FINANCIAL PERFORMANCE USING RATIO ANALYSIS

Moriza binti Fikri; Wan Mustaffa bin Wan Yusoff; Afandi bin Fikri

Moriza binti Fikri Politeknik Hulu Terengganu, Kuala Berang, Terengganu, Malaysia
Wan Mustaffa bin Wan Yusoff Politeknik Hulu Terengganu, Kuala Berang, Terengganu, Malaysia
Afandi bin Fikri Politeknik Hulu Terengganu, , Kuala Berang, Terengganu, Malaysia

Keywords: Financial Performance, Financial Manager, Financial Analysis, Ratio Analysis

Abstract

The greatness of an organization can be identified when its financial performance is strong from time to time. The financial manager often conduct financial analysis, especially financial ratios to analyze the evolution of the firm’s financial situation. This study focuses in evaluating the companies’ performance by using the ratio analysis methods of the Multi Level Marketing (MLM) Company. The methodology approach, which is based on the secondary data analysis of the financial statements for previous five years (2013 to 2017). The study concluded that the analysis of the financial statements for the MLM company leads to identify and explain the undesired extreme. Four types of financial ratio namely liquidity ratio, activity ratio, leverage ratio and profitability ratio were used. This study found that the financial position of the company is not satisfactory. Researchers also proposed a few strategies to improve the Company's financial ratios.