Liquidity Analysis

Figure No. : Current Ratio

7
6

6.09

5
4
3
1.79
2
1.39
1
0
2013

1.84

1.94

Current Ratio
Industry
Average's
Current Ratio

1.51
2014

2015

FLCs Current ratio had suddenly risen to 6.09 in 2014 compared to 1.39 of 2013 showing a
positive sign of liquidity. It can be said that the company easily to meet current obligations in
that period. However, Current Ratio dropped significantly to 1.94 in 2015 but still satisfies the
required ratio nearly 2:1 for good health of the company.

Figure No. : Quick Asset Ratio

6.02

6
5
4
3
2
0.8
1.26
1
0
2013

1.68

0.81

0.75

2014

2015

Quick Asset
Ratio
Industry
Average's
Quick Asset
Ratio

Equivalent to Current ratio, Quick Asset Ratio had rocketed from 1.26 to 6.02 between 2013
and 2014 then fallen down to 1.68 in 2015. This indicates that FLC has more difficulties in
meeting its obligations. However, the Quick Ratio still satisfies the minimum required ratio for a
good health of a real estate company.

Figure No. : Cash Flow Ratio

Cash Flow Ratio

0.5

0.35

0
2013
-0.5
-1
-1.5

0.11
2014
-0.97

2015

Cash Flow
Ratio

Cash Flow Ratio was negative in 2014 at -0.97 then rise to 0.11 in 2015, which measures that
the company is on the way to cover its current debts more easily. This is a good sign of company
financial health.
In short, FLCs Liquidity show a big gap compared to the industry average in 2013. However, we
can say that the Liquidity is good, showing that the company has enough resources on hand to meet
obligations.

Market Performance
Figure No. : Earnings Per Share

4.5
4
3.5
3
2.5
2
1.64
1.28
1.5
1
0.5
0
2013

4.1
3.38
1.93
1.96

2014

Earnings Per
Share
Industry
Average's
Earning Per
Share

2015

Earnings Per Share (EPS) was 1.28 in 2013 and lightly increased to 1.96 in 2015. This may be
due to the increase in net profit at more than 9 times between 2013 and 2015. Moreover, the
number of shares also increased but at lower rate compared to its net profit in this period.
In short, FLCs EPS is much lower than industry averages EPS showing that the earning
rate of FLC is losing it power compared to most companies in same industry.

Figure No. : Price Earnings Ratio

Price Earnings Ratio

8
6.85
6

5.66

4.04

Price Earnings
Ratio

2
0
2013

2014

2015

Price Earnings Ratio (PER) in 2013 reached highest rate at 6.85 and suddenly fall to 5.66 in
2014 and 4.04 in 2015. The explanation could be that EPS in analyzing period increased while
there was a light rise on market price. This shows that the investors are less likely to pay more
time to gain their returns.