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Current Ratio2

The document compares key financial metrics for two pharmacies: Farmasi Tapah and Farmasi Seri Iskandar. It analyzes their current ratio, quick ratio, gross profit margin, net profit margin, average collection period, and inventory turnover ratio. Overall, Farmasi Seri Iskandar performs better based on its shorter average collection period of 15 days compared to Farmasi Tapah's 59 days, and higher inventory turnover ratio of replacing stock 12.30 times per year versus 7.37 times.

Uploaded by

PineApple Ninja
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
17 views

Current Ratio2

The document compares key financial metrics for two pharmacies: Farmasi Tapah and Farmasi Seri Iskandar. It analyzes their current ratio, quick ratio, gross profit margin, net profit margin, average collection period, and inventory turnover ratio. Overall, Farmasi Seri Iskandar performs better based on its shorter average collection period of 15 days compared to Farmasi Tapah's 59 days, and higher inventory turnover ratio of replacing stock 12.30 times per year versus 7.37 times.

Uploaded by

PineApple Ninja
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Current ratio

𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
𝑐𝑢𝑢𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

2. Quick ratio

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 − 𝑝𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡


𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

3. Gross Profit Margin

𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑥100
𝑆𝑎𝑙𝑒𝑠

4. Net Profit Margin

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑥100
𝑆𝑎𝑙𝑒𝑠

5. ACC Collect Period


𝐴𝐶𝐶 𝑟𝑒𝑐𝑖𝑒𝑣𝑒
𝑥365
𝐶𝑎𝑠ℎ 𝑟𝑒𝑡𝑢𝑟𝑛 𝑆𝑎𝑙𝑒𝑠

6. Inventory ratio
𝐶𝑜𝑠𝑡 𝑂𝑓 𝑆𝑎𝑙𝑒𝑠
𝐴𝑉𝐸𝑅𝐴𝐺𝐸. 𝐼𝑁𝑉𝐸𝑁𝑇𝑂𝑅𝑌

1
Average inventory = (𝑜𝑝𝑒𝑛𝑖𝑛𝑔 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 + 𝐶𝑙𝑜𝑠𝑖𝑛𝑔 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦)
2
A

FARMASI TAPAH FARMASI SERI ISKANDAR

654000 543000
392000 248000
327 543
=196 =248
=1.67:1 =2.19:1
CURRENT RATIO

FARMASI TAPAH FARMASI SERI ISKANDAR

654000 − 22400 − 2000 543000 − 316000


392000 248000
107 543
= 98 =248
=1.09:1 =0.92:1

QUICK RATIO

FARMASI TAPAH FARMASI SERI ISKANDAR

640000 1650000
𝑥100 𝑥100
2880000 5320000
200 4140
= 9 = 133
=22.22% =31.13%

GROSS PROFIT MARGIN

FARMASI TAPAH FARMASI SERI ISKANDAR

96000 364000
𝑥100 𝑥100
2880000 5320000
10 130
=2 = 19
=3.33% =6.84%
NET PROFIT MARGIN
FARMASI TAPAH FARMASI SERI ISKANDAR

422000 191000
𝑥365 𝑥365
2592000 4788000
=59.43 =14.56
=59 days =15 days

ACC COLLECT PERIOD

FARMASI TAPAH FARMASI SERI ISKANDAR

2240000 =1
366400

1 (280000+316000)
2
2 (384000 + 224000) =
1832
140 149
= =12.30 times
19
=7.37 times

INT TURN RATIO


b.

FARMASI TAPAH FARMASI SERI ISKANDAR

For every RM1.00 of current liability The For every RM1.00 of current liability the
business has RM1.67 of current assets business has RM2.19 of current assets

CURRENT RATIO

FARMASI TAPAH FARMASI SERI ISKANDAR

For every RM1.00 of current liability The For every RM1.00 of current liability The
business has RM 1.09 of quick assets Business has RM0.92 of quick assets

QUICK RATIO

FARMASI TAPAH FARMASI SERI ISKANDAR

For every RM1.00 of Sales The business For every rm1.00 of sales the business obtained
obtained 22.22% of gross profit 31.13% of gross profit

Gross Profit Margin

FARMASI TAPAH FARMASI SERI ISKANDAR

For every rm1.00 of sales obtain the business For every rm1.00 of sales obtain the business
obtained 3.33% of net profit obtain 6.84% of net profit

Net Profit Margin

FARMASI TAPAH FARMASI SERI ISKANDAR

On average, the business took 59 days to On average, the business took 15 days to
collect from its customer collect from its customer

Average collection Period


FARMASI TAPAH FARMASI SERI ISKANDAR

The business replace its old stock with new The business replace its old stock with new
stock 7.37 times a year stock 12.30 times a year

Inv turnover ratio

C.

In my opinion. Farmasi Seri Iskandar is better because for Average collection period. Farmasi Seri
Iskandar takes up too 15 days to collect debt from its customer then farmasi tapah which takes up to
59 days. The little amount of days is better because they can pay early. Secondly Inventory Turnover
Ratio , Farmasi Seri Iskandar the business replace its old stock with new one every 12.30 times a year
compared to farmasi tapah who replace 7.37 times a year. The more time it is replace then the
better

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