Executive Summary of Spritzer

This report leave alone be base on the Spritzer Group, one of the largest bottled wet producers in Malaysia (Spritzer, 2010). This report will nail an analysis and evaluation of Spritzer Group based on the annual reports which contains the financial statements of the last-place 5 long time from 2007 to 2011. The methods of analysis will be categorized in the important four financial ratios of the company which is to legal community the profitability, runniness, expertness and gear. The profitability ratios will tax how efficiently the company manages its operations and uses its summations to contribute net income.It consists of the profit margin, return on assets (ROA) and return on equity (ROE). The liquidity ratio which is also known as the short-term solvency focuses on the up-to-date assets and trustworthy liabilities, which is important to the short-term creditors, usually indoors a one year period. Hence, it comprises of the current ratio, quick ratio and curr ency ratio. The efficiency ratio is a measure of the asset management or turnover which is employ to identify how the assets atomic number 18 used to bugger off sales.It includes the inventory turnover, days sales in inventory, receivables turnover, days sales in receivables, centre asset turnover and capital intensity. The gearing ratio is also known as the long-term solvency which discusses on the companys long-run ability in enjoin to meet its requirements. It consists of the total debt ratio, debt-equity ratio, equity multiplier, quantify interest earned ratio and cash coverage ratio (Jordan, Westerfield and Ross, 2011).All of the calculations will be provided and can be found in this report. As follows, the results of the data analyzed shows that on a 5 year annualized basis, the ratios are most of the time in-line with the industry averages. In particular, some(prenominal) of the areas that have meliorated in comparative performance over the years are inventory turnove r, profit margin, ROA and ROE. period the areas which are not performing as well as well are the liquidity and gearing.Hence, some recommendations will include to reduce borrowings to emend the liquidity, to improve the days sales in receivable as it has been quite continual for the last 5 years and curse less on creditors and debt financing to improve the gearing. The report finds that the companys forthcoming will be capable of be stable as over the 5 years, it has been performing satisfactorily despite certain downfall in a few areas. As for the limitations, it will be notwithstanding discussed in the conclusion of the report.