6. MANAGEMENT’S DISCUSSION AND ANALYSIS OF BUSINESS PERFORMANCE
6.1 SIGNIFICANT FINANCIAL RATIOS OF CONSOLIDATED FINANCIAL STATEMENTS Ratio Unit 2007 2006 2005 Liquidity Ratio Current Ratio Times 1.84 1.55 1.75 Quick Ratio Times 1.20 0.95 1.12 Operating Cash Flows Ratio Times 0.42 0.50 0.69 Account Receivable Turnover Times 5.28 5.76 5.51 Average Collection Period Days 68.19 62.51 65.39 Inventory Turnover* Times 12.01 11.94 12.53 Inventory Turnover Days Days 29.97 30.16 28.72 Account Payable Turnover Times 5.56 5.93 6.22 Average Payment Period Days 64.75 60.75 57.91 Cash Cycle** Days 33.41 31.93 36.21 Profitability Ratio Gross Profit Ratio to Sales % 19.83 21.03 20.52 Operating Margin to Sales % 3.83 5.13 5.78 Non-operating Margin to Total Revenues % 0.85 0.96 0.79 Operating Cash Flows Margin % 250.37 218.86 269.74 Net Profit Ratio to Total Revenues % 3.11 7.39 5.58 Return on Equity % 3.48 8.28 5.75 Efficiency Ratio Return on Total Assets % 2.57 6.18 4.25 Return on Net Fixed Assets % 13.18 20.69 17.95 Total Assets Turnover Times 0.83 0.84 0.76 Financial Policy Ratio Debt to Equity Ratio Times 0.36 0.35 0.33 Interest Coverage Ratio Times 28.98 30.46 30.86 Operating Cash Flows Coverage Times 0.68 0.74 1.03 Dividend Payout Ratio % 78.17 58.24 59.36 * Only finished goods inventory (before allowance for net realisable value and allowance for obsolescence) is used for calculation. ** Average Collection Period + Inventory Turnover Days - Average Payment Period Remark : The Company has reclassified some accounting items used to calculate financial ratios of the year 2006 in order to be in line with the classification of accounting items for the year 2007. Eventhough the reclassification had no effect to net profit or shareholders’ equity as reported, financial ratios of the year 2006 presented above might be different from those disclosed in the Annual Report 2006.
Annual Report 2007 - As of December 31, 2007
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