Case Study Of Ratio Pos Malaysia Gdex

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Ratio Pos Malaysia Gdex
Profitability Ratio
Gross Profit Margin = Gross Profit RM 92,501,000 RM 24,179,086 Total sales RM 1,632,479,000 RM 19,368,505 = 0.06 = 1.25
Net Profit Margin = Net Profit RM 46,496,000 RM 22,829,045 Sales RM 1,632,479,000 RM 19,368,505 = 0.03 = 1.18
Return on Assets = Net Profit RM 46,496,000 RM 22,829,045 Average Total Assets RM 1,576,416,000 RM 215,967,671 = 0.03 = 0.11
Return on Equity = Net Profit RM 46,496,000 RM 22,829,045 Average Shareholder Equity RM 1,943,952,000 RM 215,323,601 = 0.02 = 0.11
Operating Expense Ratio = Operating Expenses RM 1,588,611,000 RM
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The current ratio of Pos Malaysia is 1.4 while the Gdex is 396.9. This means that Pos Malaysia only has 1.4 ability to repay against the RM1 current liabilities while Gdex has 396.9 so it implies that Gdex has more ability to repay its current liabilities. In fact, not only the current asset will influence the current ratio, sometime the amount of current liability also will affect it. Pos Malaysia should pay off current liabilities as often and as fast as possible. It would decrease the level of current liabilities and increase the current ratio as well. Early payment to creditors can save the interest cost and earns discount from creditors which will have an impact on the …show more content…
This ratio measures the company’s ability to pay off the short term liabilities using the short term assets without selling the inventory. Pos Malaysia has the quick ratio of 1.4 whereas the Gdex has 396.9. This means the chances of Gdex paying off it current liabilities without relying on the level on sales of inventory is faster than Pos Malaysia. Moreover, Pos Malaysia should increasing inventory turnover rate by faster conversion of inventory into cash. This would rise the result of the quick ratio. For example, to sell off the old inventory and turn it into cash and

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