FINAL EXAM ASSIGNMENT
NAME: HUMAYON AHMED TAMIM
ID: 1921374
COURSE ID: FIN201
SEC:04
SEMESTER: SPRING 2021
ANNUAL REPORT 2019-2020
Breakdown
2019
2020
Sales
1652700
1530268
Net Income
186749
196412
Total Assets
5708300
6028712
Stockholders’ Equity
2129390
2233311
Account Receivable
260012
292985
Inventory
159991
146712
Fixed Assets
5202098
5488843
Current Assets
506202
539869
Current Liabilities
872737
797079
Total Debt
1802564
2000653
Credit Sales
1652700
1530268
Income Before Interest and Tax
292282
300496
Interest Expense
62681
62505
Lease
516500
418225
Profitability Ratio:
Ratio
Profit Margin
2019
11.30%
2020
12.84%
Return on Asset
3.27%
3.26%
Return on Equity
8.77%
2.69%
1. The profit margin increased from 11.30% to 12.84% in 2020. This
indicates the there is less profit in 2019.
2. The return on asset decreased from 3.27% to 3.26 in 2020 this shows that
one gas is less profitability and inefficient compared to 2019.
3. The return on equity decreased from 8.77% to 2.69% in 2020. This
indicates that each dollar of common stockholder’s equity generates less
profit compared to 2019.
Asset Utilization Ratio:
Ratio
2019
2020
Receivable Turnover
6.36 times
5.22 times
Average collection period
56.64 days
68.93 days
Inventory Turnover
10.33 times
10.43 times
Fixed Asset turnover
0.32 times
0.28 times
Total Asset Turnover
0.29 times
0.25 times
• Account Receivable Turnover decreased from 6.36 times to 5.22 times
in 2020. This indicates they collect the receivable more frequently in
2019.
• Average collection Period increased from 56.64 days to 68.93 days in
2020. So, the average collection is faster in 2020.
• In 2019 inventory turnover had 10.33 times and in 2020 inventory
turnover had 10.43 times. So, inventory turnover sold faster.
• Fixed asset turnover of one gas is 0.32 times in 2019 and 0.28 times in
2020 so there is 0.4% decreased of fixed asset turnover by one gas.
• In 2019, total asset turnover is 0.29 times and in 2020, total asset
turnover is 0.25 times. That means it decreased 0.4 times in 2020.
Liquidity ratio:
Ratio
2019
2020
Current Ratio
0.58 times
0.68 times
Quick Ratio
0.40 times
0.49 times
Liquidity levels are measurements used to assess an organization's ability to
pay off their short-term liabilities. We can see that Current Ratio and Quick
Ratio both increased from 0.58 times to 0.68 times and 0.40 times to 0.49
times.
Debt utilization ratio:
Ratio
Debt to Assets
2019
31.58%
2020
33.19%
Times interests earn
4.66 times
4.81 times
fixed charge coverage
1.39 times
1.49 times
• Debt to total assets ratio of one gas is 31.49% in 2019 and 33.19% in
2020. So,1.61% increase in 2020.
• Times interests earn ratio is 4.66 times in 2019 and 4.81 times in 2020
which means 0.15 increased in 2020.
• In 2019, fixed charge coverage is 1.39 times and in 2020, fixed charge
coverage is 1.49 times. That means 0.10 increased in 2020.