ASIA INSURANCECOMPANY LIMITED

SOLVENCY ANALYSIS

2006
CURRENT POSITION ANALYSIS:

WORKING CAPITAL = Current Assets – Current Liabilities

= 122351449 – 20638497 = 101712952

CURRENT RATIO = Current asset / Current Liabilities

= 122351449 / 20638479 = 5.92

ACID TEST RATO = Quick Asset / Current Liabilities

= 68475435 / 20638479 = 3.3

ACCOUNT RECEIVABLE ANALYSIS:

ACCOUNT RECEVIABLE TURNOVER = Net sales on account / Average account

receivable = 28998380 / 9637891 = 3

NUMER DAYS’ IN RECEIVABLES = Account receivable / Average daily sales

= 10795198 / 79448 = 136

RATIO OF FIXED ACCETS TO LONG TERM LIBILITIES = Fixed assets / long term
liabilities = 58801781 / 4422094 =
1.33

RATIO OF LIBILITIES TO STIOCKHOLDERS’ EQUITY = total liabilities / Total

stockholders’ equity = 64859491 / 123775531 = 0.52

PROFITABILITY MEASURES:

RATIO OF NET SALES TO ASSETS = Net sales / Average total assets

= 28998380 / 179379153 = 0.16

RATE EARNED ON STOCKHOLDERS’ EQUITY = Net income / Average total

stockholders’ equity = 28998380 / 118140697 =
0.24

RATE EARNED IN COMMON STOCKHOLDER’S EQUITY =

Net income – preferred dividends/Average common stockholders’ equity
= 28998380-0/118140697 = 0.24

EARNING PER SHARE ON COMMON STOCK = Net income – preferred

dividends/shares of common stock outstanding = 11269670-
0/8000000 = 1.41

PRICE EARNING RATIO = Market price per share of common stock/earning per share
of common stock = 10/1.41 = 7.1
DIVIDENDS PER SHARE OF COMMON STOCK = Dividends/Share of common stock
outstanding = 80000000/8000000 = 10

DIVIDEND YIELD = Dividends per share of common stock/Market price per share of
common stock = 10/10 = 1%

SOLVENCY ANALYSIS
2005
CURRENT POSITION ANALYSIS:
WORKING CAPITAL = Current Assets – Current Liabilities
=86700214 – 17479987 = 69220227

CURRENT RATIO = Current asset / Current Liabilities

= 86700214/17479987 = 4.95

ACID TEST RATO = Quick Asset / Current Liabilities

= 41162152/17479987 = 2.35

ACCOUNT RECEIVABLE ANALYSIS:

ACCOUNT RECEVIABLE TURNOVER = Net sales on account / Average account
receivable
= 24576260/8375397 = 2.93

NUMER DAYS’ IN RECEIVABLES = Account receivable / Average daily sales

= 8480584/37332 = 126

RATIO OF FIXED ACCETS TO LONG TERM LIBILITIES = Fixed assets / long term
liabilities
= 76658324/40137435 =
1.91

RATIO OF LIBILITIES TO STIOCKHOLDERS’ EQUITY = total liabilities / Total

stockholders’ equity =
57617422/112505862 = 0.51

PROFITABILITY MEASURES:

RATIO OF NET SALES TO ASSETS = Net sales / Average total assets

= 24576260/141432750 = 0.17

RATE EARNED ON STOCKHOLDERS’ EQUITY = Net income / Average total

stockholders’ equity = 6197621/95803066
= 0.1

RATE EARNED IN COMMON STOCKHOLDER’S EQUITY =

Net income – preferred dividends/Average common stockholders’ equity
= 6197621/95803066 = 0.1
EARNING PER SHARE ON COMMON STOCK = Net income – preferred
dividends/shares of common stock outstanding = 6197621-
0/8000000 = 0.8

PRICE EARNING RATIO = Market price per share of common stock/earning per share
of common stock = 10/0.8 = 12.5

DIVIDENDS PER SHARE OF COMMON STOCK = Dividends/Share of common stock

outstanding = 80000000/8000000 = 10

DIVIDEND YIELD = Dividends per share of common stock/Market price per share of
common stock = 10/10 = 1%