You are required to refer to the financial statements of ABC Berhad below to answer this question.

ABC Berhad
Statements of Financial Position as at 31 December 2021
			2021		2020
			RM'000		RM'000
Non-current assets
Property, plant and equipment			224,580		133,922
Investment properties			856,284		719,560
Right-of-use assets			10,678		-
Land held for property development			517,519		507,628
Concession assets			5,657,254		4,682,373
Investment in associate and joint venture			108,664		104,348
Deferred tax assets			15,406		13,163
Intangible assets			6,375		6,453
			7,396,760		6,167,447
Current assets
Inventories			474		331
Contract assets			30,969		103,096
Contract costs			3,441		4,441
Trade and other receivables			210,425		256,840
Property development costs			344,115		346,504
Current tax assets			31,162		22,168
Investment funds			1,591,322		2,281,600
Short term deposits			562,270		689,122
Cash and bank balances			270,378		830,048
			3,044,556		4,534,150
Total assets			10,441,316		10,701,597
Equity
Share capital			1,117,961		1,117,961
Reserve			1,355,665		1,334,119
Equity attributable to owners			2,473,626		2,452,080
Non-controlling interest			340,187		358,149
Total equity			2,813,813		2,810,229

Non-current liabilities
Hire purchase liabilities			4,594	6,578
Bank term loans			186,558	320,891
Medium term notes			5,380,483	5,404,634
Reimbursable interest assistance			286,577	270,008
Deferred income			284,365	292,181
Provision for heavy repairs			8,601	6,019
Lease liabilities			7,785	-
Deferred tax liabilities			267,570	246,269
			6,426,533	6,546,580
Current liabilities
Contract liabilities			3,585	20,536
Trade and other payables			568,118	586,849
Lease liabilities			3,249	-
Hire purchase liabilities			4,347	6,043
Bank borrowings			570,858	661,611
Medium term notes			50,000	38,749
Current tax liabilities			813	31,000
			1,200,970	1,344,788
Total liabilities			7,627,503	7,891,368
Total equity and liabilities			10,441,316	10,701,597

ABC Berhad Statement of Profit or Loss for the financial year ended 31 December 2021
				2021	2020
				RM'000	RM'000
Revenue				1,268,281	1,335,178
Cost of sales				(993,258)	(878,898)
Gross profit				275,023	456,280
Other income and gains				128,197	78,700
Selling and marketing expenses				(4,544)	(5,633)
Administrative and general expenses				(122,820)	(88,309)
Other expenses				(7,306)	(10,293)
Share of results of an associate				(2,788)	(333)
Finance cost				(174,698)	(204,146)
Profit before tax				91,064	226,266
Income tax expense				(62,747)	(95,822)
Net profit for the year				28,317	130,444

Required:

Compute the following financial ratios for the years 2020 and 2021 (Note: round off your answers to the nearest 3 decimal places)

(a) Current ratio;

(b) Total asset turnover;

(c) Debt ratio;

(d) Net profit margin.

Based on your answers in part (a) above, discuss the financial performance of the company according to the following categories of ratios:

(a)Liquidity ratio;

(b)Activity ratio;

(c)Leverage ratio;

(d)Profitability ratio.

Please answer with not more than two thousand words.

Answer rating: 100% (QA)

a Current Ratio is calculated as Current Assets Current Liabilities For 2021 Current Ratio 3044556 1... View the full answer