Proton
Question 1 : From the financial analysis perspective, has the Proton management done a good job?
Liquidity Ratio:
2009
2008
2007
2006
2005
Current Ratio
3,404.6/
1,883.6
=1.807
3,446.1/
1,639.2
=2.102
3,165.5/
1,639.2
=2.064
4,431/
2,341.1
=1.893
5,026.5/
2,210
=2.274
Quick Ratio
2,009.5/
1,883.6
=1.067
2,345.8/
1,639.2
=1.431
1891.9/
1,533.8
=1.233
3,042/
2,341.1
=1.299
4,059.4/
2,210
=1.837
Current ratio calculated by current asset divided by current liabilities shows the ability of the company to repay its short term liabilities. For quick ratio, it can be seen that the ratio in 2009 had decrease to 1.07 compared to 1.85 in 2005. It shows that Proton is not strong in their finance and affects the ability to pay the debt with the cash assets. It can be seen that Proton has current and quick ratio above 1.0 which means that Proton is have adequate money to repay its short term debt. However, the current ratio was decrease by 0.47 from 2005 to 2009. As a conclusion, Proton has quite poor performance in term of its liquidity during 2009.
Profitability Ratio:
2009
2008
2007
2006
2005
Net profit margin
-
184.6/
5,621.6
=3.28%
-
46.7/
7,796.9
=0.60%
442.4/
8,483.3
=5.22%
Return on assets
-
184.6/
7,293.3
=2.53%
-
46.7/
8,312.8
=0.56%
442.4/
8,830.9
=5.01%
A ratio of profitability calculated as net income divided by revenues. It indicates how much out of sales a company actually keeps in income. Yet, this ratio is not useful for the year 2007 and 2009 as Proton has no profit. It can be seen that Proton had decrease in their profit margin from 2005 to 2008 by 2%. Return on assets is an indicator of how profitable a company to its total assets. It shows that how efficient management is at using its assets to generate earnings. Calculated by dividing a company's income by its total assets. The declining in this ratio shows that Proton had inefficient management in using their asset to generate income.
Asset Management Ratio:
2009
2008
2007
2006
2005
Inventory
Liquidity Ratio:
2009
2008
2007
2006
2005
Current Ratio
3,404.6/
1,883.6
=1.807
3,446.1/
1,639.2
=2.102
3,165.5/
1,639.2
=2.064
4,431/
2,341.1
=1.893
5,026.5/
2,210
=2.274
Quick Ratio
2,009.5/
1,883.6
=1.067
2,345.8/
1,639.2
=1.431
1891.9/
1,533.8
=1.233
3,042/
2,341.1
=1.299
4,059.4/
2,210
=1.837
Current ratio calculated by current asset divided by current liabilities shows the ability of the company to repay its short term liabilities. For quick ratio, it can be seen that the ratio in 2009 had decrease to 1.07 compared to 1.85 in 2005. It shows that Proton is not strong in their finance and affects the ability to pay the debt with the cash assets. It can be seen that Proton has current and quick ratio above 1.0 which means that Proton is have adequate money to repay its short term debt. However, the current ratio was decrease by 0.47 from 2005 to 2009. As a conclusion, Proton has quite poor performance in term of its liquidity during 2009.
Profitability Ratio:
2009
2008
2007
2006
2005
Net profit margin
-
184.6/
5,621.6
=3.28%
-
46.7/
7,796.9
=0.60%
442.4/
8,483.3
=5.22%
Return on assets
-
184.6/
7,293.3
=2.53%
-
46.7/
8,312.8
=0.56%
442.4/
8,830.9
=5.01%
A ratio of profitability calculated as net income divided by revenues. It indicates how much out of sales a company actually keeps in income. Yet, this ratio is not useful for the year 2007 and 2009 as Proton has no profit. It can be seen that Proton had decrease in their profit margin from 2005 to 2008 by 2%. Return on assets is an indicator of how profitable a company to its total assets. It shows that how efficient management is at using its assets to generate earnings. Calculated by dividing a company's income by its total assets. The declining in this ratio shows that Proton had inefficient management in using their asset to generate income.
Asset Management Ratio:
2009
2008
2007
2006
2005
Inventory