Based on the calculation for financial ratios, interpret, and compare the performance for the year...

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Finance

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  1. Based on the calculation for financial ratios, interpret, and compare the performance for the year 2022 on the companies on the following categories of ratio:

Liquidity:

i. Current ratio

ii. Quick ratio

Liquidity ratios Current Ratio The current ratio is calculated as current assets / current liabilities (Madushanka and Jathurika, 2018). The current ratio for BLD Plantation Bhd for the last two years would be calculated as- The current ratio for the company is less than the ideal ratio which is 2:1, which means that the company doesn't possess enough assets to pay off the liabilities of the company. Quick Ratio The formulae for the quick ratio is quick assets / current liabilities. The ratio for the company can be calculated as- KUALA LUMPUR KEPONG BERHAD 2022 ANNUAL In 2022 , the current KLK ratio was 2.04 , compared to 1.54 in 2021. In contrast to 2021, the company had sufficient current assets in 2022 to pay for its current liabilities. In 2022, the KLK quick ratio was 1.26 , compared to 1.09 in 2021 . The company may not have had enough liquid assets to cover its current liabilities in either year, according to this indication. This report discussed about the overall financial position of Batu Kawan Bhd for the year 2022 and for the year 2021. There are several ratios which are discussed in this report that are profitability ratios, liquidity ratios, solvency ratios and asset management ratios for the company. Current Ratio The current ratio of Batu Kawan Bhd for the year 2022 is 1.98 times, this is higher and good compared to the year of 2021 that had 1.54 times. Quick Ratio The quick ratio of Batu Kawan Bhd for the year 2022 is 1.26 times, this is higher and good compared to the year of 2021 that had 1.09 times

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