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Total Asset Turnover Ratio

Year

2012

2013

2014

KBC

2.39%

7.93%

8.19%

FLC

73.19%

83.01%

38.19%

17%

20%

24%

Industry

Total Asset Turnover Ratio


90.00%
80.00%

83.01%
73.19%

70.00%

KBC

60.00%

FLC

50.00%

38.19%

40.00%
30.00%
10.00%

8.19%

7.93%

2.39%

24%

20%

17%

20.00%

Industry

0.00%
1

Interpretation:
It is clear from the chart the Total Assets Turnover Ratio of KBC is much lower than
average of the Real Estate industry. That means the using of company assets in business
operations inefficient compared with the industry average. In the contrast, Total Assets
Turnover Ratio of FLC is much higher than the industry average. This means the using of
company assets much more efficiently than many of the competitors in the industry.
For KBC, from 2012 to 2013 ratio is increased because of companys total assets is
increased by 14.89%, but sales is increased by 281.3%, so the ratio is increased by about
3.3 times. And, in 2014 it is increased to 8.19% because sale decreasing by 0.35% and
Total Assets decreasing by 3.57%.
For FLC, the ratio is increased from 73.19% in 2012 to 83.01% in 2013 due to the
increasing by 12.21% in Sales and the decreasing by 1.07% in Total Assets. Although the

Sales increased by 18.32%, the ratio still reduced to 38.19% because of Total Assets
increasing by 157.21%.
1.1.1 Net fixed asset turn over
2012

Year

2013

2014

KBC

12.82%

42.19%

44.55%

FLC

183.60%

156.66%

113.84%

43.3%

48.6%

52.8%

Industry
200.00%
180.00%
160.00%
140.00%
120.00%

KBC

100.00%

FLC
Industry

80.00%
60.00%
40.00%
20.00%
0.00%
1

Interpretation:
It is clear that the Net Fixed Asset Turnover Ratio of KBC is lower than industry
averages because of its fixed assets are quite high. And the ratio of FLC is much
higher than the average of industry. It indicates that the FLC maximizes the use of
its fixed assets to earn profit in the business so that whatever amount is invested by
company in fixed asset, gives maximum productivity which helps to increase sales
as well as profit.
The ratio of Net Fixed Asset Turnover of KBC is continuously increasing up by the
time from 2012 to 2014. It's the same tendency with the industry average. Net Fixed
Assets Turnover Ratio is increasing year by year because of Sale is increasing

continuously. By contrast, for FLC, it is fell dramatically from 183.60% in 2012 to


113.84% in 2014 due to the Total Fixed Assets was increasing year by year.
1.1.2 Inventory turnover ratio
Year

2011

KBC

2012

0.059

FLC

2013

0.027

0.032

2014

0.079

0.003

0.059

0.064
0.025

Inventory Turnover Ratio


0.090

0.079

0.080
0.070
0.060

0.059

0.059

0.064

KBC
FLC

0.050
0.040

0.032

0.030

0.027

0.025

0.020
0.010

0.003

0.000
1

KBC

6,107.3

13,373.6

4,529.
4

5,642.5

FLC

11,104.
60

133,284.
26

6,078.
16

14,154.
78

1.1.3 Account Receivable Turnover Ratio


Year

2012

2013

2014

KBC

38.31%

11.16%

21.33%

FLC

566.16%

294.20%

16.83%

Receivable Turnover Ratio


5.66

6.00
5.00
4.00

KBC
2.94

3.00
2.00
1.00

2.00

1.00

0.38

0.11

FLC

3.00

0.210.17
2

Iterpretation:
Account Receivable turnover indicates how quickly the company can collect
its credit sales revenue. The ratio of KBC is much lower, so that the
companys collection of credit sale is efficient.
Here the ratio of FLC is continuously decreasing, so that the companys
collection of credit sales is efficient management is improved its collection
period every year so it shows that the management have an ability to collect
its money from his debtors.
The Du-Pont table
Company

Ratio
ROE

KBC

2012

2013

2014

-10%

2%

6%

Net Profit Margin

-173%

8%

32%

Total Assets Turnover Ratio

2.39%

7.93%

8.19%

ROE

14%

8%

5%

Net Profit Margin

2%

8%

22%

73.19%

83.01%

38.19%

Financial Leverage

FLC

Total Assets Turnover Ratio


Financial Leverage