Ratio Analysis of IJM

7/24/2019 Ratio Analysis of IJM

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Table of Contents

INTRODUCTION.................................................................2

SECTION 1. COMPARISON OF YEAR ENDED 31 MARCH 2015AND 2014 FINANCIAL REPORTS..........................................3

SECTION 2. RATIO ANALYSIS...............................................31. LIQUIDITY...........................................................................3

1.1. Current ratio..................................................................................31.2. Liquid ratio....................................................................................3

2. SOLVENCY...........................................................................42.1. Equity ratio....................................................................................42.2. Debt ratio...................................................................................... 42.3. Debt to equity ratio.......................................................................4

2.4. Interest cover ratio........................................................................ 43. WORKING CAPITAL MANAGEMENT........................................4

3.1. Inventory turnover.........................................................................43.2. Days sales of inventory ratio.........................................................53.3. Creditor days ratio.........................................................................5

4. PROFITABILITY...................................................................54.1. Gross ro!t "ar#in........................................................................54.2. $et ro!t "ar#in........................................................................... 54.3. %&CE............................................................................................. 5

5. ASSET EFFICIENCY...............................................................55.1. Caital turnover.............................................................................'5.2. (sset turnover ratio.......................................................................'

SECTION 3. COMPARATIVE ANALYSIS OF COMPETITORPERFORMANCE KUMPULAN EUROPLUS BERHAD................!

1. L"#$"%"&' ()*+$,)+..............................................................!2. S-/)' ()*+$,)+.............................................................!3. W-," *"&* (**)()& ()*+$,)+...............................4. P,-6&*7""&' ,*&"-+...............................................................5. A++)& )8")' ()*+$,)+...................................................9

SECTION 4. KEY PERFORMANCE INDICATORS OF I:MCORPORATION BERHAD......................................................9

SECTION 5. EVALUATION OF THE USES OF KPI;S IN ASSESINGORGANI..................................................................14

APPENDI? 1. RATIO CALCULATIONS FOR I:M CORPORATIONBERHAD..........................................................................14

APPENDI? 2. RATIO CALCULATIONS FOR KUMPULAN

EUROPLUS BERHAD.........................................................1@

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E)EC*TI+E ,*--(%

T/is reort 0as 0ritten 0it/ t/e urose of ea"inin# I-Cororation er/ads overall erfor"ance of !nancial years ended214 and 215. %atios 0ere used to co"are 6 15 and 6 14 inorder to7 deter"ine co"anys ability to ay its s/ort ter"

resonsibilities8 to "easure I-s caability to "eet its lon# ter"obli#ations8 to see /o0 e9ciently I- is usin# its assets8 to assess itsstoc: "ana#e"ent and to analy;e I- Cor /d ro!tability.

$et 0e co"ared I- Cororations ratio results to one of itsco"etitors etalin# aya= ,elan#or it is one of t/e @23 co"anies listed on t/e

-ain -ar:et of ursa -alaysia ,ecurities -ar:et= 0it/ t/e tic:ersy"bol BI-7-roerty Industry >lantation Infrastructure and ot/ers

I-s central business is construction= 0it/ t/e "otto Ecellencet/rou#/ quality t/is year I- Construction ,dn /d 0on t/e bestbuilder a0ard. It also beca"e one of t/e "ain suliers of essential"aterials for constructin# not only in -alaysia but outside as 0ell.Its roerty develo"ent ar"= I- Land er/ad= reco""ended itselfas one of t/e fore"ost roerty develoers in -alaysia. I- Cor./d also oerates in lantation= after t/e successful invest"ent intooil al" lantations bac: in 1?@5 it continues uttin# a #reata"ount of e"/asis on t/is division.

I- establis/ed its resence in 1 ot/er countries= besides -alaysia

0it/ its ri"ary focus in India= C/ina and Indonesia. In t/is reort 0eare #oin# to "easure t/e !nancial erfor"ance of t/is co"any by

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analy;in# t/e !nancial state"ents ended 31 -arc/ of resentF215 and last F214 years8 co"are and analy;e I- to itsco"etitor


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increase

1.1. C$,,)& ,*&"-. I- Cororations current ratios for resent andrevious years s/o0 t/at it is in a #ood !nancial /ealt/= because itscurrent assets are t0ice its current liabilities. &ver one year t/ecurrent ratio /as increased by 3 fro" 2 to 2=' "a:in# a

diKerence of ='= /o0ever it is not necessarily a #ood t/in# FElliot2?7 '@' it could be a si#n of ine9cient control over 0or:in#caital as oor stoc:s and accounts receivables control.

1.2. L"#$"% ,*&"-.It a#ain s/o0s t/at t/e I-s !nancial osition isin a /ealt/y condition. In bot/ years t/e co"any roved t/at it/as enou#/ cas/ on /and to ay its bills. -oreover= t/e co"any/as increased its ability to ay its current liabilities by 2H sinceyear of 214. It could ossibly say t/at t/e co"any is raidlyconvertin# receivables into cas/.

2. SOLVENCY

215 214 C/an#eEquity ratio =4@ =4@ ,tableDebt ratio =51 =5 =1 increase

Fby 2increase

Debt to equityratio

1=5 1=4 =1 increaseFby =?'

Interest cover 5=2 H=1 1=? decrease3' decrease

2.1. E#$"&' ,*&"-.I-s equity ratio /as been stable fro" 214 to215. ,/are/olders o0n 4@ of t/e assets and creditors o0n t/erest. T/is nu"ber is considered to be avera#e and #enerally not soaealin# for ne0 investors= in fact if s/are/olders ortion 0asbi##er it 0ould loo: "ore attractive for otential investors.

2.2. D)7& ,*&"-. (ccordin# to Cunnin#/a" F247 2? if t/eco"anys debt ratio is too /i#/ t/en it "ay not be able to borro0"oney or need to ay a /i#/er interest rate to borro0= 0/ic/ "a:es

a co"any to be less !nancially Meible. I-s sa0 a little c/an#e=#ro0t/ for =1

2.3. D)7& &- )#$"&' ,*&"-.T/ose co"anies 0it/ a /i#/er ratio int/e eyes of creditors are seen as unreliable for !nancin# t/eir"oney in and a lo0er debt to equity ratio is equal to stablebusiness. In I- Cororation t/ere /as been an i"ercetiblec/an#e over 1 year. ust li:e t/e equity ratio F0/ic/ revealed t/atal"ost /alf N4@O of I-s assets are o0ned by investors t/is ratio/as roved a#ain t/at s/are/olders and creditors /avearoi"ately an equal sta:e in t/e assets.

2.4. I&),)+& -/), ,*&"-.If t/e co"anys interest cover is above

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1.5 t/e co"anys !nancial osition is considered to be stron# FElliot1??37 5HH. ,ince I-s interest cover ratios are far "ore t/an t/att/e co"any is safe and 0ill /ave no /ards/is in ayin# its interestobli#ations. $evert/eless= a co"anys interest cover ratio /asdecreased t0ice over t/e year= 0/ic/ is a ne#ative si#nal of !nancialdi9culty.

3. WORKING CAPITAL MANAGEMENT

215 214 C/an#esInventoryturnover

'=? 1=3 3=4 decrease

Days sales ofinventory

H5 days 4? days 2' daysdiKerence

Creditor days 1@5 days 1'' days 1? daysdiKerence

3.1. I/)&-,' &$,-/),.Inventory turnover of '=? in 215"eans t/at I- sold its inventory '=? ti"es durin# t/e year=co"ared to /i#/er inventory rate of 1=3 in 214. T/e roble"could be t/e oor sales or too "uc/ inventory in t/is year.

3.2. D*'+ +*)+ - "/)&-,' ,*&"-.6or I- in 214 it too:aroi"ately 4? days to turn its inventory into cas/= but a yearlater it too: al"ost 2 ti"es "ore t/an before. Ae /yot/esi;e t/att/e reason for increase 0as t/e fact t/at in 215 sales 0ere slo0er=

also a co"any bou#/t "ore inventory= %- 1?1=11 0ort/"ore in 215 co"ared to t/e last year.

3.3. C,)%"&-, %*'+ ,*&"-.6or suc/ a /u#e con#lo"erate creditordays s/o0n above considered to be retty co""endable. Event/ou#/ t/ere is a 1? days increase fro" year of 214= :no0in# t/atI- /as increased its quic: ratio over a year= allo0in# a co"any toay its s/ortJter" obli#ations quic:ly= t/e only reason for t/eincreased creditor days could be a#ain 0orsened sales. It is veryi"ortant for a co"any to ay its suliers in ti"e ot/er0ise it0ould lead to suly roble"s.

4. PROFITABILITY

215 214 C/an#e

Gross ro!t"ar#in

1@ 24 ' decreaseF25decrease

$et ro!t "ar#in 13 1H=? 4=?5decreaseF3'=@

decrease%&CE '=' 1=2 3=' decrease

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F54=5decrease

4.1. G,-++ ,-6& (*,".T/e I- Cororation eerienced aercetible dro over a year= t/us "a:in# a co"any retain less oneac/ rin##it of sales to send on its obli#ations. Even t/ou#/ t/e

cost of #oods in 214 0as /i#/er= it still s/o0s better results in#ross ro!t "ar#in co"ared to resent year results. T/e declinecould robably be elained by oorer sales erfor"ed in 215 0it/diKerence of %- 55@=1??

4.2. N)& ,-6& (*,".Ae can see t/at t/ere is a sli#/t re#ressfro" revious year= a decrease of 4=?5. %ou#/ly sea:in#= inrevious year 1H fro" every rin##it in revenue 0as ro!t=co"ared to 13 in 215.

4.3. ROCE.T/e "ost attractive %&CE for investors is 0/en its /i#/

and stable FElliot 2?7'@4. Ae see a si#ni!cant decrease in t/eI-s %&CE of 3=' co"ared to last year= 0/en a co"any "adero!ts of 1 cents fro" every rin##it invested in caital e"loyed.

5. ASSET EFFICIENCY

215 214 C/an#e

Caital turnover =H 1=2 =5 decreaseFby H1 decrease

(sset turnover =2H =32 =5 decreaseFby 1@ decrease

5.1. C*"&* &$,-/),.In t/is resent year I- could not use its0or:in# caital as e9ciently as it did last year and suKered anevident decrease. T/is could be elained by /i#/er invest"ent intostoc:s a co"any did in t/is year co"ared to last year.

5.2. A++)& &$,-/), ,*&"-.(sset turnover ratios for constructionco"anies tend to be lo0er and since I-s core business isconstruction =2H and =32 are avera#e. ( decrease of =5 a

co"any /as eerienced since last year.

SECTION 3. COMPARATIVE ANALYSIS OF COMPETITORPERFORMANCE KUMPULAN EUROPLUS BERHAD.


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Days sales ofinventory

44 days 5 days ' days less

I- #rou decreased its ability to suly its #oods quic:ly by 3=4 asco"ared to


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I- and erfor"anceConstruction T/e Construction

division /as acquired

t/e order of roPects0ort/ %- H. billionin 6 15. T/e "aPorroPects secured are7Aest CoastEress0ay F%-2=@2@. "illion=$e0 Dee AaterTer"inal at ort Q >/ase 1 F%-1=1@@.3 "illion=

%adia J -iedDevelo"ent roPectin u:it eluton# F%-435.34 "illion=>otourri QCo""ercialDevelo"ent roPectin (ra Da"ansaraF%- 355.'@ "illion=Co""ercialDevelo"ent roPectin Da"ansara *ta"aF%- 3?'. "illionand >uteri Cove%esidences Q -iedDevelo"ent roPectin o/or a/ru F%[email protected] "illion.

T/e constructiondivision of t/e

co"any /asac/ieved revenue of%- 1224.31 "illion R>T of 1@4.@4 "illiona#ainst %- 2@.@"illion R %- 1'@.1H"illion in 214. T/isresulted in 41decrease in revenueand 1 increase inter"s of >T. i#/er

>T 0as due to t/ebetter ro!t "ar#ins0/ic/ 0ere derivedfro" t/e co"letionof several roPectssuc/ as7 >E%latinu" >ar: >/ase3= E-* Deot=eluton# Eress0ay=,ta#e 3 and >a/an#,elan#or %a0 AaterTransfer.

>roerty In t/e co"in#!nancial year= t/eroerty division /as

lanned to 0or: onne0 roPects in

T/is division "aderevenue of %-2=23.42 "illion in

t/e 6 15= 0/ic/ issli#/tly less t/an 6

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>enan#= T by H

Industry divisionac/ieved revenue of%- ?2'.HH "illionand >T of %-125.' "illion in 615. T/eir coreroduct >,CF>retensioned ,un

Concrete faced /i#/co"etition t/is year.$evert/eless t/erevenue fro" >,Cincreased by 2 andt/e >T droed by1H as co"ared to6 14.

>lantation To sustain t/isdivision by /i#/ercro roductiont/rou#/ elorin#"ore areas forlantation inIndonesia and "a:euse of t/e".

In 6 15 t/e revenueof t/is divisioneerienced anincrease of 3 F%-''H.'H "illion asco"ared to t/e!nancial year of214 F%- '4'.?@"illion due to /i#/ersales volu"e. &n t/eot/er /and t/e >T0as declined by 1@as co"ared to

revious year= due tot/e Muctuation offorei#n ec/an#e.

SECTION 5. EVALUATION OF THE USES OF KPI;S IN ASSESINGORGANI


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>roerty Division7 In t/e uco"in# year t/e roerty divisionserfor"ance is eected to be satisfactory due to t/e uco"in#roPects. T/ese roPects are at strate#ic locations and are eectedto #enerate a /andso"e a"ount of revenue.

Industry Division7 T/e at/ to ac/ieve t/e tar#et is va#ue as t/ereare no seci!c roPects /ave been "entioned to ac/ieve t/e #ro0t/in revenue and >T.>lantation Division7 T/is division /as lanned to sustain byincreasin# cro roduction t/rou#/ usin# areas of Indonesia t/at arefertile and are available for lantations.

>lantation Division7 T/is division /as lanned to sustain byincreasin# cro roduction t/rou#/ usin# areas of Indonesia t/at arefertile and are available for lantations.

CONCLUSION

6ro" our analysis 0e found out t/at I- Grou did not erfor" 0ellas co"ared to t/e revious year. %evenue and t/e ro!t before taof t/e #rou declined by ? and 2@ resectively. T/is is "ainlydue to t/e /i#/ decrease in sales F'? of t/e Grous ConstructionDivision. (not/er reason for t/e Grous loss 0as environ"entalfactor= t/e dro in t/e ec/an#e rate. T/eir co"etitor=


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usin# its currentassets.

inventory bases= but lo0sales= as a result it adds"ore to t/e ratio result.

Liquidratio

Current assetsinventoriesCurrent liabilities

Is used to !ndout /o0 t/e

co"any= byusin# its quic:assets Fcas/ oranyt/in# t/atcan be easilyconverted tocas/= can ayits uco"in#obli#ations.

T/is ratio cant be used forall tyes of businesses8 t/e

accetable and avera#eliquid ratio "ay vary. 6orinstance suer"ar:etsusually /ave very /i#/inventory and if t/einventory is subtracted fro"current assets= it 0ill leave asuer"ar:et 0it/considerably lo0 quic: ratio.(not/er disadvanta#e ist/at liquid ratio i#nores

ti"in# of "oney receivedand aid out= for ea"le aco"any /as no obli#ationsto ay today but it /as billsto ay so"e ti"e later=/o0ever t/e ratio iscalculated so no0 t/e"easure"ent of co"anysliquidity is not veryaccurate.

Equityratio

Total equity

Total assets

-easures /o0"uc/ of aco"anysassets areo0ned byinvestors. T/e/i#/ equity ratiode"onstrates toinvestors t/at

t/e co"any is0ort/ t/eirinvest"ents=since so "anyot/er investors/ave a fait/ in aco"any andalready!nancin# t/eirinvest"ents init.

Cannot be an indicator ofco"anys solvency8 ti"in#a#ain is i"ortant /eresince debts could be aidout already before t/ecalculations 0ere done= itdoesnt "easure its abilityto ay t/ose debts.-oreover if t/e

s/are/olders ortion of t/eco"anys assets is bi##erit doesnt necessarily "eant/at t/e co"any is able to"a:e "ore "oney forinvestors in t/e future.

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Debtratio

Total liabilities

Total assets

>resents t/eercenta#e oftotal assetsrovided bycreditors.

Total liabilities are a su" oflon#Jter" and s/ortJter"liabilities= /o0ever lon#Jter" obli#ations are "orei"ortant for investors ast/ey loo: into t/e future

otential earnin#s

Debt toequityratio

Total liabilities

Totalequity

Co"ares aco"anys totalequity to totaldebt. T/e lo0ert/e ratio is t/etrust 0ort/iert/e co"any0ill be for ne0investors.

ust li:e in t/e debt ratio itincludes s/ortJter" bills0/ic/ are not favorable forinvestors= (ccordin# toeirne and Dauderis so"eliabilities suc/ as oeratin#leases do not aear in t/ecurrent or noncurrentliabilities= t/erefore it

doesnt enter t/e ratioF1??17 14. It is "orefocused on t/e total a"ountof debts a co"any /asrat/er t/an its ability to ayt/e".

Interestcoverratio

Profit before tax+InterestInterest

T/is ratiodeter"ines0/et/er aco"any canay its intereston its loans in aarticular eriodof ti"e.

T/is is /i#/ly variablesolvency "easure"ent8even bet0een t/e sa"eindustries t/e nor"s can bediKerent so"eti"es so"eco"anies 0it/ a lo0interest covera#e ratio butconsistent roduction andsales still can cover itsinterest ay"ents 0it/outdi9culties.

Inventor

yturnover

Net sales

Inventories

-easures /o0

quic:ly aco"any usesits suly of#oods over a#iven eriod ofti"e.

i#/ inventory turnover

"ay loo: aealin#/o0ever indicates lo0 #rossro!t= usin# only t0o !#uresfor calculatin# avera#einventory turnover days"ay be "isleadin#.

Dayssales ofinventory

Inventories

Cost of salesx 365

,/o0s /o0 aco"any"ana#es itsinventory= in

/o0 "any daysa co"any can

(s eirne and Dauderisnoted7 ( /i#/ turnover can/ave ne#ativeconsequences if turnover

beco"es so raid t/at= atany oint of ti"e= ite"s

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turnover itsinventory.

custo"ers 0ant to urc/aseare out of stoc: F1??17H22

Creditordays

Trade payables

Purchases x365

Calculates t/eavera#e nu"berof days a

co"any ta:esto ay itssuliers.

i#/er nu"ber doesntnecessarily "ean itsositive for an or#ani;ation

it "ay su##est liquidityroble"s

Grossro!t"ar#in

Net income

Cost of salesx 100

%eveals /o0"uc/ inco"e aco"any "a:esafter ayin# oKits cost of sales.

It doesnt ta:e all costs intoconsideration= /ence notallo0in# "easurin# t/e totalro!tability.

$etro!t

"ar#in

Net income

Net sales 100

-easures /o0"uc/ inco"e is

:et in aco"any asco"ared to t/etotal sales Qoverall e9ciencyof t/e business.

It doesnt include t/e totalsales volu"e. ,o"e

co"anies "i#/t /ave /i#/net ro!t "ar#in but lo0sales volu"e= 0/ic/ in t/eend leads to lo0 total ro!t.(s a result t/e co"anysro!tability "i#/t beunderesti"ated.

%&CE Profit before tax

(TotalassetsCurrent liabilitie

T/is ratio is usedto assess /o0e9ciently aco"any usesits caital.

It uses ast data Fannualreort and it is not al0aysbasis for future earnin#s. Its/ould not be #iven too"uc/ e"/asis on t/is ratioby investors8 t/e analysis oft/e :ey ro!tability ratioss/ould be carried out.

Caitalturnover

Net sales

(Current assetsCurrent liabili-oney abusiness /as in

/and to sendon its oerationsafter ayin# itsbills=de"onstrates/o0 e9ciently aco"any isturnin# cas/ intosales.

If t/e ratio is too /i#/ itcould be decetive= no

doubt it 0ould loo: #ood=but in reality a co"any"i#/t be /avin# a very lo00or:in# caital t/at "i#/tcause a co"any to run outof "oney to fund t/ebusiness.

(ssetturnover

Total sales

Total assets

-easures aco"anysability to use its

(s Elliot su##ested=(lt/ou#/ t/is ratio can actas a #ood #uide to co"any

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assets to#enerate sales8a /i#/er nu"beris "orefavorable.

erfor"ance= it can also be"isleadin# F2?7'@5.(ccordin# to /i" if t/e assetturnover increases t/ecaital base 0ill bedecreasin# and in t/e end

t/e co"any fails to"aintain its nonJcurrentassets FElliot 2?.

REFERENCES>

(nnual reort F215 IJM Corporation Berhad NonlineO available fro"S/tt7000.iP".co"0ebinvestorannual%eorts.as U N13&ctober 215O

(nnual reort F215 ress Ltd

Elliot= 8 Elliot= . F1??3 Financial accounting and reporting.ertfords/ire7 all International Ltd

Cunnin#/a"= .= $i:olai= L.= a;ley= . F24Accounting information

for business decisions. -ason7 ,out/JAestern= a division ofT/o"son Learnin#

APPENDI? 1. RATIO CALCULATIONS FOR I:M CORPORATIONBERHAD.

1.LIQUIDITY

1.1. C$,,)& ,*&"-

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Current ratio V Current assets

Current liabilities

Current assets F215 V 11=1@2=?3Current assets F214 V ?=3'=524

Current liabilities F215 V 4=3=12Current liabilities F214 V 4=554=233

Current ratio F215 V11,182,930

4,300,102 2.60061971

Current ratio F214 V9,360,524

4,554,233V 2.55345@H

1.2. L"#$"% ,*&"-

Liquid ratio V Current assetsinventoriesCurrent liabilities

Current asset F215 V 11=1@2=?3Current asset F214 V ?=3'=524

Inventories F215V H@3=?12Inventories F214V 5?2=@2


Liquid ratio F215 V11,182,930783,912

4,300,102=2.41831891

Liquid ratio F214 V9,360,524592,802

4,554,233=1.92518082

2. SOLVENCY

2.1. E#$"&' ,*&"-

Equity ratio VTotal equity

Total assets

Total equity F215 V ?=5H5=53HTotal equity F214 V @=?5=2H2

Total assets F215 V 1?=H3='@?Total assets F214 V 1@=3?@=4'@

Equity ratio F215 V

9,575,537

19,730,689 V =4@5311@4

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Equity ratio F214 V8,950,272

18,398,468V =4@'4'@33

2.2. D)7& ,*&"-

Debt ratio VTotal liabilities

Total assets

Total liabilities F215 V 1=H1=@'5Total liabilities F214 V ?=31H=543Total assets F215 V 1?=H3='@?Total assets F214 V 1@=3?@=4'@

Debt ratio F215 V10,071,865

19,730,689V =514''?H

Debt ratio F214 V 9,317,54318,398,468

V =5'433H

2.3. D)7& &- )#$"&' ,*&"-

Debt to equity ratio VTotal liabilities

Totalequity

Total liabilities F215 V 1=H1=@'5Total liabilities F214 V ?=31H=543

Total equity F215 V ?=5H5=53HTotal equity F214 V @=?5=2H2

Debt to equity F215 V10,071,865

9,575,537V 1=51@32?2

Debt to equity F214 V9,317,543

8,950,272= 1=4134'2

2.4. I&),)+& -/),

Interest cover VProfit beforetax+Interest

Interest

>ro!t before ta F215 V 1=1?=35H>ro!t before ta F214 V 1=41'=314

Interest F215 V 242='@2Interest F214 V 231=1?5

Interest cover F215 V

1,019,357+242,682242,682 V 5=23@15H

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Interest cover F214 V1,416,314 +231,195

231,195V H=12'5@?

3. WORKING CAPITAL MANAGEMENT

3.1. I/)&-,' &$,-/),

Inventory turnover VNet sales

Inventories

$et sales F215 V 5=44@=2@2$et sales F214 V '='=4@1


Inventory turnover F215 V5,448,282

783,912V '=?511?4

Inventory turnover F214 V6,006,481

592,802V 1=13235'2

3.2. D*'+ +*)+ - "/)&-,'

D,I VInventories

Cost of salesx 365


Cost of sales F215 V 3=H'H=422Cost of sales F214 V 4=34'=1H?

D,I F215 V783,912

3,767,422x 365= H5=?4H?241

D,I F214 V

592,802

4,346,179x365= 4?=H@45@H@

3.3. C,)%"&-, %*'+

Creditor days VTrade payables

Purchases x365

Trade ayables F215 V 2=14=4HHTrade ayables F214 V 2=3@=@'

>urc/ases V Cost of sales W Closin# stoc: Q &enin# stoc:

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>urc/ases F215 V 3=?5@=532>urc/ases F214 V 4=45H=1@

Creditor days F215 V2,014,477

3,958,532x365= 1@5=H4'''2

Creditor days F214 V2,038,086

4,457,180 x365= 1''=@??5'2

4. PROFITABILITY

4.1. G,-++ ,-6& (*,"

Gross ro!t "ar#in VNet income

Cost of salesx 100

$et inco"e F215 V H13=41$et inco"e F214 V 1=H5='5'

Cost of sales F215 V 3=H'H=422Cost of sales F214 V 4=34'=1H?

Gross ro!t "ar#in F215 V713,041

3,767,422x 100=18,926497

Gross ro!t "ar#in F214 V

1,075,656

4,346,179 x100=24,749464

4.2. N)& ,-6& (*,"

$et ro!t "ar#in VNet income

Net sales 100

$et inco"e F215 V H13=41$et inco"e F214 V 1=H5='5'


$et ro!t "ar#in F215 V713,041

5,448,282100 V 13.@H44''

$et ro!t "ar#in F214 V1,075,656

6,006,481100 V 1H.?@25'1

4.3 ROCE

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%&CE VProfit before tax

(TotalassetsCurrent liabilit ies)x100

>ro!t before ta F215V 1=1?=35H>ro!t before ta F214 V 1=41'=314

Total assets F215 V 1?=H3='@? Q current liabilitiesV 15=43=5@HTotal assets F214 V 1@=3?@=4'@ Q current liabilitiesV 13=@44=235

Current liabilities F215 V 4= 3= 12Current liabilities F214 V 4= 554= 233

%&CE F215 V1,019,357

(19,730,6894,300, 102)x 100 V '=''@1

%&CE F214 V1,416,314

(18,398,4684,554, 233)x100 V 1=23352

5. ASSET EFFICIENCY

5.1. C*"&* &$,-/),

Caital turnover VNet sales

(Current assetsCurrent liabilities)


Current asset F215 V 11=1@2=?3Current asset F214 V ?=3'=524


Caital turnover F215 V5,448,282

11,182,9304,300,102= =H?15H'@

Caital turnover F214 V

6,006,481

9,360,5244,554,233= 1=24?H123

5.2. A++)& &$,-/),

(sset turnover VTotal sales

Total assets


Total assets F215 V 1?=H3='@?Total assets F214 V 1@=3?@=4'@

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(sset turnover F215 V5,448,282

19,730,689V =2H'1323H

(sset turnover F214 V6,006,481

18,398,468V =32'4''3H

APPENDI? 2. RATIO CALCULATIONS FOR KUMPULANEUROPLUS BERHAD.

1.LIX*IDIT1.1.Current %atio

Current ratio V Current assets

Current liabilities

Current (ssets F215 V 533=?4HCurrent (ssets F214 V 13@=@H2

Current Liabilities 215 V @?=?22Current Liabilities 214 V 244=15

Current ratio F215 V533,947

89,922 5.93

Current ratio F214 V138,872

241,405V .5H

1.2.Liquid %ation

Liquid ratio VCurrent assetsinventories

Current liabilities

Current asset F215 V 533=?4HCurrent asset F214 V 13@@H2

Inventories F215 V 2=133Inventories F214 V 1=5'2

Current liabilities F215 V @?=?22Current liabilities F214 V 241=15

Liquid ratio F215 V533,9472,133

89,992=5.91

Liquid ratio F214 V133,8721.562

241,105=0.56

2. ,&L+E$C

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2.1.Equity %atio

Equity ratio VTotal equity

Total assets

Total equity F215 V ''5=1H?

Total equity F214 V 1'@=2?

Total assets F215 V H55=333Total assets F214 V 4?='3?

Equity ratio F215 V665,179

755,333V .@@

Equity ratio F214 V8,950,272

18,398,468V .41

2.2.Debt %atio

Debt ratio VTotal liabilities

Total assets

Total liabilities F215 V ?=154Total liabilities F214 V 241=34?Total assets F215 V H55=333Total assets F214 V 4?='3?


19,730,689V .11


18,398,468V .5@

2.3.Debt to Equity %atio

Debt to equity ratio VTotal liabilities

Totalequity

Total liabilities F215 V ?=154Total liabilities F214 V 241=34?

Total equity F215 V ''5=1H?Total equity F214 V 1'@=2?

Debt to equity F215 V90,154

665,179V .13

Debt to equity F214 V241,349

168,290= 1.43

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2.4.Interest Cover

Interest cover VProfit beforetax+Interest

Interest

>ro!t before ta F215 V 4=4@5>ro!t before ta F214 V 32=@'?

Interest F215 V 5=?@5Interest F214 V 13=H@3

Interest cover F215 V40,485+5,985

5,985V H.H'

Interest cover F214 V32,869+13,783

13,783V 3.3@

3. A&%IT(L -($(GE-E$T3.1.Inventory turnover

Inventory turnover VNet sales

Inventories

$et sales F215 V 1@=5$et sales F214 V 13=?1

Inventories F215 V 2=133

Inventories F214 V 1=5'2

Inventory turnover F215 V18,500

2,133V @.'H

Inventory turnover F214 V13,910

1,562V @.?

3.2.Days sales of inventory

D,I VInventories

Cost of salesx 365

Inventories F215 V 2=133Inventories F214 V 13=?1

Cost of sales F215 V 1H=5@4Cost of sales F214 V 11=42?

D,I F215 V2,133

13,910x365= 44 days

D,I F214 V 13,91011,429

x365= 5 days

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>%&6IT(ILIT4.1.Gross ro!t "ar#in

Gross ro!t "ar#in VNet income

Cost of sales

$et inco"e F215 V ?1'$et inco"e F214 V 24@1

Cost of sales F215 V 1H=5@4Cost of sales F214 V 11=42?

Gross ro!t "ar#in F215 V916

17584=5.21

Gross ro!t "ar#in F214 V32,869

11,429=21.7

4.2. $et ro!t "ar#in

$et ro!t "ar#in VNet income

Net sales 100

$et inco"e F215 V ?1'$et inco"e F214 V 2=4@1


$et ro!t "ar#in F215 V916

18,500100 V 4.?5

$et ro!t "ar#in F214 V2,481

13,910100 V 1H.@4

4.3 %&CE

%&CE VProfit beforetax

(TotalassetsCurrent liabilities)

>ro!t before ta F215 V 4=@45>ro!t before ta F214 V 32=@'?



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%&CE F215 V40,845

(755,33389,922)V '.@

%&CE F214 V32,869

(755,333241,105)V 1?.5

5. (,,ET E66ICIE$C5.1.Caital turnover

Caital turnover VNet sales

(Current assetsCurrent liabilities)


Current asset F215 V 533=?4HCurrent asset F214 V 13@=@H2


Caital turnover F215 V18500

533,94789,922= 4.1H

Caital turnover F214 V13,910

138,872241,105= F13.'1

5.2.(sset turnover

(sset turnover VTotal sales

Total assets



(sset turnover F215 V 18,500755,333

V 2.45

(sset turnover F214 V13,910

409,639V 3.4

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Ratio Analysis of IJM

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