Table of Contents
1.1 BACKGROUND OF CONSTRUCTION COMPANY: BINA PURI HOLDINGS BHD ........ 2
1.2 FINANCIAL SUMMARY FOR BINA PURI HOLDING BERHAD ......................................... 3
2.0 BACKGROUND OF CONSUMER PRODUCT COMPANY: PPB GROUP BERHAD ......... 4
2.1 FINANCIAL SUMMARY FOR PPB GROUP BERHAD ........................................................... 5
3.0 LIQUIDITY RATIOS AND LEVERAGE RATIOS FOR YEAR 2009 UNTIL 2012 .............. 6
3.1 LIQUIDITY RATIOS OF BINA PURI HOLDING BERHAD .................................................. 6
3.4 LEVERAGE RATIOS OF BINA PURI HOLDING BERHAD ................................................... 7
3.3 LIQUIDITY RATIOS OF PPB GROUP BERHAD…show more content… 3.1 LIQUIDITY RATIOS OF BINA PURI HOLDING BERHAD
a) Current Ratio
Current ratio = Current Assets / Current Liabilities
Table 1 Current Ratio of Bina Puri Holding Berhad
2009
2010
RM
Total current assets million 532,335.00 665,267.00
Total
current RM million 524,885.00 645,515.00 liabilities Current Ratio
1.01
1.03
Analysis
Base on the current ratio table above, it is shows Bina Puri Holdings Berhad able to maintain a current ratio of at least 1 from year 2009 until 2012 where the value of their current assets cover at least the amount of their short term obligations. However, a current ratio of greater than 1 provides additional cushion against unforeseeable contingencies that may arise in the short term.
b) Quick Ratio
Quick Ratio = (Cash & Equivalents + Short-Term Investments + Account Receivable) /
Current Liabilities
Table 2 Quick Ratio of Bina Puri Holding Berhad
2009
2010
RM
31,476.00 42,232.00
Cash & equivalents million
RM
513,400.00 532,200.00
Accounts receivable million
RM
Short-term million 3,200.00
4,100.00
investment
RM
Total current million 524,885.00 645,515.00 liabilities Quick Ratio
1.04
0.90
6
2011
53,789.00
2012
71,311.00
560,600.00 578,400.00
5,700.00
8,100.00
705,101.00 820,261.00
0.88
0.80
Analysis
Ideally, quick ratio should be 1:1 so that the assets can be quickly converted into cash where
it
