RATIO | COMPARISON / EVALUATION | | | lllllllllllllll a. Liquidity
The company’s achievement in current ratio and quick ratio are much different compared with the industry. Overall, the company’s liquidity is rather satisfactory. b. Asset Management
The company’s inventory management is quite satisfactory. The company might face problems with its account receivables as the collection period for the company is higher compared to the industry. Therefore, attention has to be given to the management of account receivables. c. Leverage
The level of the company’s debts is higher than that of the industry average. However, the ability of the company to pay interests is better compared to the industry. d. Profitability
Profitability, relative to the investors (as seen in the return on asset and return on equity ratios) of the company is better compared to the industry. This is the same with the gross profit