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Pages: 14
Category: Business and Industry
Date Submitted: 07/28/2015 11:32 AM
FINANCIAL STATEMENT ANALYSIS
OF CWT LIMITED
Page 1 of 36
CONTENT
PAGE
1. EXECUTIVE SUMMARY
4
2. INTRODUCTION
4
3. COMPETITORS AND MARKET CONDITIONS
5
4. KEY ELEMENTS OF FINANCIAL PERFORMANCE
6
5. FINANCIAL STATEMENT OVERVIEW
7
6. CRITICAL ANALYSIS OF CWT LIMITED'S FINANCIAL STATEMENTS
8
6.1 Liquidity Ratios
8
6.1.1 Current Ratio
8
6.1.2 Quick Ratio
9
6.1.3 Absolute Liquid Ratio
10
6.1.4 Current Cash Debt Coverage Ratio
11
6.2 Solvency Ratios
12
6.2.1 Debt to Equity Ratio
12
6.2.2 Fixed Assets to Equity Ratio
13
6.2.3 Current Assets to Equity Ratio
14
6.2.4 Proprietary Ratio
15
6.3 Activity Ratios
16
6.3.1 Inventory Turnover Ratio
16
6.3.2 Receivables Turnover Ratio
17
6.3.3 Average Collection Period
18
6.3.4 Asset Turnover Ratio
19
Page 2 of 36
6.4 Profitability Ratios
20
6.4.1 Net Profit Ratio
20
6.4.2 Gross Profit Ratio
21
6.4.3 Operating Ratio
22
6.4.4 Operating Profit Ratio
23
6.5 Market Position Analysis Ratios
24
6.5.1 Dividend Payout Ratio
24
6.5.2 Dividend Yield Ratio
25
6.5.3 Price Earnings Ratio
26
6.5.4 Price to Book Value Ratio
27
7. LIMITATIONS OF REPORT
28
8. CONCLUSION
28
9. OUR RECOMMENDATION
29
10. LIST OF REFERENCES
30
11. ANNEXES - INCOME STATEMENT, BALANCE SHEET AND
CASH FLOW STATEMENT OF CWT LIMITED
Page 3 of 36
34
1. Executive Summary
The financial performance of CWT Limited for the last five years, from year 2010 till
2014, will be critically analysed in this report. CWT Limited is a leading provider of
integrated logistics and supply chain solutions. Its key competitor is Neptune Orient
Lines Limited (Hoover’s, 2015) which has a long-standing influence in Asia since 1968.
A competitor analysis will be done for both companies based on the data from their
published financial statements. CWT Limited has...