7. Liquidity Description Current Ratio (Times) Quick Ratio (Times) Cash flow Liquidity Ratio (Times) Account Receivable Turnover Ratio (Times) Average Collection Period (Days) Inventory Turnover Period (Days) Average Payable Period (Days) Cash Cycle (Days)
As at December 31, 2013
As at December 31, 2012
1.39 0.63 0.52 8.23 44 20 18 46
1.69 0.79 1.04 8.30 43 22 16 49
•�
8.
The Group’s current ratio as at December 31, 2013 was 1.39 times, a decrease from end of year 2012, due to the increase in current assets of 22.48 percent and increase in current liabilities of 48.49 percent. The quick ratio was 0.63 times, a decrease from end of year 2012, due to the increase in inventory by 25.91 percent and the cash flow liquidity ratio was 0.52 times, a decrease from end of year 2012, due to the decrease in cash from operating activities from the previous year by 33.61 percent. •� The Group’s cash cycle as at December 31, 2013 was 46 days, a decrease from end of year 2012 by 3 days, due to increase of average payable period of 2 day and decrease in inventory turnover period of 2 days but average collection period increased by 1 day. Borrowing and Debt Payment Capability Description
Total Debt to Equity Ratio (Times) Interest Coverage Ratio (Times) Debt Service Coverage Ratio (Times)
•�
•�
As at December 31, 2013
As at December 31, 2012
0.84 14.16 4.11
0.64 112.53 10.65
The Group’s total debt to equity ratio as at December 31, 2013 was at 0.84 times, an increase from end of year 2012 due to the increase in total liabilities from end of 2012 of 35.65 percent but there was a increase in shareholders’ equity from end of 2012 of 2.74 percent, and the interest coverage ratio was at 14.16 times, decrease from end of 2012 due to the decrease in cash from operating activities from the previous year of 33.61 percent but there was an increase in loan interest from the previous year. The Group’s debt service coverage ratio decreased from 10.65 times as at end of year 2012 to 4.11 times as at December 31, 2013, due to a decrease in EBITDA from end of year 2012 of 2.69 percent, increase in long-term loan and financial lease liabilities due within one year of 122.12 percent and increase in loan interest payment.
Business Trend in Year 2014
Business trend in year 2014 still faces the political risk factor causing the consumers to lose confidence and hold back investments in the property sector. Moreover, the problem with falling price of rubber causing growers to lose spending power affecting domestic construction materials market to slow down; therefore, the Company shall focus on sales to neighboring countries where the markets are still growing.
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