Current the current didn’t more than 1 which

Current ratio
represents an efficiency and liquidity ratio that measures the Group’s ability
to offset its current liabilities with its current assets. Every company would
likely to have a higher current ratio because it shows that the company can
more easily make current debt payments. In year 2014, Axiata Bhd current ratio
is 0.79:1. In year 2015, Axiata Bhd current ratio is 0.79:1. There got good
news and bad news, good news is this year current ratio same with last year
didn’t have too much change and the bad news is the current didn’t more than 1
which means Axiata Bhd didn’t have enough current assets to cover its company
current liabilities. In year 2016, Axiata Bhd current ratio is 0.53:1. The
ratio is worst than last year, this means that Axiata Bhd only has enough
current assets to pay off 53 percent of his current liabilities and it has a
critical problem in settled their current liabilities. If Axiata Bhd want to
borrow a loan from bank, their may cannot have approved from the bank, because
bank would prefer a current ratio of at least 1 or 2, so that all the current
liabilities would be covered by the current assets. At the end, Axiata Bhd may
need to sell off their non-current assets to have more cash and Axiata Bhd have
to give some pressure to their receivables in order to receive back their
money.

Debt ratio is a
solvency ratio that measures a company has enough ability to pay off its
liabilities with its assets. Companies that with higher ratio are considered as
highly leveraged and riskier for lenders, companies that with lower ratio are
more safety. In year 2014, Axiata Bhd debt ratio is 0.54:1. In year 2015,
Axiata Bhd debt ratio is 0.54:1. There is no need to compare with last year
because both year debt ratio is same, and company has enough assets to settle
all its liabilities. In year 2016, Axiata Bhd debt ratio is 0.59:1. There also
has good news and bad news, good news is that Axiata Bhd still have enough
assets to settle their company liabilities, bad news is this year debt ratio
increase 0.05 compare with last year, its means that Axiata Bhd has more debt
compared with last year. Axiata Bhd has to sell more assets to cover its
company liabilities. If Axiata Bhd want to borrow money from lenders or bank,
its shouldn’t have any problem getting approved for its loan, because Axiata
Bhd has enough ability to pay off its company debt.

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Equity ratio is
an investment leverage or solvency ratio that measures the company’s assets
financed by owners’ investments by comparing the total equity in the company to
the total assets. Generally, higher equity ratios are favourable for every
companies. A higher ratio shows that the company has potential creditors that
the company is more sustainable and less risky to lend future loans. In year
2014, Axiata Bhd equity ratio is 0.47:1. In year 2015, Axiata Bhd equity ratio
is 0.46:1. It shows that equity ratio of Axiata Bhd is decreasing and this a
bad situation for Axiata Bhd. In year 2016, Axiata Bhd equity ratio is 0.41:1.
Equity ratio of Axiata Bhd is continue decreasing, it means that Axiata Bhd
creditors are continue increasing is going to more than its shareholders.
Axiata Bhd now has more financing and debt service costs than companies with
high ratios.  

Current ratio
represents an efficiency and liquidity ratio that measures the Group’s ability
to offset its current liabilities with its current assets. Every company would
likely to have a higher current ratio because it shows that the company can
more easily make current debt payments. In year 2014, Axiata Bhd current ratio
is 0.79:1. In year 2015, Axiata Bhd current ratio is 0.79:1. There got good
news and bad news, good news is this year current ratio same with last year
didn’t have too much change and the bad news is the current didn’t more than 1
which means Axiata Bhd didn’t have enough current assets to cover its company
current liabilities. In year 2016, Axiata Bhd current ratio is 0.53:1. The
ratio is worst than last year, this means that Axiata Bhd only has enough
current assets to pay off 53 percent of his current liabilities and it has a
critical problem in settled their current liabilities. If Axiata Bhd want to
borrow a loan from bank, their may cannot have approved from the bank, because
bank would prefer a current ratio of at least 1 or 2, so that all the current
liabilities would be covered by the current assets. At the end, Axiata Bhd may
need to sell off their non-current assets to have more cash and Axiata Bhd have
to give some pressure to their receivables in order to receive back their
money.

Debt ratio is a
solvency ratio that measures a company has enough ability to pay off its
liabilities with its assets. Companies that with higher ratio are considered as
highly leveraged and riskier for lenders, companies that with lower ratio are
more safety. In year 2014, Axiata Bhd debt ratio is 0.54:1. In year 2015,
Axiata Bhd debt ratio is 0.54:1. There is no need to compare with last year
because both year debt ratio is same, and company has enough assets to settle
all its liabilities. In year 2016, Axiata Bhd debt ratio is 0.59:1. There also
has good news and bad news, good news is that Axiata Bhd still have enough
assets to settle their company liabilities, bad news is this year debt ratio
increase 0.05 compare with last year, its means that Axiata Bhd has more debt
compared with last year. Axiata Bhd has to sell more assets to cover its
company liabilities. If Axiata Bhd want to borrow money from lenders or bank,
its shouldn’t have any problem getting approved for its loan, because Axiata
Bhd has enough ability to pay off its company debt.

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For You For Only $13.90/page!


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Equity ratio is
an investment leverage or solvency ratio that measures the company’s assets
financed by owners’ investments by comparing the total equity in the company to
the total assets. Generally, higher equity ratios are favourable for every
companies. A higher ratio shows that the company has potential creditors that
the company is more sustainable and less risky to lend future loans. In year
2014, Axiata Bhd equity ratio is 0.47:1. In year 2015, Axiata Bhd equity ratio
is 0.46:1. It shows that equity ratio of Axiata Bhd is decreasing and this a
bad situation for Axiata Bhd. In year 2016, Axiata Bhd equity ratio is 0.41:1.
Equity ratio of Axiata Bhd is continue decreasing, it means that Axiata Bhd
creditors are continue increasing is going to more than its shareholders.
Axiata Bhd now has more financing and debt service costs than companies with
high ratios.  

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