不溫柔

Opinion on firm management

The current ratio of the company on 2005 and 2010 which is 1.8162:1 and 1.6153:1 is strong among the years.But it is still not enough because it’s not achieve 2:1.The management of the assets is not effective because the ratio is always around 1.2:1 ,especially 2009,which is 1.0921:1,it almost become 1:1.If the company have too large current ration, it’s not the benefit to the company, because it would indicate the company is too liquid.But, if the ratio is too small , it indicate the company is unable to pay its current debts, perhaps have to sell the fixed assets and hard to achieve the current obligation.

In term of working capital, the company ‘s performance is still not enough to achieve a excellent result. Although the value is all positive, but it have decreased from 2005 ,which is RM167980000 to 2009 ,which is RM17112000.The working capital is only increased on 2010, which is RM77589000.The ability of the company to pay the liabilities become good start from 2010.To maintain the increased of the working capital ,the company should be increased the current assets or reduce the current liabilities or both.

Receivable turnover rate indicate the well performed from 2008 to 2010.The receivable turnover rate increased 2.6414 between 2008 and 2009,and there are increased 2.2526 between 2009 and 2010.This indicate that the company still able to collect back their credit sales , but the company have to improve their skills to collect the credit sales because the range is drop from 2.6416 to 2.2526.

Inventory turnover rate still provide a good performance although it have decreased during 2005 to 2008 (got increased on 2007), but during 2010,there are 2.3041 times of the rate.This is the most higher rate of these six years.The different between 2009 and 2010 is 0.8957 times.In overall , the rate of the inventory turnover present a good performance compare with others years.