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OVERALL CONCLUSION AND RECOMMENDATION (wan).docx

OVERALL CONCLUSION AND RECOMMENDATION (wan).docx - OVERALL...

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OVERALL CONCLUSION AND RECOMMENDATION As we had analysed the ratio analysis for three years annual report of Nakamichi Corporation Berhad, we would like to conclude that this company has a financial difficulties that lead them to PN17 level. Since this company was under PN17 which is their debt were more than 50%, that’s why they tend to retrench the inventory and revenue instantiated. They cut off their cost so that they can cover their liabilities but still it shows a bad performance due to unexpected consequences. For profitability ratio, due to the company did not incur Cost Of Good Sales, it gives zero result to the three ratio which is Net Profit Margin, Gross Profit Margin, and Net Asset Turnover. But for Return On Capital Employed (ROCE), it gives negative result which means the company is not employing its capital effectively and is not generating shareholder value. For liquidity ratio, since they did not have inventory, the two ratio which is Current Ratio and Quick Ratio had given the same result that is below 1. This ratio indicates that the company
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