Liquidity ratio used to measure the ability's of the firm to pay its debt as they fall due. The current ratio,quick ratio and networking capital measured for to analyzed the performance of the firm.
Current ratio is the most commonly used to measure the extend of its liquidity. A firm should have enough current assets to cover the current liabilities. From the table,the cuurent ratio of Malaysia Airlines BHD decreased from 0.832(2005) to 0.82(2006), increased to 1.4(2007) and decreased again in 2008 and 2009 for 1.36 and 0.86 respectively. Although there was a recession in 2007-2008, the comoany still increased its current ratio. It decreased drastically to 2009 due the Asian financial crisis.
Quick ratio measure the level of liquidation of the assets that a firm have. A firm has to know its ability to cover the current liability. By 2005, quick ratio is 0.832 and decreased bit to 0.82 in 2006. The quick ratio drastically increase to 1.4. It just afew increase in 2007 because the Asian financial crisis was going to begin in that time.
Networking capital is
Activity Ratio
Ratio / Year
2005
2006
2007
2008
2009
Inventory Turnover
NA
NA
NA
NA
NA
Average Collection Period
85.5
9.51
8.82
16.55
49.6
Fixed Asset Turnover
2.86
4.25
4.96
4.15
2.602
Total Asset Turnover
1.25
1.68
1.29
1.33
1.17
Inventory turnover is to measure the effectiveness of the firm in managing its assets which related to payoof investment for particular assets.There is no amount in inventory for the whole year because the firm doesn't have any inventories in the balance sheet statement.
Average collection period measure the length of time that the customer would take to payback their debts. High ACP means the customer are taking too long time to settle their debts and low ACP means the firm is cautious in giving the credit card offer. There was high ACP in 2005 showing the bad performance of MAS BHD in collecting the debts, and decreasing in 2006 and 2007 about 9.51 and 8.82 respectively. In 2008, the ACP increase and up to 49.6 in 2009.
Fixed asset turnover is ti indicate how well the firm using its fixed assets to generate sales. The higher ratio the better that means more revenues can be generated per Ringgit of investment in fixed assets. Unstable movement of fixed asset turnover caused by the crisis faced by the global. In 2005, it was 2.86 and increase to 4.25(2006) and continually increase to 4.96(2007). It was slightly decrease to 4.15(2008) and 2.602(2009) affected from the global crisis.
Total asset turnover used to measure how well the firm utilize its total assets to generate sales. The ratio in 2005 was 1.25 slightly increase to 1.68 in 2006. It shows that the firm manage to utilize all of its assets in proper. It decreased to 1.29 due to cover the crisis faced. It increase to 1.33 and decrease again in 2009 to 1.17. from the figure the better ration was in 2006.
Leverage Ratio
Ratio / Year
2005
2006
2007
2008
2009
Debt Ratio
67.6%
73.9%
62.3%
59.17%
88%
Debt to Equity Ratio
NA
NA
0.22
0.214
2.70
Times Int. Earn
0
6.43
19.6
4.95
5.70
Leverage ratio used to measure the firm's effectiveness in financing decisions and the use of debt financing by the firm.
Debt ratio is to measure the amount or percentage of assets that being financed through debt. The performance of the firm through this ratio is bad. The higher the ratio, the higher the financial risks.
Debt to equity ratio shows the relationship between long term debt and equity. The lower the better its finance. In 2005 and 2006, there was no long term debt used by the firm in balance sheet statement. In 2007 MAS BHD's ratio was 0.22,decrease to 0.214 in 2008 and increase to 2.70 in 2009. MAS BHD used the long term debt to covered the financial risk at the time.
Times interest earn is to measure the ability of the firm in paying its fixed obligation on interest. Higher ratio will lead the capability and lower risk. In 2005
Profitability Ratio
Ratio / Year
2005
2006
2007
2008
2009
Gross Profit Margin
0
0
0
0
0
Net Profit Margin
(0.17%)
6.82%
1.72%
6.10%
ROE
(21.65%)
(2.71%)
8.85%
2.28%
7.12%
ROA
(-66%)
(10.316%)
22.9%
5.6%
81.2%
Market Ratio
Ratio / Year
2005
2006
2007
2008
2009
Earning Per Share (RM)
(RM0.14)
(RM0.02)
RM0.097
RM0.25
RM0.066
P/E Ratio (times)
(7.14)
(50)
10.31
4
15.03
Dividend Per Share (RM)
(0.0035)
0
NA
0.0031
0.00464
Dividend Payout Ratio (times)
0.025
0
NA
0.0124
0.070
Dividend Yield(%)
2.5%
0
NA
0.31%
0.464%
Book Value Per Share (RM)
RM0.216
RM0.19
RM0.427
RM0.45
RM0.082
Price To Book Value (RM)
RM4.63
RM5.26
RM2.34
RM2.22
RM12.20
Retained Earning
0.975
1
NA
0.99
0.93
Market ratio used to measure how the investor views the performance of a firm and future prospects. It is important to plan and forecast the possible opportunity to obtain good performance.
EPS is earning per share of common stock. From the table, it shows that EPS is -0.14(2005) and decrease in 2006 to -0.02 because MAS BHD face the loss in both years. There was no profit in its income statement. It is increased in 2007 to 0.0097 and continually increases in 2008 to 0.25 and in 2009 to 0.066.
Price earning ratio is low that is -7.14 in 2005 and continually decrease in 2005 to -50. It shows that the investors are not able to pay more for stocks. But in 2007 it was increase to 10.31, decrease to 4 in 2008 and grow up to 15.31 in 2009.
