AirAsia Berhad is a Malaysian based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia is owned by Tan Sri Anthony Francis Fernandes. He is also the owner for the Queen Park Rangers football club.
Net sales is the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. For year 2010, the net sales for AirAsia company is RM3,864,459,000. For year 2011, the net sales is RM4,449,933,000. This shows that the net sales has been increased for RM585,474,000. Net earnings is gross sales minus taxes, interest, depreciation, and other expenses. For year 2010, the net earnings is RM1,060,617,000. For year 2011, the net earning is RM1,166,833,000. The difference between these two years is RM106,216,000 which shows that net earnings has been increased.
Debt to total assets ratio is to measure the percentage of the total assets that creditors provide. The formula for (debt to total assets ratio is total debt)/(total asset). Total debt is current liability added with non-current liability. Total asset is the addition between intangible assets, plant assets (net) and current assets. Current asset for year 2010 is RM3,175,439 while non-current asset is RM10,381,333,000. The total asset is RM13,556,772,000. Current liability is RM2,160,618,000 while non-current liability is RM7,755,749,000. Total debt is RM9,916,367,000. So the debt to total assets is (RM9,916,367,000/RM13,556,772,000=73%). Current asset for 2011 is RM3,845,135,000 while non-current asset is RM10,046,508,000. Total asset is RM13,891,643,000. Current liability is RM2,182,629,000 while non-current liability is RM7,675,240,000. Total liability is RM9,857,869,000. So the debt to total assets is (RM9,857,869,000/RM13,891,643,000=71%). A low ratio of debt to total assets is usually desirable. Thus 71% for 2011 is better than 73%.
Times interest earned ratio...
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