
inventory liquidation.
Activity Ratios
772,950,763 ÷ 105,884,209 = 7.30 times 2.37 times
many times a company's inventory is sold and replaced over a given period. Lay Hong Berhad
g its inventory and selling its products, compared to Kawan Food Berhad.

107,955,598 ÷ (923,658,338/365 Days) =42.66 days 38.45 days

ures the number of days it takes for a company to collect its accounts receivable. Lay Hong
g its accounts receivable more efficiently than Kawan Food Berhad.

923,658,338 ÷ 944,278,165 = 0.98 times 0.40 times

efficiently a company is using its assets to generate revenue. Lay Hong Berhad is generating
revenue per RM of assets than Kawan Food Berhad.

923,658,338 ÷ 621,620,113 = 1.49 times 1.39 times

ompany's efficiency in generating sales from its investment in fixed assets, such as property,
had is generating more revenue from its investment in fixed assets than Kawan Food Berhad.
rofitability Ratios
150,707,575 ÷ 923,658,000 x100 = 16.31% 19.65%
centage of sales revenue that exceeds the cost of goods sold. Kawan Food Berhad is more
nerating profits from its sales revenue than Lay Hong Berhad.

26,965,625 ÷ 923,658,300 x100 = 2.92% 11.50%

s how much profit a company generates from each RM of sales after deducting its operating
rofitable than Lay Hong Berhad, as it generates more profit from each dollar of sales after
deducting its operating expenses.
5,241,856 ÷ 923,658,330 x100 = 0.57% 12.05%
ofitability of a company by comparing its net profit to its total revenue. Kawan Food Berhad
rofit margin than Lay Hong Berhad, indicating that it is more profitable.

5,241,856 ÷ 456,501,826 x100 = 1.15% 7.46%

ive to its shareholders' equity, indicating how much profit a company generates for each RM
ood Berhad generated more profit for every RM of equity invested compared to Lay Hong
Berhad.

5,241,856 ÷ 944,278,165 x100 = 0.56% 6.75%

Leverage Ratios
487,776,339 ÷ 456,501,826 = 1.07 times 0.89 times

487,776,339 ÷ 944,278,165 = 0.51 times 0.36 times