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
icon
Related questions
Question
Based on the information given, write the summary of analysis and recommendations.
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 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
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
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
System development life cycle (SDLC)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education