Tan Jes Shi
Recommendations
• Overall of the result show that London Biscuits Berhad is getting better. As we can see through the comparison of the company’s performance between the industry average. There are some suggestions on how the performance of the London Biscuits Berhad can be improved in order to make the company become even more better in the future.
• To improve on the company’s liquidity ratio, London Biscuits Berhad should reduce some overhead expenses. Reduce excessive expenses is one of the way to help the company increase liquidity. Overhead costs or operating expenses include many things that do not produce a profit, or do so only indirectly. The excessive expenses include rent, advertising, utilities, insurance and professional fees. If the company cut off all of the expenses, in the end the company short-term expenses will decreases. The cash you are able to retain in the business also increases. Soon, your current ratios and quick ratios start looking mighty impressive.
• Next, London Biscuits Berhad should improve in Day Sales Outstanding in order to collect back the payment as soon as and receive the payment on time from receivables. It is good for the company if the company is taking shorter period of time to collect back the payment from receivables.. But, on the other side customer may not really like it because it shows that the company adore in very strict credit policy. The company should follow up with those of the customer who always making