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Library's collection Library's IT development CancelKnowing that PT "ABC" is not professionally managed, the writer realizes that there are many things to improve in this company. It is a challenge for the writer to find out the financial condition of the company. In this study, the writer uses a financial ratio to measure its financial management performance and efficiencies by comparing the economical rate from 1991 to 1993. After analyzing and evaluating the company's financial statement, it indicates as follow:
□ The company does not have a severe problem with its liquidity. It can pay its short-term debts.
□ The company still can not use its resources efficiently to generate sales, especially in collecting its bills.
□ The company can manage the total capital, but it cannot work its equity to produce net income.
Recommendation regarding this problem, the writer tries to suggest that the company improve the ability to collect the bills and set a planning budget to control the cost and use of inventory efficiently.