Fixed Assets Turnover Ratio The fixed asset turnover ratio is a metric that measures how effectively a company
generates sales using its fixed assets. There's no ideal ratio that's considered a
benchmark for all industries. Instead, investors should compare a company's fixed asset
turnover ratio to those of other companies in the same sector. If a company has a higher
fixed asset turnover ratio than its competitors, it shows the company is using its fixed
assets to generate sales better than its competitors.
In 2020,fixed asset turnover ratio = Net Sales / Net Fixed Assets
= 34,679.6 /7,882.8
=4.399
In 2019 fixed asset turnover ratio = Net Sales / Net Fixed Assets
=34,705.8/5,380.6
=6.450
Interpretation :
Here It indicates that a DBBL does not using its assets effectively or to its full potential to
generate revenue from 2019 to 2020 .
Total Assets Turnover ratio
The asset turnover ratio measures the value of a company's sales or revenues relative to
the value of its assets. The asset turnover ratio can be used as an indicator of the
efficiency with which a company is using its assets to generate revenue.
The higher the asset turnover ratio, the more efficient a company is at generating revenue
from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is
not efficiently using its assets to generate sales.
In 2019 Total Assets Turnover ratio = Net Sales / Total Net Assets
=34,679.6/472,355.4
=0.07
In 2019 Total Assets Turnover ratio = Net Sales / Total Net Assets
=34,705.8 /390,362.0
=0.088
Interpretation :
Here, The ratio measures that from 2019 to 2020 , DBBL effectively using their assets to
generate sales.
Debt ratio
The debt ratio is a financial ratio that measures the extent of a company’s leverage. The
debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or
percentage. It can be interpreted as the proportion of a company’s assets that are
financed by debt.
In 2020, Debt ratio = (Total Debt / Total Assets) * 100
=273,382.9/472,355.4 * 100
=0.57 *100
=57 %
In 2020, Debt ratio = (Total Debt / Total Assets) * 100
=256,239.7/ 390,362.0 * 100
=0.65 *100
=65%
Interpretation :
Here,generally less than 100% indicates that a company has more assets than debt.
From 2019 to 2020 DBBL’s Debt ratio is under 100% so it shows that ot has more assets
than debt
Return on Assets
Return on assets is a profitability ratio that provides how much profit a company is able
to generate from its assets. In other words, return on assets (ROA) measures how
efficient a company's management is in generating earnings from their economic
resources or assets on their balance sheet.
ROA is shown as a percentage, and the higher the number, the more efficient a
company's management is at managing its balance sheet to generate profits.
In 2020 ROA = Net Income/Total Assets * 100
= 5498.7/472355.4 * 100
=1.16 %
In 2020 ROA = Net Income/Total Assets * 100
= 4341.0 /390362 * 100
= 1.11%
Interpretation :
Here Higher ROA indicates more asset efficiency.Higher ratio is more favorable because
it shows that the company is more effectively managing its assets to produce greater
amounts of net income. A positive ROA ratio usually indicates an upward profit trend as
well.
By comparing of DBBL ROA of 2019 and 2020 it shows that 2020 year generated more
profits per dollar of assets than in 2019 .
Return on Equity
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company’s
assets minus its debt, ROE is considered the return on net assets. ROE is considered a
measure of a corporation's profitability in relation to stockholders’ equity. Return on equity
(ROE) measures a corporation's profitability in relation to stockholders’ equity.Whether
an ROE is considered satisfactory will depend on what is normal for the industry or
company peers.
In 2020 ROE = Net Income/Total common equity * 100
= 5498.7/32256.7 * 100
=17.04 %
In 2019 ROE = Net Income/Total common equity * 100
= 4341/27443.3 * 100
=15.81 %
Interpretation :
Here ,ROE measures profit as well as efficiency. A rising ROE suggests that a company
is increasing its profit generation without needing as much capital. It also indicates how
well a company's management deploys shareholder capital. A higher ROE is usually
better while a falling ROE may indicate a less efficient usage of equity capital.
So the ROE of DBBL in 2020 is higher than in 2019 it clearly shows that DBBL efficiently
using the money from shareholders to generate profits and grow the company.