Simple Ratio analysis on Food Industries

1951 words 8 pages
Show More
CONTENT
CHAPTER PAGE

1.0 INTRODUCTION 3 1.1 Company Profile 3 1.1.1 Hup Seng Industries Berhad 3 1.1.2 Hwa Tai Industries Berhad 3
1.2 Company Financial Position and Income Statement 4 1.2.1 Hup Seng Industries Berhad 4
1.2.2 Hwa Tai Industries Berhad 6

2.0 RATIOS ANALYSIS 8 2.1 Liquidity Ratios 8 2.1.1 Current Ratio 8 2.1.2 Quick (Acid-Test) Ratio 8 2.2 Activity Ratios 9
2.2.1 Inventory Turnover 9
2.2.2 Average Collection Period 9
2.2.3 Total Assets Turnover 10 2.3 Debt Ratios 11
2.3.1 Debt Ratio 11
2.3.2 Times Interest Earned Ratio 11
2.4 Profitability Ratios 12 2.4.1 Gross Profit …show more content…

A high current ratio suggests a strong liquidity position and an ability to meet current obligations. Current ratio for Hup Seng Industries Berhad is 3.15, higher than 0.89 of Hwa Tai Industries Berhad. As for biscuit manufacturer market, a high current ratio is preferable because they are dealing with sudden and unexpected shifts in demand for its products. Hup Seng Industries is performing much better than Hwa Tai Industries Berhad. 2.1.2 Quick (Acid-Test) Ratio
Current Ratio = Current Assets – Inventory / Current Liabilities

Hup Seng Industries Berhad
Hwa Tai Industries Berhad
Quick Ratio
RM137,802,520 - RM20,586,831 / RM43,748,011
= 2.68
RM34,572,814 – RM5,172,887 / RM38,669,731
= 0.76

Quick (acid-test) ratio is similar to current ratio where both are used to determine the degree of liquidity, except that it excludes inventory, which is generally the least liquid current assets. The quick ratio provides better measurement of overall liquidity when it is hard to convert inventory into cash. Quick ratio for Hup Seng Industries Berhad is 2.68, higher than 0.76 of Hwa Tai Industries Berhad. Again, Hup Seng Industries is performing much better than Hwa Tai

Related

  • Investment Essay on Breadtalk
    10061 words | 41 pages

    BreadTalk Group Ltd is a Singapore-based Food and Beverage operator that was founded in 2000 and was listed on the Singapore Exchange (SGX) in year 2003. The entire business revenue is segmented into four categories namely, Bakery, Restaurants, Food Atriums and Franchise. The objective of this report is to assess BreadTalk's current position and future prospects through a series of valuation models. The key competitors of BreadTalk are namely Auric Pacific Group and Food Junction Holdings Ltd. We have used….

    Show More
  • Analysis of the Company Yum! Brands, Inc.
    2906 words | 12 pages

    1. Introduction In the module strategic hospitality management an analysis of the company YUM! Brands, Inc. will be made. The second week of the module especially focuses on the internal analysis of YUM!. In order to understand the internal analysis process, books are red on the topic. This will be done in order to define the strengths and weaknesses, resources, capabilities and the development of competitive and strategic advantages. The lectures and workshops provided important information and….

    Show More
  • Pepsico
    17219 words | 69 pages

    V. Objectives | 9 | VI. Polices ,Values &Statements | 10 | VII. Social Responsibility | 13 | VIII. Financial Analysis | 15 | i. Liquidity Ratios | 15 | ii. Activity Ratios | 16 | iii. Debt Ratios | 19 | iv. Profitability Ratios | 20 | v. Market Ratios | 23 | Phase Two | | I. General Environment (PEST Analysis) | 24 | II. Porter's model (PM) | 28 | III. Strategic groups (SG) | 30 | IV. Competitors profile matrix (CPM) | 32 |….

    Show More
  • Breville Case Study
    6279 words | 26 pages

    Strategic Analysis 3 1. Economic Analysis 3 2 Industry Analysis 4 3 Competitive Strategy 6 4 Industry and company’s potential 7 Accounting analysis 9 Step 1: Identify Key Accounting Policies 9 Step 2: Accounting Flexibility 10 Step 3: Evaluate accounting strategy 11 Step 4: Quality of disclosure 12 Step 5: Potential red flags 12 Step 6: Undo accounting distortion 13 Financial Analysis 13 1. Profitability 13 2. Liquidity 14 3. Solvency 16 4. Efficiency 17 5 Cash flow analysis 18 Reference….

    Show More
  • Jamba Juice Case Study
    3162 words | 13 pages

    External Analysis The General Environment of the Industry Jamba Juice and its immediate competitors operate under the industry entitled “snack and nonalcoholic beverage bars” [ (U.S. Census Bureau) ]. According to the U.S. Census Bureau the official description of the snack and nonalcoholic beverage bars is as follows: “This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn or….

    Show More
  • The Kroger Company
    4446 words | 18 pages

    The Kroger Company Abstract The Kroger Company grew in 128 years from one store to over 3,500 stores of various banners and products. The Kroger Company is the largest food and drug retailer in the United States and is growing constantly with diversity in the retail market, dealing in food, pharmacies, apparel, jewelry and fuel. Kroger is governed by a 14 member Board of Directors including a Chief Executive Officer. Kroger is a leader in Corporate Social responsibility by maintaining environmental….

    Show More
  • Great a&P
    2290 words | 10 pages

    Q1. As of the date of the case (assume = Jan. 27, 2004): a) What is Great Atlantic & Pacific Tea’s (A&P’s) ‘business model’? A&P is a retail food chain in North America that operates under various trade names (i.e. Super Foodmart, Farmer Jack, Dominion, etc.). The business focuses on sales volume, inventory turnover and effective cost control as the products are sold at low margins in a very competitive market. A&P’s business model focuses primarily on acquisitions….

    Show More
  • Analysis of Ryanair
    5046 words | 21 pages

    Analysis of the low cost airline industry and internal analysis of Ryanair Submitted to: Vladan Hadzic Student ID: 20000910 Module: International Business Management and Strategy Date: 05 August 2011 CONTENTS Title Page No Part one: PESTEL Analysis Porters Five Forces Conclusion Part two: Internal Analysis of Ryanair: Strengths & Weaknesses Value Chain Analysis Of Ryanair Financial Analysis Of Ryanair Conclusion Appendices A) Value chain analysis B) Financial….

    Show More
  • A Comprehensive Analysis of Hyatt Hotels Corporation and How It Relates to Competition Within the Hotel Industry
    27363 words | 110 pages

    A COMPREHENSIVE ANALYSIS OF HYATT HOTELS CORPORATION AND HOW IT RELATES TO COMPETITION WITHIN THE HOTEL INDUSTRY Table of Contents EXECUTIVE SUMMARY 1 EXTERNAL ENVIRONMENT ANALYSIS 3 General Environment 3 Demographic Segment 3 Technology Segment 7 Economic Segment 11 Political / Legal Segment 14 Socio-cultural Segment 16 Nature Segment 18 Global Segment 19 Industry Environment 21 Intensity of rivalry 21 Supplier power 22 Buyer Power 22 Threat of substitutes 22….

    Show More
  • Walgreens Company Analysis and Integration Strategy
    10860 words | 44 pages

    Analysis of Walgreens By: Robert Antioho Christopher Bennington Andrew Graeff Jordan Lenz Jacob Wyand Chapter 1: Company Background and Mission Chapter 1: Company Background and Mission Walgreen Co. Introduction: Walgreen Co. (Walgreens) and its subsidiaries operate a drugstore chain in the United States. “The Company provides its customers with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities….

    Show More

Popular Essays