Money Oriented

From the liquidity analysis, the best year is 2006 because in all the aspects considered it has higher ratio over all. In the liquidity analysis, the higher ratio shows better condition of the company because high liquidity ratio means the firm has bigger chance to converts their assets into cash. This year the company can hold up the good cash circulation so they can maximize the sales by producing huge amount of goods. In the year 2004, the company has a better inventory turnover than the other years. In 2004, the conversion from inventory to sales is good which means they have less pending cash or account receivable. In the year 2007 and 2008, the average collection period has high amount. This means that the converting process from the debt into cash is struggling and results in cash hold by the company.

From the efficiency analysis, the best year is 2004 because they have a high amount of account receivable ratio and lower amount of average collection period which shows us that the company can converts the debts of buyers into their cash or income. Even in the year 2006 it has a high inventory turnover from the inventory into sales, but it has a high average collection period and lower account receivable turnover of the debts. This means the company has many sales but on account. It’s not a bad condition because the company doesn’t have enough cash to run the business.

From the operating profitability analysis, the year 2004 is the best year for this company. The company has higher sales, profits, and ROE which this statistic means the company is very profitable and promising. But by ears, the company has decreasing amounts from all aspects. This company has lower amounts in overall. Perhaps that is because of the global economic crisis.

From the financing decisions analysis data, the year 2004, 2005 and 2006 they have a high amount of debt ratio but suddenly decrease into such a low amount in the 2007 and 2008. Lower debt ratio means the company has better cash condition to produce the goods without using the debts from the banks or shareholders. So year 2007 and 2008 the company has a better management of the cash flow.