Parkson Holding Berhad Case Study Solution

c) Compare and contrast
Current ratio is the ratio of the current assets and current liabilities, it show that whether the company is able to meet its short-term obligation or not. The table above shows that all the current ratio of the two company in each year have the ratio over 1. It means that they have enough current assets to settle the current liabilities. Parkson Holding Berhad achieved the highest current ratio which is 1.79 in the year of 2014 among the three years. While it achieve the lowest in the year 2016 which is 1.13.This shows the decreasing of the current ratio each year of the Parkson Holding Berhad. Complete Logistics Service Berhad shows a highest current ratio of 2.98 in the year of 2016, and the lowest in year 2014 which
This indicate how fast a company can sell their inventory. A low inventory shows a weak sale of the company. Parkson Holdings Berhad shows about 10.82 of inventory turnover in year 2014. It means that Parkson Holding Berhad had an inventory turn about 10.82 times within the year of 2014. And it shows a decrease from year 2014 to 2016. While Complete Logistic Services Berhad had a 242.03 of inventory turnover which was much more higher than Parkson Holding Berhad. Although it shows a drop to 115.80 in the year
It shows how much of the RM collected by a company as revenue translate into profit. In the 3 years, Parkson Holding Berhad shows a negative value of Net profit Margin. Which means that they spends more than they earns in that 3 years. Complete Logistics Service Berhad shows a 0.12 of Net profir margin which means that they earned 12% for each dollar they collected.
Return of assets indicate how profitable a company based on its total assets. Return on assets is calculated based on the total assets of the particular company. In that 3 years, Parkson Holding Berhad shows a negative value of return of assets which means that they cannot get the profit which can satisfy their total assets. Complete Logistics Services Berhad shows a 10% of return of assets of their company in year 2014, 0.6% in year 2015 and 11% in year 2016.
Return on equinity is the ratio of net income availableto the common stock holders. Parkson Holding Berhad shows a 0.054 which means 5.4% in year 2014. While Complete Logistic Service Berhad show a 14% in year 2014. In 2015 Parkson Holding Berhad shows higher return on equinity than Complete Logistic Service Berhad. But in 2016, Complete Logistic Service Berhad shows a higher return on equinity than Parkson Holding