# Financial Statement Analysis of Dutch Lady

Topics: Financial ratios, Financial ratio, Balance sheet Pages: 9 (3008 words) Published: November 23, 2012
I. INTRODUCTION

II. PERFORMANCE RATIOS
II. 1. Liquidity Ratio
Liquidity ratio refers to ability of company to meet its short term obligation. There are eight types of liquidity ratio:

1.| Working Capital Ratio = Current Assets – Current Liabilities| | 2009| 2010| 2011|
| = 193,784 – 96,855= 96,929| = 234,244 – 106,261=127,983| = 324,466 – 135,309= 189,157| 2.| Current Ratio = Current AssetsCurrent Liabilities| | 2009| 2010| 2011|
| = 193,78496,856=2 :1| = 234,244106,261 =2.2 :1| = 324,466135,309 =2.39 :1| 3.| Acid Test Ratio = Quick AssetsCurrent Liabilities| | 2009| 2010| 2011|
| = 136,23296,855=1.4 :1| =161,522106,261 =1.52 :1| =230,978135,309 =1.7 :1| 4.| Account Receivable Turnover = Sales on AccountAverage Accounts Receivable| | 2009| 2010| 2011|

| = 691,847(94,369+122,858)/2=6.36 times| = 696,625(75,176 + 94,369)/2=8.22 times| = 810,647(36,714 + 75,176)/2 =14.56 times| 5.| Inventory Turnover = Cost of Goods SoldAverage Inventory| | 2009| 2010| 2011|

| = 462,510(57,552+74,902)/2= 6.98 times| = 447,961(72,722+57,552)/2=6.88 times| = 506,175(93,448+72,722)/2=6.09 times| 6.| Days Sales Uncollected = Ending Accounts Receivable(Debtor Turnover Ratio) Net Sales| | 2009| 2010| 2011|

| =94,369691,847 x 365=49.7=50 days| =75,176696,625 x 365=39.3=39 days| =36,714810,647 x 365=16.5=16 days| 7.| Days’ Sales in Inventory = Ending InventoryCost of Goods Sold| | 2009| 2010| 2011|

| =57,552462,510 x 365=45 days| =72,722447,961 x 365=59 days| =93,448506,175 x 365=67 days| 8.| Total Assets Turnover = Net SalesAverage Total Assets| | =691,847(280,990+288,570)/2=2.42 times| =696,625(307,490 +280,990)/2=2.37 times| =810,647(398,514+307,490)/2=2.30 times| The increasing amount of working capital shows that Dutch Lady Milk Industries Berhad is able to continue their...