THE COMPANY'S FINANCIAL RATIO ANALYSIS a. Liquidity Ratio Liquidity Ratio: Year 2016 2017 2018 2019 2020 RM877,013 RM197,457 RM3,986,054 RM174,859 RM6,147,197 RM72,968 RM5,073,370 RM73,894 RM94,887 RM133,306 Current ratio = 4.44 @ 4 = 22.79 @ 23 = 84.25 @ 84 = 68.66 @ 69 = 0.71 @ 1 Table 1 Liquidity Ratio of Innoprise Plantation Berhad Liquidity Ratio: Year 2016 2017 2018 2019 2020 RM503,522,086 RM309,572,909 RM108,537,985 RM67,242,160 RM1,754,436 RM69,397,903 RM6,176,482 RM67,442,492 RM4,621,503 RM149,572,953 Current ratio = 1.63 @ 2 = 1.61 @ 2 = 0.03 = 0.09 @ 0.1 = 0.03 Table 2 Liquidity Ratios of Rimbunan Sawit Berhad b. Capital Structure Ratio Capital Structure Year Ratios: 2016 2017 2018 2019 2020 RM102,449,847 RM419,251,698 RM 93,433,979 RM 434,291,775 RM 78,178,705 RM 386,704,783 RM 74,104,573 RM 392,562,437 RM 70,613,270 RM 403,898,036 Debt Ratio =24.44% =21.51% =20.22% = 18.97% =17.48% RM 47,027,043 RM 4,201,061 = 11.19 times RM 13,422,855 RM 1,920,273 = 6.99 times Table 3 Capital Structure Ratios Innoprise Plantations Berhad RM 16,164,735 RM 1,278,341 RM42,369,532 RM 2,477,648 RM 46,375,347 RM 337,144 Time Interest Earned Ratio =17.10 times =12.65 times = 137.55 times
THE COMPANY'S FINANCIAL RATIO ANALYSIS a. Liquidity Ratio Liquidity Ratio: Year 2016 2017 2018 2019 2020 RM877,013 RM197,457 RM3,986,054 RM174,859 RM6,147,197 RM72,968 RM5,073,370 RM73,894 RM94,887 RM133,306 Current ratio = 4.44 @ 4 = 22.79 @ 23 = 84.25 @ 84 = 68.66 @ 69 = 0.71 @ 1 Table 1 Liquidity Ratio of Innoprise Plantation Berhad Liquidity Ratio: Year 2016 2017 2018 2019 2020 RM503,522,086 RM309,572,909 RM108,537,985 RM67,242,160 RM1,754,436 RM69,397,903 RM6,176,482 RM67,442,492 RM4,621,503 RM149,572,953 Current ratio = 1.63 @ 2 = 1.61 @ 2 = 0.03 = 0.09 @ 0.1 = 0.03 Table 2 Liquidity Ratios of Rimbunan Sawit Berhad b. Capital Structure Ratio Capital Structure Year Ratios: 2016 2017 2018 2019 2020 RM102,449,847 RM419,251,698 RM 93,433,979 RM 434,291,775 RM 78,178,705 RM 386,704,783 RM 74,104,573 RM 392,562,437 RM 70,613,270 RM 403,898,036 Debt Ratio =24.44% =21.51% =20.22% = 18.97% =17.48% RM 47,027,043 RM 4,201,061 = 11.19 times RM 13,422,855 RM 1,920,273 = 6.99 times Table 3 Capital Structure Ratios Innoprise Plantations Berhad RM 16,164,735 RM 1,278,341 RM42,369,532 RM 2,477,648 RM 46,375,347 RM 337,144 Time Interest Earned Ratio =17.10 times =12.65 times = 137.55 times
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Based on the information given, write the summary of analysis and recommendations.
Transcribed Image Text:THE COMPANY'S FINANCIAL RATIO ANALYSIS
a. Liquidity Ratio
Liquidity Ratio:
Year
2016
2017
2018
2019
2020
Current ratio
RM877,013
RM197,457
RM5,073,370
RM6,147,197
RM72,968
RM94,887
RM133,306
RM3,986,054
RM174,859
RM73,894
= 4.44 @ 4
= 22.79 @ 23
= 84.25 @ 84
= 68.66 @ 69
= 0.71 @ 1
Table 1 Liquidity Ratio of Innoprise Plantation Berhad
Liquidity Ratio:
Year
2016
2017
2018
2019
2020
RM503,522,086
RM309,572,909
RM108,537,985
RM67,242,160
RM1,754,436
RM69,397,903
RM4,621,503
RM149,572,953
Current ratio
RM6,176,482
RM67,442,492
= 1.61 @ 2
Table 2 Liquidity Ratios of Rimbunan Sawit Berhad
= 1.63 @ 2
= 0.03
= 0.09 @ 0.1
= 0.03
b. Capital Structure Ratio
Capital Structure
Year
Ratios:
2016
2017
2018
2019
2020
RM 78,178,705
RM 386,704,783
Debt Ratio
RM 93,433,979
RM 434,291,775
RM 74,104,573
RM 392,562,437
RM 70,613,27O
RM102,449,847
RM419,251,698
%3D
RM 403,898,036
=24.44%
=21.51%
=20.22%
= 18.97%
=17.48%
RM 46,375,347
RM 337,144
RM 47,027.043
RM42,369,532
RM 13,422,855
RM 1,920,273
Time Interest
RM 16,164,735
RM 4,201,061
RM 2,477,648
RM 1,278,341
Earned Ratio
= 11.19 times
=17.10 times
= 6.99 times
=12.65 times
= 137.55 times
Table 3 Capital Structure Ratios Innoprise Plantations Berhad
Capital Structure
Year
Ratios:
2016
2017
2018
2019
2020
Debt Ratio
RM102,449 ,847
RM419,251,698
RM 78,178,705
RM 386,704,783
RM 74,104,573
RM 392,562,437
RM 70,613,270
RM 403,898,036
RM 93,433,979
%3D
RM 434,291,775
=24.44%
=21.51%
=20. 22%
= 18.88%
=17.48%
Time Interest
(RM 39,969,040)
(RM 133,773,260)
(RM 144,186,535)
RM 25,011,851
(RM 47,317,855)
(RM 18,610,957)
RM 12,585,020
RM 22,623,784
RM 23,470,300
RM 18,514,985
Earned Ratio
= -3.17 times
= - 5.91 times
= -5.76 times
= -2.02 times
= -1.00 times
Table 4 Capital Structure Ratios Rimbunan Sawit Berhad
c. Asset Management Efficiency Ratio
Asset
Year
Management
2016
2017
2018
2019
2020
Efficiency
Ratios:
Total Asset
RM(75,528,590)
RM(64,973,966)
RM(96,822,949)
RM 386,704,783
RM (98,749,740)
RM 392,562,437
RM (104,583,915)
RM 403,898,036
RM419.251.698
RM434,291,775
Turnover Ratio
= 0.1802 @ 0.2
= 0.1496 @ 0.1
= 0.2504 @ 0.3
=0.2516 @ 0.3
= 0.2589 @ 0.3
Fixed Asset
RM(96.822.949
(RM157,540,034-RM8,45 RM165,446,772-RM8,2 RM373,325,830-RM20 RM363,129,790-RM21, RM353,519,864-RM21,5
RM (98,749,740
Turnover Ratio
RM(75,528,590)
RM(64,973,966)
RM (104,583,915)
RM(75,528,590)
RM(64,973,966)
RM157.211,657
RM(96,822,949)
RM353,134,469
RM (98,749,740)
RM342,097,139
RM (104,583,915)
RM331,962,759
RM149,086,269
= 0.5066 @ 0.5
= 0.4133 @ 0.4
= 0.2742 @ 0.3
= 0.2887 @ 0.3
= 0.3150 @ 0.3
Transcribed Image Text:THE COMPANY'S FINANCIAL RATIO ANALYSIS
Market Value Ratio:
Market value ratios are used to evaluate the current share price of a publicly-held company's
stock. These ratios are employed by current and potential investors to determine whether a
company's shares are over-priced or under-priced.
a. Market Value Ratio
Year
Price - Earnings (PE) Ratio
Market – to – Book Ratio
2016
Share Price
Market Capitalization
%3D
Earnings per Share
Вook Value
RM1.35
RM631,294,225.2
RM246,577,135
%3D
RM6.71
= 0.20x
= 2.56 time
RM292,036,893.7
RM249,720,979
2017
RM0.61
RM8.92
= 0.07x
= 1.17 time
2018
RM0.62
RM296,891,929
RM252,120,303
%3D
%3D
RM1.98
= 0.31x
= 1.18 time
2019
RM0.63
RM301,680,508.5
RM251,010,275
%3D
RM3.07
= 0.21x
= 1.20 time
2020
RM0.70
RM335,200,565
=
RM7.60
RM245,822,422
= 0.10x
= 1.36 time
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