public sector accounting Article

Financial Performance

The table beneath shows that the analysis of financial ratios. Types of Ratio

Sub Rate

Perbadanan Kemajuan Negeri Kedah (PKNK)

Syarikat Air Darul Aman (SADA)

Liquidity Percentage

Current Proportion

2 . 19 times


Quick Ratio

2 . 04 times


Cash Rate

0. 343 times


Efficiency Rate

Working Capital

RM 189, 278, 871

RM 120, 434, 000

Products on hand Turnover

1 ) 3 times


Total Possessions Turnover

zero. 078 instances



Profit Margin

36. 8%

7. 94%

Operating Perimeter

45. 32%

10. 62%

Return on Assets (ROA)

2 . 95%

2 . 74%

Return upon Invested Capital (ROIC)

54. 08%


Solvency Proportion

Total Financial debt Ratio

thirty-two. 16%


Based on our analysis we all found that both businesses, Perbadanan Kemajuan Negeri Kedah (PKNK) and Syarikat Atmosphere Darul Tenang (SADA) use financial efficiency measurement. Pertaining to PKNK, each uses all the technique in financial efficiency measurements which can be budgeting, monetary reporting and financial proportion analysis. Yet , for UPRAVO SADA we do not obtain enough information as their financial record is secret. We gain some details from the internet site, but it remains not sufficient. Hence, we just consider that SADA only work with financial confirming and financial ratio analysis to evaluate their efficiency. In fluid ratio, we all only have information concerning PKNK. Pertaining to current proportion and speedy ratio, this shows that PKNK has good liquidity regarding their current assets in order to meet their current liabilities. Nevertheless , in money ratio, PKNK does not have enough cash in order to pay their liabilities in the short term period. That shows that the organization not in a good term.

Moreover, in efficiency rate, both PKNK and UPRAVO SADA working capital are RM 189, 278, 871 and RM 120, 434, 000. That shows that PKNK is better than UPRAVO SADA in the facet of operating fluid even though equally show positive working capital. Besides, a high inventory turnover rate of PKNK is a signal of industry�s management effectiveness. Furthermore, pertaining to total resources turnover, that shows...

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