Every company has its own financial strengths and weaknesses including ViTrox. In order to analyze ViTrox’s financial strengths and weaknesses, I have took the company annual reports from year 2012 to 2016 to compute the result. As stated in chapter 1, ViTrox has three subsidiaries and it is rely on these three companies to operate. ViTrox Technologies Sdn Bhd contributed the highest revenues as the price of machines is higher. Therefore, I will use consolidated financial statement to analysis ViTrox financial aspect because consolidated financial statement is including the parent company and its subsidiaries. In this financial analysis part, I will be using financial ratio to analyze the company financial performance because ratio able to…show more content… This indicated that company was financed its growth by using debt aggressively as compared to year 2013. This can be seen from Table 2.4, year 2014, company’s liability was increased dramatically to RM 52,947,271. However, company’s debt to equity ratio was decreased to 0.223 at year 2015 which was decreased for 26.28% and hit the lowest debt to equity ratio among five years. The decrease of debt to equity ratio indicated company has relatively low risk as company took relatively lower debt. In year 2016, as the result of sharp increase of liabilities, debt to equity ratio was increased dramatically to 0.4371 which was 2 times of previous year. Increase of debt to equity ratio indicated that company was associated with higher level of risk as the result of addition interest expenses. The optimal debt to equity ratio is 0.5 or less. ViTrox has a debt to equity ratio that lower than 0.5. This indicates company was considered financially strong and healthy as company was less in using its debt. Nonetheless, company’s debt to equity ratio can still be improved by doing more marketing in order to increase the sales and restructuring company