ASSESSMENT | FINANCIAL MANAGEMENT

Assessment Analysis
1
Date: 28 / 02 / 2020
Student Name:
Student Number:
Session: JANUARY 2020
Course Code: FIN2212
Course Title: FINANCIAL MANAGEMENT

Assessment Analysis
2
Individual Assignment
Part A: Compute the following ratios for the most recent two years
Company One
Malaysia Airports Holdings Bhd 5014
Ratio Formula 2018 2019
1. Current Ratio Current Assets / Current Liabilities 2 2.14
2. Quick Ratio
(Acid Test)
Current Assets - Prepaid - Inventory / Current
Liabilities
1.88 2.01
Account receivables
turnover ratio
Net Sales / Net Receivables 8 6.91
Inventory turnover
ratio
Net Sales / Net Inventory 16.47 14.63
Fixed assets
turnover ratio
Net Sales / Net Fixed Assets 12.62 10.87
Total assets turnover
ratio
Net Sales / Total Fixed Assets 0.22 0.23
Times interest
earned ratio
EBIT/ Interest Expense 2.07 1.94
Debt-to-assets ratio Debt / Assets 2.44 2.35
Gearing ratio Debt / Equity 0.54 0.5
Gross profit margin Gross Profit / Sales *100 54.4 56
Operating profit
margin
Operating Profit / Sales *100 19.6 22.8
Net profit margin Net Profit / Sales *100 13.81 9.34
Return on assets Net Income / Total Assets 2.99 2.17
Return on equity Net Income / Total Equity 7.38 5.18
Average collection
period
365 / Account Receivable Turnover 45.6250 52.8220

Assessment Analysis
3
Company Two
Axiata Group Bhd
Ratio Formula 2018 2019
1. Current Ratio Current Assets / Current Liabilities 0.67 0.6
2. Quick Ratio
(Acid Test)
Current Assets - Prepaid - Inventory / Current
Liabilities
0.44 0.46
Account receivables
turnover ratio
Net Sales / Net Receivables 11.56 5.31
Inventory turnover
ratio
Net Sales / Net Inventory 21.77 23.59
Fixed assets
turnover ratio
Net Sales / Net Fixed Assets 0.88 0.8
Total assets turnover
ratio
Net Sales / Total Fixed Assets 0.36 0.37
Times interest
earned ratio
EBIT/ Interest Expense -2.56 1.27
Debt-to-assets ratio Debt / Assets 3.65 4.15
Gearing ratio Debt / Equity 0.84 1.22
Gross profit margin Gross Profit / Sales *100 82.1 83.9
Operating profit
margin
Operating Profit / Sales *100 5.8 24.4
Net profit margin Net Profit / Sales *100 -21.08 -2.56
Return on assets Net Income / Total Assets -7.53 -0.95
Return on equity Net Income / Total Equity -23.86 -3.52
Average collection
period
365 / Account Receivable Turnover 31.5744 68.7382
(Wen, and Zhu, 2019).
Part B: Introduction of the companies and Comparison of the ratios for both companies
Introduction of Malaysia Airports Holdings Bhd 5014
The company is formerly named as the Malaysia Airport Berhad which is stated under
the publicly traded government-linked company. The organization is served as an aviation
industry it was founded in the year 1991 having it business operation head quarters Kuala