Analysis of financial standing
Key financial and economic metrics:
|Liquidity and instant solvency ratios|
|Acid test ratio||0.76||0.60||0.75|
|Current liquidity ratio||0.82||0.63||0.79|
|Turnover and efficiency ratios|
|Receivables/Payables growth ratio||1.23||0.99||0.97|
|Total receivables/Total payables||1.06||0.87||0.87|
|Financial soundness ratios|
|Equity / Total Assets||0.57||0.54||0.53|
|Total Debt / EBITDA||1.06||1.64||1.67|
|Return on Equity (ROE)||9.15||7.23||6.24|
|Return on Total Assets (ROTA)||7.37||5.02||3.97|
Liquidity and instant solvency ratios
Liquidity ratios demonstrate how the Company can use current assets to discharge short-term liabilities. Acid test ratio as of 31.12.2016 totaled 0.76 (+ 0.16 pct YoY). Current liquidity ratio gained 0.19 YoY. Upward trend of the indicators is fueled by lowered short-term liabilities affected by redemption of the loan and borrowings.
Total receivables/Total payables ratio is 1.06, proving that the Company is able to perform its debt liabilities without losing its financial stability. Receivables/Revenues remained almost the same in comparison to 2015 and totals 11.4%.
Financial soundness indicators
Financial soundness indicators expose how a firm depends on borrowings and specify risk level for firm’s creditors. Equity/Total Assets ratio demonstrate how equity contributes to total assets. By the year-end there was little change in ratio (0.57). Total debt/EBITDA is an indicator of debt burden exposing how a firm can use operating cash flow to discharge its liabilities. By the year-end the ratio decreased 0.58 pct YoY. Upward trend of the indicator is fueled by reduced debt burden against increased EBITDA.
FY2016 Return on Equity and Return on Total Assets totaled 9.15% and 7.37% respectively. Upward trend is driven by enhanced performance.