1Current Ratio

Current Ratio = Current Asset/ Current Liability

20112012

2747.2/3087.14230.6/4869.6

0.08970.8687

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INTERPRETATION

In 2011 the current ratio is 0.0897 which means company has not enough resources to pay its debt over the next business cycle (usually 12 months) by comparing firm's current assets to its current liabilities. If current ratio is bellow 1 (current liabilities exceed current assets), then the company may have problems paying its bills on time

In 2012 the current ratio is 0.8687 which mean company goes for betterment they have resources to pay its debt but not 100% 2Quick Ratio

Quick Ratio = Current Asset - Inventory/ Current Liability20112012

2747.2-1203.2/3087.14230.6-1320.7/4869.6

0.5970.5001

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INTERPRETATION

Ideally, quick ratio should be 1:1.

If quick ratio is higher, company may keep too much cash on hand or have a problem collecting its accounts receivable. Higher quick ratio is needed when the company has difficulty

A quick ratio lower than 1:1 (0.597 *2011, 0.5001 2012*) may indicate that the company relies too much on inventory or other assets to pay its short-term liabilities 3Cash Ratio

Cash Ratio = Cash/ Current Liabilities20112012

20.9/3087.1597/4869.6

0.00670.1225

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INTERPRETATION

Cash Ratio is an indicator of company's short-term liquidity. It measures the ability to use its cash and cash equivalents to pay its current financial obligations A cash ratio of 1.00 and above means that the business will be able to pay all its current liabilities in immediate short term. 2012 cash ratio 0.1225 is better than 2011, in 2012 ability to use its cash and cash equivalents to pay its current financial obligations

4Net Working Capital to Total Assets

Net working Capital to Total Assets = Net Working Capital/ Total Assets20112012

2747.2-3087.1/10201.74230.6-4869.6/12188.1

-0.0333-0.0524

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INTERPRETATION

5Total Debt Ratio

Total Debt Ratio = Total Assets - Total Equity/ Total Assets20112012

10201.7-5400.8/10201.712188.1-6509.5/12188.1

0.470.465

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INTERPRETATION

A ratio of a company's debt to its total financing. The debt management ratio measures how much of a company's operations come from debt instead of other forms of financing, such as stock or personal savings. The debt management ratio is one measure among many of a company's risk and likelihood of default. <1 is better

2011, 47% company's operations comes from debt

2012, 46.5% company's operations comes from debt (better )

6Debt Equity Ratio

Debt Equity Ratio = Total Debt/ Total Equity

20112012

4473.1/5400.86186.5/6509.5

0.8280.95

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INTERPRETATION

7Equity Multiplier

Equity Multiplier = Total Assets/ Total Equity

20112012

10210.7/5400.812188.1/6509.5

1.891.872

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INTERPRETATION

The equity multiplier is a ratio used to determine the financial leverage of a company Company has a higher equity multiplier, it can be said to rely more heavily on debt in order to finance its assets. Higher is risky 2011 (1.89)

8Long Term Debt Ratio

Long Term Debt Ratio = Long Term Debt/ Long Term Debt + Total Equity20112012 1533.3/1533.3+5400.81476/1476+6509.5

0.22110.184...