Tropical Hut

work CAPITAL Working capital is a pecker of fluidity of a business. It equals true assets minus legitimate liabilities. It is a beatnik of both a orders force and its short-run financial health. The caller-ups working capital during 2011 and 2010 ar -P61,608,166. 00 and -P48,921,660. 00 indicating that the beau mondes electric on-line(prenominal) liabilities argon to a greater extent than its current assets. It tells that the gild is expected to suffer from blandity crunch in near coming(prenominal) and that the business may non be equal to behave off its current liabilities when due. posture helplessness of the Company) LIQUIDITY RATIOS phone lines Status 2011 2010 Current proportionality 1 flunk 0. 831 0. 851 Quick proportionality 1 flunk 0. 371 0. 391 Liquidity proportions measure a business dissipateds magnate to advert maturing short obligations. Current balance measures the design to which a riotous can meet its short obligations. Durin g 2010, the Companys current balance is 0. 851 which indicates that the Companys current assets were non nice to pay its short obligations. During 2011, the Companys current ratio decreases to 0. 31 which indicates that its ability to pay its short-term obligations became worse (see tubercle 1 for computation). Quick ratio measures the extent to which a firm can meet its short-term obligations without relying upon the gross revenue of its inventories. During 2010, the Companys quick (or acid-test) ratio is 0. 391 which shows that its current assets less its inventory is not enough to meet its short-term obligations. During 2011, the Companys quick ratio decreases to 0. 371 which shows that its ability to meet its short-term obligations became worse (see lower 1 for computation).Therefore, tropical Hut Food Market, Inc as of celestial latitude 31, 2011 and 2010 is not liquid. LEVERAGE RATIOS maintains Status Ave of 20112010 Debt-to-Total-Assets ratio 2 posture 0. 56 Debt -to-Equity ratio 2 impuissance 1. 29 long-term Debt-to-Equity proportion 2 lastingness 0. 0007 Times-Interest-Earned Ratio 2 helplessness -19. 36 leverage ratios measure the extent to which a firm has been financed by debt. Debt-to-Total-Assets Ratio is the percentage of fit funds that atomic number 18 provided by addressors. The honest out Debt-to-Total-Assets Ratio during 2011 and 2010 is 56% (or 0. 61) which indicates that the Company is capable to meet outside obligations in full out of its own assets (see line of reasoning 2 for computation). Debt-to-Equity Ratio is the percentage of full funds provided by the creditors versus by owners. The honest Debt-to-Equity Ratio during 2011 and 2010 is 129% (1. 291). This means that for each peso of the telephoner owned by the sh beholders, the company owed 1. 29 to creditors. This high debt-to-equity ratio indicates that the Company was not able to fork over enough cashto satisfy itsdebtobligations (see berth 2 for comp utation).Long-Term Debt-to-Equity Ratio is the balance between debt and equity in a firms long-term capital structure. It expresses the stratum of protection provided by the owners for the long-term creditors. The comely Long-Term Debt-to-Equity Ratio during 2011 and 2010 is . 07% (or 0. 00071) which indicates that the Companys degree of leverage is low (see telephone line 2 for computation). Times-Interest-Earned Ratio is the extent to which payment can decline without the firm worthy unable to meet its annual enkindle addresss. The Companys Times-Interest-Earned Ratio is -19. 6 due to consecutive divisions of sack up loss which indicates that the Company was not able to meet its annual interest costs. drill RATIOS promissory notes Status 2011 2010 bloodline derangement 3 Weakness 8. 08 9. 38 Fixed Assets perturbation 3 Strength 10. 88 10. 19 Total Asset Turnover 3 Weakness 3. 06 3. 32 Accounts Receivable Turnover 3 Strength 77. 43 64. 01 total Collection Period 3 Strength 4. 71 5. 70 Activity ratios measure how effectively a firm is employ its resources. Inventory turnover rate ratio is employ to measure the inventory oversight cleverness of a business.The Inventory ratio for the socio-economic class 2011 and 2010 atomic number 18 8. 08 and 9. 38, respectively. The decreased in the Inventory Turnover ratio indicates that the company is ineffectual on controlling their inventory levels (see Note 3 for computation). The fixed-asset turnover ratio measures a companys ability to generate net sales from fixed-asset investments. The Ratios are 10. 88 and 10. 19 for the yr 2011 and 2010. The increase in the turnover ratio indicates that the company can generate more sales with its fewer assets which tell that the company is good because it is using its assets efficiently (see Note 3 for computation).The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. The ratios are 3. 06 and 3. 32 for the year 2011 and 2010. The decrease in the turnover ratio indicates that the company is not growing in its capacity (see Note 3 for computation). Accounts receivable turnover measures the efficiency of a business in aggregation its credit sales. The Accounts Receivable Turnover for the year 2011 and 2010 are 77. 43 and 64. 01, respectively.Increase in the accounts receivable turnover indicates improvement in the yett against of cash parade on credit sales of the company (see Note 3 for computation). Average collection period measures the average number of days that accounts receivable are big(p). The Average collection period for 2011 and 2010 are 4. 71 and 5. 70, respectively. The decreasing number of collection days indicates that the accounts receivable of the company is liquid and is being converted to cash right away compared to the previous year. PROFITABILITY RATIOS Notes Status 2011 2010 bring in derive strand (GPM) 4 Strength 30. 4% 28. 44% Operating Profit Margin (OPM) 4 Weakness -2. 90% -2. 21% Net Profit Margin (NPM) 4 Weakness -2. 48% -1. 75% harvest-festival on Total Assets (ROA) 4 Weakness -7. 59% -5. 80% Return on parcelholders Equity (ROE) 4 Weakness -18. 56% -12. 52% lolly Per Share 4 Weakness -19. 68% -15. 28% Profitability Ratio measure managements overall effectiveness as shown by the returns generated on sales and investment. staring(a) Profit Margin is the total gross net income available to cover operating expenses and recurrence a profit.During 2011 and 2010 the GPMs are 30. 24% and 28. 44% respectively which indicates that the company has a reasonable profit margin that it cannot cover up all of its expenses resulting to a net loss (see Note 4 for computation). Operating profit margin is the lucrativeness without concern for measurees and interest. The 2011 and 2010 OPMs are -2. 90% and -2. 21% respectively. Thus, indicating that the company has poor cost control and/or that sales are insufficient to c over up cos lettuce and expenses (see Note 4 for computation). Net profit margin is the profitability after tax and interest.The 2011 and 2010 NPMs are -2. 48% and -1. 75% respectively. This shows that the sales of the company is decreasing with a poor management of expenses (see Note 4 for computation). Return on total assets an exponent of how profitable a company is copulation to its total assets. The 2011 and 2010 ROAs are-7. 59% and -5. 80% respectively. Thus management is inefficient in using its assets to generate dough (see Note 4 for computation). Return on Shareholders Equity measures a corporations profitability by revealing how some(prenominal) profit a company generates with the notes shareholders have invested.During 2011 and 2010 the ROEs are -18. 56% and -12. 52% respectively. Thus, indicating that the company is not generating profit by the investment of the shareholders but instead incurring a loss. Earnings Per Share is the lolly per each outstanding share. The 2011 and 2010 EPS are -19. 68% and -15. 28% respectively. Since EPS in considered as one of the factors that an investor considers, it implies that issuance of shares result not generate more funds thus, less attractive (see Note 4 for computation). GROWTH RATIOS Notes Status Ratio harvesting Ratio on Sales 5 Weakness -13. 13% Growth Ratio on Net Income 5 Weakness * -20. 06% Growth Ratio on EPS 5 Strength 22. 26% Growth Ratio on Dividends Per Share 5 Weakness -3. 502% Growth ratio indicates the amount by which a variable increases over a given period of time as a percentage of its previous value. The addition ratios for Sales, Net income, Earnings Per Share, Dividends per Share are -13. 13%, -20. 06%, 22. 26% and -3. 502% respectively. Growth range are one of the factors that investors consider in order to extend their resources to generate future(a) cash flows.It indicates that the companys sales, wages have not grown that would befool its firm value less attractive. A lso, it evaluates that the company was not performing good enough in order to generate sales, lettuce and returns, hence, occurring losses as resulted. Based on the computation of Growth Ratio on EPS, though it has been reported through financial statements that the sales and income have weaken, still it indicates that the earnings through issuance of shares increases over time. (see Note 5 for computation).