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Comparing with Previous Years

1.Current Ratio: | | | | | | | | | | | | Years | 2007 | 2008 | 2009 | 2010 | 2011 | Current Ratio | 1.34 | 1.26 | 1.42 | 1.47 | 1.57 |

We Can See That Current ratio is increasing gradually. It is good to have a gradually higher value than previous. So, the company is in a better condition than previous.

2.Quick Ratio: | | | | | | | | | | | | Years | 2007 | 2008 | 2009 | 2010 | 2011 | Quick Ratio | 0.97 | 0.80 | 1.00 | 0.92 | 1.17 |

We can see that quick ratio is increasing gradually. It is good to have a gradually higher value than previous. So, they have more liquidity than from previous and they are in a good condition than previous years.

3. Inventory Turnover:

Years | 2007 | 2008 | 2009 | 2010 | 2011 | Inventory Turnover | 3.39 | 2.04 | 3.55 | 2.19 | 3.38 |

As we can see, inventory turnover going down in 2008 but over the year it’s quite stable.

4. Average Collection Period (ACP):

Years | 2007 | 2008 | 2009 | 2010 | 2011 | Average Collection Period (ACP) | 198.36 | 228.89 | 198.86 | 190.75 | 188.10 |

In ACP we can see in 2008 the debtors are being allowed a high amount of time to pay back the money 228.89 days but through the year it’s going down. In 2011 it becomes 188.10 days.

5. Average Payment Period (APP):

Years | 2007 | 2008 | 2009 | 2010 | 2011 | Average Payment Period (APP) | 356.42 | 483.66 | 311.02 | 369.36 | 304.83 |

In APP it shows that in 2008 the creditors of the company are allowing us more time to pay back the money than the other years.

6. Total Asset Turnover:

Years | 2007 | 2008 | 2009 | 2010 | 2011 | Total Asset Turnover | 0.69 | 0.53 | 0.70 | 0.67 | 0.73 |

The highest Total Asset Turnover of the company is 0.73 in 2011. This indicates that for every Tk.1 of assets invested in the business, Square is earning tk.0.73 of sales revenue. These show

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