policy, this analysis is also to device an alternative course of action to resolve the problem on financing the company’s expanding operations. III. Outline and Assessment of the Internal and External Environment of the Company Strength : Modern stylish dresses for children. Skilled and well-trained workers. Expertise in clothing for children below 12 yrs Weaknesses : Use of short-term and long-term borrowings for business expansion. The risks of simultaneously using such borrowing terms.
Opportunities : Growth of textile industry in the country. The opportunity to introduce their product to the international scene. Increase in per capita income and consumerism. Increasing labor cost in other country making them more preferable. Threats : Heightening interest of businessmen to take a chance on the industry. Thus, increasing market competition. Already existing big competitors making it difficult for them to dominate the market IV. Analysis and Comparison of the Financial Position and Results of Operation of the Company A. Liquidity Ratio Ratio 2012- 2013 2013- 2014 2014- 2015 Current ratio 2.53:1 1.79:1 1.60:1 Quick ratio 1.30:1 0.92:1 0.79:1 B. Efficiency Ratio Ratio 2012- 2013 2013- 2014 2014- 2015 Accounts receivable turnover 6 times 2.88 times 3.42 times Average collection period 261 days 111 days 67 days Inventory turnover 0.91 times 2.09 times 3.54 times Days supply in inventory 396 days 172 days 102 days Accounts payable turnover Total asset turnover 0.10 times 0.25 times 0.42 times Plant asset turnover 0.59 times 1.42 times 2.38 times Capital intensity ratio 0.95:1 0.52:1 0.59:1 C. Leverage Ratio Ratio 2012- 2013 2013- 2014 2014- 2015
- Fall '14
- Ratio, Manufacturing Company