Question: Please explain about this financial statement below? Are we good to invest to this company? Rasio Formula 2019 2018 Increase / Decrease Description Current Ratio

Please explain about this financial statement below? Are we good to invest to this company?

Rasio

Formula

2019

2018

Increase / Decrease

Description

Current Ratio

Current assets/ Current liabilities

102,92%

135,89%

-33%

Decrease

Quick Ratio

(Current asset - Inventory)/ Current liabilities

13,37%

11,82%

1,55%

Increase

Cash Ratio

cash and cash equivalents /current liabilities

13,37%

12%

1,55%

Increase

Gross Profit Margin Ratio

(Net Sales COGS)/Net sales

6%

10%

-4%

Decrease

Net Profit Margin Ratio

( net profit / total revenue )

102,63%

95,45%

7,18%

Increase

Return on Asset Ratio

net income/ total asset

-3%

0,9%

-3,9%

Decrease

Return on Equity ratio

net income/shareholder equity

-11,1%

2,3%

-13,4%

Decrease

Debt to Asset Ratio

(Short-term Debt + Long-term Debt) / Total Assets

56,78%

40,37%

16,4%

Increase

Inventory Turnover

net sales/average inventory at selling price

138%

157%

-19,0%

Decrease

Days of Account Receivable

(Accounts Receivable / Revenue) x 365

31%

64%

33,0%

Increase

Days of Account Payable

(Accounts Payable / Cost of Goods Sold) x 365

48,99%

32,91%

16,1%

Increase

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