Financial
Current Ratio * A liquidity ratio that measures a company’s ability to pay short term obligations.
Current Ratio 2011
Current Assets
Current Liabilities
35,343,809
35,774,652 =0.99 The ratio of 0.99: 1 means that for every ringgit of current liabilities, Hwa Tai has RM0.99 of current assets.
Current Ratio 2010
Current Assets
Current Liabilities
36,746,539
37,634,489 =0.98
* The ratio of 0.98 : 1 means that for every ringgit of current liabilities, Hwa Tai has RM0.98 of current assets.
Acid Test ratio * This indicator to determine whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio, primarily because the working capital ratio allows for the inclusion of inventory assets.
Acid Test Ratio 2011
Cash + Short Term Investment + Receivables (Net) Current Liabilities
28,530,006
35,774,652 = 0.80
Acid Test Ratio 2010
Cash + Short Term Investment + Receivables (Net) Current Liabilities
31,403,261
37,634,489 = 0.83 * Acid test ratio for the respective three years shows that Hwa Tai always gain less than 1 ratio. Its shows that this company cannot pay their current liabilities and should be looked at with extreme caution. This acid test ratio is much lower compare to current ratio, it means the current assets for this company in highly dependent on inventory.
Receivable Turnover * This ratio measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
Receivables Turnover 2011
Net Credit Sales Average Net Receivables
77,016,224
25,424,055 = 3.03
= 3.03 times
Average collection period 2011
365 days Receivables Turnover
365
Current Ratio 2011
Current Assets
Current Liabilities
35,343,809
35,774,652 =0.99 The ratio of 0.99: 1 means that for every ringgit of current liabilities, Hwa Tai has RM0.99 of current assets.
Current Ratio 2010
Current Assets
Current Liabilities
36,746,539
37,634,489 =0.98
* The ratio of 0.98 : 1 means that for every ringgit of current liabilities, Hwa Tai has RM0.98 of current assets.
Acid Test ratio * This indicator to determine whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio, primarily because the working capital ratio allows for the inclusion of inventory assets.
Acid Test Ratio 2011
Cash + Short Term Investment + Receivables (Net) Current Liabilities
28,530,006
35,774,652 = 0.80
Acid Test Ratio 2010
Cash + Short Term Investment + Receivables (Net) Current Liabilities
31,403,261
37,634,489 = 0.83 * Acid test ratio for the respective three years shows that Hwa Tai always gain less than 1 ratio. Its shows that this company cannot pay their current liabilities and should be looked at with extreme caution. This acid test ratio is much lower compare to current ratio, it means the current assets for this company in highly dependent on inventory.
Receivable Turnover * This ratio measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
Receivables Turnover 2011
Net Credit Sales Average Net Receivables
77,016,224
25,424,055 = 3.03
= 3.03 times
Average collection period 2011
365 days Receivables Turnover
365