PB605 BUSINESS FINANCEFINANCIAL ANALYSIS

PRESENTER :

MUHAMAD SHAIFUL NIZAM BIN ABD RAHMAN 16BPM12F2003MOHAMAD IHSAN HAKIM BIN ROZALI 16BPM12F2004MOHAMAD UZAIR BIN MOHAMAD DAUD 16DPM11F2005

THINESH A/L SHANMUGA 16DPM11F2040

LECTURER : MADAM ROZANA BINTI ABD RAHMAN

• Retail Of Gold, Jewelry And Precious Stone

• Established On 26 March 1976

• Listed On The Main Board Of Bursa Malaysia Securities Berhad On 9 March 2004.

Tomei Consolidated Berhad

• Gold And Jewelry Industry

• Listed On The Main Board Of Bursa Malaysia Securities Berhad On 9 March 2006

• founded on 1968

Financial analysis

In our financial analysis, we use the Poh Kong Holdings Berhad Annual Report for year 2013 and Tomei Consolidated Berhad Annual Report for year 2013.The

reason why we choose these company because of their financial stability. Futhermore, these companies is listed in Bursa Malaysia as it fulfill our

financial analysis task in comparing the ratio of the companies that is listed in Bursa Malaysia. We will be using current ratio, debt ratio, Inventory turnover,

return on investment, gross profit margin in comparing both of the companies.

Poh Kong Holdings Berhad = 635,504,448 / 169,632,836 Current ratio : 3.75

Tomei Consolidated Berhad = 374,547,000 / 209,540,000

Current ratio : 17.87

CURRENT RATIOCurrent asset / current liability

Tomei Consolidated Berhad has a current ratio of 17.87 higher than Poh Kong Holdings Berhad. With this current ratio it shows that is better than Poh Kong Holdings Berhad in ability of the firm to pay short term debt.Tomei Consolation Berhad is in a good state of affair and Poh Kong Holdings Berhad maybe having difficulty in settling short term debt.

DEBT RATIOTotal liability / total asset

Poh Kong Holdings Berhad : 320 ,830,740 / 763,346,347

Debt ratio = 0.42

Tomei Consolidated Berhad: 209540000 / 396030000

Debt ratio = 0.53

In Debt Ratio, Poh Kong Holdings Berhad has 0.42 ratio which shows that it is better than Tomei Consolidated Berhad in Year 2013. This is probably because of Tomei Consolidated Berhad is more earlier founded in the industry so their debt is more than Poh Kong Holdings Berhad. of Tomei Consolidated Berhad might have hard time settling their debt if the economy going down rather than Poh Kong Holdings Berhad.

INVENTORY TURNOVERCost of good sold / inventory

Poh Kong Holdings Berhad = 757,405,746 / 569 ,44

= 1.34

Tomei Consolidated Berhad = 579,966,000 / 332,863,000 =1.74

Tomei Consolidated Berhad has 1.74 inventory turnover which is higher than Poh Kong Holdings Berhad.From the inventory turnover we know that tomei consolidated berhad in good state of inventory turnover.

RETURN ON INVESTMENTNet profit / total assets x 100%

Poh Kong Holdings Berhad = 56,853,330 / 763,346,347 x 100

= 7.45%

Tomei Consolidated Berhad = 4,723,000 / 396,030,000 x 100

=1.19%

With the Poh Kong Holdings Berhad has 7.45% return on investment , it show that Poh Kong Holdings Berhad had been good condition and much better than Tomei Consolidated Berhad because make a good profit on investment rather than Tomei Consolidated Berhad which 1.19% in return on investment.

GROSS PROFIT MARGINSales - cost of good sales / sales x 100

Poh Kong Holdings Berhad = 975,784,460 - 757,405746 / 975,784,460 x 100

=23%

Tomei Consolidated Berhad = 701,907,000 - 579,966,000 / 701,907,000 x 100

=17%

Poh Kong Holdings Berhad has gross profit margin 23% and Tomei Consolidated Berhad has 17% in gross profit margin.It shows that Poh Kong Holdings Berhad more efficient in operating than Tomei Consolidated Berhad

  Poh Kong Holdings Berhad Tomei Consolidated Berhad

Current ratio 3.75 17.87

Debt Ratio 0.42 0.53

Inventory turnover 1.34 1.74

Return on investment 7.45% 1.19%

Gross profit margin 23% 17%

• FINANCIAL HEALTH

GRADE

B C

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