Obtain a copy of the Dutch Lady Milk Industries Berhad annual report 2015 from the companys website.
Refer to the financial statements as included in the annual report of 2015.
(a) Calculate the following financial ratios for both the year 2014 and 2015. Show your workings.
(i) Return on Equity
(ii) Gross profit margin
(iii) Net profit margin
(iv) Current ratio
(v) Quick ratio
(vi) Debt to total assets ratio (i.e. Debt ratio)
(vii) Interest cover (i.e. Times of interest cover)
(viii) Inventory turnover period
(ix) Debtors collection period (i.e. Age of debtors)
(x) Creditors payment period
(xi) Sales to capital employed
(xii) Expense ratio
(b) Based on the financial ratios calculated in (a), identify the strengths and weaknesses of Dutch Lady Bhd. The strengths and weaknesses could be relating to the companys liquidity, solvency, and profitability.