3.

0 INDUSTRY COMPARISONS ANALYSIS

60

50

40

2018
30 2017
2016
2015
20
2014

10

0
Current ratio Acid Test ratio Gross Profit Debt ratio Total Assets Fixed Assets
Margin turnover turnover

GRAPH 3.1 CARING PHARMACY RATIOS VALUES IN 2014 UNTIL 2018

16

14

12

10

8
2018
6
2017
4 2016
2015
2 2014
0

GRAPH 3.2 PARKSON HOLDINGS BERHAD RATIOS VALUES IN 2014 UNTIL 2018
Graph 3.1 shows the performance of the comparisons of Caring Pharmacy in five years. Based
on the current ratio for Caring Pharmacy is for 2014 is RM 2.30 decreasing to RM 1.80 in 2015
and rose again in 2016 and recorded RM 5.03 and RM 6.15 in 2017 and 2018 respectively.
Based on graph 3.2 the current ratio for Parkson Holdings Berhad in 2014 is RM 2.73 dropped
to RM1.22 in 2015 and down again at RM 1.13 in 2016 but up to RM 1.24 and down to 1.17 in
2017 and 2018. This shows that Parkson Holdings Berhad is less efficient in managing its short-
term debt than its competitor. This is because, Parkson Holding Berhad is less liquid because its
current ratio is slightly lower compare to Caring Pharmacy.

For the Acid test ratio, Caring Pharmacy recorded RM -1.70 in 2014 increase to RM -4.07 in
2015 decreasing in the three years later, 2016,2017 and 2018 which is RM -3.5 , RM -1.96 and
RM -1.84 respectively while for Parkson Holding Berhad recorded RM 2.04 in 2014 decreased
to RM1.12 and 0.95 in 2015 and 2016. In 2017 the firm have recorded RM -4.34 dropped
drastically to RM -1.74 in 2018. This shows that Caring Pharmacy has higher ratio compared to
Parkson Holding Berhad which is get low ration. This is means Caring Pharmacy has greater
liquidity in current asset such as inventory.

However, for gross profit margin, Caring Pharmacy recorded 0.24% in 2014 decreasing to 0.20%
in 2015 and the value fall again in 2016 which 0.19% and maintain the value in 2017 and 2018
which is 0.20% and 0.21% respectively while Parkson Holding Berhad recorded 0.16% in 2014
slightly dropped to 0.10% and 0.08% in 2015 and 2016. It increased again to 0.10% but down
again at 0.08% in 2017 and 2018. This shows that Caring Pharmacy is more efficient at creating
product and providing a serviced compare the Parkson Holdings Berhad. This is because the
percentage of Caring Pharmacy get slightly up over the years.

Caring Pharmacy debt ratio in 2014 is RM 0.41 slightly increase to RM 0.45 in 2015 and
maintain the value for the next three years which is RM 0.43, RM 0.4 and RM 0.42 for 2016,
2017 and 2018. For Parkson Holdings Berhad, the debt ratio in 2014 is RM 0.21 down and up
slightly to RM 0.14 and RM 0.15 in 2015 and 2016 rose drastically to RM 0.61 in 2017 but also
down drastically to RM 0.14 in 2018. This shows that Caring Pharmacy get a slightly less and
lower until 2018 that mean the company has an effort to manage its assets than debt compare the
peer of Parkson Holdings Berhad that get slightly up and down over the years which the
company tend to have more debt and assets.
Total assets turnover for Caring Pharmacy is RM 1.67 in 2014 and decrease to RM 1.66 in 2015
and rose again in 2016 which is RM 1.82. The value keep increase for the next two years which
is RM 1.87 in 2018 and RM 1.96 in 2018 while the total assets turnover for Parkson Holdings
Berhad have recorded in 2014 is RM 0.48 and slightly up to RM 1.97 and RM 3.94 in 2015 and
2016 but has decreased drastically to RM 0.41 in 2017 rose again in 2018 which is RM 4.22.
This shows that Parkson Holdings Berhad has higher ratio in 2018 compare to Caring Pharmacy.
This means Parkson Holdings Berhad use its assets more efficiently to generate sales rather than
Parkson Holdings Berhad.

Fixed assets turnover for Caring Pharmacy in 2014 is RM 10.2 decrease to RM 10.0 in 2015 and
rose again in 2016 which is RM 11.07. The value keep increasing in 2017 and 2018 which is RM
12.3, RM 12.6 respectively while, the fixed asset turnover for Parkson Holding Berhad have
recorded in 2014 is RM 9.28 dropped drastically to RM 0.82 in 2015 and rose slightly to RM
1.10, RM 1.38 and RM 1.46 in 2016, 2017 and 2018. This shows that Caring Pharmacy has a
higher ration and went up smoothly most of the years compare to Parkson Holdings Berhad
which has the lower ratio. This is means, Caring Pharmacy using its assets more efficiently
spesifically, net plant and equipment while Parkson Holdings Berhad using its fixed assets
unefficiently.