Financial Analysis of Katrina Group and ABR Holdings

This assignment provides a comprehensive financial analysis of Katrina Group and ABR Holdings. It includes an analysis of their liquidity position through quick ratio, current ratio, and cash conversion cycle. The profitability ratios such as operating profit margin, net profit margin, return on capital employed, return on equity, and return on total assets are also calculated. Additionally, the capital structure ratios like debt-equity ratio and interest coverage ratio are analyzed. The efficiency ratios including receivable turnover ratio, creditor turnover ratio, inventory turnover ratio, and assets turnover ratio are also examined. Furthermore, a cash flow analysis is performed to evaluate their ability to generate cash from operating activities, investing activities, and financing activities. Finally, a segment analysis of Katrina Group Ltd. is provided.

RUNNING HEAD: FINANCIAL REPORTING
Financial analysis

Financial reporting 1
Contents
Introduction...........................................................................................................................................2
Description and Swot analysis...............................................................................................................2
Vertical and Horizontal Analysis...........................................................................................................4
Ratio Analysis.......................................................................................................................................6
Cash flow Analysis................................................................................................................................8
Segment analysis...................................................................................................................................8
Recommendation and conclusion..........................................................................................................9
References...........................................................................................................................................10
Appendix 1..........................................................................................................................................12

Financial reporting 2
Introduction
Financial analysis means evaluating and analysing the financial performance of a company.
For an investor, it is very important to know about the profitability of the company, in which
he is going to invest his funds (Bragg, 2012). The report contains an analysis of performance
and position of the two companies named as Katrina Group Ltd and ABR Holdings Ltd. It
includes SWOT analysis, vertical, horizontal and ratio analysis. The cash flow statement and
segment analysis of the both the companies is also done in the report. The findings of the
analysis are stated in the last part of the report followed by recommendation and conclusion.
Description and Swot analysis
Katrina Group Ltd is a Singapore based investment holding company that owns and operates
a chain of restaurants and cafes under nine food and beverages brand including Bali Thai,
Muchos, Indobox and many more. The company is listed on Singapore Stock Exchange as
SGX: 1A0 (Katrinagroup.com., 2018).
ABR Holdings Limited is a food and beverages company, having its headquarters in
Singapore. The company, along with its subsidiaries manufactures ice-creams in Malaysia,
Singapore and all over the Asia. Listed in Singapore exchange, it is traded as SGX: 533
(Abr.com.sg., 2018).
Basis Katrina Group ABR Holdings

Financial reporting 3
Strength  It has developed its own nine
brands and among them, the
strongest are Bali Thai, So Pho
and Streats.
 Provides online services
related to ordering and
delivery.
 Company has high
profitability position. It
also makes high revenue.
 The labour cost of ABR
holdings is low and it has
skilled workforce.
Weakness  The company mainly operates
in Singapore and has only two
stores in China. Most of the
revenue is generated from
Singapore business only.
 It conducts its business in a
very competitive market, where
many mid-range restaurant
owners operates with their own
unique concept (Dbs.com.
2016).
 The only weakness is that it
has small business units
operating all over Asia
(Swotanalysis24.com.
2018).
Opportunity  As it has its own brands, it can
easily get a franchisee and
became an operator of other
F&B brands also.
 Establishing new stores in
Singapore and acquiring small
F&B chains (Dbs.com. 2016).
 ABR can increase its
growth and profitability by
approaching to new target
markets.
 The company can offer its
manufacturing services in
global markets also.

Financial reporting 4
Threat  Providing store space on lease
can be crucial for company’s
operations. It might lose its
regular customers.
 The license can be revoked, if
Katrina Group does not met the
set standards of food safety and
hygiene (Dbs.com. 2016).
 The increasing rates of
interest can be a threat to
ABR Holdings.
 Changes in technology and
problems related to it can
hinder the manufacturing
process of ice-creams
(Swotanalysis24.com.
2018).
Vertical and Horizontal Analysis
Vertical analysis: It is one of the tool used for financial statement analysis in which
relationship between various items of the statement is measured. On balance sheet, each item
is represented as a percentage of total assets and liabilities, whereas on income statement,
each item is shown as percentage of sales. The financial statements prepared are known as
common-size statement (Weygandt, Kimmel and Kieso, 2009).
Referring to Appendix 1.1, the analysis shows that, the COGS of Katrina Group has
increased not only in terms of dollars but also in terms of percentage. In 2015, it was 84.04%
of the sales and in 2016, it was 85.20% of sales. The same goes with ABR Holdings but
comparatively, the cost of sales of the company is less than the former company. ABR’s
gross profit reported at 44.37% in 2016 is also more than Katrina group’s GP of 14.80% in
the same year, though reduced as compare to 2015. The expenses of both the companies has
risen in 2016. The net profit of Katrina Group was 8.21% of sales in 2015 and in next year, it
reduced to 4.17%. In contrast to it, ABR Holdings has a net profit of 7.55% in 2015 and
5.40% in 2016, which was much more than Katrina Group Ltd.

Financial reporting 5
The vertical analysis of the balance sheet shows that Katrina’s portion of current assets is
52.45% of the total assets in 2015, which raised to 55.15% in 2016. Whereas, the current
liabilities comprises of 28.71%, that increased to 36.28% in 2016. This shows that Katrina
Group has strong position of its working capital and can meet its financial obligation easily.
Moreover, the percentage of total equity is also higher than the liabilities. Similarly, ABR
Holdings also has higher portion of assets and equity than the liabilities but when compare to
Katrina, it has more assets and equity and very less portion of liabilities. In 2016, ABR’s
equity comprises 85.45% of total liabilities and equity, current assets were 77.98% of total
assets and current liabilities were only 13.39% of total liabilities. This implies that, ABR is
better at maintaining its capital structure and meeting its short term and long term obligations.
Horizontal analysis: It measures year to year change in each and every item of financial
statement. The change is determined in both the terms, dollar and percentage by taking one
year as a base. In other words, the analysis shows increase or decrease in the items of
statement (Godwin and Alderman, 2012).
Referring to Appendix 1.2, in income statement, the revenue of Katrina Group has been
increased by $4928 and 9.5% in 2016 along with the increase in gross profit of $128 and
1.5%. In contrary to this, revenue of ABR has increased by $3514 and 3.5% with a rise of
0.1% in gross profit. But in terms of amount, revenue and GP of ABR is much more than
Katrina Group. All the expenses has increased except the interest expense of Katrina Group
which has reduced by $6. The net profit of both the companies has reduced in 2016 but
comparatively, the decrease in the profit of ABR is less than that of in the profit of Katrina
Group Ltd. ABR’s profit falls by 21.8% and the former company’s profit decreases by
44.3%. So overall, it can be said that, though the change in the revenue earned by ABR is less
but the company is making profits which are more than Katrina Group.

Financial reporting 6
The analysis on the balance sheet shows that, former company’s total assets are increased by
$1085 which is less than the increase in the total assets of latter company that is $1815. The
total liabilities of Katrina group has increased by 29.64%, whereas in case of ABR, same has
risen by 6.25%. Moreover, an increase of 0.82% is been noticed in the total equity of ABR
Holdings as compare to Katrina Group. This reflects that, the financial position of ABR
Holdings is better than Katrina Group Ltd, because of high percentage of assets and equity
and less debt.
Ratio Analysis
This method is used to measure profitability, efficiency, liquidity of a company. It includes
calculation of several ratios to know about the different aspects of an organisation. They are
categorized as liquidity, efficiency, profitability and capital structure ratios. In order to
analyse the final accounts of both the companies, ratio analysis is done (Tracy, 2012).
Liquidity ratio: These ratios measures the liquidity of a company. They are used to
determine how quickly a company can converts its assets into liquid. Two types of ratios are
current ratio and quick ratio (Lee, Lee and Lee, 2009).
Taking the reference from Appendix 1.3, the current and quick ratio of Katrina Group is same
because the company has no inventory. In 2015, it was 1.83 and in 2016, 1.52. On the other
hand, the CR of ABR Holdings was 6.23 in 2015, which reduced to 5.82 in 2016. The QR
also decreases and reported at 5.67 in year 2016. Both of the ratios of ABR are more than the
Katrina Group, which implies that the company’s liquidity position is better and it has
enough assets to pay off its short term liabilities.
Profitability ratios: These ratios help in knowing the ability of a company to generate profits
from its operations. They provide an overview of the company’s profits made during the year
(Sharan, 2015)

Financial reporting 7
Referring to Appendix 1.4, a 5% decrease was there in the operating profit ratio of Katrina
group, whereas ABR’s OPR reduced by 3% only. This shows that ABR is good at
maintaining its profits. Similarly net profit ratio of ABR is better than Katrina Group and in
2015, both companies has same ratio. The reason for having a better ratio is that the decrease
in the amount of net profit of ABR is less than the reduction in the profit of Katrina Group
Ltd.
As compare to the latter company, the former company generates more return on its equity
and total assets. In 2016, ROE of the company was 16% and ROA was 10% which was way
more than the ROE and ROA of latter company, irrespective of the fact that it has been
decreased in year 2016. Reason behind making more return is that, the equity of Katrina
Group reduces by 7.61%, whereas the profit falls by 44.3%. Such small reduction in total
equity, boosted up the ROE.
Capital structure ratio: They shows the degree of financial leverage maintained by a
company. It basically includes debt equity ratio and interest coverage ratio (Leach, 2010).
From the table mentioned in Appendix 1.5, it can be said that the D/E ratio of Katrina Group
Ltd is 69% in 2016, whereas the same for ABR was 17%. This implies that most of assets of
Katrina group are financed through debt rather than equity. As a result, having high debt
portion would lead to high risk. Also ABR has high interest coverage ratio which means it
can pay its interest expense more effectively.
Efficiency ratios: This shows efficient management of available resources by the company.
They indicate the potentiality of the company to use its assets and manage its liabilities in an
effective and efficient manner (Barman and Sengupta, 2017).
Refer Appendix 1.6, the DTR and CTR of ABR Holdings is less than the former company.
This reflect that company is not efficient enough in collecting its receivables and paying its

Financial reporting 8
creditors. Inventory turnover ratio of ABR is 24.2 and of Katrina group is 0 because of no
inventory in the business. The ATR of former company was reported at 2.37 cents, which is
more than the latter company’s ATR of 0.89 cents. So, on a whole it means that Katrina
Group is much more efficient than ABR in maintaining its resources.
Cash flow Analysis
Cash flow statement shows the inflow and outflow of the cash in the business. In Appendix
1.7, the cash flow statements of both the companies are analysed. In year 2016, ABR has
generated more cash from its operations than Katrina, amounted to $9376, though less than
that of in 2015. This is because the changes in working capital of the company are
comparatively less, creditors has increased which leads to the inflow of cash in the business.
Talking about investing activities, Katrina only has cash outflow of $2016 and $602 for the
purpose of purchasing property and acquiring shares. On the other hand, major cash outflow
in ABR’s investing activities was in purchase of property amounted to $5839 in 2016. This
resulted in net cash used worth $5074, which is more than that of Katrina group. Similarly, in
financing activities, ABR and Katrina group has more cash outflow than inflow. But
comparatively, the net cash used in the financing activities of Katrina group Ltd, is less than
ABR because of its gross proceeds from IPO worth $7518. This overall analysis shows that,
the former company is slightly more effective and efficient in managing its cash position than
the latter company (Jury, 2012).
Segment analysis
The analysis of each and every segment of the companies is done. The revenue generated
from the segments is determined. Referring to Appendix 1.8, Katrina’s most of the revenue is
generated from Singapore amounted to $54,941 and the non-current assets used are worth
$6,798 (Katrinagroup.com. 2016). On the other hand, ABR has its revenue mostly form
Singapore and Malaysia amounted to $89,611 and $14,239 respectively. Also its Non-current

Financial reporting 9
assets are in the same countries worth $20,828 and $4,866. This shows that segments of ABR
produces more revenue than Katrina Group Ltd., reason being the company not only operates
in Singapore but also in Malaysia and rest of the Asia (Abr.com.sg. 2016).
Recommendation and conclusion
From the above analysis, it can be recommended that ABR Holding is performing well in
comparison to Katrina Group Ltd. It has high liquidity and profitability position and is also
less risky because of less debt financing. Though it generate less returns on its assets and
equity, but from other aspects it is way better than Katrina Group. For an investor, it will be
better to choose ABR over Katrina Group for the purpose of investment because of its high
profits, high sales and less borrowings or debt. Moreover, it is capable of generating enough
cash from its operations. So, ABR Holdings is a desirable option for investing the funds.

Financial reporting 10
References
Abr.com.sg. (2016). ANNUAL REPORT 2016. [Online] Available at:
http://www.abr.com.sg/pdf/ABR_Annual_Report_2016.pdf [Accessed 6 Mar. 2018].
Abr.com.sg. (2018). Company Profile. [Online] Available at:
http://www.abr.com.sg/profile.html [Accessed 6 March 2018].
Barman, A.N. and Sengupta, P.P., (2017). DETERMINANTS OF PROFITABILITY IN
INDIAN TELECOM INDUSTRY USING FINANCIAL RATIO ANALYSIS. International
Journal of Research in Management & Social Science, p.25.
Bragg, S.M., (2012). Financial analysis: a controller's guide. 2nd ed. New Jersey: John Wiley
& Sons.
Dbs.com (2016). Singapore Company Focus Katrina Group [Online] Available at:
https://www.dbs.com.sg/private-banking/aics/pdfController.page?pdfpath=/content/article/
pdf/KTG_SP_EQUITY/2016/09/KTG_SP_EQUITY_24_01092016.pdf [Accessed 6 March
2018].
Godwin, N. and Alderman, C., (2012). Financial ACCT2. USA: Cengage Learning.
Jury, T., (2012). Cash flow analysis and forecasting: the definitive guide to understanding
and using published cash flow data (Vol. 653). UK: John Wiley & Sons.
Katrinagroup.com. (2018). Katrina Group | Who We Are. [Online] Available at:
http://katrinagroup.com/who-we-are/ [Accessed 6 March 2018].

Financial reporting 11
Katrinagroup.listedcompany.com. (2016). Annual Report 2016. [Online] Available at:
http://katrinagroup.listedcompany.com/newsroom/20170405_171330_1A0_Y2CREUV5UH4
EXVCW.1.pdf [Accessed 6 Mar. 2018].
Leach, R., (2010). Ratios made simple: a beginner's guide to the key financial ratios. Britain:
Harriman House Limited.
Lee, A.C., Lee, J.C. and Lee, C.F., (2009). Financial Analysis, Planning and Forecasting:
Theory and Application Second Edition. 2nd ed. Singapore: World Scientific Publishing
Company.
Sharan, V., (2015). Fundamentals of Financial Management. 3rd ed. New Delhi: Pearson
Education India.
Swotanalysis24.com. (2018). ABR Holdings Ltd SWOT Analysis - Strengths, Weaknesses,
Opportunities, Threats of ABR Holdings Ltd. [Online] Available at:
https://www.swotanalysis24.com/swot-a/924-swot-analysis-abr-holdings-ltd.html [Accessed
6 March 2018].
Tracy, A., (2012). Ratio analysis fundamentals: how 17 financial ratios can allow you to
analyse any business on the planet. RatioAnalysis. Net
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., (2009). Managerial accounting: tools for
business decision making. 5th ed. New Jersey: John Wiley & Sons.

Financial reporting 12
Appendix 1
1.1 Vertical Analysis
Consolidated income statement
Katrina Group Ltd ABR Holdings Limited
2015 2016 2015 2016
Particulars
Amoun
t
($'000) %
Amount
($'000) %
Amount
($'000) %
Amoun
t
($'000) %
Revenue 51895 100 56823 100 100411 100 103925 100
Cost of sales 43612 84.04 48412 85.20 54355 54.13 57816 55.63
Gross profit 8283 15.96 8411 14.80 46056 45.87 46109 44.37
Other Income 579 1.12 778 1.37 2088 2.08 2590 2.49
Selling and
Distribution cost 843 1.62 1058 1.86 26211 26.10 28080 27.02
Administrative
expenses 2878 5.55 3807 6.70 12014 11.96 12758 12.28
IPO expenses 0 - 931 1.64 0 - 0 -
Interest expense 9 0.02 3 0.01 5 0.00 6 0.01
Other expense 16 0.03 278 0.49 932 0.93 1116 1.07
Share of results
of equity-
accounted
investee 0 - 0 - 51 0.05 6 0.01
Profit Before
Tax 5116 9.86 3112 5.48 8931 8.89 6733 6.48
Income tax
expense 854 1.65 744 1.31 1350 1.34 1122 1.08
Net Profit 4262 8.21 2368 4.17 7581 7.55 5611 5.40
Other
comprehensive
income 6 0.01 11 0.02 104 0.10 234 0.23
Net income
available to
owners 4268 8.22 2379 4.19 7477 7.45 5845 5.62

Financial reporting 13
Consolidated Balance sheet
Katrina Group Ltd ABR Holdings Limited
2015 2016 2015 2016
Particulars
Amoun
t
($'000) %
Amou
nt
($'000
) %
Amoun
t
($'000) %
Amoun
t
($'000) %
Assets
Non-current
assets
Property, plant
and equipment 7347 31.29 6868 27.96 19844 17.22 22113 18.89
Investment
properties 0 - 0 - 3508 3.04 3350 2.86
Intangible assets 2 0.01 2 0.01 292 0.25 278 0.24
Refundable
deposits 3811 16.23 4087 16.64 0 - 0 -
Deferred tax
assets 5 0.02 62 0.25 0 - 0 -
Available-for-
sale financial
assets - - 35 0.03 35 0.03
Total non-
current assets 11165 47.55 11019 44.85 23679 20.55 25776 22.02
Current assets
Inventories 0 - 0 - 2374 2.06 2405 2.05
Trade
receivables 242 1.03 553 2.25 6975 6.05 7107 6.07
Other
receivables 418 1.78 232 0.94 0 - 0 -
Refundable
deposits 1026 4.37 1148 4.67 0 - 0 -
Prepayments 342 1.46 249 1.01 0 - 0 -
Cash and cash
equivalents 10290 43.82 11367 46.27 29003 25.17 21174 18.09
Fixed deposits 53219 46.18 60603 51.77
Total current
assets 12318 52.45 13549 55.15 91571 79.45 91289 77.98
Total Assets 23483 100 24568 100 115250 100 117065 100
Equity and
Liabilities
Current

Financial reporting 14
Liabilities
Trade and other
payables 4257 18.13 4669 19.00 11718 10.17 12334 10.54
Other liabilities 996 4.24 1354 5.51 0 - 0 -
Provision 300 1.28 211 0.86 1647 1.43 1944 1.66
Amounts due to
directors 0 - 1713 6.97 0 - 0 -
Loans and
borrowings 169 0.72 0 - 0 - 176 0.15
Provision for
taxation 1019 4.34 966 3.93 1330 1.15 1223 1.04
Total current
liabilities 6741 28.71 8913 36.28 14695 12.75 15677 13.39
Net current
assets 5577 23.75 4636 18.87 76876 66.70 75612 64.59
Non-current
liabilities
Other payables 384 1.64 313 1.27 0 - 0 -
Provision 583 2.48 767 3.12 0 - 0 -
Deferred tax
liabilities 1333 1.16 1353 1.16
Total non-
current
liabilities 967 4.12 1080 4.40 1333 1.16 1353 1.16
Total liabilities 7708 32.82 9993 40.67 16028 13.91 17030 14.55
Net assets 15775 67.18 14575 59.33 99222 86.09 100035 85.45
Equity
attributable to
the owners of
the Company
Share capital 1771 7.54 8192 33.34 43299 37.57 43299 36.99
Other reserves 0 - 11 0.04 -336
-
0.29 -82
-
0.07
Retained
earnings 14004 59.63 6372 25.94 55942 48.54 56327 48.12
Non-controlling
interest 0 - 0 - 317 0.28 491 0.42
Total equity 15775 67.18 14575 59.33 99222 86.09 100035 85.45
Total equity 23483 100 24568 100 115250 100 117065 100

Financial reporting 15
and liabilities
1.2 Horizontal Analysis
Consolidated income statement
Katrina
Group Ltd
Increase or
Decrease
ABR Holdings
Limited
Increase or
Decrease
Particulars 2015 2016
Amoun
t
Perce
nt 2015 2016
Amou
nt
Perce
nt
Revenue 51895 56823 4928 9.5 100411 103925 3514 3.5
Cost of sales 43612 48412 4800 11.0 54355 57816 3461 6.4
Gross profit 8283 8411 128 1.5 46056 46109 53 0.1
Other Income 579 778 199 34.4 2088 2590 502 24.0
Selling and
Distribution cost 843 1058 215 25.5 26211 28080 1869 7.1
Administrative
expenses 2878 3807 929 32.3 12014 12758 744 6.2
IPO expenses 0 931 931 0.0 0 0 0 0.0
Interest expense 9 3 -6 -66.7 5 6 1 20.0
Other expense 16 278 262
1637.
5 932 1116 184 19.7
Share of results of
equity-accounted
investee 0 0 0 51 6 -45 -88.2
Profit Before Tax 5116 3112 -2004 -39.2 8931 6733 -2198 -24.6
Income tax
expense 854 744 -110 -12.9 1350 1122 -228 -16.9
Net Profit 4262 2368 -1894 -44.4 7581 5611 -1970 -26.0
Other
comprehensive
income 6 11 5 83.3 104 234 130 125.0
Net income
available to
owners 4268 2379 -1889 -44.3 7477 5845 -1632 -21.8
Note: 2015 is taken as a base year
Consolidated Balance sheet
Katrina
Group Ltd
Increase or
Decrease
ABR Holdings
Limited
Increase or
Decrease
Particulars 2015 2016
Amou
nt
Perce
nt 2015 2016
Amo
unt
Perc
ent
Assets
Non-current assets
Property, plant and
equipment 7347 6868 -479 -6.52 19844 22113 2269
11.4
3
Investment properties 0 0 0 0.00 3508 3350 -158 -

Financial reporting 16
4.50
Intangible assets 2 2 0 0.00 292 278 -14
-
4.79
Refundable deposits 3811 4087 276 7.24 0 0 0 0.00
Deferred tax assets 5 62 57
1140.
00 0 0 0 0.00
Available-for-sale
financial assets 0 0 0 0.00 35 35 0 0.00
Total non-current
assets 11165 11019 -146 -1.31 23679 25776 2097 8.86
Current assets
Inventories 0 0 0 0.00 2374 2405 31 1.31
Trade receivables 242 553 311
128.5
1 6975 7107 132 1.89
Other receivables 418 232 -186 -44.50 0 0 0 0.00
Refundable deposits 1026 1148 122 11.89 0 0 0 0.00
Prepayments 342 249 -93 -27.19 0 0 0 0.00
Cash and cash
equivalents 10290 11367 1077 10.47 29003 21174
-
7829
-
26.9
9
Fixed deposits 0 0 0 0.00 53219 60603 7384
13.8
7
Total current assets 12318 13549 1231 9.99 91571 91289 -282
-
0.31
Total Assets 23483 24568 1085 4.62 115250 117065 1815 1.57
Equity and
Liabilities
Current Liabilities
Trade and other
payables 4257 4669 412 9.68 11718 12334 616 5.26
Other liabilities 996 1354 358 35.94 0 0 0 0.00
Provision 300 211 -89 -29.67 1647 1944 297
18.0
3
Amounts due to
directors 0 1713 1713 0.00 0 0 0 0.00
Loans and borrowings 169 0 -169
-
100.0
0 0 176 176 0.00
Provision for taxation 1019 966 -53 -5.20 1330 1223 -107
-
8.05
Total current
liabilities 6741 8913 2172 32.22 14695 15677 982 6.68
Net current assets 5577 4636 -941 -16.87 76876 75612
-
1264
-
1.64
Non-current
liabilities

Financial reporting 17
Other payables 384 313 -71 -18.49 0 0 0 0.00
Provision 583 767 184 31.56 0 0 0 0.00
Deferred tax liabilities 0 0 0 0.00 1333 1353 20 1.50
Total non-current
liabilities 967 1080 113 11.69 1333 1353 20 1.50
Total liabilities 7708 9993 2285 29.64 16028 17030 1002 6.25
Net assets 15775 14575 -1200 -7.61 99222 100035 813 0.82
Equity attributable
to the owners of the
Company
Share capital 1771 8192 6421
362.5
6 43299 43299 0 0.00
Other reserves 0 11 11 0.00 -336 -82 254
-
75.6
0
Retained earnings 14004 6372 -7632 -54.50 55942 56327 385 0.69
Non-controlling
interest 0 0 0 0.00 317 491 174
54.8
9
Total equity 15775 14575 -1200 -7.61 99222 100035 813 0.82
Total equity and
liabilities 23483 24568 1085 4.62 115250 117065 1815 1.57
1.3 Liquidity Ratios
Liquidity ratio
Katrina Group ABR Holdings
2015 2016 2015 2016
Current ratio 1.83 1.52 6.23 5.82
Quick ratio 1.83 1.52 6.07 5.67
1.4 Profitability ratios
Profitability Ratios
Katrina Group ABR Holdings
2015 2016 2015 2016
Operating Profit Margin 10% 5% 9% 6%
Net Profit Margin 8% 4% 7% 6%
Return on Capital Employed 31% 20% 9% 7%
Return on Equity 27% 16% 8% 6%
Return on Total assets 18% 10% 6% 5%
1.5 Capital Structure ratios
Capital structure ratio
Katrina Group ABR Holdings

Financial reporting 18
2015 2016 2015 2016
Debt- equity 49% 69% 16% 17%
Interest coverage ratio 569.44 1,038.33 1787.2 1123.17
1.6 Efficiency ratios
Efficiency ratio
Katrina Group
ABR
Holdings
2016 2016
Receivable turnover ratio 142.95 14.76
Creditor turnover ratio 10.85 4.81
Inventory turnover ratio - 24.20
Assets turnover ratio 2.37 0.89
1.7 Cash flow analysis
Analysis of operating activities
Particulars Katrina Group ABR Holdings
2015 2016 2015 2016
$'000 $'000 $'000 $'000
Net cash generated from operating
activities 5875 6280 10406 9376
Cash flow before WC changes 2257 3543 12182 9953
Total changes in working capital -678 482 -101 625
Analysis of investing activities
Particulars Katrina Group ABR Holdings
2015 2016 2015 2016
$'000 $'000 $'000 $'000
Purchase of property -2772 -2016 -3179 -5839
Acquisition of shares -602
Interest received 602 771
Sale of property 24 17
Addition of intangible asset -23
Net cash used -2772 -2618 -2553 -5074
Analysis of financing activities
Particulars Katrina Group ABR Holdings
2015 2016 2015 2016

Financial reporting 19
$'000 $'000 $'000 $'000
Repayment of loans and borrowings -203 -169 -116
Proceeds from borrowings 176
Fixed deposits pledged 265
Dividends paid -8500 -5025 -5025
Dividends paid to non-controlling
interest -7 -7
Gross proceeds from initial public
offering 7518
IPO expenses -1422
Interest expense -5 -6
Funds placed in non-liquid asset -23 -3
Acquisition of non-controlling interest -2940
Net cash from/used 62 -2573 -8116 -4865
1.8 Segment analysis
Katrina group Ltd.
ABR Holdings

Financial reporting 20