Financial Ratios of Siam City Cement Public Company Limited (SCCC) as of December 31, 2011

LIQUIDITY RATIOS:
Current Ratio Quick Ratio Average Collection Period Accounts Receivable Turnover Age of Inventory Average Payment Period 1.43 0.80 41.92 8.71 63.38 48.14

SOLVENCY RATIOS:
Solvency Ratio Debt-Equity Ratio Times interest earned ratio 2.84 0.54 21.49

ACTIVITY RATIOS:
Property and Equipment Turnover Asset Turnover 1.64 0.79

PROFITABILITY RATIOS:
Net Profit Margin Return on Total Assets Return on Owner's Equity Earning per Share Price/earnings ratio 14.58% 11.58% 17.70% 12.06 21.39

According to liquidity ratios of Siam City Cement, we have found that the average collection period of 42 days is less than the average payment period of 48 days, or it is about one week delayed for cash disbursements to their suppliers after they have received cash from their customers. However, we have also found that the age of inventory is 64 days which is not quite good for company to hold inventory longer than two months. This will be an opportunity for our company to manage inventory and stock it for less than 60 days, though it is more challenging.

According to solvency ratios of Siam City Cement, we have found that their debt to equity ratio is 0.54 which less than 1.00, thus it can be implied that they have high capability for paying back debt without any troubles and it is highly favourable to receive financial support from financial institutions.

According to activity ratios of Siam City Cement, we have found that their property and equipment turnover is 1.64, thus it can be implied that they used less amount of net fixed assets to generate sales within a year which is quite good. However, we have also found that their asset turnover is 0.79 and it is not quite good for the company, then we explore it further and found that there is 63.59% increased in Intangible Assets between 2010 and 2011 which might be the reason behind this excessive amount of total assets.

According to profitability ratios of Siam City Cement, we have found that their financial status is quite healthy since they could generate 14.58% of net profit margin, 11.58% of return on assets, and 17.70% of return on owner's equity. Its price earning per share is THB 12.06 while P/E ratio is 21.39 according to its market price per share of THB 258.00 as recorded on 30 December 2011. (Bloomberg)

SCCC's SET index (2008-2012)

On 4 December 2008, company's SET index has hit the lowest point and closed at THB 102.00 per share which might be referred to the worst economic scenario in Thailand during that period, due to the political turmoil and airport closure by yellow-shirt protesters between 25 November 2008 and 3 December 2008.

On 30 December 2008, company's SET index has been closed at THB 134.00 per share which was quite low if we compare with its market price at the beginning of 2008 that was recorded higher than THB 250.00 per share.

On 30 December 2011, company's SET index has been closed at THB 258.00 per share. Therefore, we could assume that Thailand are now experiencing an upturn in the economy after we had entered into the political chaos during 2008 and 2009.

On 16 October 2012, company's SET index has been closed at THB 416.00 per share which signal an improvement in the economy. The growth in cement industry for last three years keep rising as referred to SCCC's SET index (2008-2012) which was recorded below THB 150.00 per share at the end of 2008 and it was recorded higher than THB 400.00 per share in October 2012. As we said earlier that there was a political turmoil in Thailand between mid of 2008 and mid of 2009, which also interrupted cement industry and Siam City Cement could not avoid such impact. This can be emphasized that Thailand's economy is booming and thus it is also providing some benefits for cement industry in Thailand which most of the time would go parallel to economic situations whether it was in flourish or recession period.