individual assignment mirabror kurbonov scm 021606

8/12/2019 Individual Assignment Mirabror Kurbonov SCM 021606

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Question A

Financial ratios and discuss the importance of financial ratios for a corporation

Financial ratios are advantageous pointers of the association's execution and monetary position,

Most of the degrees may calculted fromfinancial proclamations. Money related pointers could be

utilized to dissect patterns and think about the monetary execution of the firm to different firms .

Financial factors may be classified in accordance with the information that they provide. Often

uses the types of relations:

Liquidity assets turnover financial leverage ratio Profitability relationship Dividend Policy

Liquidity degrees give data about the association's capacity to satisfy its fleeting budgetary

commitments. They are exceptionally compelling to those growing fleeting advance to the firm.

Stakes turnover proportions demonstrate how adequately the association utilization its holdings .

They are frequently called execution pointers , the proportion of advantages or stake

administration relations .

Budgetary power proportions give an implication of the long haul dissolvability of the firm.

Dissimilar to liquidity proportions that are connected with transient holdings and liabilities ,

monetary influence proportion izmeritrasprostranyaetsya on which the firm uses debt.ratios offer

some distinctive measures of achievement of the organization to make a benefit.

Profit arrangement relations give a thought of the organization 's profit strategy and the prospects

for future development.


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Question B

Calculation:

I. Current ratio

2012

= 3.1585391183.2

2011

= 2.5354230252.5

II. Acid- test ratio

2012

= 1.561394765 1.6

2011

= 1.296142721 1.3


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III. Price/Earnings ratio

2012

Earnings per share 2012= 14.59 cent

2011

Earnings per share 2011= 11.51 cent

IV. Gearing ratioGearing ratio =

2012

Gearing ratio 2012=

= 0.060243926 0.06

2011

Gearing ratio 2011=

= 0.077400845 0.08

V. Average collection periodAverage collection period =

()

x 365 days

2012

Average collection period2012=

x 365 = 24.1111277 24 days

2011

Average collection period2011=

x 365 = 25.31865022 25 days


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VI. Average payment periodAverage payment period =

x 365 days =

x 365 days

2012

Average payment period2012=

x 365 = 0.210500478 x 365

= 76.8326748 77 days

2011

Average payment period2011=

x 365 = 0.338312829 x 365

= 123.4841828 123 days

VII. Gross profit marginGross profit Margin =

x 100%

2012

Gross profit Margin 2012=

x 100 = 48.1869919 48%

2011

Gross profit Margin 2011=

x 100 = 51.15501798 51%

VIII. Net profit marginNet profit margin =

( )

x 100%

2012

Net profit margin 2012=

x 100 =13.27060274 13%

2011

Net profit margin 2011=

x 100 = 13.3152499 13%


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IX. Return on capital employedReturn on capital employed=

x 100%

2012

Return on capital employed2012=

x 100 % = 145.9181347 146 %

2011

Return on capital employed2011=

x 100 % = 115.0522108 115 %

X. Return on total assetsReturn on total assets =

x 100%

2012

Return on total assets2012=

x 100%= 19.9046246 20 %

2011

Return on total assets2011=

x 100%= 17.0351916 17 %


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Question D

I. Ratio of the company for 2011 and 2012

Ratios 2012 2011I. Current ratio 3.2 2.5

II. Acid Test ratio 1.6 1.3

III. Earnings per share 14.59 cent 11.51 cent

IV. Gearing ratio 0.06 0.08

V. Average collection period 24 days 25 days

VI. Average payment period 77 days 123 days

VII. Gross profit Margin 48% 51%

VIII. Net profit margin 13% 13%

IX. Return on capital employed 146 % 115 %

X. Return on total assets 20 % 17%

II. Ratio analysis of PADINI HOLDINGS BERHADPADINI HOLDINGS BERHAD the financial statement for the year 2011 and 2012 has

been used to calculated financial ratios of the company in order to analyze the situation of the

company to reflect 2012 performance in contrast to 2011 and judging based on figures and

numbers in order to determine if the organization has improved financially.

The liquidity ratios show of the company ability to pay debts and the liquid available to

run the organization. The current ratio for the year 2011 is 2.5 while increased 3.2 which showed

the current ratio has more assets tied down unproductive activities like large amounts of stock

has been brought down. The quick test ratio better reflects on this as the acid test ratio show 1.3

for 2011and 1.6 for 2012. It shows liquid assets have decreased. The profitability ratios of

PADINI HOLDINGS BERHAD is analysed in order to view the profitability of the organization.

The Gross profit margin for the year 2011 was 51% and it decreased 48% meaning the

gross profit margin in goods has decreased due to cutting down the cost of sales; BUT which will

have NOT an effect on the net profit ratio. The net profit margin for the BOTH year is same


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percentage (13%). The return on capital employed for the year 2011 was 115 % and it

significantly increased for the year 2012 146 % And return on total assets has also grew up from

17 % to 20 % from 2011 to 2012.

Efficiency ratio will identify PADINI HOLDINGS BERHAD the debtors and creditors;

collection and payment time. The average collection period form debtors has increased making

recovery of debts as of 2012 more longer and time consuming the average collection period was

(25) days while in 2011 the debts were received within reduced to (24) days which is not an good

improvement. The average payment period decreased considerably as from taking 123 days to

pays debts in 2011 to creditors but now it takes 77 days to pay them as it has the extend the days

to payback some suppliers may not like the period taken to repay but the creditors have more

than doubled since the year 2011.

Current

ratio

Acid Test

ratio

Earnings

per

share

Gearing

ratio

Average

collectio

n period

Average

payment

period

Gross

profit

Margin

Net

profit

margin

Return

on

capital

employe

d

Return

on total

assets

2011 3.2 1.6 14.59 0.06 24 77 48 13 146 20

2012 2.5 1.3 11.51 0.08 25 123 51 13 115 17

0

20

40

60

80

100

120

140

160

Amount

Ratios


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III. FINANCIAL RESULTSFor the financial year under review , the Group achieved a consolidated turnover of RM568.5

million , an increase of 9.6% compared with the last year the number of RM518.8 million

(restated) . Gross profit grew in tandem by 12.2 % during the same period , while profit beforetax increased by 21.8 % from RM86.3 million recorded in the previous year to RM105.1 million

in the current fiscal year. Total comprehensive income for the financial year attributable to

equity shareholders of the Company as compared with the amount of RM59.9 million achieved

much over the previous fiscal year increased by 24.7 % to RM74.7 million. (Zain, 2014)


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Question E

The conclusionsis, for the company PADINI HOLDINGS BERHAD performance are

more better and increases year by year as we can see the ratio in 2012 given a better result than

2011. It shown that a company's ability to meet short-term debt obligations, company's ability to

meet its short-term obligations using its most liquid assets, company's ability to repay its

obligations, how effectively and efficiently a company is using its fixed assets to generate

revenues, how efficiently a company uses its resources, materials, and labor, company's ability to

generate profits before leverage, and more efficient at using its capital to generate income.

BibliographyZain, F. (2014). Padini holding berhad.Retrieved FEBRUARY 24, 2014, from www.academia.edu:

http://www.academia.edu/5518986/PADINI_HOLDINGS_BERHAD_3-latest


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Appendix 1


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Appendix 2

individual assignment mirabror kurbonov scm 021606

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