4. As consider with F.T. Sales financial ratio comparison
- Current and Quick ratio is very low when compare with their business who always receive cash.
- Avg Payment Period ratio of Y12 and Y11 jump from 21 days to more than 100 days that it measures their efficiency of debt collection was decreased.
- Account Payable Turnover ratio of Y12 and Y11 was reduced from 17% to 3% that it measures they has been credited by the creditor at a lower rate.
- Their Net Profit Margin for 5 year ago were very low.
- Their Debt to Equity continuous increase that it measures their capital structure is supported by debt increase.
The important ratio do not support my approval customer credit limit at 2 mb.