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Acid- test ratio shows a firms ability to meet current liabilities with its most liquid assets. Those result
of acid test more likely to same. In 2010 acid test ratio was increasing by 1.76 times which is
decreased by 1.62 times in 2011.
3. Average collection period :Account receivable / daily credit sales
Measures overall effectiveness in generating profits with available assets, earning power
of investment capital. In 2010 showed generating profits was upward trend since the
company able to get 24.09% return on investment but it was decreased more the next
year.
7. Operating Profit margin : operating income / Sales
In spite of increased sales, company has not met the adequate profit margin. It indicates that
company has increased its operating expense in 2011 . For this reason company get decreased
operating profit margin.
In 2010, the company had 0.62 times Turnover ratios but in 2011 has decreased 0.39 times. It
indicates company moving downward in term of sales.