Analysis sime Darby"s business performance

Liquidity ratio

Measure the ability of the business to pay its debts within the next 12 months

1. Current ratio - used to examine the relationship between current assets and current liabilities in a
different fashion

2. Quick asset - used by companies to calculate certain financial ratios that are used in decision making.

Current ratio mengalami penurunan

Financial stability ratio

Measure the short term future of a business, Financial stability looks at the long term structure of an
entity.

1. Gearing ratio - also known as the debt ratio, it is measures the percentage funded by borrower funds.

2. Debt/equity ratio - calculate the percentage of total asset provided by either the owner or liabilities.

3. Interest coverage ratio ( times) - determine how easily a company can pay interest on outstanding
debt.

Conclusion

1. In an overall, the business performance has deteriorated. This can be seen through the comparing
between the financial report of 2014 and 2015.

2. We have suggested few strategies for the company to improve the business performance.

3. The business should increase the selling price of stock, control it expenses and buying stock from a
cheaper resources in order to increase the net profit.

4. Last but not least, the business need to promote it stock and change the product to one that are more
preferable by customer as a results to increase the sales and the stock turnover.