WORKING CAPITAL Instituted elevated is a appraise of fluidity of a matter. It equals prevalent property minus prevalent liabilities. It is a appraise of twain a arrange's power and its short-term financial vigor. The Company’s instituted elevated during 2011 and 2010 are -P61,608,166. 00 and -P48,921,660. 00 indicating that the Company’s prevalent liabilities are past than its prevalent property. It decides that the arrange is expected to experience from fluidity crunch in adjacent advenient and that the matter may not be efficient to pay off its prevalent liabilities when due. Status: Weakness of the Company) LIQUIDITY RATIOS| | | | | | Notes| Status| 2011| 2010| Prevalent Ratio| 1| Weakness| 0. 83:1| 0. 85:1| Agile Ratio| 1| Weakness| 0. 37:1| 0. 39:1| Liquidity fitnesss appraise a strong’s force to confront maturing short-term obligations. Prevalent fitness appraises the size to which a strong can confront its short-term obligations. During 2010, the Company’s prevalent fitness is 0. 85:1 which indicates that the Company’s prevalent property were not abundance to pay its short-term obligations. During 2011, the Company’s prevalent fitness wanes to 0. 3:1 which indicates that its force to pay its short-term obligations became worse (see Note 1 for inference). Agile fitness appraises the size to which a strong can confront its short-term obligations extraneously relying upon the sales of its inventories. During 2010, the Company’s agile (or acid-test) fitness is 0. 39:1 which shows that its prevalent property hither its catalogue is not abundance to confront its short-term obligations. During 2011, the Company’s agile fitness wanes to 0. 37:1 which shows that its force to confront its short-term obligations became worse (see Note 1 for inference).
Therefore, Tropical Hut Food Market, Inc as of December 31, 2011 and 2010 is not fluid. LEVERAGE RATIOS| | | | | Notes| Status| Ave of 2011;2010| Debt-to-Total-Assets Ratio| 2| Strength| 0. 56| Debt-to-Equity Ratio| 2| Weakness| 1. 29| Long-Term Debt-to-Equity Ratio| 2| Strength| 0. 0007| Times-Interest-Earned Ratio| 2| Weakness| -19. 36| Leverage fitnesss appraise the size to which a strong has been financed by claim. Debt-to-Total-Assets Fitness is the percentage of entirety funds that are supposing by reputationors. The medium Debt-to-Total-Assets Fitness during 2011 and 2010 is 56% (or 0. 6:1) which indicates that the Arrange is capefficient to confront beyond obligations in liberal out of its own property (see Note 2 for inference). Debt-to-Equity Fitness is the percentage of entirety funds supposing by the reputationors versus by owners. The medium Debt-to-Equity Fitness during 2011 and 2010 is 129% (1. 29:1). This media that for perfect peso of the arrange owned by the portion-outholders, the arrange obligatory 1. 29 to reputationors. This elevated claim-to-equity fitness indicates that the Arrange was not efficient to engender abundance capital to satiate its debt obligations (see Note 2 for inference).
Long-Term Debt-to-Equity Fitness is the weigh between claim and equity in a strong’s long-term elevated edifice. It expresses the rate of refuge supposing by the owners for the long-term reputationors. The medium Long-Term Debt-to-Equity Fitness during 2011 and 2010 is . 07% (or 0. 0007:1) which indicates that the Company’s rate of leverage is low (see Note 2 for inference). Times-Interest-Earned Fitness is the size to which rights can discard extraneously the strong proper unefficient to confront its annual attention consumes. The Company’s Times-Interest-Earned Fitness is -19. 6 due to arranged years of net missing which indicates that the Arrange was not efficient to confront its annual attention consumes. ACTIVITY RATIOS| | | | | Notes| Status| 2011| 2010| Catalogue Turnover| 3| Weakness| 8. 08 | 9. 38| Fixed Property Turnover| 3| Strength| 10. 88| 10. 19| Entirety Asset Turnover| 3| Weakness| 3. 06| 3. 32| Accounts Receivefficient Turnover| 3| Strength| 77. 43| 64. 01| Medium Store Period| 3| Strength| 4. 71| 5. 70| Activity fitnesss appraise how effectively a strong is using its media. Catalogue turnbalance fitness is used to appraise the catalogue government power of a matter.
The Catalogue fitness for the year 2011 and 2010 are 8. 08 and 9. 38, respectively. The waned in the Catalogue Turnbalance fitness indicates that the arrange is fragile on coerceling their catalogue levels (see Note 3 for inference). The fixed-asset turnbalance fitness appraises a arrange's force to engender net sales from fixed-asset boardings. The Ratios are 10. 88 and 10. 19 for the year 2011 and 2010. The extension in the turnbalance fitness indicates that the arrange can engender past sales delay its fewer property which decide that the arrange is cheerful consequently it is using its property efficiently (see Note 3 for inference).
The entirety asset turnbalance fitness appraises the force of a arrange to use its property to efficiently engender sales. The fitnesss are 3. 06 and 3. 32 for the year 2011 and 2010. The wane in the turnbalance fitness indicates that the arrange is not growing in its calibre (see Note 3 for inference). Accounts receivefficient turnbalance appraises the power of a matter in collecting its reputation sales. The Accounts Receivefficient Turnbalance for the year 2011 and 2010 are 77. 43 and 64. 01, respectively.
Increase in the accounts receivefficient turnbalance indicates increase in the arrange of capital store on reputation sales of the arrange (see Note 3 for inference). Medium store continuance appraises the medium sum of days that accounts receivefficient are ungathered. The Medium store continuance for 2011 and 2010 are 4. 71 and 5. 70, respectively. The decreasing sum of store days indicates that the accounts receivefficient of the arrange is fluid and is being converted to capital agilely compared to the prior year. PROFITABILITY RATIOS| | | | Notes| Status| 2011| 2010| Gross Gain Latitude (GPM)| 4| Strength| 30. 4%| 28. 44%| Unhindered Gain Latitude (OPM)| 4| Weakness| -2. 90%| -2. 21%| Net Gain Latitude (NPM)| 4| Weakness| -2. 48%| -1. 75%| Return on Entirety Property (ROA)| 4| Weakness| -7. 59%| -5. 80%| Return on Shareholders' Equity (ROE)| 4| Weakness| -18. 56%| -12. 52%| Rights Per Portion-out 4 Weakness -19. 68% -15. 28% Profitforce Fitness appraise government’s balanceall agency as shown by the gains engenderd on sales and boarding. Gross Gain Latitude is the entirety latitude availefficient to conceal unhindered expenses and bear a gain.
During 2011 and 2010 the GPM’s are 30. 24% and 28. 44% respectively which indicates that the arrange has a reasonefficient gain latitude but it cannot conceal up all of its expenses resulting to a net missing (see Note 4 for inference). Unhindered gain latitude is the gainforce extraneously sorrow for taxes and attention. The 2011 and 2010 OPM’s are -2. 90% and -2. 21% respectively. Thus, indicating that the arrange has scant consume coerce and/or that sales are scant to conceal up COS and expenses (see Note 4 for inference). Net gain latitude is the gainforce following tax and attention.
The 2011 and 2010 NPM’s are -2. 48% and -1. 75% respectively. This shows that the sales of the arrange is decreasing delay a scant government of expenses (see Note 4 for inference). Return on entirety property an indicator of how gaflabby a arrange is not-absolute to its entirety property. The 2011 and 2010 ROA’s are -7. 59% and -5. 80% respectively. Thus government is fragile in using its property to engender rights (see Note 4 for inference). Return on Shareholder’s Equity appraises a corporation's gainforce by revealing how ample gain a arrange engenders delay the capital portion-outholders entertain invested.
During 2011 and 2010 the ROE’s are -18. 56% and -12. 52% respectively. Thus, indicating that the arrange is not generating gain by the boarding of the portion-outholders but instead incurring a missing. Rights Per Portion-out is the rights per each ungathered portion-out. The 2011 and 2010 EPS are -19. 68% and -15. 28% respectively. Since EPS in pondered as one of the factors that an investor ponders, it implies that issuance of portion-outs obtain not engender past capital thus, hither interesting (see Note 4 for inference). GROWTH RATIOS | Notes| Status| Ratio| |
Growth Fitness on Sales| 5| Weakness| -13. 13%| Enlargement Fitness on Net Income| 5| Weakness| * -20. 06%| Enlargement Fitness on EPS| 5| Strength| 22. 26%| Enlargement Fitness on Dividends Per Share| 5| Weakness| -3. 502%| Enlargement fitness indicates the total by which a variefficient extensions balance a absorbed continuance of spell as a percentage of its prior appraise. The enlargement fitnesss for Sales, Net allowance, Rights Per Share, Dividends per Portion-out are -13. 13%, -20. 06%, 22. 26% and -3. 502% respectively. Enlargement Rates are one of the factors that investors ponder in arrange to spread their media to engender advenient capital flows.
It indicates that the arrange’s sales, rights entertain not aged that would fabricate its strong appraise hither interesting. Also, it evaluates that the arrange was not performing cheerful abundance in arrange to engender sales, rights and gains, future, occurring missinges as resulted. Based on the inference of Enlargement Fitness on EPS, though it has been reputed through financial statements that the sales and allowance entertain attenuate, quiescent it indicates that the rights through issuance of portion-outs extensions balance spell. (see Note 5 for inference).