Financial and managerial Analysis
Liquidity Measures
Current Ratio: FWRD ‘s current ratio is 6.4 which looks excellent. It shows that this company has no problem meeting short-time obligation or managing inventories etc.
Quick ratio: I found the number is 5.9, we know approximately 50% of the top firms have quick ratios between 0.6 and 1.1, and approximately 80% of the top firms have quick ratios between 0.3 and 1.4. So I can assume that the company’s ability to pay the debt is strong. It also shows short-term debt risk of this company is very low.
Working Capital to Sales: FWRD ‘s working capital to sales is 28.5%. We know that approximately 50% of the top firms have working capital to sales ratios between 10% and 21%. Also we know that approximately 80% of the top firms have working capital to sales ratios between 4% and 44%, which FWRD belongs to them. Thus it means the company’s growth is very fast.
Financial Strength Measures
Interest cover: FWRD ‘s interest cover is 158.7. It shows us this company is growing fast and it is attracting a lot of interests.
Total Debt to total Equity: This company’s ratio is 7.9%. We know the greater the debt, the greater the risk. So it means this company can generally improve its profitability, and it has little risk. And I think its risk management is doing excellently.
Corporate Valuation Measures
Earning Per Share: FWRD ‘s EPS is 1.79 in 2013. And the average annual increase is positive. So it means that the company’s profitability is keeping on increasing.
Market Capitalization: FWRD ‘s Market Capitalization is about 1338.95million which is a adequate-cap.
Price to Earning Ratio: The company’s PE Ratio is 24.5. It shows this indicator is moderate. The wealth of this company will increased, and new funds will be raised at a favorable price and the possibility of a hostile takeover bid is much reduced.
Market to Book Ratio: FWRD ‘s market to book ratio is 3.07, and the market average is 3.2. Obviously , this company has reached the average level in the market. So the investment has been multiplied by the market/book factor.
Operating Performance
EBITDA: FWRD ‘s EBITA is about 108million.
EBIT/Operating Revenue: FWRD ‘s EBIT/Operating Revenue is 0.13
EBIT/Total Assets: FWRD ‘s EBIT/ Total Assets is 0.795
EBIT/Total Equity: FWRD ‘s EBIT/Total Equity is 0.194
Operating Revenue/ Total Assets: 1.29, which is not bad
Inventory Days:1 day
Inventory Turnover: 300
Collection Period: FWRD ‘s Collection Period is 43 days which is close to 40days. It means that the company can collect accounts receivable very quickly and the
