Page 57 - Annual report eng 2020
P. 57

Tycoons Worldwide Group (Thailand) Plc.



                            Net cash flow from financing was negative (627)MB mainly repayment of long-term
                            and short-term loans from financial institutions.

                         Liquidity ratios

                               The  company’s  current  ratio  has  been  decreasing  standing  at  1.25  and  1.28  in  the
                         years 2020 and 2019 respectively, Without significant differences.

                         Effects from the maturity of current liabilities on the liquidity

                             In 2020, 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  three  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  decreased  from  14.37  times  of  year  2019  to
                         13.76  times  of  year  2020.  It’s  because  accounts  payable  period  of  purchase  of  raw
                         materials got longer, therefore, the payment period increase 1.1 days from 25.06 days of
                         year 2019 to 26.16 days of year 2020.

                 (3) Capital expenditure

                               Capital  expenditures  amounted  to  138MB  and  112MB  for  the  year  2020  and  2019
                         respectively.

                 (4)  Sources of funds

                         Funds structure

                              The debt to equity ratio was 0.59 and 0.52 between the years 2020 and 2019. The debt
                         to assets ratio was 0.37 and 0.34 between 2020 and 2019. This indicated that TYCN had
                         only a small amount of risk and a healthy financial structure.

                         Shareholders’ equity

                               As of December 31, 2020, shareholders’ equity was 3,977MB, a decrease of 7.34% or
                         315MB from year 2019.  This was due to net loss in 2020.

                         Liabilities

                               At the end of 2020, TYCN’s liabilities amounted to 2,353MB, which is equivalent to
                         37.17% of liabilities and shareholder’s equity, and company’s long-term Liabilities and
                         equity was 3,977MB, or 129% of net fixed assets. This indicates that TYCN had a healthy
                         financial structure.






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