Question

Please compare the 5 ratios between 2 companies which one is better and reasons.

2017		Brahim's Holdings Bhd BRAHIMS (Malaysia)A	Saudee Group Bhd SAUDEE (Malaysia)B
Liquidity	Current Ratio=Current Asset/Current Liability
	Current Assets	98,028.00	76,041.80
	Current Liabilities	59,232.00	51,821.10
	Current Ratio(times)	1.65	1.47
	Quick Ratio=(Current Asset-Inventories)/ Current Liability
	Inventories	6,259.00
	Quick Ratio(times)	1.55	0.74
Asset Management	Inventory Turnover Ratio=Sales/Inventories
	Sales	291,563.00	133,510.70
	Inventories	6,259.00	37,813.70
	Inventory Turnover Ratio	46.58	3.53
	Days Sales Outstanding=Account Receivables/Average Sales Per Day
	Receivables	63,138.00
	Average Sales Per Day=Sale/365	798.80	365.7827397
	DSO(days)	79.04	74.02
Debt Management	Debt Ratio=Total Liabilities/Total Assets
	Total Liabilities	128,923.00	64,155.50
	TOTAL Assets	372,277.00	122,333.10
	Debt Ratio	0.35	0.52
	Total Liabilities	128,923.00	64,155.50
	Total Equity	243,354.00	58177.6
	Debt To Equity Ratio	0.53	1.10
Profitability	Net profit Margin=Net income/Sales
	Net income	-6,937.00	1,211.40
	Sales	291,563.00	133,510.70
	Net Profit Margin	-0.02	0.00907343
	Operating Profit Margin=EBIT/Sales
	EBIT	15,550.00	3,767.80
	Sales	291,563.00	133,510.70
	Operating Profit Margin	0.05	0.028220959

2017		Brahim's Holdings Bhd BRAHIMS (Malaysia)	Saudee Group Bhd SAUDEE (Malaysia)
Market Value	Book Value Per Share=Common Equity/Shares Outstanding
	Common Equity	98,812.00	58,177.60
	Shares Outstanding	236,286.00	60,000.00
	Book Value Per Share	0.42	0.97
	Market/Book Ratio=Market Price Per Share/ Book Value Per Share
	Book Value Per Share	0.47	0.97
	Market Price Per Share	0.42	0.46
	Market/Book Ratio	1.11	0.47

Answer 1

Current ratio of Brahmin holding bhd is better then other because its short term paying capacity is more then other co.

Quick ratio of Saudee group is better then other because its immediately paying capacity is better then other.

Inventory turnover ratio of Brahmin holding is better then other because its operating cycle is more then other.

Debt collection period is Saudee holding is better then other because its days or reciable is shorter then other it means recovery time shorter then other.

Debt ratio or Debt to capital ratio both ratio of Brahmin holding is better then other because both show its long-term paying capacity to other is more then other and share of share holder fund is more then other.

Net profit ratio of Saudee holding is better but operating ratio is better of Brahmin it show then Brahmin goods manufacturing cost is low other then but Saudee total cost of business is lower then other.

Book value of share of Saudee is more then other because share of total share of book value is high but according to market value of share is Brahmin is more then other because its market share is more then other.