Ratio (Assignment) (2) 85%

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Ratio Analysis

Financial ratio analysis is a standard technique by a financial analyst to compare and analyze Financial ratio analysis is a standard technique by a financial analyst to compare and analyze information. Under this financial ratio analysis a set of numbers that are form one or more of the information. Under this financial ratio analysis a set of numbers that are form one or more of the financial statement and compared to each other to form ratios. For instance, to calculate asset financial statement and compared to each other to form ratios. For instance, to calculate asset ratios, firm¶s current liabilities are divided with the firm¶s current asset. This ratio gives the ratios, firm¶s current liabilities are divided with the firm¶s current asset. This ratio gives the measurement of the firm¶s capacity to meet its current

measurement of the firm¶s capacity to meet its current obligations.obligations.

Firm ratios provide an insight into a particular firm operation. However they can provide Firm ratios provide an insight into a particular firm operation. However they can provide analysts with better picture about the firm, if the value of the ratios obtained, are compared with analysts with better picture about the firm, if the value of the ratios obtained, are compared with another values. For examples, co

another values. For examples, comparisons of ratios can occur in three categories:mparisons of ratios can occur in three categories:

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1. HH_{istorical comparison;}_{istorical comparison;} _{this ratio looks at ratio of a firm from one period and compare it}_{this ratio looks at ratio of a firm from one period and compare it}

to the same ratio from another period. For instance, the current ratio for example; to the same ratio from another period. For instance, the current ratio for example; managers could compare current fiscal year (2002) with current ratio with current ratio managers could compare current fiscal year (2002) with current ratio with current ratio from the last fiscal year (2001) o

from the last fiscal year (2001) or the analysts could also compare thr the analysts could also compare this year¶s current ratiois year¶s current ratio with current ratio from the last two fiscal years(2000 and 2001). This form of analysis is with current ratio from the last two fiscal years(2000 and 2001). This form of analysis is useful to analysts because it a

useful to analysts because it allllow tow them to detect any of emerging trends.hem to detect any of emerging trends. 2.

2. CC_{ompare analysis;}_{ompare analysis;} _{this analysis involve, I. comparing of a particular firm, with other}_{this analysis involve, I. comparing of a particular firm, with other}

firm¶s ratios wi

firm¶s ratios within the same industry. thin the same industry. II. Comparing ratios of a particular fiII. Comparing ratios of a particular firm, with therm, with the industry average ratios. For instance, managers could take the current ratio of the industry average ratios. For instance, managers could take the current ratio of the company they work

company they work for (firm A) and compare it with the current for (firm A) and compare it with the current ratio of firm B. here, it isratio of firm B. here, it is essential that firm B is also from the same industry as firm A. before the comparison can essential that firm B is also from the same industry as firm A. before the comparison can be made between the current ratio of firm A with the average current ratio for the be made between the current ratio of firm A with the average current ratio for the industry, we must first calculate the average current ratio for the industry. An industry industry, we must first calculate the average current ratio for the industry. An industry average current is calculated by dividing the total current ratios of all the firm in the same average current is calculated by dividing the total current ratios of all the firm in the same industry with the number of firm within the

industry with the number of firm within the industryindustry.. 3.

3. A budget analysis:A budget analysis: For this analysis, actual performance ratio of a firm compared withFor this analysis, actual performance ratio of a firm compared with the firm projected performance ratios. For instance, managers could construct are the firm projected performance ratios. For instance, managers could construct are forecasted current ratio at the beginning of the fiscal period (January 2002) and then forecasted current ratio at the beginning of the fiscal period (January 2002) and then compare this ratio with the actual one at the end of their fiscal period (December 2002) . compare this ratio with the actual one at the end of their fiscal period (December 2002) . By making such managers would be able to determine, if what has been projected to By making such managers would be able to determine, if what has been projected to happen, actual occurred.

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Financial ratio are used by three main groups: Financial ratio are used by three main groups:

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1. MManagers; they employ ratio to help analyze, control, and thus improve their firmanagers; they employ ratio to help analyze, control, and thus improve their firm operations.

operations. 2.

2. Credits analysts, such as bank loan officers; they employ ratio to help ascertain aCredits analysts, such as bank loan officers; they employ ratio to help ascertain a company¶s ability to pay

company¶s ability to pay its debt.its debt. 3.

3. Stockholders (owners) : they employ ratio to Stockholders (owners) : they employ ratio to measure a firm¶s growth prospectmeasure a firm¶s growth prospect

Ratio analysis is divided into four

Ratio analysis is divided into four categories based on the type of categories based on the type of issues they addressissues they address 1.

1. LL_{iquidity Ratios}_{iquidity Ratios}_{: A class of financial metrics that is used to determine a company's}_{: A class of financial metrics that is used to determine a company's}

ability to pay off its short-terms debts obligations. Generally, the higher the value of the ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio,

ratio, the the larger tlarger the he margin of margin of safety safety that that the the company pocompany possesses to ssesses to cover short-termcover short-term debts.

debts.

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2. _{Asset Management Ratios: Asset}_{Asset Management Ratios: Asset} _M_M_{anagement Ratios attempt to measure the firm's}_{anagement Ratios attempt to measure the firm's}

success in managing its assets to generate sales. For example, these ratios can provide success in managing its assets to generate sales. For example, these ratios can provide insight into the success of the firm's credit policy and inventory management. These insight into the success of the firm's credit policy and inventory management. These ratios are also known as Activity or

ratios are also known as Activity or Turnover Ratios.Turnover Ratios. 3.

3. DDebt Management Ratios :ebt Management Ratios :MMeasure the extent to which a firm is using debt financingeasure the extent to which a firm is using debt financing and the degrees o

and the degrees of safety that the firm provides to creditorsf safety that the firm provides to creditors 4.

4. PProfitability Ratios:rofitability Ratios: PProfitability Ratios attempt to measure the firm's success inrofitability Ratios attempt to measure the firm's success in generating income. These ratios reflect the combined effects of the firm's asset and debt generating income. These ratios reflect the combined effects of the firm's asset and debt management.

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_ompany

_{ompany P}

_Profile

_rofile

IOI

IOICC_orporations_orporations

IOI Group's formation years were associated with real estate when it forayed into property IOI Group's formation years were associated with real estate when it forayed into property development in 1982 followed by Oil

development in 1982 followed by OilPPalm plantations in 1985.alm plantations in 1985.

Today, IOI Group is internationally known as a leading global integrated palm oil player Today, IOI Group is internationally known as a leading global integrated palm oil player with operations stretching the entire palm value chain from seedlings to plantations to crop oil with operations stretching the entire palm value chain from seedlings to plantations to crop oil extraction to diverse value-added manufacturing across major continents - serving global extraction to diverse value-added manufacturing across major continents - serving global markets in more than 65 countries. Close to its home-base in

markets in more than 65 countries. Close to its home-base in MMalaysia, the Group is alsoalaysia, the Group is also prominently known as one of the leading property developer with significant investment prominently known as one of the leading property developer with significant investment holdings of prime real-estates

holdings of prime real-estates

IOI Group employs more than 30,000 personnel of more than 23 different nationalities in 15 IOI Group employs more than 30,000 personnel of more than 23 different nationalities in 15 countries.

countries.

IOI Group comprises of hundreds of companies helmed by IOI Corporation Bhd - a public IOI Group comprises of hundreds of companies helmed by IOI Corporation Bhd - a public listed company on the

listed company on the MMalaysian Stock Exchange - with business activities under three keyalaysian Stock Exchange - with business activities under three key segments

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Genting

GentingPPlantations Berhad (Asiaticlantations Berhad (Asiatic DDevelopment Berhad)evelopment Berhad)

Genting

Genting PPlantations Berhad ("Gentinglantations Berhad ("Genting PPlantations"), formerly known as Asiatic Developmentlantations"), formerly known as Asiatic Development Berhad, is one of the fastest growing plantation companies listed on the

Berhad, is one of the fastest growing plantation companies listed on the MMain Board of Bursaain Board of Bursa

M

Malaysia (formerly known as Kuala Lumpur Stock Exchange). Incorporated inalaysia (formerly known as Kuala Lumpur Stock Exchange). Incorporated in MMalaysia as aalaysia as a private limited company on 29 September 1977, under the name of Asiatic Development Sdn private limited company on 29 September 1977, under the name of Asiatic Development Sdn Bhd, it became a wholly owned subsidiary of

Bhd, it became a wholly owned subsidiary of Genting BerhadGenting Berhad ("Genting") on 22 February 1980("Genting") on 22 February 1980 to spearhead Genting's plantation business.

to spearhead Genting's plantation business. Listed on Bursa

Listed on Bursa MMalaysia on 30 August 1982, Gentingalaysia on 30 August 1982, Genting PPlantations currently ranks amongstlantations currently ranks amongst the top 10 listed companies in terms of market capitalization in the plantation sector. As at 30 the top 10 listed companies in terms of market capitalization in the plantation sector. As at 30 April 2009, Genting

April 2009, GentingPPlantations is a 54.7% owned subsidiary of Genting Berhad.lantations is a 54.7% owned subsidiary of Genting Berhad. In April 1980, Genting

In April 1980, Genting PPlantations commenced business through the lantations commenced business through the successful acquisisuccessful acquisition otion of f the Rubber Trust Group comprising 3 Hong Kong domiciled rubber companies which owned the Rubber Trust Group comprising 3 Hong Kong domiciled rubber companies which owned some 13,700 hectares of plantation land in

some 13,700 hectares of plantation land in PPeninsular eninsular MMalaysia. In June 1981, the Ko Rubber alaysia. In June 1981, the Ko Rubber Companies, which owned about 10,000 hectares of plantation land in

Companies, which owned about 10,000 hectares of plantation land inPPeninsular eninsular MMalaysia, werealaysia, were acquired by Genting Group and through a restructuring exercise in 1983, some 9,268 hectares of acquired by Genting Group and through a restructuring exercise in 1983, some 9,268 hectares of these plantation land and businesses were transferred to Genting

these plantation land and businesses were transferred to Genting PPlantations. In the same year,lantations. In the same year, Genting

Genting PPlantations acquired a further 676 hectares of oil palm plantation and a 30 tone per hour lantations acquired a further 676 hectares of oil palm plantation and a 30 tone per hour oil mill. These acquisitions would have now proven to be most astute decisions judging by the oil mill. These acquisitions would have now proven to be most astute decisions judging by the development potential of some of the land and the capital appreciation that has since taken place, development potential of some of the land and the capital appreciation that has since taken place, particularly the 3,200 hectare - Genting Kulai Besar Estate which is now being developed as the particularly the 3,200 hectare - Genting Kulai Besar Estate which is now being developed as the mega Genting Indahpura project in Kulai, Johor.

mega Genting Indahpura project in Kulai, Johor. Recognizing the scarcity of land in

Recognizing the scarcity of land in PPeninsular eninsular MMalaysia, Genting Group started makingalaysia, Genting Group started making inroads into Sabah. In 1985, Genting Group acquired Asiatic SDC Sdn Bhd, whose plantation inroads into Sabah. In 1985, Genting Group acquired Asiatic SDC Sdn Bhd, whose plantation business comprised some 4,000 hectares of oil palm plantation and a 20 tones per hour oil mill. business comprised some 4,000 hectares of oil palm plantation and a 20 tones per hour oil mill. In a subsequent rationalization of Genting Group's plantation activities, ownership of ASDC was In a subsequent rationalization of Genting Group's plantation activities, ownership of ASDC was transferred to Genting

transferred to Genting PPlantations in 1991.lantations in 1991.

A quick succession of land acquisitions in Sabah ensued for Genting

A quick succession of land acquisitions in Sabah ensued for Genting PPlantations, startinglantations, starting with the takeover of Tanjung Bahagia Sdn Bhd in 1988 which owns 8,094 hectares of jungle with the takeover of Tanjung Bahagia Sdn Bhd in 1988 which owns 8,094 hectares of jungle

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land, followed by a joint venture arrangement with Landworthy Sdn Bhd (now known as Asiatic land, followed by a joint venture arrangement with Landworthy Sdn Bhd (now known as Asiatic Tanjung Bahagia Sdn Bhd) in 1989 which added another 4,039 hectares. Between 1991 and Tanjung Bahagia Sdn Bhd) in 1989 which added another 4,039 hectares. Between 1991 and 1996, another 5,730 hectares were acquired. With all these jungle lands fully cultivated, Genting 1996, another 5,730 hectares were acquired. With all these jungle lands fully cultivated, Genting

P

Plantations, with its long term vision to further its plantation interest, continues to expand itslantations, with its long term vision to further its plantation interest, continues to expand its land bank. Notable acquisitions include the 8,830-hectare agricultural land near the Sungai land bank. Notable acquisitions include the 8,830-hectare agricultural land near the Sungai Tongod and the 5,611-hectare oil palm estate near Bukit Garam in 2001 and 2002 respectively. Tongod and the 5,611-hectare oil palm estate near Bukit Garam in 2001 and 2002 respectively. And in

And in MMay 2004, Gentingay 2004, Genting PPlantations has completed yet another acquisition of some 6,753lantations has completed yet another acquisition of some 6,753 hectares of oil palm estates together with a 60

hectares of oil palm estates together with a 60 tones per hour oil mill in Kinabatangan, tones per hour oil mill in Kinabatangan, Sabah.Sabah. In June 2005, Genting

In June 2005, Genting PPlantations embarked on its maiden foray into the plantation businesslantations embarked on its maiden foray into the plantation business overseas. This expansion of plantation act

overseas. This expansion of plantation activiivities in the Reputies in the Republic of Indonesia is on a blic of Indonesia is on a joint venturejoint venture basis with a respectable palm oil producer in the country, the Sepanjang Group. The Genting basis with a respectable palm oil producer in the country, the Sepanjang Group. The Genting

P

Plantations-Sepanjang 70:30 joint venture will develop some 76,000 hectares of agricultural landlantations-Sepanjang 70:30 joint venture will develop some 76,000 hectares of agricultural land into oil palm plantation. Genting

into oil palm plantation. Genting PPlantations entered into another joint venture in 2008 tolantations entered into another joint venture in 2008 to develop 45,000 hectares in Ketapang. Following these recent acquisitions, Genting

develop 45,000 hectares in Ketapang. Following these recent acquisitions, GentingPPlantation¶slantation¶s current land bank is slated to increase to over 186,000 hectares in Indonesia and

current land bank is slated to increase to over 186,000 hectares in Indonesia and MMalaysia; analaysia; an impressive 14-fold increase since 1980. The Group continues to be actively working towards impressive 14-fold increase since 1980. The Group continues to be actively working towards adding more.

adding more.

At present, Genting

At present, Genting PPlantations owns 6 oil mills, one inlantations owns 6 oil mills, one in PPeninsular eninsular MMalaysia, which attainedalaysia, which attained the ISO 9002(1994) Quality

the ISO 9002(1994) Quality MManagement Systems status in 2001 (which was subsequentlyanagement Systems status in 2001 (which was subsequently updated to the ISO 9001(2000) in 2002) and the others in Sabah. Total milling capacity to date is updated to the ISO 9001(2000) in 2002) and the others in Sabah. Total milling capacity to date is 265 tones per hour. In 1994, Genting

265 tones per hour. In 1994, GentingPPlantations entered into a joint venture with a Sarawak lantations entered into a joint venture with a Sarawak statestate agency to establish a 30/60 tones per hour palm oil mill in Serian, Sarawak. This mill scored a agency to establish a 30/60 tones per hour palm oil mill in Serian, Sarawak. This mill scored a hat trick when it was awarded the Anugerah Industri Sawit

hat trick when it was awarded the Anugerah Industri Sawit MMalaysia, in recognition of its highalaysia, in recognition of its high oil extraction rate, by

oil extraction rate, byPPORLA since its commissioning in August 1997.ORLA since its commissioning in August 1997. Whilst plantation business remains the core activity, Genting

Whilst plantation business remains the core activity, Genting PPlantations has since venturedlantations has since ventured into property development with the objectives to unlock the potential of its strategically located into property development with the objectives to unlock the potential of its strategically located land bank and to reduce its dependence on single source income.

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7 7 The first project by Genting

The first project by Genting PPlantation¶s property arm, Gentinglantation¶s property arm, GentingPProperty Sdn Bhd ("Gentingroperty Sdn Bhd ("Genting

P

Property") is the 55-hectare Genting Chengroperty") is the 55-hectare Genting Cheng PPerdana in Centralerdana in Central MMelaka. Officially launched inelaka. Officially launched in October 1993, the project has turned out to be quite a success with its first phase of single- and October 1993, the project has turned out to be quite a success with its first phase of single- and double-storey houses completed and handed over to purchasers about 9 months ahead of double-storey houses completed and handed over to purchasers about 9 months ahead of schedule. Since then, 3 other phases have been completed and handed over in good time.

schedule. Since then, 3 other phases have been completed and handed over in good time. What followed next was the launching of the 284-hectare Genting

What followed next was the launching of the 284-hectare GentingPPermaipura project in lateermaipura project in late 1994. Located about 10 km from the fast-growing town of Sungai

1994. Located about 10 km from the fast-growing town of SungaiPPetani, Kedah, a town poisedetani, Kedah, a town poised to become the commercial/industrial hub of the northern region in

to become the commercial/industrial hub of the northern region inMMalaysia, Gentingalaysia, GentingPPermaipuraermaipura comprises commercial and entertainment centers, bungalow lots, residential houses and comprises commercial and entertainment centers, bungalow lots, residential houses and shop-offices. Also included in this project is an 18-hole golf course with a 2-tier driving range which offices. Also included in this project is an 18-hole golf course with a 2-tier driving range which sprawls over 160 acres of prime land against the majestic backdrop of Gunung Jerai and a sprawls over 160 acres of prime land against the majestic backdrop of Gunung Jerai and a clubhouse, The Genting

clubhouse, The GentingPPermaipura Golf & Country Club.ermaipura Golf & Country Club.

Further, in its push to the forefront of property development, Genting

Further, in its push to the forefront of property development, Genting PProperty had embarkedroperty had embarked on another project - the massive Genting

on another project - the massive Genting IndahpuraIndahpura or "Beautiful City" project at Kulai, Johor.or "Beautiful City" project at Kulai, Johor. Spanning over 30 years, this project located just 30 km north from the bustling and fast growing Spanning over 30 years, this project located just 30 km north from the bustling and fast growing city of Johor Bahru involves the development of about 3,200 hectares of plantation land in Kulai, city of Johor Bahru involves the development of about 3,200 hectares of plantation land in Kulai, Johor, into a self-contained township. Genting Indahpura is conceptualized as a fully-integrated Johor, into a self-contained township. Genting Indahpura is conceptualized as a fully-integrated development complementing the State's plan to upgrade the existing Kulai town into a development complementing the State's plan to upgrade the existing Kulai town into a sub-regional centre complete with all modern amenities and convenience, and generously landscaped regional centre complete with all modern amenities and convenience, and generously landscaped town parks and green lungs for healthy and recreational pursuits. The project's attraction lies in town parks and green lungs for healthy and recreational pursuits. The project's attraction lies in its excellent location which enjoys easy access from virtually every transportation route - road its excellent location which enjoys easy access from virtually every transportation route - road linkages through the North-South Expressway and the Second Link from Singapore; air linkages linkages through the North-South Expressway and the Second Link from Singapore; air linkages through the Sultan Ismail International airport in Senai 10 minutes away; and rail links through through the Sultan Ismail International airport in Senai 10 minutes away; and rail links through the Federal Railway lines.

the Federal Railway lines. Genting

Genting PPlantations also has other large tracts of land with development potential. These willlantations also has other large tracts of land with development potential. These will continuously be monitored as to t

continuously be monitored as to the timing and the type ohe timing and the type of development most suited in relation tof development most suited in relation to their locations. With low land holding cost and huge reserves of own land bank, Genting their locations. With low land holding cost and huge reserves of own land bank, Genting

P

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Moving forward, the Group, through its wholly owned subsidiary, Asiatic Centre for oving forward, the Group, through its wholly owned subsidiary, Asiatic Centre for Genome Technology Sdn Bhd ("ACGT"), has ventured into the biotechnology industry in 2006. Genome Technology Sdn Bhd ("ACGT"), has ventured into the biotechnology industry in 2006. ACGT has set up an equally owned joint venture with Synthetic Genomics Inc ("Synthetic ACGT has set up an equally owned joint venture with Synthetic Genomics Inc ("Synthetic Genomics"), a privately held company dedicated to commercializing synthetic genomic Genomics"), a privately held company dedicated to commercializing synthetic genomic processes and naturally occurring processes for alternative energy resources.

processes and naturally occurring processes for alternative energy resources.

The joint venture is tasked to carry out research and development activities on the use of The joint venture is tasked to carry out research and development activities on the use of genomics-based techniques and tools to increase the yield and profit stream from crop plants. It genomics-based techniques and tools to increase the yield and profit stream from crop plants. It will initially focus on whole genome sequencing of oil palm. Synthetic Genomics, which was will initially focus on whole genome sequencing of oil palm. Synthetic Genomics, which was founded by genome pioneer J Craig Venter,

founded by genome pioneer J Craig Venter, PPh.D., will use its expertise in DNA sequencing toh.D., will use its expertise in DNA sequencing to enable SGSI-Asiatic Limited to develop a comprehensive genomic study of oil palm whilst enable SGSI-Asiatic Limited to develop a comprehensive genomic study of oil palm whilst ACGT will be the exclusive agent and sole licensee, on a worldwide basis, for commercializing ACGT will be the exclusive agent and sole licensee, on a worldwide basis, for commercializing the technologies developed. In

the technologies developed. In MMay 2008, the joint venture announced that it had successfullyay 2008, the joint venture announced that it had successfully completed the first draft assembly of the oil palm genome. For more information, please visit completed the first draft assembly of the oil palm genome. For more information, please visit www.acgt.asia

www.acgt.asia.. Genting

Genting PPlantations is actively involved in environmental conservation and committed tolantations is actively involved in environmental conservation and committed to sustainable development of oil palm cultivation. Since 1999, Genting

sustainable development of oil palm cultivation. Since 1999, Genting PPlantations haslantations has collaborated with World Wide Fund for Nature ("WWF") in support of its "

collaborated with World Wide Fund for Nature ("WWF") in support of its "PPartners for artners for Wetlands") programmed to conserve the Kinabatangan floor plains aimed at rehabilitating and Wetlands") programmed to conserve the Kinabatangan floor plains aimed at rehabilitating and restoring reverie and wetland habitats as wildlife sanctuary and preservation of biodiversity. The restoring reverie and wetland habitats as wildlife sanctuary and preservation of biodiversity. The Kinabatangan floodplains will serve as a corridor for wildlife movement of Borneo flagship Kinabatangan floodplains will serve as a corridor for wildlife movement of Borneo flagship species, such as pygmy elephant, orang utan and proboscis monkey. The Group, noted as the first species, such as pygmy elephant, orang utan and proboscis monkey. The Group, noted as the first plantation company to participate in the programmed, has extended its partnership with WWF plantation company to participate in the programmed, has extended its partnership with WWF for another 15 years from 2006.

for another 15 years from 2006.

On the international front, the Group is one of the first 14 members of the Roundtable of On the international front, the Group is one of the first 14 members of the Roundtable of Sustainable

Sustainable PPalm Oil ("RSalm Oil ("RSPPO"), a multi-stakeholder association, whose primary objective is toO"), a multi-stakeholder association, whose primary objective is to promote the production and use of sustainable palm oil through co-operation within the supply promote the production and use of sustainable palm oil through co-operation within the supply chain and open dialogue with its stakeholders. Genting

chain and open dialogue with its stakeholders. Genting PPlantations will continue to pursue andlantations will continue to pursue and adopt good plantation management practices to uphold the well being of the environment it adopt good plantation management practices to uphold the well being of the environment it operates in.

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IJM

IJM PPlantations Berhadlantations Berhad

IJ

IJMM is one of is one of MMalaysian leading construction and it listed on the main board of Bursaalaysian leading construction and it listed on the main board of Bursa

M

Malaysia. alaysia. It¶s It¶s business business activity activity encompass consencompass construction, prtruction, property operty development, mdevelopment, manufacturinganufacturing and quarrying, infrastructure concessions and plantations.

and quarrying, infrastructure concessions and plantations. Headquartered in Selangor,

Headquartered in Selangor, MMalaysia . IJalaysia . IJMM¶s regional aspirations have seen it establish a¶s regional aspirations have seen it establish a growing present in neighboring developing market with operations presently spanning 11 growing present in neighboring developing market with operations presently spanning 11 countries, with primary focus in

countries, with primary focus inMMalaysia, India United Arab Ealaysia, India United Arab Emirates, Chine and Indonesia.mirates, Chine and Indonesia. IJ

IJMM¶s phenomenal growth over the past two and half decades i¶s phenomenal growth over the past two and half decades is the result of is the result of its unwaveringts unwavering focus on i

focus on its core competencies, ts core competencies, diversification idiversification into strategically nto strategically related business and srelated business and selectiveelective expansion into new markets.

expansion into new markets.

A product of a merger between three medium sized local construction companies - IGB A product of a merger between three medium sized local construction companies - IGB Construction Sdn Bhd, Jurutama Sdn Bhd and

Construction Sdn Bhd, Jurutama Sdn Bhd andMMudajaya Sdn Bhd, IJudajaya Sdn Bhd, IJMMwas born in 1983 with anwas born in 1983 with an overarching purpose of competing more effectively against bigger foreign rivals. The Company overarching purpose of competing more effectively against bigger foreign rivals. The Company rapidly established itself as a professionally managed construction group and soon gained market rapidly established itself as a professionally managed construction group and soon gained market acceptance. Over the years, the Company progressively built on its competitive prowess, acceptance. Over the years, the Company progressively built on its competitive prowess, financial capacity and reput

financial capacity and repute to strengthen its footing as a serious local contractor.e to strengthen its footing as a serious local contractor. In April 2007, IJ

In April 2007, IJMM acquired the Road Builder Group ("RBH"), its nearest competitor, toacquired the Road Builder Group ("RBH"), its nearest competitor, to augment its position as the country's second biggest builder. In addition to bolstering its augment its position as the country's second biggest builder. In addition to bolstering its construction order book, property land bank and infrastructure portfolio, the enlarged Group construction order book, property land bank and infrastructure portfolio, the enlarged Group enabled IJ

enabled IJMM to realize considerable synergistic benefits from the merger, greater localto realize considerable synergistic benefits from the merger, greater local prominence as well as attain a more sizeable balance sheet to bid for larger jobs and facilitate its prominence as well as attain a more sizeable balance sheet to bid for larger jobs and facilitate its expansion into overseas markets.

expansion into overseas markets. IJ

IJMM¶s undertaking as a property developer began as a natural progression from its vast¶s undertaking as a property developer began as a natural progression from its vast experience and expertise in construction. The Group¶s property arm has since grown experience and expertise in construction. The Group¶s property arm has since grown considerably. Listed on the

considerably. Listed on the MMain Board of Bursaain Board of Bursa MMalaysia, IJalaysia, IJMM Land Berhad is presently one of Land Berhad is presently one of the largest property developers in

the largest property developers in MMalaysia with sprawling townships, commercial buildings andalaysia with sprawling townships, commercial buildings and high-rise condominiums under development in key growth areas throughout the country. The high-rise condominiums under development in key growth areas throughout the country. The Group has also made significant inroads as a reputable developer into India in recent years. Group has also made significant inroads as a reputable developer into India in recent years.

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Besides this, it has also undertaken ventures overseas in the past such as in USA, Singapore and Besides this, it has also undertaken ventures overseas in the past such as in USA, Singapore and Australia.

Australia.

Initially supporting its manufacturing and quarrying operations with in-house orders, the Initially supporting its manufacturing and quarrying operations with in-house orders, the Group's Industry Division quickly grew its operations into scalable core activities focused on Group's Industry Division quickly grew its operations into scalable core activities focused on demand outside the Group. IJ

demand outside the Group. IJMM continued to expand on its operations in the Division throughcontinued to expand on its operations in the Division through strategic acquisitions such as the takeover of Industrial Concrete

strategic acquisitions such as the takeover of Industrial Concrete PProducts Berhad in 2004 androducts Berhad in 2004 and successful market diversifications into China, India and

successful market diversifications into China, India andPPakistan.akistan.

Leveraging on its construction expertise, the Group also targeted infrastructure investments Leveraging on its construction expertise, the Group also targeted infrastructure investments to create long-term recurrent income streams. Initial advancements into concession assets in to create long-term recurrent income streams. Initial advancements into concession assets in

M

Malaysia however proved elusive, thus an international focus was adopted. IJalaysia however proved elusive, thus an international focus was adopted. IJMM¶s involvement in¶s involvement in overseas infrastructure privatization (Build-Operate-Transfer) schemes met with tremendous overseas infrastructure privatization (Build-Operate-Transfer) schemes met with tremendous success. Amongst the Group¶s investments in major overseas infrastructure projects are the success. Amongst the Group¶s investments in major overseas infrastructure projects are the Western Access Tollway in Argentina, five tolled highways in India and the Binh An water Western Access Tollway in Argentina, five tolled highways in India and the Binh An water treatment concession in Vietnam. In

treatment concession in Vietnam. In MMalaysia, IJalaysia, IJMM operates two urban highway and portoperates two urban highway and port concessions from the RBH merger and has one toll road currently being constructed. The Group concessions from the RBH merger and has one toll road currently being constructed. The Group had previously invested in and pro

had previously invested in and profitably sold several infrastructure assets in China.fitably sold several infrastructure assets in China.

The Group also showed considerable foresight by venturing into plantations in 1985 as a The Group also showed considerable foresight by venturing into plantations in 1985 as a source of steady income to cushion the cyclical nature of its core construction business. This source of steady income to cushion the cyclical nature of its core construction business. This investment has since paid off handsomely. Now listed on the

investment has since paid off handsomely. Now listed on the MMain Board of Bursaain Board of Bursa MMalaysia,alaysia, IJ

IJMM PPlantations Berhad has contributed significantly to the Group's earnings over the years andlantations Berhad has contributed significantly to the Group's earnings over the years and also helped bolster the Group during the economic downturn in the Asian financial crisis in also helped bolster the Group during the economic downturn in the Asian financial crisis in 1997. It is currently expanding its plantation land bank into Indonesia and is at the initial stages 1997. It is currently expanding its plantation land bank into Indonesia and is at the initial stages of its oil palm fresh fruit bunches purchasing and milling business in India.

of its oil palm fresh fruit bunches purchasing and milling business in India.

When IJ

When IJMM went public in 1986, it had a market capitalization of R went public in 1986, it had a market capitalization of R MM66 million and total66 million and total assets of R

assets of R MM172 million. As at 31172 million. As at 31 MMarch 2009, the Group's market capitalization and total assetsarch 2009, the Group's market capitalization and total assets stood at around R

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11 11 Batu Kawan Berhad

Batu Kawan Berhad

P

Primary SIC: Industrial Inorganic Chemicals, rimary SIC: Industrial Inorganic Chemicals, Not Elsewhere Classified,Not Elsewhere Classified,PPrimary NAICS:rimary NAICS: Inorganic Dye and

Inorganic Dye and PPigmentigment MManufacturinganufacturing Description:

Description:MManufacturing: Investment holding company wanufacturing: Investment holding company with subsidiaries engaged in theith subsidiaries engaged in the production of chemicals, general transport

production of chemicals, general transport and haulage services, letting of warehouse facilities,and haulage services, letting of warehouse facilities, investment holding, money lending, p

investment holding, money lending, plantation operational and manufacturinglantation operational and manufacturing International public company

International public company Wisma Taiko, 1 Jalan S

Wisma Taiko, 1 Jalan S PP Seenivasagam, Seenivasagam, Ipoh, Ipoh, 30000,30000,MMalaysiaalaysia ()60 05 241 7844, 60 05 254 8054 fax,

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1 122

L

_{iquidity Ratios}

A class of financial metrics that is used to determine a company's ability to pay off its A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company po

safety that the company possesses to cover short-term debts.ssesses to cover short-term debts.

1

1.. CC_{urrent Ratio}_{urrent Ratio}

A

A liquidity liquidity ratio ratio that that measures measures a a company's company's ability ability to to pay pay short-term short-term obligations.obligations. The Current Ratio

The Current Ratio formula is:formula is:

Also known as "liquidity ratio", "cash asset ratio" and "cash rat Also known as "liquidity ratio", "cash asset ratio" and "cash rat io".io".

Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ

IJMM PPlantations lantations Berhad Berhad - - 2.45 2.45 1.73 1.73 1.92 1.92 1.551.55 Asiatic

Asiatic Development Development - - 6.85 6.85 5.90 5.90 5.67 5.67 5.005.00 Batu

Batu Kawan Kawan Berhad Berhad 9.97 9.97 5.87 5.87 10.67 10.67 11.18 11.18 8.538.53 IOI

IOI Corporation Corporation 4.70 4.70 3.11 3.11 5.05 5.05 3.59 3.59 3.713.71 Average

Average 7.34 7.34 4.57 4.57 5.83 5.83 5.59 5.59 4.704.70

Times Series Analysis Times Series Analysis

IJ

IJMM PPlantation Berhad¶ vision is to be a leading regional plantation group. For their currentlantation Berhad¶ vision is to be a leading regional plantation group. For their current ratio in 2005 was 1.55. The coming next year, in 2006 increased to 1.92, about 0.37 diff. In 2007, ratio in 2005 was 1.55. The coming next year, in 2006 increased to 1.92, about 0.37 diff. In 2007, suddenly its decreased to 1.73 from the past year. After that, its current ratio increased back in suddenly its decreased to 1.73 from the past year. After that, its current ratio increased back in 2008, becomes 2.45.

2008, becomes 2.45.

For the Asiatic Development, their current ratio for 2005 started with 5.00. Then, its become For the Asiatic Development, their current ratio for 2005 started with 5.00. Then, its become up in the next year, becomes 5.67. After that, its continuously increasing in the 2007¶ current up in the next year, becomes 5.67. After that, its continuously increasing in the 2007¶ current ratio becomes 5.90. Its also increased again in 2008, becomes 6.85.

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1 133

Looking the others company like Batu Kawan Berhad, current ratio for that company in year Looking the others company like Batu Kawan Berhad, current ratio for that company in year 2005 started by 8.53. After that, in 2006, its extremely increased by 11.18. However, its becomes 2005 started by 8.53. After that, in 2006, its extremely increased by 11.18. However, its becomes 10.67 in 2007. Unfortunetly, its still decreased in year 2008, becomes 5.87.

10.67 in 2007. Unfortunetly, its still decreased in year 2008, becomes 5.87.

IOI Corporation is one of the big company. In 2005, the current ratio was 3.71. Its decreased IOI Corporation is one of the big company. In 2005, the current ratio was 3.71. Its decreased in year 2006, becomes 3.59 less than past year. However, in the next year, in 2007, becomes in year 2006, becomes 3.59 less than past year. However, in the next year, in 2007, becomes 5.05. After that, it decreasing back in year 2008, becomes 3.11.

5.05. After that, it decreasing back in year 2008, becomes 3.11.

Cross Sectional (2008) Cross Sectional (2008)

In this case, all company has a comfortable current ratio based on the rule of thumb, a figure In this case, all company has a comfortable current ratio based on the rule of thumb, a figure greater than 1.5 or 2.0 is required to be comfortable. This means that any point in time, the greater than 1.5 or 2.0 is required to be comfortable. This means that any point in time, the company has the ability to meet its short-term obligations of the company. However, IOI company has the ability to meet its short-term obligations of the company. However, IOI Corporation and IJ

Corporation and IJMM PPlantations Berhad¶s current ratio is below than the industry average, 4.57.lantations Berhad¶s current ratio is below than the industry average, 4.57. So, its liquidity position in comparison to ot

So, its liquidity position in comparison to other firms in the same industry, is relatively weak.her firms in the same industry, is relatively weak.

2.

2. _Q_Q_{uick Ratio}_{uick Ratio}

An

An indicator indicator of of a a company's company's short-term short-term liquidity. liquidity. The The quick quick ratio ratio measures measures aa company's ability to meet

company's ability to meet its short-term obliits short-term obligations with its most liquid assets. The gations with its most liquid assets. The higher thehigher the quick ratio, the better the po

quick ratio, the better the position of the company.sition of the company. The quick ratio

The quick ratio is calculated as:is calculated as:

Also known as the "acid-test ratio" or the "qu

Also known as the "acid-test ratio" or the "quick assets ratio".ick assets ratio".

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1 144 Times Series Analysis

Times Series Analysis The IJ

The IJMM PPlantation Berhad¶s quick ratio for 2005 was 1.22. After that, it¶s increased by 1.41,lantation Berhad¶s quick ratio for 2005 was 1.22. After that, it¶s increased by 1.41, in 2006. However, in 2007, its quick ratio decreased to 1.40, diff by 0.01. Then, it¶s increased in 2006. However, in 2007, its quick ratio decreased to 1.40, diff by 0.01. Then, it¶s increased back in 2008, by 1.94.

back in 2008, by 1.94.

In year 2005, Asiatic Development¶s quick ratio started by 3.76. Although, in 2006, its In year 2005, Asiatic Development¶s quick ratio started by 3.76. Although, in 2006, its decreasing about 0.78, by 4.54. Then, it¶s increasing back in 2007 by 5.09. Its also increasing decreasing about 0.78, by 4.54. Then, it¶s increasing back in 2007 by 5.09. Its also increasing again in the coming year becomes 5.75.

again in the coming year becomes 5.75.

For Batu Kawan Berhad, their quick ratio in 2005 was 7.13. After that, it¶s becomes 10.12 in For Batu Kawan Berhad, their quick ratio in 2005 was 7.13. After that, it¶s becomes 10.12 in the coming year, in 2006. However, its decreasing to 9.56 in 2007. Then, its continuously the coming year, in 2006. However, its decreasing to 9.56 in 2007. Then, its continuously decreasing next year becomes 4.72.

decreasing next year becomes 4.72.

The other company like IOI Corporation has their quick ratio. In 2005, its quick ratio started The other company like IOI Corporation has their quick ratio. In 2005, its quick ratio started by 4.60. However, it¶s becomes 4.87 in 2006. It¶s decreasing to 3.89 in 2007, less the year by 4.60. However, it¶s becomes 4.87 in 2006. It¶s decreasing to 3.89 in 2007, less the year before. After that, the decreasing continues in next year, by 2.10.

before. After that, the decreasing continues in next year, by 2.10.

Since the ratio is above 1.0, this means that the firm can meet its short-term obligations Since the ratio is above 1.0, this means that the firm can meet its short-term obligations without its inventories being liquidated. The industry average quick ratio is 3.63. So, IOI without its inventories being liquidated. The industry average quick ratio is 3.63. So, IOI Corporation and IJ

Corporation and IJMM PPlantations Berhad¶s quick ratio is low in comparison with other firms inlantations Berhad¶s quick ratio is low in comparison with other firms in the industry.

the industry.

3

3.. CC_{ash Ratio}_{ash Ratio}

The

The ratio oratio of f a a company's totcompany's total cash al cash and caand cash sh equivalents equivalents to to its current its current liabililiabilities.ties. The cash ratio is most commonly used as a measure of company liquidity. It can therefore The cash ratio is most commonly used as a measure of company liquidity. It can therefore determine if, and how quickly, the company can repay its short-term debt. A strong cash ratio determine if, and how quickly, the company can repay its short-term debt. A strong cash ratio is useful to creditors when deciding how much debt, if any, they would be willing to extend is useful to creditors when deciding how much debt, if any, they would be willing to extend to the asking party.

to the asking party.

Cash ratio calculated as : Cash ratio calculated as :



    

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1 155 Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ

Average 0.26 0.26 0.81 0.81 0.81 0.81 0.72 0.72 0.830.83

IJ

IJMM PPlantations Berhad has their own cash ratio. In year 2005lantations Berhad has their own cash ratio. In year 2005, its cash ratio started with 0.90., its cash ratio started with 0.90. There¶s not much diff in the next year, becomes 0.92. After that, its decreased to 0.91 in the There¶s not much diff in the next year, becomes 0.92. After that, its decreased to 0.91 in the coming year, 2007. Then, it¶s increasing back by 1.23 in 2008.

coming year, 2007. Then, it¶s increasing back by 1.23 in 2008.

The cash ratio for Asiatic Development in 2005 was 0.67. Then, its been increased in 2006 The cash ratio for Asiatic Development in 2005 was 0.67. Then, its been increased in 2006 by 1.37 higher than past year. After that, its increasing again in 2007 becomes 1.99. However, its by 1.37 higher than past year. After that, its increasing again in 2007 becomes 1.99. However, its been decreasing coming next year, becomes 1.79.

been decreasing coming next year, becomes 1.79.

The Batu Kawan Berhad is another company has their own cash ratio. In 2005, its has cash The Batu Kawan Berhad is another company has their own cash ratio. In 2005, its has cash ratio about, 0.07. After that, in 2006, it¶s has been increasing to 0.10. However, it¶s becomes ratio about, 0.07. After that, in 2006, it¶s has been increasing to 0.10. However, it¶s becomes 0.05, decreased by 0.05 less than past year. In 2008, that company has its cash ratio, 0.05 too. 0.05, decreased by 0.05 less than past year. In 2008, that company has its cash ratio, 0.05 too.

For IOI Corporation, its cash ratio in 2005 was 1.66. Its starting with good condition, and has For IOI Corporation, its cash ratio in 2005 was 1.66. Its starting with good condition, and has been decreasing in 2006, becomes 0.49. After that, I¶ts becomes decreasing again in 2007, by been decreasing in 2006, becomes 0.49. After that, I¶ts becomes decreasing again in 2007, by 0.30. Then, it¶s still decreasing in the co

0.30. Then, it¶s still decreasing in the coming year becomes 0.18.ming year becomes 0.18.

Industrial average for cash ratio in year 2008 is 0.81. The best company to pay their debt by Industrial average for cash ratio in year 2008 is 0.81. The best company to pay their debt by cash is Asiatic Development 1.79. That mean, Asiatic Development can pay their every R cash is Asiatic Development 1.79. That mean, Asiatic Development can pay their every R MM 11 debt with R

debt with R MM1.79 with their cash. That¶s followed by IJ1.79 with their cash. That¶s followed by IJMM PPlantation (1.23) and IOI Corporationlantation (1.23) and IOI Corporation with 0.18. The worst

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1 166

Asset Management Ratios

Asset

Asset MManagement Ratios attempt to measure the firm's success in managing its assets toanagement Ratios attempt to measure the firm's success in managing its assets to generate sales. For example, these ratios can provide insight into the success of the firm's credit generate sales. For example, these ratios can provide insight into the success of the firm's credit policy and inventory manage

policy and inventory management. These ratios are also known as Activity or ment. These ratios are also known as Activity or Turnover Ratios.Turnover Ratios.

1

1.. _{Inventory Turnover}_{Inventory Turnover}

A ratio showing how many times a company's inventory is sold and replaced over a A ratio showing how many times a company's inventory is sold and replaced over a period. the

period. the

The days in the period can then be divided by the inventory turnover formula to calculate the The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory o

days it takes to sell the inventory on hand or "inventory turnon hand or "inventory turnover days".ver days".

Average 8.07 8.07 7.96 7.96 9.02 9.02 7.47 7.47 9.279.27

Inventory turnover for IJ

Inventory turnover for IJMM PPlantations Berhad, show that changes are not consistent.lantations Berhad, show that changes are not consistent. Inventory turnover in 2005 stood at 16.86 but was reduced in 2006 to 10:38. In 2007, back Inventory turnover in 2005 stood at 16.86 but was reduced in 2006 to 10:38. In 2007, back inventory turnover increased to 13.99. Inventory turnover decreased again in 2008 with 11.83 inventory turnover increased to 13.99. Inventory turnover decreased again in 2008 with 11.83

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1 177

The Asiatic Development also shows the changes that are not consistent. Inventory turnover The Asiatic Development also shows the changes that are not consistent. Inventory turnover for 2005 was already 4.33 decreases to 3.02 in 2006. But in year 2007, Asiatic Development has for 2005 was already 4.33 decreases to 3.02 in 2006. But in year 2007, Asiatic Development has increased inventory turnover to 7.59, but has declined slightly in year 2008 with 7.40.

increased inventory turnover to 7.59, but has declined slightly in year 2008 with 7.40.

Inventory turnover for the Batu Kawan Berhad for the year 2006 is increased from 9.73 in Inventory turnover for the Batu Kawan Berhad for the year 2006 is increased from 9.73 in 2005 with the 7:44. For the years 2007 and 2008 occurred with a decrease respectively 7.79 and 2005 with the 7:44. For the years 2007 and 2008 occurred with a decrease respectively 7.79 and 6.63

6.63

While the inventory for IOI Corporation shows continuous reduction. Inventory turnover in While the inventory for IOI Corporation shows continuous reduction. Inventory turnover in 2005 was 8:44 was reduced to 6.73 in 2006. Inventory turnover in 2007 has decreased slightly to 2005 was 8:44 was reduced to 6.73 in 2006. Inventory turnover in 2007 has decreased slightly to 6.73 and in 2008 with 5.99. But, in

6.73 and in 2008 with 5.99. But, in 2009 it is increase to 8.86.2009 it is increase to 8.86.

The Inventory

The Inventory turnover industriturnover industrial Average fal Average for all company or all company at year 2008 iat year 2008 is 7.96. s 7.96. IOIIOI Corporation was show Inventory turnover is 5.99, it was above the Inventory turnover industrial Corporation was show Inventory turnover is 5.99, it was above the Inventory turnover industrial Average. It company is not

Average. It company is not effective in changes inventory to sale.effective in changes inventory to sale.

2.

2. _D_D_{ays Sales Outstanding -}_{ays Sales Outstanding -} _D_D_SO_SO

A measure of the average number of days that a company takes to collect revenue after a A measure of the average number of days that a company takes to collect revenue after a sale has been made. A low DSO number means that it takes a company fewer days to collect sale has been made. A low DSO number means that it takes a company fewer days to collect its accounts receivable. A high DSO number shows that a company is selling its product to its accounts receivable. A high DSO number shows that a company is selling its product to customers on credit and taking

customers on credit and taking longer to collect money.longer to collect money. Days sales outstanding is calculated as:

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1 188 Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ

IJMM PPlantations lantations Berhad Berhad - - 42.37 42.37 33.80 33.80 27 27 13.5113.51 Asiatic

Average 76.105 76.105 64.23 64.23 69.07 69.07 64.25 64.25 54.4954.49

Days sales outstanding for IJ

Days sales outstanding for IJMM PPlantation show that continues to increase. At year 2005 islantation show that continues to increase. At year 2005 is 13.51 was increased to 27.00 in 2006. In 2008, the IJ

13.51 was increased to 27.00 in 2006. In 2008, the IJMM plantation continued increase to 42.37plantation continued increase to 42.37 compared 33.80 in 2007.

compared 33.80 in 2007.

For the Asiatic Development company show changes that are not consistent. Days sales For the Asiatic Development company show changes that are not consistent. Days sales outstanding for 2005 was already 51.92 increase to 61.67 in 2006. But in 2007 Asiatic outstanding for 2005 was already 51.92 increase to 61.67 in 2006. But in 2007 Asiatic Development has decline of Days sales outstanding to 46.19 and 35.13 at 2008.

Development has decline of Days sales outstanding to 46.19 and 35.13 at 2008.

The Days sales outstanding in 2005 for Batu Kawan Berhad is 109.29, it is increase to 114.22 The Days sales outstanding in 2005 for Batu Kawan Berhad is 109.29, it is increase to 114.22 at 2006. In 2008, i

at 2006. In 2008, it is decline to 118.48 comt is decline to 118.48 compared at year 2007 with pared at year 2007 with 141.95. 141.95. At year 2009, iAt year 2009, itt continues to decrease with 111.03.

continues to decrease with 111.03.

While at year 2005 the Days sale outstanding of

While at year 2005 the Days sale outstanding of IOI Corporation is 43.24, increase to 54.24IOI Corporation is 43.24, increase to 54.24 at year 2005. In year 2006, 2007, and 2008, the Days sales outstanding that continues to increase at year 2005. In year 2006, 2007, and 2008, the Days sales outstanding that continues to increase with respectively at 54.24, 54.34 and 60.93. But at year 2009, it was decline to 41.18.

with respectively at 54.24, 54.34 and 60.93. But at year 2009, it was decline to 41.18.

The Days sales outstanding industrial average for year 2008 is 64.23.

The Days sales outstanding industrial average for year 2008 is 64.23.IJM Plantations Berhad,IJM Plantations Berhad, Asiatic Development

Asiatic Development, IOI C, IOI Corporation below industrial average of orporation below industrial average of days sales days sales outstandoutstanding. IJM ing. IJM PlantatPlantationsions Berhad

Berhad company fewer days to collect its accounts receivable that is 33.8 day¶s followed bycompany fewer days to collect its accounts receivable that is 33.8 day¶s followed by Asiatic D

Asiatic Development evelopment (46.19 day¶s) (46.19 day¶s) and IOI Corporation and IOI Corporation 54.34 days. Whil54.34 days. While Batu Kawan Berhade Batu Kawan Berhad are not effective to

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1 199

3

3.. _Average_Average _P_P_ayment_ayment _P_P_eriod_eriod

A

APPPP. The number of days a company takes to pay off credit purchases. It is calculated as:. The number of days a company takes to pay off credit purchases. It is calculated as:

         Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ

Average 22.85 22.85 51.815 51.815 57.5 57.5 63.52 63.52 64.5164.51

Average

AveragePPaymentayment PPeriod f eriod f or the company IJor the company IJM PMPlantations Berhad shows changes that are notlantations Berhad shows changes that are not consistent.

consistent. At yAt year 2005 it iear 2005 it is 45.49, was is 45.49, was increase to 48.76 ancrease to 48.76 at year 2006. Ft year 2006. Further increaseurther increase occurred in 2007 and 2008, respectively 54.22 and 59.44.

occurred in 2007 and 2008, respectively 54.22 and 59.44.

For the Asiatic Development show changes that continues to decrease. At year 2005, it is For the Asiatic Development show changes that continues to decrease. At year 2005, it is 119.93 was decrease to 111.99

119.93 was decrease to 111.99 at year 2006. at year 2006. In yIn year 2007 and 2008, Averageear 2007 and 2008, AveragePPaymentayment PPerioderiod was continues to decrease respectively 109.97 and 80.11.

was continues to decrease respectively 109.97 and 80.11.

Whereas, average payment period for Batu Kawan Berhad show that is also inconsistent. For Whereas, average payment period for Batu Kawan Berhad show that is also inconsistent. For 2005 is 50.31 has been reduced to 48.29 on year 2006. In 2007 it occurred to the accretion 58.09, 2005 is 50.31 has been reduced to 48.29 on year 2006. In 2007 it occurred to the accretion 58.09, and continues to grow in 2008 with 58.40. But, in 2009 it come back to decrease at 48.59.

and continues to grow in 2008 with 58.40. But, in 2009 it come back to decrease at 48.59.

IOI Corporation shows average payment period of four years is not consistent. For year 2005 IOI Corporation shows average payment period of four years is not consistent. For year 2005 is 42.31 has been increased to 45.02 in 2006. In year 2007 was a relatively large decrease is 42.31 has been increased to 45.02 in 2006. In year 2007 was a relatively large decrease occurred in the 7.72, but increased again slightly in 2008 with 9.31 and 2009 with 11.59.

occurred in the 7.72, but increased again slightly in 2008 with 9.31 and 2009 with 11.59.

Average payment period industrial average for all company show of year 2008 is 51.815. Average payment period industrial average for all company show of year 2008 is 51.815. The most successful company manage their account payable are Asiatic Development, IJ The most successful company manage their account payable are Asiatic Development, IJMM

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2 2₀₀ P

Plantations Berhad and Batu Kawan Berhad by taking 109.97, 59.44 and 58.09 day¶s. It¶s abovelantations Berhad and Batu Kawan Berhad by taking 109.97, 59.44 and 58.09 day¶s. It¶s above the industrial average. While IOI Corporation is taking the fewer days to settle their account the industrial average. While IOI Corporation is taking the fewer days to settle their account payable by taking 9.31 day¶s.

payable by taking 9.31 day¶s.

4

4.. _F_F_{ixed-Asset Turnover Ratio}_{ixed-Asset Turnover Ratio}

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (

plant and equipment (PPPP&E) - net of depreciation. A higher fixed-asset turnover ratio shows&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate that the company has been more effective in using the investment in fixed assets to generate revenues.

revenues.

The fixed-asset turnover ratio is calculated as: The fixed-asset turnover ratio is calculated as:

        Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ

IOI Corporation Corporation 1.46 1.46 1.50 1.50 1.15 1.15 0.89 0.89 0.900.90

Average 0.77

Average 0.77 00_.56_.56 _0.56_0.56 _0.44_0.44 _0.46_0.46

Fixed-asset turnover ratios for the IJ

Fixed-asset turnover ratios for the IJMM PPlantations Berhad show clantations Berhad show changes that are nothanges that are not consistent.

consistent. At year At year 2005, it is 2005, it is 0.44 was decrease to 0.33 a0.44 was decrease to 0.33 at year t year 2006. 2006. In year 2007, 2008, anIn year 2007, 2008, andd 2009 it was decrease respectively to 0.36, 0.59 and 0.69.

2009 it was decrease respectively to 0.36, 0.59 and 0.69.

For Asiatic Development in year 2005 is 0.41. The Fixed-asset turnover ratio in year 2006 For Asiatic Development in year 2005 is 0.41. The Fixed-asset turnover ratio in year 2006 and 2007 was increasing respectively to 0.43 and 0.64. But in year 2008, it was decrease to 0.06. and 2007 was increasing respectively to 0.43 and 0.64. But in year 2008, it was decrease to 0.06.

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2 2₁₁

Fixed-asset turnover rati

Fixed-asset turnover ratios for the os for the Batu Kawan Berhad show changes that Batu Kawan Berhad show changes that are not consistent.are not consistent. In year 2005, it is 0.10 was increase to 0.11 at year 2006. A fixed-asset turnover ratio for year In year 2005, it is 0.10 was increase to 0.11 at year 2006. A fixed-asset turnover ratio for year 2008 is 0.10, it was increase compared at year 2007 with 0.09 in year 2009, it was decrease to 2008 is 0.10, it was increase compared at year 2007 with 0.09 in year 2009, it was decrease to 0.08.

0.08.

IOI Corporation shows Fixed-asset turnover ratios changes that are not consistent. At year IOI Corporation shows Fixed-asset turnover ratios changes that are not consistent. At year 2005, it is 0.09 was decrease to 0.89 for year 2006. For year 2007 and 2008, it was increase 2005, it is 0.09 was decrease to 0.89 for year 2006. For year 2007 and 2008, it was increase respectively to 1.15 and 1.50.

respectively to 1.15 and 1.50.

Fixed-asset turnover ratios industrial average for all company show of year 2008 is 0.56. The Fixed-asset turnover ratios industrial average for all company show of year 2008 is 0.56. The best company their fixed asset is IOI Corporation and Asiatic Development because their fixed best company their fixed asset is IOI Corporation and Asiatic Development because their fixed asset turnover are 1.15 and 0.64. The worst company manage their fixed asset is Batu Kawan asset turnover are 1.15 and 0.64. The worst company manage their fixed asset is Batu Kawan Berhad, 0.09. Followed by IJ

Berhad, 0.09. Followed by IJMM PPlantations (0.36)lantations (0.36)

5

5.. _{Total Asset Turnover}_{Total Asset Turnover}

The amount o

The amount of sales generated for every dollar's worth of assets. It is calculated byf sales generated for every dollar's worth of assets. It is calculated by dividing sales in dollars by assets in do

dividing sales in dollars by assets in dollarsllars.. Formula:

Formula:

Also known as the Asset Turnover

Also known as the Asset Turnover Ratio.Ratio. Year Year Company Company 2009 2009 2008 2008 2007 2007 2006 2006 20052005 IJ