RATIO analysis

1. (i) Liquidity
2015 2014 2013 2012 2011 Average
Current Ratio (times) 1.92 1.98 1.55 1.46 1.67 1.72
Quick Ratio (times) 1.80 1.84 1.51 1.37 1.57 1.62
Average Collection
Period (days)
360 291 340 298 503 358
Average Payment
Period (days)
257 200 246 230 263 239
Table 1.1 Ratios for liquidity
The table shows that the liquidity of the firm in the current 5 years. As shown the company
achieve maximum liquidity in year 2014 as the current ratio is the highest. Quick ratio also
shows that the firm has lower amount of current assets for inventory which is much harder to
convert to cash. Overall the firm is doing fine in 2015 as the ratios are above average and just
slightly lower to 2014 ratio.
(ii) Activities
2015 2014 2013 2012 2011 Average
Inventory Turnover
(times)
14.07 18.37 39.55 18.25 10.69 20.19
Total Asset Turnover
(times)
0.61 0.80 0.72 0.54 0.34 0.60
Operating Profit
Margin (%)
7.32 9.54 6.5 8.77 10.24 8.47
Table 1.2 Ratios for activities
The table shows that the activities of the firm in the current 5 years. As shown, the company
has a maximum operating profit margin in year 2011 and slowly decrease on the upcoming
years till year 2014 and continue to drop in year 2015. This is due to the slowing in the
market as the construction industry is quite oversupply therefore the asset and inventory
turnover in 2015 is much lower.

2. (iii) Debt
2015 2014 2013 2012 2011 Average
Debt Ratio (%) 54.18 55.99 53.14 45.34 44.07 50.53
Times Interest
Earned (times)
13.63 26.09 72.23 16.21 4.76 26.58
Fixed Payment
Coverage Ratio
(times)
2.22 5.94 3.43 1.68 2.91 3.24
Table 1.3 Ratios for debt
The table shows the debt of the firm in the last 5 years. As shown, the company has its debt
ratio increased since 2011 until the year 2014. This is due to the increase in current liabilities
and long-term debt which overcomes the total amount of equity in the year 2013 but the
company were able to pay of some of its debts in the year 2015 because of the strong change
in times interest earned from the year 2014 to 2015.

3. (iv) Profitability
2015 2014 2013 2012 2011 Average
Inventory Turnover
(times)
14.07 18.37 39.55 18.25 10.69 20.19
Average Payment
Period (days)
257 200 246 230 263 239
Total Asset Turnover
(times)
0.61 0.80 0.72 0.54 0.34 0.60
Times Interest
Earned (times)
13.63 26.09 72.23 16.21 4.76 26.58
Gross Profit Margin
(%)
12.80 10.67 10.86 12.10 19.34 13.15
Operating Profit
Margin (%)
7.32 9.54 6.5 8.77 10.24 8.47
Net Profit Margin
(%)
5.38 8.59 5.96 5.26 5.79 6.20
Return on Total
Assets (%)
11.27 17.70 16.28 24.60 11.65 16.3
Table 1.4 Ratios for Profitability
The table shows the profitability of the firm in the last 5 years. As shown, the company
achieves maximum efficiency in generating sales using its assets in the year 2014 and thus
will give positive outcome in years later. According to the inventory turnover, the company
sells its inventory at most in the year 2013 and it has dropped ever since then.

4. (i) Market Performance
2015 2014 2013 2012 2011 Average
Return on total assets
(%) 3.49 6.99 4.44 2.84 1.78
3.91
Return on common
equity (%) 7.75 16.11 9.58 5.24 3.22
8.38
Earning per share
(RM) 0.05 0.11 0.05 0.03 0.02
0.05
Price/earnings (times) 7.59 2.93 5.14 6.45 9.97 6.41
Price/book ratio
(times) 0.55 0.48 0.46 0.34 0.31
0.43
Table 1.4 Ratios for Market Performance
The table shows the market performance of Sycal Venture Berhard in the last 5 financial
years. The investment attractiveness of its common stock appears to have gradually increased
from year 2011 to 2014 and decrease during the year 2015. At the same time, earning per
share have the same situation with the return on common equity. Overall the firm market
performance is doing fine because the earning power of investment have gradually increase
from year 2011 to year 2014 and slightly decrease in 2015.