Chart above compare FJ Benjamin share price (F10) with Metro Holdings (M01) in the period of 2010 to 2014. Overall, F10 performed below M01 share price. The end of 2010 to beginning of 2011 was the only period when F10 share price performed better than M01. This is due to addition new venerable brands such as Givenchy in Singapore, Goyard in Hong Kong, and other brand across the region. In the middle of 2011 to January 2013, F10 overall performance was in accordance with M01 in experiencing a fluctuation. Starting from 2013, the gap between F10 and M01 widened. This is because Metro was implemented their new mobile point-of-sale in entire Singapore store and increased their store in Singapore and Indonesia as well. M10 constantly increased
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It includes receivables turnover, average collection period, and operating profitability ratio. The receivables turnover from 2009 to 2011 was improving and average collection period was getting faster over time. It indicates a good performance for the company is able to get more cash from their debtors. The receivables turnover shows a significant increase in 2013, which rise to 10,4; however, in 2014 it has fallen to 7.01, with the average receivable collection period 66.36 days. It indicates that it takes 66.36 days to collect their receivables.
3.3 Solvency Ratio
Solvency ratio measures the proportion of debt, which derives the firm capital. It includes debt equity ratio, cash coverage ratio and interest coverage ratio. It can be seen that the solvency ratio has decreased from the year 2009 to 2010, but during 2011 to 2013, it experiencing a significant increase. This indicates that the debt usage of the company is increasing, and therefore the financial risk of not being able to pay their interest to the debt holder is increasing as well. As for 2014, the interest coverage ratio has decreased drastically this was due to the significant decrease in their earning
3.4 Operating Profitability
It includes receivables turnover, average collection period, and operating profitability ratio. The receivables turnover from 2009 to 2011 was improving and average collection period was getting faster over time. It indicates a good performance for the company is able to get more cash from their debtors. The receivables turnover shows a significant increase in 2013, which rise to 10,4; however, in 2014 it has fallen to 7.01, with the average receivable collection period 66.36 days. It indicates that it takes 66.36 days to collect their receivables.
3.3 Solvency Ratio
Solvency ratio measures the proportion of debt, which derives the firm capital. It includes debt equity ratio, cash coverage ratio and interest coverage ratio. It can be seen that the solvency ratio has decreased from the year 2009 to 2010, but during 2011 to 2013, it experiencing a significant increase. This indicates that the debt usage of the company is increasing, and therefore the financial risk of not being able to pay their interest to the debt holder is increasing as well. As for 2014, the interest coverage ratio has decreased drastically this was due to the significant decrease in their earning
3.4 Operating Profitability