Page 70 - PSTC - One Report 2023 (EN)

Annual Report 2023 (Form 56-1 ONE REPORT)
69
Cashflow ratio
The Group’s cashflow ratio has turned positive in 2023 from a negative in 2022. This is due to in 2022, the Group experienced cash outflows from operating activities, mainly for debt repayment to trade creditors and other creditors. However, the Group has planned to receive additional cash inflows from other sources, such as sales of foreclosed assets, which will provide sufficient liquidity to the Company to pay off current liabilities.
Profitability Ratio
Gross profit margin
Details of the analysis of each business group are shown in the topic of Revenue Structure and Gross Profit Margin.
Operating profit margin
Operating profit margin in 2023 is lower than 2022 because in 2023 the Group recorded an allowance for impairment of assets which caused operating losses, while in 2022 there was no such allowance.
Net profit margin and rate of return on equity
The net profit margin and return on equity for 2022 and 2023 are negative as the Group has a net loss for the year. The main reason is that the joint venture (TPN) has not yet started commercial operations, resulting in no profit sharing for the group in 2022 and 2023 while having relatively high financial costs. However, because in 2023 the Group recorded an allowance for impairment of assets while in 2022 there was no such allowance therefore resulting in a significantly reduced net loss in 2023.
Operating Efficiency Ratio
Return on assets ratio and return on fixed assets ratio
Return on assets and return on fixed assets ratio remains negative because the Group has a net loss for the year as discussed above.
Monetary Policy Analysis Ratios
Total debt to equity ratio
The total debt to equity ratio remains unchanged and at a low level.
Interest coverage ratio
The interest coverage ratio is lower than 1 because the Group’s earnings before interest, taxes, depreciation, and amortization are less than its interest expense. However, the Group has planned to receive additional cash inflows from other sources, such as selling assets of the Group such as foreclosed assets, which will provide the Group with sufficient cashflow for interest payment.
Obligation payment ability ratio
In 2023, the Group’s obligation payment ratio is lower than 1 because the Group has interest-bearing debt, both short-term debt and long-term debt due within 1 year, higher than profit before interest, taxes, depreciation, and amortization. However, the Group has planned to receive cash inflows from sales of the Group’s assets, such as foreclosed assets, which will provide the Group with sufficient cashflow to pay off debt obligations that are due for payment.