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Wina Chemicals Co Ltd is a company started their business by selling chemicals obtained from existing local importers to the textile industry. Building on commitment and reliable service, Wna Chemicals Co Ltd gradually grew into a distributor for several major chemical companies.  Attached the Financial Ratios of Wina Chemicals Co Ltd for the year of 2018 & 2019. Please make a financial ratio analysis for Wina Chemicals Co Ltd based on the data

Wina Chemicals Co Ltd is a company started their business by selling chemicals obtained from existing local importers to the textile industry. Building on commitment and reliable service, Wna Chemicals Co Ltd gradually grew into a distributor for several major chemical companies.  Attached the Financial Ratios of Wina Chemicals Co Ltd for the year of 2018 & 2019. Please make a financial ratio analysis for Wina Chemicals Co Ltd based on the data

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wina Chemicals Co Ltd is a company started their business by selling chemicals obtained from existing local importers to the textile industry. Building on commitment and reliable service, Wna Chemicals Co Ltd gradually grew into a distributor for several major chemical companies. 

Attached the Financial Ratios of Wina Chemicals Co Ltd for the year of 2018 & 2019.

Please make a financial ratio analysis for Wina Chemicals Co Ltd based on the data.

FINANCIAL RATIO CALCULATION 2019 2018 Current Assets 337,587,167,980 353,696,666,491 Current Ratio 1507.55% = 1603.98% Current Liabilities 22,393,069,542 22,051,182,901 Current Assets (Cash) 102,190,385,543 105,550,342,540 A 2 Cash Ratio 456.35% 478.66% %3D Current Liabilities 22,393,069,542 22,051,182,901 T Current Assets (Cash and Account Receivables) 219,909,301,094 236,424,388,502 Quick Ratio 982.04% = 1072.16% Current Liabilities 22,393,069,542 22,051,182,901 S Current Assets - Current Liabilities (Net Working Capital) 315,194,098,438 331,645,483,590 Y 4 Net Working Capital Ratio 67.47% 76.61% Total Assets 467,152,663,197 432,910,043,244 S R Total Liabilities 22,393,069,542 22,051,182,901 Debt Ratio 4.79% 5.09% ON A Total Assets 467,152,663,197 432,910,043,244 LCTS Total Equity 444,759,593,655 410,858,860,343 VYI 7 Equity Ratio 95.21% 94.91% Total Assets 467,152,663,197 432,910,043,244 E O
Transcribed Image Text:FINANCIAL RATIO CALCULATION 2019 2018 Current Assets 337,587,167,980 353,696,666,491 Current Ratio 1507.55% = 1603.98% Current Liabilities 22,393,069,542 22,051,182,901 Current Assets (Cash) 102,190,385,543 105,550,342,540 A 2 Cash Ratio 456.35% 478.66% %3D Current Liabilities 22,393,069,542 22,051,182,901 T Current Assets (Cash and Account Receivables) 219,909,301,094 236,424,388,502 Quick Ratio 982.04% = 1072.16% Current Liabilities 22,393,069,542 22,051,182,901 S Current Assets - Current Liabilities (Net Working Capital) 315,194,098,438 331,645,483,590 Y 4 Net Working Capital Ratio 67.47% 76.61% Total Assets 467,152,663,197 432,910,043,244 S R Total Liabilities 22,393,069,542 22,051,182,901 Debt Ratio 4.79% 5.09% ON A Total Assets 467,152,663,197 432,910,043,244 LCTS Total Equity 444,759,593,655 410,858,860,343 VYI 7 Equity Ratio 95.21% 94.91% Total Assets 467,152,663,197 432,910,043,244 E O
FINANCIAL RATIO CALCULATION 2019 2018 Working Capital Sales Revenue Current Assets - Current Liabilities 372,232,241,436 430,100,845,058 9 118. 10% 129.69% Turnover 315,194,098,438 331,645,483,590 Cost Of Sales 281,773,456,721 318,592,047,636 10 Inventory Turnover 271.20% 294.89% Inventory 103,900,052,182 108,038,169,985 = Sales Revenue 372,232,241,436 430,100,845,058 11 Assets Turnover 79.68% 99.35% Total Assets 467,152,663,197 432,910,043,244 = Sales Revenue 372,232,241,436 430,100,845,058 12 Receivable Turnover 358.26% 398. 10% T Inventory 103,900,052,182 108,038,169,985 Average Collection = 360 or 365 days 365 365 13 101.88 91.69 Period Receivable Turnover 358.26% 398.10% = Earning After Tax 45,100,733,312 61.456,506,409 14 Net Profit Margin 12.12% 14.29% R Sales Revenue 372,232,241,436 430,100,845,058 F Gross Profit 90,458,784,715 111,508,797,422 15 Gross Profit Margin 24.30% 25.93% Sales Revenue 372,232,241,436 430,100,845.058 A Operating Income Sales Revenue B 125,798,958,137 143,373,975,413 16 Operating Margin 33.80% 33.33% 372,232,241,436 430,100,845.058 Return on Assets Earning After Tax 45,100,733,312 61,456,506,409 17 9.65% 14.20% Y (ROA) Total Assets 467,152,663,197 432,910,043,244 = Earning After Tax Total Equity Return on Equity 45,100,733,312 61,456,506,409 A 18 10.14% 14.96% (ROE) 444,759,593,655 410,858,860,343 Operating Income Total Assets Basic Earning Power 19 125,798,958,137 26.93% 143,373,975,413 33.12% Ratio 467,152,663,197 432,910,043,244
Transcribed Image Text:FINANCIAL RATIO CALCULATION 2019 2018 Working Capital Sales Revenue Current Assets - Current Liabilities 372,232,241,436 430,100,845,058 9 118. 10% 129.69% Turnover 315,194,098,438 331,645,483,590 Cost Of Sales 281,773,456,721 318,592,047,636 10 Inventory Turnover 271.20% 294.89% Inventory 103,900,052,182 108,038,169,985 = Sales Revenue 372,232,241,436 430,100,845,058 11 Assets Turnover 79.68% 99.35% Total Assets 467,152,663,197 432,910,043,244 = Sales Revenue 372,232,241,436 430,100,845,058 12 Receivable Turnover 358.26% 398. 10% T Inventory 103,900,052,182 108,038,169,985 Average Collection = 360 or 365 days 365 365 13 101.88 91.69 Period Receivable Turnover 358.26% 398.10% = Earning After Tax 45,100,733,312 61.456,506,409 14 Net Profit Margin 12.12% 14.29% R Sales Revenue 372,232,241,436 430,100,845,058 F Gross Profit 90,458,784,715 111,508,797,422 15 Gross Profit Margin 24.30% 25.93% Sales Revenue 372,232,241,436 430,100,845.058 A Operating Income Sales Revenue B 125,798,958,137 143,373,975,413 16 Operating Margin 33.80% 33.33% 372,232,241,436 430,100,845.058 Return on Assets Earning After Tax 45,100,733,312 61,456,506,409 17 9.65% 14.20% Y (ROA) Total Assets 467,152,663,197 432,910,043,244 = Earning After Tax Total Equity Return on Equity 45,100,733,312 61,456,506,409 A 18 10.14% 14.96% (ROE) 444,759,593,655 410,858,860,343 Operating Income Total Assets Basic Earning Power 19 125,798,958,137 26.93% 143,373,975,413 33.12% Ratio 467,152,663,197 432,910,043,244
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