Page 51 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

Liquidity ratios
The Company’s current ratio has been increasing standing at 1.43 and 1.25 in the years
2021 and 2020 respectively, because of the increase in revenue in 2021 resulted no
significant difference..

Effects from the maturity of current liabilities on the liquidity
In 2021, short-term loans from financial institutions and trade and other payables as well
as current portion of long-term loans have accounted for a large proportion of current
liabilities. These first two items are payable within one year. As mentioned before,
however, these loans were used to purchase raw materials for normal business operations.
As a result, the company believes that the short-term maturity of such current liabilities
should not adversely affect the company’s liquidity.

Accounts payable turnover has been increased from 13.76 times of year 2020 to 23.49
times of year 2021. It’s because accounts payable period of purchase of raw materials got
shorten therefore, the payment period decrease 10.84 days from 26.16 days of year 2020
to 15.12 days of year 2021.

(3) Capital expenditure

Capital expenditures amounted to 75MB and 138MB for the year 2021 and 2020
respectively.

(4) Sources of funds
Funds structure

The debt to equity ratio was 0.59 and 0.59 between the years 2021 and 2020. The debt to
assets ratio was 0.34 and 0.37 between 2021 and 2020. This indicated that TYCN had only
a small amount of risk and a healthy financial structure.

Shareholders’ equity

As of December 31, 2021, shareholders’ equity was 4,468MB, a increase of 12.34% or
491MB from year 2020. This was due to net profit in 2021.

Liabilities

At the end of 2021, TYCN’s liabilities amounted to 2,633MB, which is equivalent to
37.08% of liabilities and shareholder’s equity, and Company’s long-term Liabilities and
equity was 4,468MB, or 153% of net fixed assets. This indicates that TYCN had a healthy
financial structure.

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