Financial Analysis and Management Assignment Solved

Financial Analysis
and Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................2
Background of company..............................................................................................................2
Position of the company in industry in respect to its competitors...............................................3
SECTION2......................................................................................................................................4
Five years comparative financial performance analysis with the help of ratios..........................4
Summary analysis of the companies regarding financial strength..................................................4
SECTION 3:..................................................................................................................................17
Financial Performance for both companies...............................................................................17
SECTION 4:..................................................................................................................................19
Problems /limitations of the analysis and assumptions.............................................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21
APPENDIX....................................................................................................................................24

INTRODUCTION
Financial analysis and management are the two main activities that are performed by the
organisation in order to monitor financial performance and status of the organisation. For all the
business entities it is vital to conduct both of them so that strategic decision for future and
betterment could be formed. It is vital for businesses to assess the factors which may affect its
performance so that ways to reduce their impact could be figured out (Adjei-Frimpong, Gan and
Hu, 2014). Main purpose of this report is to measure importance of financial analysis and
management for enterprises. The company which is selected for this report is Nestle Malaysia
Berhad which was founded in year 1912. Its headquarters are in Petaling Jaya, Malaysia versus
its competitor, Rex Malaysia Bhd. The ratios effective, when a comparison is made with a
similar company, within the same 5 year previous periods.
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SECTION 1
Background of company
Nestle Malaysia Berhad was founded in year 1912 and its headquarters are in Petaling Jaya,
Malaysia. It is a manufacturing company of food and beverage items and selling them within the
country and other nations. Various types of items are sold by the company which includes liquid
and powdered milk, juices, ice creams, junior food, instant coffee and noodles, yoghurt, culinary,
nutrition and health science products and dairy items (Background of Nestle Malaysia Berhad,
2018). There are various subsidiaries of the organisation that are Nestle Asean Sdn. Bhd., Nestle
Products Sdn. Bhd. And Nestle Manufacturing Sdn. Bhd. This company is the world's largest
food and beverage manufacturer and operating business in more than 190 countries. Main
purpose of the organisation is to enhance quality of life and contribute towards healthier future of
people. The enterprise is planning to share a better and healthy world. Nestle inspires individuals
to live healthy and happy life. Till year 2030 the enterprise is willing to achieve sustainable
development goals. It was started 150 year ago when Henri Nestle made a cereal which was
served to a sick child to save the life.
Various segment where it operates business in Malaysia. These are food and beverage and
others. Other includes Nestle professionals, health science and Nespresso. Current CEO of the
company is Juan Aranols (Growth of Nestle Malaysia Berhad, 2019). At the end of year 2018 its
revenues were increased by 2.95%, gross margin have a rise of 40.26% and overall cash flow
was increased by 16.22%.
The main competitor of Nestle is Rex Malaysia which was established in 1965 and incorporated
in year 1972 and concerned with the manufacturing activities of food and beverage items
(Background of Rex, 2019). Its headquarters are in Simpang Ampat, Malaysia. Different types of
drinks, canned and frozen foods are distributed by the company. It Subsidiary Rex Canning Co.
Sdn. Bhd. is engaged in export and manufacturing processes of canned food items. Rex Trading
Sdn. Bhd. Takes all the trading related activities of canned food in consideration. Summit
Teamtrade subsidiary of the organisation is concerned with the activities that are conducted to
manufacture biscuits (Chae and Oh, 2016). The business of Rex is operated by more than 900
2

employees. Year by year its profitability is being decreasing as compare to previous year which
affects it position in the market.
Position of the company in industry in respect to its competitors
Nestle Malaysia Berhad is the consistent performer and market leader in the food and beverage
industry of Malaysia and it has a good position in this sector. Domestic sales of the company has
been increased by 4.4% and exports have been raised by 3.4%. In year 2018 turnover of the
company was RM 3.6 Billion and 24% of this amount was generated from export. Nestle
contributes almost 7% in the nation's RM 7 Billion food exports.
Rex is a major part of food and beverage industry of Malaysia as it contributes a good amount in
the national income of the country. Its position is also stable in the economy as it a leading
company of supplying canned and frozen food items. Exports of the Rex is also very high
because in various countries its products are delivered. These are France, Germany, Japan, USA,
Netherland, Singapore and others (Chandra, 2017).
3

SECTION2
Five years comparative financial performance analysis with the help of ratios
Analysing financial performance of the company is very important because it can guide the
managers to make appropriate decisions for the company. Ratio analysis is the tool which can be
used for the same purpose so that the business can be operated in appropriate manner. There are
various types of ratios that are mainly used to determine financial viability of the business. These
are current, quick, debt equity, total asset turnover etc. results of all of them are used to form
strategic decisions for future period. It may also help the investors to take appropriate decision to
make investment in the company or buy share for attaining higher returns on their amount
(Dunham-Taylor and Pinczuk, 2014). The ratios effective, when a comparison is made with a
similar company, within the same previous periods.
Summary analysis of the companies regarding financial strength
Ratio analysis: It is a quick financial analysis tool which is used to analyse financial strength of
the companies, from its financial statements and balance sheets that will also help investors to
make appropriate decisions regarding investment in companies. There are various types of ratios
that helps to analyse financial viability of business entities.
4

2.1. Profitability ratios are analysed to determine and then advise investors on the ability of a
company to generate income or profit in relation to its revenue, assets, cost of operations and the
equity of shareholders within a time period. This will unveil how a company utilises its assets to
produce profit, and also value it is to shareholders.
The higher the ratio means the company is performing well by generating cash flows profits and
revenues. The following are some profitability ratios:
 Asset utilisation ratio: The asset utilization ratio calculates the total revenue earned for
every dollar of assets a company owns.
The above table states that asset utilisation ratio of Nestle Malaysia Bhd shows slight fluctuation
yearly however the slight dip in 2018 was due to purchase of new assets and plants to expand the
business, which has seen a good growth in the same year. Asset utilisation ratio of Rex has
increased in year 2018 as compared to previous year and from 2014 to 2016 it has liquidated
some assets, and improve business and operating processes to see a good ratio in 2018.
 Operating margin: This ratio is calculated by business entities to measure the ability to
generate profits on a specific level of sales.
Nestle Operating margin is continuously increasing since year 2016 and net margin is
decreasing since that year. It shows that operating profits are increasing and indirect expenses are
increasing which has resulted in decreasing trend in net margin ratio. Despite this, the company
is in good financial shape.
5

Nestle Operating margin is continuously increasing since year 2016 and net margin is
decreasing since that year. It shows that operating profits are increasing and indirect expenses are
increasing which has resulted in decreasing trend in net margin ratio. Despite this, the company
is in good financial shape.
 Net margin: It is used to determine percentage of net profit in relation to total revenues
that are generated by organisation in a financial year (Feng and Wang, 2016).
However, for
Rex margins are fluctuating every year and at the end of fifth year they are showing negative
balance. It shows that company is not in a good situation mainly attributed to higher operational
costs because of machinery breakdowns and intense competition
6

in the domestic market (Karadag, 2015).
The graphs show that margin ratios of both companies are fluctuating with Nestle
recording higher margins compared to Rex. The value is due to market dominance, hence Nestle
sits higher. However, due to high investment, and poor competitiveness in terms of new products
and in an effort to capitalise the market, they drop prices hence REX saw their profitability dip
downwards in 2018.
Return on capital employed: This ratio is calculated by organisations to analyse total
returns that are generated on total capital employed. Returns on Capital Employed (ROCE) is a
ratio that shows effectiveness of assets are performing while taking into consideration long-term
financing. ROCE looks at the long term as it evaluates the long-term profitability and longevity
of a company. This ratio also calculates the company’s ability to generate returns to its
shareholders
The above chart shows that ROCE of Nestle is very high as compare to Rex as its
profitability is very high. At the end of fifth year ROCE has been decreased due to decreased
capital employed.
 Operating return ratio: ROA is calculated to show the rate of return, in percentage, that it gets
from its assets. It shows the businesses ability to use the asset to generate profit (income).
7

In the annual Report of Rex in 2018, it was reported that breakdown in equipment posed a major
business hurdle and cost. Purchase of parts and new machinery were done. In view that operating cost that
affected profit, this affected REX’s ROA. While Nestle saw a slight dip in view of lower profits in view
of competition and reduction in buying power in Malaysia due to political and economic climate in
Malaysia.
 Net ROI: It is mainly used by business entities to determine relationship between profits for
financial year and total assets of company.
An investor who is active will usually look at about 15% ROI annually. It may look
aggressive, but returns on investment must be above inflation, able to cover broker fees as well
8

as after /taxes, hence 15% looks about right. (Trendshare, 2015). Here we can see that Nestle qualifies well
with a good ROI. Rex on the other hand is seen as a growing opportunity, though in 2018 it has seen a downtrend
due to increase asset purchase and maintenance cost, and lowering of price in view of stiff competition.
2.2. Liquidity Ratios: All the ratios under this head are calculated to measure liquid strength of
company and determine that it is having appropriate monetary resources to cover the liabilities;
both its current liabilities and their long term liability when these turns into current. These ratios
also reveal the ability of the company to liquidise its assets into cash to pay off liabilities and
current obligations (My Accounting Course, 2019).
 Acid Test ratio: Also known as the quick ratio that measures how short term assets are
used to cover its current liabilities and fulfil its financial obligations in the short term.
Usually inventories is not considered, as investors can never know how long it takes to
liquidise inventory.
 Cash ratio: This liquidity ratio analyses the capability of the company meet it short term
liabilities using only its cash and cash equivalents. This ratio shows how current liability
is met to be settled using only the cash and cash equivalents. Ideal ratio for this is 1:1.
9

In Liquidity ratios, Nestle looks to be below 1:1, and this poses some concerns on
meeting current liabilities. This is due to writing off a large sum of account receivable due to
recovery impossibilities. The concern to meet short term debts, in the face of solvency issues,
may cause Nestle to lend from financial institutions to meet short term debts or as and when the
debts matures (Nestle, 2018). But this can be easily done, as Nestle’s assets can be pledged
against the financial injection, if required. Nestle has a lot of liabilities, and that may be a
concern in borrowing, especially during a financial crisis, however assets can be pledged as
Nestle is a big player in the food industry (C. Tugas, F. 2012).
Rex has managed to take into consideration, through proper negotiation with its debtors, to
ensure that AR are managed well and recoverable. This is strategy causes REX to be able to meet
their short term liquidity issues well (REX, 2018).
2.3. Working Capital of Efficiency Ratios will calculate and analyse between current assets
and current liabilities, where fluctuations can happen in the short term through operating
activities, hence inventory and accounts receivable are considered along with accounts payable,
which will then determine the working capital cycle and how long it takes to pay-back suppliers
versus how long it takes to recover payments from our customers/retailers/distributors (Business
Development Bank of Canada 2017). In some cases financing maybe recovered if the working
10

capital cycle is longer, and hence, financial institutions are usually willing to finance inventories
and account receivables, for the company to fund their payables.
 Current Ratio: It identifies the flexibility to expand operations. This ratio is good to be
measured against industry ratios. The higher the ratio (greater that 2:1) usually provides a
reasonable level of comforting meeting bill payments and lesser than 1:1 usually
indicates you are facing difficulty of the same.
Current ratio of Rex is very high as compare to Nestle which depicts that it has higher
liquidity as compare to Nestle. It helps investors to analyse that company is bale to pay out all its
liabilities on time or not.
 Inventory period: Indicates how long goods remain in inventory or unsold. This ratio
will help the investor to understand how efficient the turnaround of inventory in
generating sales for the company. In the food business it is imperative that the turnover
days are quick.
11

Inventory period of Rex is very high as compare to Nestle which shows that the
organisation is not able to maintain its inventory appropriately.
 AR Period: This ratio unveils how fast a company can turn its account receivables into
cash, to finance operations. This efficiency ratio is important to ensure cash flow is
generated in the business in a steadily.
The above chart shows that average receivable period of Rex is very low as compare to
Nestle. It depicts that Rex is not able to receive its payments on time from its debtors. Nestle has
a good liquidity as it receives payment on time.
12

 AP Period: This ratio unveils information such as the company economic condition
based on the speed payments to its suppliers as well as improved payment terms and
conditions as well as incentive for paying early.
The chart shows that average payable period of Nestle is very high as compare to Rex
which shows that it has long period to pay back all the debts of creditors. It helps Nestle to
maintain its liquidity.
2.4 Debt management ratios: Such type of ratio is calculated by companies to measure that
which operations are conducted with the help of external debts. Main purpose of it is to monitor
the risks that may affect the company (Filip and Raffournier, 2014).
 Gearing ratio: this measures the ratio between borrowed funds to the equity, which
indicated any financial risk a business is facing, as high debts leads to financial issues in a
company. Low gearing ratio indicates a low amount of debt to equity whereas a high
gearing ratio is when a company is using debt to finance its operations and during a
business downturn, such companies will face trouble to meet their debt repayment (Bragg,
S. and Bragg, S. 2015).
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The table shows gearing ratios of Rex and Nestle. This ratio of Nestle is very high as
compare to Rex which means that Nestle’s gearing ability is very good which attracts large
number of investors.
 Asset Financing Ratio: A drop in the debt to assets ratio may be a good thing, as it
shows the company do not depend on debt to finance its assets. If a company has more
debts, it means that the company has less cash available to pay its suppliers since the
interest cover expense must be settled. The lower the number here, will show the
company can finance itself (Zorn et al., 2018).
The above table shows that asset financing ratio of Nestle is very high as compare to Rex
due to its good financial position. It guides investors to analyse actual status of the company.
14

Interest Cover: This is a debt ratio that gives you an indication on how the company will
pay its interest payments through profits earned. It will show how many times a company is able
to make interest payments, and the hiher times the better the company can make it payments.
The above chart reflects that Nestle is having higher interest coverage ratio as compare to
Rex which means it is providing higher interest to its investors which is beneficial for prospect
investors who are wiiling to make invest in the business.
2.5 Investor Ratios : This will calculate the returns to the owners/shareholders of the business.
This ratio should be looked over a period of time and in comparison, with competitor to get a
clearer picture. It uses Profit of the year (proft after tax) in its calculation as basis to measure the
returns to the owners (Makarim and Noveria, 2014).
 Return on equity: This ratio are impacted by earnings, turnings, and leverage, or net
profit margin, total asset turnover and equity.
15

 Dividend pay-out: This analysis will show how dividends are paid out in a company to
its shareholders as well as how this can influence share price (Al-Malkawi et al. 2010;
Kadioglu et al. 2015).
No dividend is being paid by Rex in last five year so chart shows dividend pay-out ratio
of Nestle. It affects shareholder interest because if organisation is not able to pay dividend to
them then it will reduce their interest in organisation.
 Price earnings ratio: Such type of ratio is calculated to determine relationship between
share price and earning per share of company. With the help of it, investors can assess the
rate that can be attained by them in future from the company with the help of information
related to previous years.
16

The earning ratio shows that Rex lags very far behind, with only marginal movements.
However, Nestle has seen improvements every year since 2016, which shows that the company
is making much profits, managingtheir debts well and are efficient in the business and operations
of their manufacturing plants. Rex, withs its constant change in management, and also their
divesting of overseas interest, and also shifting strategies in the few years, have seen their
earnings ratio dwindle. However, majority shareholders are comfortable in REX as they are
being paid dividents, bonuses as well as earning a salary in the company (Share price of Rex
Industry Bhd 2019).
 Earnings per share: This ratio calculates the portion of a company's earnings, net of
taxes and preferred stock dividends, that is allocated to each share of common stock
(Finkler, Smith and Calabrese, 2018).
17

The chart shows that EPS of Rex is very low as compare to Nestle which means it is not
able to generate profits on its shares. It leaves negative impact upon shareholders because they
will show less interest in the profits of organisation which is not good.
SECTION 3:
Financial Performance for both companies
 ROCE of Nestle is very high as compare to Rex which shows that it has higher
profitability and it will be beneficial for investor to generate higher returns (Rigamonti
and et.al., 2015
 Gearing ratio of Nestle is higher as compare to Rex and when there is high risk there is a
possibility to attain huge returns on investments.
 Nestle has very high return on equity which means it is achieving huge returns on its
funds.
 Earning per share of Rex is low as compare to Nestle which means stock market
performance of Nestle is very good.
 Price earning ratio of Nestle is high as compare to Rex which means it has higher ability
to achieve good returns on its investments.
 Share price movement is as follows:
Share price of Nestle:
18

Share price of Rex:
The above images show huge movement in share price of Rex, but there is stable movement in
the price of Stock of Nestle (Share price of Nestle Malaysia Bhd, 2019). However, Nestle most
recently, with their investment in new plants and enlarging their market coverage has seen a
spike in their share prices. REX, while showing improvements, has loss in recent times due to
divesting which affected their income and profits, as payments on divesting matters ate into their
earnings(Share price of Rex Industry Bhd 2019).
SECTION 4:
Problems /limitations of the analysis and assumptions
Ratio analysis has the following limitations due (Hermanson et al, 1992):
19

 Differences in Accounting Policies and Procedures: Accounting policies and methods of
companies differ and this makes it hard to analyze preference shares, how stock are valuated,
depreciation methods and Research and development coating may affect bottom lines.
 Inflation: Rarely revelation of inflation impacts are revealed; an example is original value of
buildings purchased years ago is carried in Balance Sheets at original cost. During periods
inflation, true results are distorted like inventory and cost of sales
 Window Dressing is a deliberate attempt to make financial statements look better than they
seem. Long-term loan can be procured a few days before the end of the year (and in repaid
shortly after), holding the proceeds to deceive the low current ratio figures.
 Uniqueness Of Companies: Comparing a firm, that finances its operation by rental, thus
reducing asset amount is hard to compare with a firm that finances which purchases its own
assets in the same industry or sector.
 Limited Information: This is because Financial ratios does not measure non-quantifiable or
qualitative information such as management team skills and competency, changes in the
operations and policies and market forces.
 Careful Examination of Ratio Interpretation: Changes in the way figures are computed
between firms may differ and thus further checks and verifications is required before a
conclusion can be drawn.
CONCLUSION
From the above project report it has been concluded that for all the business entities it is
very important to conduct financial analysis every year so that performance of the company can
be analysed. In order to establish a good market image, it is very important to analyse that
organisation is performing well or not. In order to determine financial viability of enterprise ratio
analysis is an effective technique.
20

REFERENCES
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Verma, R., 2017. Financial Management and Profitability: A Multifaceted Study of Business
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C. Tugas, F. (2012). A Comparative Analysis of the Financial Ratios of Listed Firms Belonging
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Zorn, A., Esteves, M., Baur, I. and Lips, M. (2018). Financial Ratios as Indicators of Economic
Sustainability: A Quantitative Analysis for Swiss Dairy Farms. Sustainability, 10(8), p.2942.
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9: 171–200.
Islam, Md & Rahman Khan, Tahsan & Toufic Choudhury, Tonmoy & Mahmood Adnan,
Ashique & Lecturer, Senior. (2014). How Earning Per Share (EPS) Affects on Share Price and
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Business Development Bank of Canada. (2017). How to use the working capital ratio to keep
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[Accessed 2 Apr. 2019].
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APPENDIX
Ratio calculation of Nestle:
Asset utilization ratio
Particulars 2014 2015 2016 2017 2018
Revenues 4809 4838 5064 5260 5519
Total assets 2303 2488 2495 2557 2847
Asset utilization ratio 2.09 1.94 2.03 2.06 1.94
Margin ratios
Operating margin
Particulars 2014 2015 2016 2017 2018
Operating profit 725 760 799 848 915
Total revenues 4809 4838 5064 5260 5519
Operating profit
margin ratio 15.08 15.71 15.78 16.12 16.58
Net margin
Particulars 2014 2015 2016 2017 2018
Net profit 550 591 637 646 659
Total revenues 4809 4838 5064 5260 5519
Net margin ratio 11.44 12.22 12.58 12.28 11.94
Returns ratio
Operating return
24

Particulars 2014 2015 2016 2017 2018
Operating profit 725 760 799 848 915
Total assets 2303 2488 2495 2557 2847
Operating return
ratio 31.48 30.55 32.02 33.16 32.14
Net ROI
Particulars 2014 2015 2016 2017 2018
Net profit 550 591 637 646 659
Total assets 2303 2488 2495 2557 2847
Net ROI ratio 23.88 23.75 25.53 25.26 23.15
ROCE
Particulars 2014 2015 2016 2017 2018
Operating profit 725 760 799 848 915
Capital employed 997 963 918 935 1065
ROCE 72.72 78.92 87.04 90.7 85.92
Liquidity
Current ratio
Particulars 2014 2015 2016 2017 2018
Current assets 893 1015 1030 1073 1215
Current liabilities 1306 1525 1577 1622 1782
Current ratio 0.68 0.67 0.65 0.66 0.68
25

Acid test
Particulars 2014 2015 2016 2017 2018
CCE+AR 523 601 575 606 685
Current liabilities 1306 1525 1577 1622 1782
Acid test 0.4 0.39 0.36 0.37 0.38
Cash ratio
Particulars 2014 2015 2016 2017 2018
CCE 16 14 24 13 7
Current liabilities 1306 1525 1577 1622 1782
Cash ratio 0.012 0.009 0.015 0.008 0.004
Debt management
ratio
Gearing ratio
Particulars 2014 2015 2016 2017 2018
Long term liability 220 255 271 295 411
equities 777 709 647 640 654
Gearing ratio 28.31 35.97 41.89 46.09 62.84
Asset financing
Particulars 2014 2015 2016 2017 2018
Borrowings 1526 1780 1847 1917 2193
26

Total asset 2303 2488 2495 2557 2847
Asset financing 66.26 71.54 74.03 74.97 77.03
Interest coverage
ratio
Particulars 2014 2015 2016 2017 2018
Operating profit 725 760 799 848 915
Interest paid 26 34 34 36 43
Interest coverage
ratio 27.88 22.35 23.50 23.56 21.28
Stock market
performance ratios
PE ratio
Particulars 2014 2015 2016 2017 2018
Share price 68 69 73.5 77.24 104
EPS 2.35 2.51 2.7 2.73 2.77
PE ratio 28.94 27.49 27.22 28.29 37.55
Return on equity
Particulars 2014 2015 2016 2017 2018
Net profit 550 591 637 646 659
Shareholder's equity 777 709 647 640 654
Return on equity 70.79 83.36 98.45 100.94 100.76
27

Earnings per share
Particulars 2014 2015 2016 2017 2018
Net profit 550 591 637 646 659
Weighted average
share 234 235 236 237 238
EPS 2.35 2.51 2.7 2.73 2.77
Working capital ratio
Inventory period
Particulars 2014 2015 2016 2017 2018
Inventory 370 414 455 467 530
Cost of sales 3109 2973 3066 3330 3381
Inventory period 43.44 50.83 54.17 51.19 57.22
AR period
Particulars 2014 2015 2016 2017 2018
Receivables 337 342 371 401 421
revenues 4809 4838 5064 5260 5519
AR period 25.58 25.8 26.74 27.83 27.84
AP period
Particulars 2014 2015 2016 2017 2018
Payables 778 921 1091 1024 1268
Cost of sales 3109 2973 3066 3330 3381
AP period 91.34 113.07 129.88 112.24 136.89
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Dividend payout
ratio
Particulars 2014 2015 2016 2017 2018
Dividend 551 715 633 633 645
Net income 550 591 637 646 659
Ratio 1 1.21 0.99 0.98 0.98
Ratio calculation of Rex:
Asset utilization ratio
Particulars 2014 2015 2016 2017 2018
Revenues 145 137 132 130 130
Total assets 180 186 193 197 179
Asset utilization
ratio 0.81 0.74 0.68 0.66 0.73
Margin ratios
Operating margin
Particulars 2014 2015 2016 2017 2018
Operating profit 4 3 4 4 -14
Total revenues 145 137 132 130 130
Operating profit
margin ratio 2.76 2.19 3.03 3.08 -10.77
29

Net margin
Particulars 2014 2015 2016 2017 2018
Net profit 1 2 3 3 -15
Total revenues 145 137 132 130 130
Net margin ratio 0.69 1.46 2.27 2.31 -11.54
Returns ratio
Operating return
Particulars 2014 2015 2016 2017 2018
Operating profit 4 3 4 4 -14
Total assets 180 186 193 197 179
Operating return
ratio 2.22 1.61 2.07 2.03 -7.82
Net ROI
Particulars 2014 2015 2016 2017 2018
Net profit 1 2 3 3 -15
Total assets 180 186 193 197 179
Net ROI ratio 0.56 1.08 1.55 1.52 -8.38
ROCE
Particulars 2014 2015 2016 2017 2018
Operating profit 4 3 4 4 -14
Capital employed 140 140 144 146 133
ROCE 2.86 2.14 2.78 2.74 -10.53
30

Liquidity
Current ratio
Particulars 2014 2015 2016 2017 2018
Current assets 111 118 121 124 106
Current liabilities 40 46 49 51 46
Current ratio 2.78 2.57 2.47 2.43 2.3
Acid test
Particulars 2014 2015 2016 2017 2018
CCE+ AR 48 53 61 66 54
Current liabilities 40 46 49 51 46
Acid test 1.2 1.15 1.24 1.29 1.17
Cash ratio
Particulars 2014 2015 2016 2017 2018
CCE 19 18 16 17 20
Current liabilities 1306 1525 1577 1622 1782
Cash ratio 0.015 0.012 0.01 0.01 0.011
Debt management
ratio
31