Using average value, calculate TWO (2) relevant financial ratios for each of the following areas that are useful in determining the overall performance of the company for 2019 and 2018.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  • Using average value, calculate TWO (2) relevant financial ratios for each of the following areas that are useful in determining the overall performance of the company for 2019 and 2018.

 

  1. Ability to meet short term maturing financial obligations.
  2. Effectiveness in managing assets and efficiency in handling operations
  • Profitability and overall operating results
  1. Ability to service debt and the degree of financial risk
  2. ROE using the DuPont Method
Sri Safiya Industries
Index Trend Statement of Financial Position as at December 31,
2018 (RM)
132.30%
2017 (RM)
100.00%
100.00%
2019 (RM)
Cash and cash equivalents
80.16%
Trade and other receivables
105.14%
109.64%
Inventories
116.00%
113.75%
100.00%
Prepayments
Property, plant and equipment, net
Land
Total assets
Trade and other payables
Short term debt
142.25%
115.29%
100.00%
111.27%
117.86%
100.00%
169.91%
163.77%
100.00%
107.99%
114.71%
100.00%
129.70%
134.65%
100.00%
308.30%
208.30%
100.00%
Debentures
Capital stocks
Retained earnings
Total liabilities and equity
86.42%
100.79%
100.00%
118.80%
111.42%
100.00%
108.13%
132.89%
100.00%
107.99%
114.71%
100.00%
Sri Safiya Industries
Index Trend Statements of Financial Performance for the years ended December 31,
2019 (RM)
127.89%
2018 (RM)
2017 (RM)
Revenue
129.14%
100.00%
Costs of sales
133.88%
135.25%
100.00%
Gross income
Selling and distributions expenses
Administration expenses
Depreciation
Earnings before interest and tax
Interest expense
Earnings before tax
Income taxes (20%)
Earnings after tax
113.12%
114.09%
100.00%
114.10%
117.12%
100.00%
128.98%
140.67%
100.00%
82.90%
139.47%
100.00%
59.68%
1.85%
100.00%
319.19%
572.19%
100.00%
100.00%
(12.89%)
(12.89%)
(12.89%)
52.98%
52.98%
100.00%
52.98%
100.00%
Transcribed Image Text:Sri Safiya Industries Index Trend Statement of Financial Position as at December 31, 2018 (RM) 132.30% 2017 (RM) 100.00% 100.00% 2019 (RM) Cash and cash equivalents 80.16% Trade and other receivables 105.14% 109.64% Inventories 116.00% 113.75% 100.00% Prepayments Property, plant and equipment, net Land Total assets Trade and other payables Short term debt 142.25% 115.29% 100.00% 111.27% 117.86% 100.00% 169.91% 163.77% 100.00% 107.99% 114.71% 100.00% 129.70% 134.65% 100.00% 308.30% 208.30% 100.00% Debentures Capital stocks Retained earnings Total liabilities and equity 86.42% 100.79% 100.00% 118.80% 111.42% 100.00% 108.13% 132.89% 100.00% 107.99% 114.71% 100.00% Sri Safiya Industries Index Trend Statements of Financial Performance for the years ended December 31, 2019 (RM) 127.89% 2018 (RM) 2017 (RM) Revenue 129.14% 100.00% Costs of sales 133.88% 135.25% 100.00% Gross income Selling and distributions expenses Administration expenses Depreciation Earnings before interest and tax Interest expense Earnings before tax Income taxes (20%) Earnings after tax 113.12% 114.09% 100.00% 114.10% 117.12% 100.00% 128.98% 140.67% 100.00% 82.90% 139.47% 100.00% 59.68% 1.85% 100.00% 319.19% 572.19% 100.00% 100.00% (12.89%) (12.89%) (12.89%) 52.98% 52.98% 100.00% 52.98% 100.00%
Sri Safiya Industries is a company involved in consumer good for the past 7 years. The company
is trying to access its current financial position in order to develop a more competitive product due
to significant changes in the market demand.
As a financial consultant, you are required to conduct a data-based analysis using the following
financial information.
Sri Safiya Industries
Statement of Financial Position as at December 31,
2019 (RM)
1,972, 514
24, 624,077
2018 (RM)
2017 (RM)
Cash and cash equivalents
Trade and other receivables
3, 255,291
25, 679,086
2, 460,594
23,421,292
5, 275,586
344,187
15, 977,281
1, 200,547
49, 394,192
17, 863,224
230,985
17, 120,900
12, 463,336
1, 715,747
49, 394,192
Inventories
5, 172,887
278,949
16, 924,076
1, 157,113
52, 467,402
18, 546,046
156,064
19, 967,621
11, 689,019
2, 108,652
4,547,734
Prepayments
Property, plant and equipment, net
Land
241,959
14, 359,514
706,558
45, 737,651
Total assets
Trade and other payables
Short term debt
13, 773,215
74,921
19, 811,648
10, 491,063
1, 586,804
45, 737,651
Debentures
Capital stocks
Retained earnings
Total liabilities and equity
52, 467,402
Sri Safiya Industries
Statements of Financial Performance for the years ended December 31,
2019 (RM)
65, 799,286
Revenue
Costs of sales
Gross income
Selling and distributions expenses
Administration expenses
Depreciation
Earnings before interest and tax
Interest expense
Earnings before tax
Income taxes (20%)
Earnings after tax
2018 (RM)
66,446,623
49, 501,691
16, 944,932
9, 653,922
6,876,388
387,990
26,632
207,995
(181,363)
(36,273)
(145,090)
2017 (RM)
51, 451,517
36, 598,983
14,852,534
8,242,604
4,888,351
278,193
1,443,386
36,351
48, 998,011
16, 801,275
9, 404,457
6, 304,772
230,612
861,434
116,029
745,405
149,081
596,324
1,407,035
281,407
1,125,628
Transcribed Image Text:Sri Safiya Industries is a company involved in consumer good for the past 7 years. The company is trying to access its current financial position in order to develop a more competitive product due to significant changes in the market demand. As a financial consultant, you are required to conduct a data-based analysis using the following financial information. Sri Safiya Industries Statement of Financial Position as at December 31, 2019 (RM) 1,972, 514 24, 624,077 2018 (RM) 2017 (RM) Cash and cash equivalents Trade and other receivables 3, 255,291 25, 679,086 2, 460,594 23,421,292 5, 275,586 344,187 15, 977,281 1, 200,547 49, 394,192 17, 863,224 230,985 17, 120,900 12, 463,336 1, 715,747 49, 394,192 Inventories 5, 172,887 278,949 16, 924,076 1, 157,113 52, 467,402 18, 546,046 156,064 19, 967,621 11, 689,019 2, 108,652 4,547,734 Prepayments Property, plant and equipment, net Land 241,959 14, 359,514 706,558 45, 737,651 Total assets Trade and other payables Short term debt 13, 773,215 74,921 19, 811,648 10, 491,063 1, 586,804 45, 737,651 Debentures Capital stocks Retained earnings Total liabilities and equity 52, 467,402 Sri Safiya Industries Statements of Financial Performance for the years ended December 31, 2019 (RM) 65, 799,286 Revenue Costs of sales Gross income Selling and distributions expenses Administration expenses Depreciation Earnings before interest and tax Interest expense Earnings before tax Income taxes (20%) Earnings after tax 2018 (RM) 66,446,623 49, 501,691 16, 944,932 9, 653,922 6,876,388 387,990 26,632 207,995 (181,363) (36,273) (145,090) 2017 (RM) 51, 451,517 36, 598,983 14,852,534 8,242,604 4,888,351 278,193 1,443,386 36,351 48, 998,011 16, 801,275 9, 404,457 6, 304,772 230,612 861,434 116,029 745,405 149,081 596,324 1,407,035 281,407 1,125,628
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