Ratio Analysis

Topics: Revenue, Balance sheet, Generally Accepted Accounting Principles Pages: 6 (1711 words) Published: January 30, 2015

Ratio analysis – Shinepukur Ceramics Versus RAK Ceramics

Current ratio
Shinepukur: From 2009 to 2010, current ratio of Shinepukur has increased by 0.24 because of increase in total current assets and decrease in total current liabilities. The increase in total current has occurred for increase in accounts-and-other-receivables, advances-deposits-and-prepayments and cash. Among these elements, the increase in advances-deposits-and-prepayments is significant (from 82182270 to 278773841). On the other hand, the element that has decreased total current liabilities is long-term loan with current maturity (from 386928629 to 243718941). From 2010 to 2011, current ratio of Shinepukur has decreased by 0.14 because of decrease in total current assets and increase in total current liabilities. The decrease in total current assets has incurred for decrease in both advances-deposits-and-prepayments and cash. Among these two elements, the decrease in advances-deposits-and-prepayments is significant (from 278773841 to 112190532). And, total-current-liabilities has increased for the increase in short-term loan from bank and creditors-accruals-and-other-payables among which short-term loan from bank has played key role (from 955808744 to 1147673708). From 2011 to 2012, current liability of Shinepukur has increased by 0.03 because of more increase in total current assets and less increase in total current liabilities. Total-current-assets has increased because of significant increase in accounts-and-other-receivables (from 587933889 to 853413145). And, total-current-liabilities has increased mainly for increase in creditors-accruals-and-other-payables (from 291823065 to 445028986). From 2012 to 2013, current ratio of Shinepukur has decreased by 0.04 because of more decrease in total current assets and less decrease in total current liabilities. Total-current-assets has decreased for significant decrease in accounts-and-other-receivables (from 853413145 to 674987355). And, total-current-liabilities has decreased for the decrease in short-term loan (from 1183795749 to 964471449).

RAK: From 2009 to 2010, current ratio of RAK has increased by 0.99 because of increase in total current assets and decrease in total current liabilities. Total current assets has increased for the increase in inventory, accounts receivable, cash and advances-deposits-prepayment among which cash has increased significantly. Total-current-liabilities has decreased for the decrease in long-term loan with current maturity and creditors-accruals-and-other-payables among which creditors-accruals-and-other-payables has decreased significantly. From 2010 to 2011, current ratio of RAK has increased by 0.09 because of more increase in total current assets and less increase in total current liabilities. Total current assets has increased for the increase in inventory, accounts receivable and advances-deposits-prepayment among which advances-deposits-prepayment has increased significantly. Total-current-liabilities has increased for the increase in income-tax-payable, long-term loan with current maturity and creditors-accruals-and-other-payables among which income-tax-payable has increased significantly. From 2011 to 2012, current ratio of RAK has decreased by 0.16 because of less increase in total current assets and more increase current liabilities. Total current assets has increased for the increase in inventory and advance-income-tax among which advance-income-tax has increased significantly. Total-current-liabilities has increased for the increase in deferred-tax-liabilities and long-term loan with current maturity and among which deferred-tax-liabilities has increased significantly. From 2012 to 2013, current ratio of RAK has decreased by 0.02 because of less increase in total current assets and more increase in total current liabilities. Total current assets has increased for the increase in inventory, cash and advance-income-tax among which cash has...
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