These figures compare the Quick ratios of Cheetah and Padini over the five years from 2017 to 2021. The 2017 cheetah fast ratio is 2.96, and as the years progresses, the ratio will rise to 18.11 by 2021. Padini’s quick ratio likewise increases from 2017 to 2021, though not to the same extent as Cheetah. From the data in the table, we can see that Padini’s quick ratio is expected to rise from 1.71 in 2017 to 3.92 in 2021. Compared to the current ratio, which considers all existing assets as coverage for existing obligations, the quick ratio is more conservative.

When assessing a company’s liquidity and financial health, a larger ratio indicates greater ease of paying off debts, while a lower ratio indicates a greater risk of default. The below graph compares the quick ratio of the Cheetah and the Padini and clearly shows that the Cheetah has a higher value. That means Cheetah has the extraordinary ability to pay off their debts quickly. A brief comparison of Cheetah and Padini’s ratios reveals that Cheetah is more robust financially. In contrast to the Padini, Cheetah has more readily available funds. From 2017 to 2021, the quick ratio of both companies improved, although Cheetah’s improvement is more pronounced than Padini’s.

5.0 Company Explanation

Cheetah Holdings Berhad

The Group had adopted cost reduction measurement control for operating costs during the fiscal year under review by shutting unproductive counters and increasing operational efficiency in light of the continued uncertainty and volatility in the economic outlook for Malaysia. In addition, the Group had actively participated in sales fairs to the greatest extent possible. Cheetah Company plans to optimize its working capital and perform operating costs measurement by segmenting the retail apparel industry in the upcoming fiscal year due to unexpected and uncertain economic outlook.

The Group’s business activities, strategic planning, operations, financial results, and business growth are all susceptible to risks resulting from unfavorable changes. The Group faces intense competition in the domestic retail clothing market and feels the effects of the increased presence of multinational brands. However, they must recognize the growing number of online retail clothing competitors offering steep competition in pricing, selection, shipping times, and more. Because of this, the Group must alter its conventional method of doing business by expanding its presence in the e-commerce sector, enhancing the quality and breadth of its offerings, discovering and developing a new product line to serve a broader range of customers, and finding reliable new suppliers.

Padini Holdings Berhad

Despite the challenging business climate caused by the ongoing Covid-19 epidemic, the Group was still profitable in the fiscal year 2021. As a result of the negative effect of the Covid-19 epidemic and the implementation of the lockdown limitations, the Group’s consolidated revenue for the fiscal year under review was RM1.03 billion, a decline of 24.0% from the income of RM1.35 billion in the preceding fiscal year. The drop in revenue and profit before tax amounted to a 30.9% decrease, from RM107.3 m to RM74.1 m. Covid-19 and its variants continue to spread rapidly in Malaysia and throughout the world; the global trade war drags on, regional company competition heats up, and fluctuations in currencies, inflation rates, and interest rates all contribute to a challenging operating climate.

Despite massive stimulus measures and vaccine efforts implemented by governments globally, the ongoing Covid-19 epidemic continues to offer extraordinary hurdles, creating business disruption, economic volatility, employee and public safety, and financial issues. Business reopening and reimposing lockdowns have been hampered by new-wave infections despite the early successes of several countries in managing the pandemic. The advancement of vaccines plays a crucial role in providing robust protection against the effects of Covid-19.

The coordinated rollout of the Covid-19 immunization program in Malaysia will boost business and consumer sentiment, thereby aiding in the country’s economic recovery. Every crisis presents an opening for those willing to rise to the occasion. These issues may be traced back to the Group’s original strategy of keeping an eye on the bottom line while also satisfying the needs of the company’s clientele. Although the Group is aware of the severity of the current situation, it remains cautiously optimistic that it will emerge victorious and provide long-term value to shareholders.