Financial Situation For Berjaya Corporation Berhad

2009

Current assets / current liabilities = current ratio

= 4668543 / 3721584

= 1.25

2010

Current assets / current liabilities = current ratio

= 4594500 / 3845743

= 1.19

The current ratio from 2009 to 2010 decrease but the current asset can cover the current

liabilities. The current asset are include stock and therefore the company cannot reliable

depends on quick ratio.

2009

(Current assets – stock) / current liabilities = quick ratio

= (4668543 – 483008) / 3721584

= 4185535 / 3721584

= 1.12

2010

(Current assets – stock) / current liabilities = quick ratio

= (4594500 – 610299) / 3845743

= 3984201 / 3845743

= 1.04
The company is very liquid because the quick ratio is over 1 so it is seen as ideal. The

current asset is not heavily rely on stock.

2009

(gross profit / turnover) X 100% = gross profit margin

= (1949082 / 6339012) X 100%

= 30.75%

2010

(gross profit / turnover) X 100% = gross profit margin

= (2235290 / 6756034) X 100%

= 33.1%

From 2009 to 2010, the gross profit margin increase from 30.75% to 33.1% which is

good. Which means the company are efficiently generate profit from sales.

2009

(net profit / turnover) X 100% = net profit margin

= (109096 / 6339012) X 100%

= 1.72%

2010

(net profit / turnover) X 100% = net profit margin

= (394416 / 6756034) X 100%

= 5.84%

The net profit margin decrease from 1.72% to 5.84% which means that the company is
not handling very well in term of expenses.

2009

(net income / total assets) X 100% = return on assets

= (109096 / 16605320) X 100%

= 0.67%

2010

(net income / total assets) X 100% = return on assets

= (394416 / 17825436) X 100%

= 2.21%

In 2010, The company return on assets is increase because of the double compare to

2009. And it is not fully utilize to total assets of the generate income.

2009

(net income / ordinary share capital + reserves + profit) X 100% = return on equity

= (109096 / 9988299) X 100%

= 1.09%

2010

(net income / ordinary share capital + reserves + profit) X 100% = return on equity

= (394416 / 10753004) X 100%

= 3.67%

In 2010, The company of return on equity is increase because of the double compare to

2009. And it is not fully utilize total assets to generate income.

2009

Cost of goods sold / average stock = stock turnover

= 4389930 / 483008

= 9.09 times

2010

Cost of goods sold / average stock = stock turnover

= 4520744 / 610299

= 7.41 times

The stock turnover in 2009 is very efficient to 2010, because of average stocks in 2010

is more then 2009.

2009

(debtors / sales turnover) X 365 days = average collection period

= (1762524 / 6339012) X 365 days

= 101 days

2010

(debtors / sales turnover) X 365 days = average collection period

= (1819256 / 6756034) X 365 days

= 98 days

Average collection period in 2009 to 2010 is balance that 100 days to collect the debts .

The two years are still maintained the level of efficient.

2009
(creditors / purchases) X 365 days = average payment period

= (1524397 / 4389930) X 365 days

= 127 days

2010

(creditors / purchases) X 365 days = average payment period

= (1773457 / 4520744) X 365 days

= 143 days

The average payment period in 2010 increase , because of the creditors in 2010 increase

and the purchase is increase so on.

2009

(long term loans / capital employed) X 100% = gearing ratio

= (2520128 / 288822 + 1174507 + 882000 + 174799 + 3169554) X 100%

= (2520128 / 5689682) X 100%

= 44.29%

2010

(long term loans / capital employed) X 100% = gearing ratio

= (2587675 / 4021886 + 28364 + 702000 + 1473831 + 383480) X 100%

= (2587675 / 6609561) X 100%

= 39.15%

Gearing consider high in year 2009 because of the capital employed in 2010 is more

that 2009, by 2010 share funds is increase and compare to long term loans.