Cwt Limited Financial Statement Analysis

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

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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

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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...