Page 49

computer server system was upgraded to support the business expansion, resulting in cash outflows by 102.03 million Baht. - dividend received from subsidiaries increasing by 39.42 million Baht compared with 2003. Cashflows from financing activities: In 2004, cashflows generated from financing activities was 686.80 million Baht, compared to 266.02 million Baht in 2003 because during 2004 :- the Company borrowed short-term loan from bank amounting to 495 million Baht for using as working capital; - the Company borrowed long-term loan from bank amounting to 395 million Baht for investment in UFC; - the Company repaid long-term loan amounting to 92.50 million Baht; - during 2004, the Company paid interim dividend decreasing by 38.29 million Baht from 2003. 14.1.4 Financial ratios - Current Ratio: Down from 1.74 times in 2003 to 1.24 times in 2004 due to the Company’s current liabilities increasing by 94.12% whereas current asset up only 37.70%. The major increase in current liabilities was accounted by 495-million-Baht short-term loan from bank increasing from 2003. The fund was used as working capital to purchase raw material. Under the consolidated financial statements, the ratio was 1.33 times in 2004. - Quick Ratio: Down from 0.66 times in 2003 to 0.50 times in 2004 as quick assets in 2004 increased in term of percentage less than the current liabilities. Current liabilities increased by 94.12% by shortterm loan from bank while quick assets increased by 47.06% mainly from trade accounts receivable at the year-end. Under the consolidated financial statements, the ratio was 0.52 times in 2004. - Return on total assets: Down from 12.47% in 2003 to 5.70% in 2004, as the Company decreased its net profits by 38.15%, while total assets increased by 40.13%. - Return on total equity: Down from 17.85% in 2003 to 10.74% in 2004, due to the 38.15% decrease of net profits and the only 1.83% increase of shareholders’ equity (net of treasury stock) from 2003. - Total debt to equity ratio: Increased from 0.58 times in 2003 to 1.18 times in 2004. The Company borrowed long-term loan from bank to fund its investment in UFC. In addition, short-term loan was also obtained as working capital to purchase raw material. Under the consolidated financial statements, the ratio was 1.37 times in 2004. 47

Lst 04  

LST_2004 LAM SOON (THAILAND) PCL Annual Report 2004

Lst 04  

LST_2004 LAM SOON (THAILAND) PCL Annual Report 2004

Advertisement