Maverik, Ltd reports the following financial information as of, or for the year
ID: 2499140 • Letter: M
Question
Maverik, Ltd reports the following financial information as of, or for the year ended, March 31, 2013. Maverik reports its financial statement in both Japanese yen and US dollars as shown (amounts in millions).
Current Asset Yen 1,192,250 $ 12,683,516
Total Assets 1,447.878 15,402,966
Current Liabilities 194,475 2,068.887
Net Sales 635,422 6,759.818
Net Income 7,099 75,527
1) compute current ratio, net profit margin, and sales-to-total-assets using financia information reported in Yen and dollars. Round amount to two decimals
2) What can we conclude from a review of the result fro part one?
Explanation / Answer
Maverik Limited 31st March 2013 Details Yen Dollar Current Asset 1,192,250 12,683,516 Current Liabilities 194,475 2,068,887 Total Assets 1,447,878 15,402,966 Net Sales 635,422 6,759,818 Net Income 7,099 75,527 Current ratio ('=current assets / current liabilities) 6.13 6.13 Net Profit Margin (%) ('= Net income/Sales revenue) 1.12 1.12 Sale to Total Assets ('= Sales or Revenues / Total Assets) 0.44 0.44 As regards the currency is concerned, there is no difference in the ratios of Yen and Dollar. Looking at the above ratios it looks that: Current ratio from the above finacials is positive meaning thereby that the current assets are quite-enough to cover the current liabilities. Net profit margin for the company is quite low at 1.12% of Sales. the assets of the company for not efficiently utilised i.e. the Asset turnover or Sales to Total assets is 0.44.