![SchoolOfArchitecture,Building&Design
FoundationInNatural&BuiltEnvironment
AssignmentTitle:FinancialRatioAnalysis
GroupMembers:
NAME STUDENTID
SEETTIONGHONG 0320438
WONGDEVIN 0319814
BRYANTEHQINGDA 0318590
BasicAccounting[ACC30205/FNBE0145]
Lecturer:ChangJauHo
SubmissionDate:4thJune2015](https://image.slidesharecdn.com/masteel-150625150454-lva1-app6891/85/MASTEEL-pdf-1-320.jpg)
![DebtorTurnover
ebtorTurnover 65 D = 3 ÷ ( CreditSales
AverageDebtors )
DebtorTurnover2013=
=123days65 3 ÷ ( 687,720,500
[(239,952,000+222,703,000)/2] )
DebtorTurnover2012=
=129days65 3 ÷ ( 656,094,500
[(239,952,000+222,703,000)/2] )
Overtheperiodofyear2012to2013,thedebtorturnoverofthebusiness
hasdecreasedfrom129daysto123days.Itmeansthatthebusiness
receivedtheirmoneyfasterthanthepreviousyear.
*(Duetotheabsenceofcreditsalesfigureintheannualreport,wehave
takentherevenuesofbothyearsanddividedby50%)](https://image.slidesharecdn.com/masteel-150625150454-lva1-app6891/85/MASTEEL-pdf-13-320.jpg)
MASTEEL.pdf
- 1. SchoolOfArchitecture,Building&Design FoundationInNatural&BuiltEnvironment AssignmentTitle:FinancialRatioAnalysis GroupMembers: NAME STUDENTID SEETTIONGHONG 0320438 WONGDEVIN 0319814 BRYANTEHQINGDA 0318590 BasicAccounting[ACC30205/FNBE0145] Lecturer:ChangJauHo SubmissionDate:4thJune2015
- 4. FinancialRationOfMASTEEL ReturnOfEquity(ROE) eturnofEquity 00%R = ( NetProfit AverageOwnersEquity )× 1 ROEfor2013= 00%(27,014,000 540,501,500 )× 1 =5% ROEfor2012= 00%(24,346,000 540,501,500 )× 1 =4.5% Overtheperiodofyear2012and2013,theROEofthebusinesshas increasedfrom4.5%to5%.Theownerisgettingmorereturnfromhis capital.
- 5. NetProfitMargin(NPM) etProfitMargin 00%N = (NetSales NetProfit )× 1 NPMfor2013= 00%( 27,014,000 1,375,441,000 )× 1 =1.96% NPMfor2012= 00%( 24,346,000 1,312,189,000 )× 1 =1.86% Duringtheperiod,theNPMhasaminorincreasefrom1.86%to1.96%. Thismeansthattheabilityofthebusinesstocontrolitsoverallexpenses isslightlybettercomparedtothepreviousyear.
- 6. GrossProfitMargin(GPM) rossProfitMargin 00%G = ( NetSales GrossProfit )× 1 GPMfor2013= 00%( 86,791,000 1,375,441,000 )× 1 =6.31% GPMfor2012= 00%( 75,153,000 1,312,189,000 )× 1 =5.73% Overtheperiodofyear2012to2013,theGPMhasincreasedfrom5.73% to6.31%.Thebusinessisgettingbetterintermsoftheirabilitytocontrol itscostofgoodssoldexpensesforyear2013than2012.
- 7. SellingExpensesRation(SER) ellingExpensesRatio 00%S = ( NetSales SellingExpenses )× 1 SERfor2013= 00%( 17,828,000 1,375,441,000 )× 1 =1.3% SERfor2012= 00%( 19,544,000 1,312,189,000 )× 1 =1.49% TheSERofthebusinesshasslightlydecreasedfrom1.49%to1.3% throughouttheyear.Itmeansthatthebusiness’sabilitytocontrolits sellingexpensesisgettingbetter.
- 8. GeneralExpensesRatio(GER) eneralExpensesRatio 00%G = ( NetSales GeneralExpenses )× 1 GERfor2013= 00%( 27,199,000 1,375,441,000)× 1 =1.98% GERfor2012= 00%( 19,352,000 1,312,189,000)× 1 =1.47% TheGERhasincreasedfrom1.47%to1.98%overtheperiodofyear 2012and2013.Thebusiness’sabilityofcontrollingitsgeneralexpenses isworseinyear2012than2013.
- 9. FinancialExpensesRatio(FER) inancialExpensesRatio 00%F = ( NetSales FinancialExpenses )× 1 FERfor2013= 00%( 15,140,000 1,375,441,000 )× 1 =1.1% FERfor2012= 00%( 15,261,000 1,312,189,000 )× 1 =1.16% Overtheperiodofyear2012and2013,theFERhasdecreasedby0.05%, from1.16%to1.1%.Inotherwords,thefinancialexpensesinyear2013 isslightlylowerthan2012.
- 10. WorkingCapital orkingCapital W = ( TotalCurrentAssets TotalCurrentLiabilities ) Workingcapitalfor2013= (435,500,000 523,506,000 ) =1.2:1 Workingcapitalfor2012= (368,580,000 462,280,000 ) =1.25:1 Overtheperiodof2012to2013theworkingcapitalofthebusinesshas droppedfrom1.25:1to1.2:1.Thebusiness’sabilitytopayofitscurrent liabilitiesisnotasgoodasthepreviousyear.Inaddition,itdoesnotmeet thecriteriaofaratio2:1.
- 11. TotalDebt otalDebt 00%T = ( TotalAssets TotalLiabities ) × 1 TotalDebtfor2013= 00%( 460,755,000 1,015,001,000 )× 1 =45.4% TotalDebtfor2012= 00%(930,785,000 404,028,000 )× 1 =43.4% Fromtheyear2012to2013,thetotaldebthasincreasedfrom43.4%to 45.4%.Thetotaldebtofthisbusinesshasincreased.Inaddition,itstill satisfiestherequirementofamaximumof50%debt.
- 12. StockTurnover tockTurnover 365 S = ÷ ( AverageInventory CostOfGoodsSold ) StockTurnoverfor2013= 65 3 ÷ ( 200,838,000 1,288,650,000 ) =57days StockTurnoverfor2012= 65 3 ÷ ( 200,838,000 1,237,036,000 ) =60days Duringtheperiodofyear2012and2013,Thestockturnoverhas decreasedfrom60daysto57days.Thebusinesssolditsgoodsfasterin 2013comparedto2012.
- 13. DebtorTurnover ebtorTurnover 65 D = 3 ÷ ( CreditSales AverageDebtors ) DebtorTurnover2013= =123days65 3 ÷ ( 687,720,500 [(239,952,000+222,703,000)/2] ) DebtorTurnover2012= =129days65 3 ÷ ( 656,094,500 [(239,952,000+222,703,000)/2] ) Overtheperiodofyear2012to2013,thedebtorturnoverofthebusiness hasdecreasedfrom129daysto123days.Itmeansthatthebusiness receivedtheirmoneyfasterthanthepreviousyear. *(Duetotheabsenceofcreditsalesfigureintheannualreport,wehave takentherevenuesofbothyearsanddividedby50%)
- 14. InterestCoverage nterestCoverage I = ( InterestExpenses InterestExpenses+NetProfit ) Interestcoveragefor2013= ( 15,140,000 15,140,000+27,014,000 ) =2.78times Interestcoveragefor2012= ( 15,261,000 15,261,000+24,346,000 ) =2.6times Duringtheperiodofyear2012to2013,theinterestcoverageofthe businessincreasedfrom2.6timesto2.78times.Italsomeansthe businessabilitytopayoffitsinterestexpensesisbetter.Howevera businessshouldneverfallbelow5times.
- 15. P/ERatio P/ERatio= ( EarningPerShare CurrentSharePrice ) = ( 0.62 0.1238 ) =5.008 BasedontheinformationweacquiredfromthewebpageofBursa Malaysiadated3rdJune2015,thesharepriceofMASTEELisRM0.62 anditsearningpershareisRM0.1238.ThismeanstheP/Eratioof MalaysiaSteelWorksBerhadis5.008(0.62/0.1238).
- 23. REFERENCE 1) CompanyHistory.(n.d.).RetrievedJune1,2015,from http://www.masteel.com.my/about2/briefhistorymilestone/ 2) MalaysiaSteelWorks(KL)BerhadInformation.(n.d.).RetrievedJune 1,2015,from http://www.bursamalaysia.com/market/listedcompanies/listofcompanies/ plcprofile.html?stock_code=5098 3) Liz,L.(2014,August30).Masteel'swillofsteelBusinessNews|The StarOnline.RetrievedJune1,2015,from http://www.thestar.com.my/Business/BusinessNews/2014/08/30/Masteels willofsteelSteelproducerkeenforrailprojecttorunalongsideitscore business/?style=biz