VERTICAL ANALYSIS

1. Current Ratio

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 1.65 2.15 2.76
Berhad
United Plantation Berhad 6.56 9.99 5.05

The current ratio for Jaya Tiasa Holdings is increase from year 2017 to 2019 but United
Plantation Berhad current ratio increase in year 2017 to year 2018 and decrease in year 2019.

In year 2017 until 2018 the current ratio for both company increase because both
companies good in inventory management. But 2018 until 2019 Jaya Tiasa Holdings Berhad
increase their current ratio but United Plantation Berhad slightly decrease their current ratio
in year 2019. This is because Jaya Tiasa Holdings Berhad effective in collecting receivables
or an excessive cash burn rate but United Plantation Berhad face problems with inventory
management and ineffective for collecting receivables or an excessive cash burn rate in year
2019. Overall , both companies have good current ratio which are more than 1.

Conclusion , although United Plantation Berhad current ratio slightly decrease in year 2019
but United Plantation Berhad current ratio is better then Jaya Tiasa Holdings Berhad because
the ratio of United Plantation Berhad largest then Jaya Tiasa Holdings Berhad.

2. Quick Ratio

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 1.61 2.12 2.59
Berhad
United Plantation Berhad 6.21 6.00 4.61

The quick ratio for Jaya Tiasa Holdings Berhad continuous increase from year 2017 to year
2019. But quick ratio of United Plantatio continuous decrease from year 2017 to year 2019.

The quick ratio for Jaya Tiasa Holdings Berhad continuous increase from year 2017 to
2019 because this company quickly converting receivables into cash and easily able to cover
its financial obligations. But United Plantation Berhad continue decrease quick ratio from
year 2017 to2019 because this company do not quickly converting receivables into cash and
its may this company will struggle with paying debts.

In conclusion , he the quick ratio of Jaya Tiasa Holdings Berhad better than United
Plantation Berhad because quick ratio of Jaya Tiasa Holdings Berhad increase and United
Plantation Berhad quick ratio decrease.

3. Net Working Capital

Year
2017 2018 2019
Company
Jaya Tiasa Holdings RM 175,863 RM 269,107 RM 235,881
Berhad
United Plantation Berhad RM 525,211 RM 512,914 RM 267,337

The net working capital ratio for Jaya Tiasa Holdings Berhad increase from year 2017 to
2018 but decrease in year 2019 while United Plantation Berhad net working capital ratio
continuous decrease from year 2017 to year 2019.

The net working capital ratio for Jaya Tiasa Holdings Berhad increase because its can cover
its debts with its current working capital but United Plantation Berhad net working capital
decrease from year 2017 to 2018 because the company cannot cover its debts with its current
working capital. In year 2018 to 2019 both company net working capital ratio decrease
because both company cannot cover its debts with its current working capital.

As a conclusion , United Plantation Berhad net working capital better than Jaya Tiasa
Holdings Berhad. Although United Plantation Berhad continuous decrease but its still good
value compared to Jaya Tiasa Holdings Berhad.
 4. Inventory Turnover

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 17.06 times 17.88 times 3.81 times
Berhad
United Plantation Berhad 17.81 times 14.05 times 19.32 times

The inventory turnover for the two company are different. For Jaya Tiasa Holdings
Berhad the inventory turnover was increase from year 2017 to year 2018 and decrease in year
2019. However for United Plantation Berhad it was decrease from year 2017 to year 2018
then increase in 2019.

In 2017, United Plantation Berhad was 17.81 times is higher ratio compared of Jaya Tiasa
Holdings Berhad was 17.06 times. In 2018, Jaya Tiasa Holdings Berhad was 17.88 times is
higher ratio compared to United Plantation Berhad was 14.05 times. In 2019, United
Plantation Berhad was 19.32 times is higher ratio compared of Jaya Tiasa Holdings Berhad
was 3.81 times. Its show that United Plantation Berhad very fast sells its inventory and
generate in 2017 and 2019 compared to Jaya Tiasa Holdings Berhad.

In conclusion, we know that low turnover will affect sale and will overstocking.

5. Fixed Asset Turnover

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 0.1309 0.0719 0.0487
Berhad
United Plantation Berhad 0.37 0.36 0.31
 The fixed asset turnover for the two company are same. The two company decrease
from year 2017 to year 2019.

In 2017, United Plantation Berhad was 0.37 times is higher ratio compared of Jaya Tiasa
Holdings Berhad was 0.1309 times. In 2018, United Plantation Berhad was 0.36 times is
higher ratio compared of Jaya Tiasa Holdings Berhad was 0.0719 times. In 2019, United
Plantation Berhad was 0.31 times is higher ratio compared of Jaya Tiasa Holdings Berhad
was 0.04878 times.

In conclusion, The United plantation Berhad has higher ratio reflect the effectiveness of
fixed assets to generate sales than Jaya Tiasa Holdings Berhad

6. Total Asset Turnover

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 0.1058 0.0566 0.0398
Berhad
United Plantation Berhad 0.27 0.26 0.26

The total asset turnover for Jaya Tiasa Holdings Berhad was decrease from year 2017
to year 2019. However for United Plantation Berhad it was decrease from year 2017 until
2018 and remain the same in 2019.

In 2017, United Plantation Berhad was 0.27 times is higher ratio compared of Jaya Tiasa
Holdings Berhad was 0.1058 times. In 2018, United Plantation Berhad was 0.26 times is
higher ratio compared of Jaya Tiasa Holdings Berhad was 0.0566 times. In 2019, United
Plantation Berhad was 0.26 times is higher ratio compared of Jaya Tiasa Holdings Berhad
was 0.0398 times. It shows a United Plantation Berhad are the effectiveness of total assets to
generate sales. The highest the assets turnover ratio, the more efficient of a company.

In conclusion, if company’s asset turnover ratio is low, it because the company is not
efficiently using its assets to generate sales.
 7. Debt Ratio

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 18.23% 12.34% 16.10%
Berhad
United Plantation Berhad 9.99% 10.58% 10.77%

The debt ratio for the two company are different. For Jaya Tiasa Holdings Berhad the
debt ratio was decrease from year 2017 to year 2018 and slightly increase in year 2019.
However for United Plantation Berhad it was always increase from year 2017 until 2019.

In year 2017 to year 2018, debt ratio for Jaya Tiasa Holdings Berhad was decreased
but for United Plantation Berhad was increased. The debt ratio was decreased due to the
decrease of debts or increase of assets. The decrease of debt ratio means that the company
have reduced risks in their business activities. For Jaya Tiasa Holdings Berhad, the reason of
debt ratio decrease is the company pay off several debts from its total liabilities and also a
few investments in total assets. It means that the company has a low level of risks and is
linked to a more independent business that does not need to rely heavily on borrowed funds.

However, the debt ratio of both companies in year 2019 has increased slightly from year
2018 due to the increase of debts or decrease of assets. The increase of debt ratio means that
both companies have taken more risks in their business activities. For Hengyuan Refining
Company, debt ratio increase due to the increase of debts is more than the increase of
increase of assets.

As conclusion, Jaya Tiasa Holdings Berhad were taking less risk on business activities as
the debt ratio in the company decrease in year 2017 to year 2018. But the debt ratio in United
Plantation Berhad was lesser than Jaya Tiasa Holdings Berhad in year 2016 to year 2019.

8. Debt to Equity

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 8.08% 13.62% 13.83%
 Berhad
United Plantation Berhad 11.10% 11.83% 12.06%

The trend of debt to equity for both companies are same which increase dramatically
from year 2017 to year 2019.

In year 2017 until year 2019, debt to equity of both, companies increase slightly due
to the increase of debt or decrease of equity. It also means that both companies take more
risks in their business activities. Overall, both companies have good debt to equity which are
more than 1.

As conclusion, the debt to equity of Jaya Tiasa Holdings Berhad is better than United
Plantation Berhad because the amount of debt to equity for Jaya Tiasa Holdings Berhad is
largest.

9. Time Interest Earned

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 3.30 times 15.69 times -931.13 times
Berhad
United Plantation Berhad 4.69 times 3.96 times 3.98 times

The trend for time interest earned for both companies are different which for Jaya
Tiasa Holdings Berhad increase from year 2017 to year 2018 but decrease dramatically in
year 2019 while United Plantation Berhad was declining from year 2017 to year 2018 and
rise in year 2019.

For Jaya Tiasa Holdings the time interest earned was increase in year 2017 to year
2018 but for United Plantation Berhad it was decrease. Eventhought the amount was decrease
but it still good for both companies because it is more than 1 and both companies able to pay
interest using it operating or income earning.

In year 2019, Jaya Tiasa Holdings Berhad face a big problem because they get a
negative amount for time interest earned. So this means that this company not able to pay
interest because they got loss in that year. To solve this problem, Jaya Tiasa Holdings Berhad
need to manage their operation or reduce cost to gain more income to pay the interest.
 As a result, United Plantation Berhad can pay their interest properly compare to Jaya
Tiasa Holdings Berhad.

10. Gross Profit Margin

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 20.79% 0.36% -4.89%
Berhad
United Plantation Berhad 1.02% 1.01% 1.02%

The trend for gross profit margin for both companies are different which for United
Plantation Berhad decrease from year 2017 to year 2018 but increase dramatically in year
2019 while Jaya Tiasa Holdings Berhad continue declining from year 2017 until year 2019.

For United Plantation Berhad, the gross profit margin was decreased from year 2017
to year 2018 but increase in year 2019. As we know the gross profit is obtained from the
difference between sales and cost of goods sold (COGS). The gross profit margin was
decreased dramatically from year 2017 to year 2018 because of the increase of COGS and the
major decrease of the gross profit. This situation happens because of the price of inventories
has increased in the year 2018. The increase of inventories price has caused the company
need to use more money and cause the COGS increase. The sales also decrease because of
the demand slow. In year 2019, the company manage to control COGS such as cost of
purchase inventories and labour cost in order to increase the gross profit. This shows that the
company successfully increase the sales and control COGS to maximize the gross profit.

For Jaya Tiasa Holdings Berhad, the gross profit margin was continue decreased from
year 2017 until year 2019 due to the increase of cost of goods sold (COGS) was more than
the sales. This shows that the company has spent more money to purchase inventories and
salary of labour in order to increase the sales, but the increase of sales was not much as the
spending on purchases. It is because of the decrease of gross profit that cause by the increase
of COGS. The company fails to maximize gross profit due to the high COGS.

As the result, the performance in getting gross profit in United Plantation Berhad was
unstable, as the gross profit margin can be decrease, but also can have major to rise in year
2019. In the other hand, the performance in getting gross profit in United Plantation Berhad
was worse than Jaya Tiasa Holdings Berhad as the gross profit margin continue to decline
between years 2017 to year 2019.

11. Operating Profit Margin

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 5.97% 48.04% -269.14%
Berhad
United Plantation Berhad 57.08% 57.57% 43.96%

The trends of operating profit margin for Jaya Tiasa Holdings Berhad and United
Plantation Berhad was rise in year 2017 to year 2018 however it drop in year 2019.
In year 2017 to year 2018, operating profit Margin for both company, Jaya Tiasa
Holdings Berhad and United Plantation Berhad was increase due to the efficiencies increase
profit in generate operation which make the percentage operating profit margin increase in
year 2017 to year 2018.
However, Jaya Tiasa Holdings Berhad and United Plantation Berhad faced a decline trend
in year 2019. Both companies was not having a good condition during the year 2019 which
indicates lower operation on company’s productivity; they should make some improvement
on their operating profit margin to generate profit for the company.
As a result, the performance of Jaya Tiasa Holdings Berhad was almost same as United
Plantation Berhad in operating profit margin from year 2017 to year 2019. But the operating
profit margin United Plantation Berhad is stable compare than Jaya Tiasa Holdings Berhad.

12. Net Profit Margin

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 4.16% 51.10% -269.43%
Berhad
United Plantation Berhad 48.28% 47.55% 38.62%

The trend of net profit margin for Jaya Tiasa Holdings Berhad was increase in year 2017
to year 2018 however it decrease in year 2019 while United Plantation Berhad decrease from
year 2017 to year 2019.
 The increase of sales for Jaya Tiasa Holdings Berhad in year 2017 to year 2018 due to the
company had put a lot of effort in their business activities for managing the operation to gain
more profit, the better income will attract more shareholders to invest their company. It
course Jaya Tiasa Holdings Berhad has higher standard position than United Plantation
Berhad in year 2016 to year 2017.
Although Jaya Tiasa Holdings Berhad and United Plantation Berhad has face decline in
year 2018 to year 2019 but Jaya Tiasa Holdings Berhad having a serious loss in their profit
and unable provide income share for the shareholders. To overcome the decrease of net profit
margin, both companies should make some improvement to generate profit for the company.
In conclusion, although the trend of United Plantation Berhad was decrease from 2017 to
year 2019 but the performance in net profit margin is stable compare with Jaya Tiasa
Holdings Berhad.

13. Return on Asset

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 0.44% 2.89% - 10.73%
Berhad
United Plantation Berhad 12.8% 12.29% 10.18%

The trend of return on asset for Jaya Tiasa Holdings Berhad was increase in year 2017 to
year 2018 and it was decrease in year 2019 however the United Plantation Berhad was
decrease from year 2017 to year 2019.
The percentage of return on assets for Jaya Tiasa Holdings Berhad was increase however
United Plantation Berhad decreases in year 2017 to year 2018. The increase of Jaya Tiasa
Holdings Berhad due to increase of earning after tax for companies affect their percentage of
return on assets.
In year 2019, The percentage of return on assets for both company was decrease due to
the lower earnings after tax gain by the company. They were not having a good condition
which indicates lower return on company’s investment. Jaya Tiasa Holdings Berhad and
United Plantation Berhad should manage their assets wisely to avoid problem of waste
resources.
As a result, the performance of United Plantation Berhad is better and able to generate the
profit compare with Jaya Tiasa Holdings Berhad in year 2017 to year 2019
 14. Return on Equity

Year
2017 2018 2019
Company
Jaya Tiasa Holdings 0.54% 3.47% -12.79%
Berhad
United Plantation Berhad 14.23% 13.74% 11.41%

In return on equity, the trend for both company are different which for Jaya Tiasa
Holdings Berhad increase in year 2017 to year 2018 and decrease in year 2019 while United
Plantation Berhad which decreases from year 2016 to year 2019.

The percentage of return on equity increase for Jaya Tiasa Holdings Berhad while
United Plantation Berhad decreases in year 2017 to year 2018, it mean that measurement of
resources for Jaya Tiasa Holdings Berhad are used efficiency in producing earning from year
2017 to year 2018.

The percentage of return on equity for both companies in year 2019 was decrease.
Jaya Tiasa Holdings Berhad is less efficiency as compared to United Plantation Berhad and
influence the percentage of return on equity drop. To increase the percentage of return on
equity, both companies should increase the business activities in their operation to generate
profit

As conclusion, return on equity of the United Plantation Berhad is better than Jaya
Tiasa Holdings Berhad. United Plantation Berhad able to generate profit to shareholder from
year 2016 to year 2017.