FAR670

GROUP PROJECT
GABUNGAN AQRS vs CREST BUILDER HOLDINGS

GROUP MEMBERS
MUHAMMAD AZIM BIN ARIP 2014547149
SITI AISAH BINTI TAHRIL 2014972247
ABDUL WAFIY BIN ABDUL RAZAK 2015117299
MUHAMMAD HAZZIQ IZWAN BIN YAHAYA 2013346155

CLASS : NACAB10A
LECTURER : DR RADZIAH BINTI MAHMUD
 ACKNOWLEDGEMENT

“In the name of ALLAH, The Most Benevolent and The Most Merciful”

All praises to ALLAH, the most merciful and the most benevolent for giving us the best
opportunities and strengths in completing this FAR670 – Group Project. We are greatly indebted
to our lecturer Dr. Radziah binti Mahmud because without her guidance, suggestions, ideas,
comments and encouragement, it seems that it is almost impossible for us to complete this written
assessment as required.
Also we would like to thank to friends for their time and cooperation during completion of this
project. Without their support and additional information, we are unable to finish this project.

Thank you.
 CONTENTS
1. PROFITABILITY RATIOS
Profit margin 1-2
Return on assets 2-3
Return on equity 3-4

2 EFFICIENCY RATIOS
Accounts receivable turnover 5-6
Accounts receivable turnover in days 5-6
Inventory turnover 7-8
Days’ sales in inventory 7-8

3. LEVERAGE RATIOS
Debt ratio 9-10
Debt-to-equity ratio 10
Times interest earned 11
Fixed charge coverage 12

4. LIQUIDITY RATIOS
Current ratio 13
Working capital 14
Acid test ratio 15
Free cash flow (OCF – Capital expenditure) 16

5. MARKET RATIOS
EPS 17
P/E ratio 18
Dividend payout ratio 19
Dividend yield 20
Dividend per share 21

6. CASH FLOW FINANCIAL RATIOS

Operating CF to current maturities of debt 22-23
Operating CF to total debt 24
Operating CF per share 25
Operating CF to cash dividends 26-27

7. APPENDICES 28-40
A. PROFITABILITY RATIOS

GABUNGAN AQRS BERHAD BERHAD CREST BUILDER HOLDINGS BERHAD

PROFITABILITY RATIOS 2017 2016 2015 2017 2016 2015
PROFIT MARGIN 10.23 6.86 (3.55) 5.63 4.68 3.46
RETURN ON ASSETS 4.26 2.32 (1.00) 1.84 0.98 0.72
RETURN ON EQUITY 10.20 6.45 (3.00) 6.61 3.28 2.43

1. NET PROFIT MARGIN

NET PROFIT MARGIN

15
10.23
10
6.86
5.63 4.68
5 3.46

0
GBGAQRS CBHB
-5 -3.55
2017 2016 2015

Investors and analysts typically use net margin (NPM) to gauge how efficiently a company is
managed and forecast future profitability based on management’s sales forecasts. By comparing
net income to total sales, investors can see what percentage of revenues goes to paying operating
and non-operating expenses and what percentage is left over to pay shareholders or reinvest in the
company.

A higher margin is always better than a lower margin because it means that the company is able
to translate more of its sales into profits at the end of the period. Keep in mind that margins change
drastically between industries and just become one industry has a lower average margin than
another doesn’t mean that it is less profitable.

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Both companies experienced an increase in NPM from 2015 to 2017. Gabungan AQRS NPM has
increased significantly from -3.55% in 2015 to 6.86% in 2016 and continue to rise to 10.23% in
2017. The improved performance was mainly due to contributions from new and completed
construction projects in 2016, and sales from property developments and land bank.

While for Crest Builder Holdings Berhad, their NPM has increased also but not so significant
compared to their competitor. They achieved a slightly higher revenue in 2016, representing an
increase of 0.8% as compared to their last financial YE 31 December 2015 mainly due to higher
revenue contribution from their construction division. 60.1% of their revenue in 2016 were
contributed by their construction division, while the remaining balance were contributed by
property development, concession arrangement and investment holding divisions.

2. RETURN ON TOTAL ASSETS

RETURN ON TOTAL ASSETS

5 4.26
4
3 2.32
1.84
2 0.98 0.72
1
0
-1 GBGAQRS CBHB
-2 -1

2017 2016 2015

The return on assets ratio, often called the return on total assets, is a profitability ratio that measures
the net income produced by total assets during a period by comparing net income to the average
total assets. In other words, the return on assets ratio or ROA measures how efficiently a company
can manage its assets to produce profits during a period. Since company assets’ sole purpose is to
generate revenues and produce profits, this ratio helps both management and investors see how
well the company can convert its investments in assets into profits.
Based on the analysis, we found that ROA for Gabungan AQRS has increased drastically between
2015 and 2017. This was due to disposal of land in 2016 for RM50.38 million, of which RM45.34

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million will be received in 2017. Subsequent to 2016, the Group further disposed of two pieces of
land, namely a 2.67 acre land in Damansara Perdana and a 5.15 acre land in Kinrara Uptown for a
total of RM90.41 million. Thence, there will be a total inflow of funds of RM135.75 million in
2017.

For Crest Builder Holdings, their ROA also increase but in small percentage and this is due to an
increase in their assets value between 2015 and 2017.

3. RETURN ON EQUITY

RETURN ON EQUITY
15
10.2
10
6.45 6.61
5 3.28 2.43

0
GBGAQRS CBHB
-5 -3
2017 2016 2015

The return on equity ratio (ROE) is a profitability ratio that measures the ability of a firm to
generate profits from its shareholders investments in the company. This is an important
measurement for potential investors because they want to see how efficiently a company will use
their money to generate net income. ROE is also an indicator of how effective management is at
using equity financing to fund operations and grow the company.

Both companies experienced an increase in ROE from 2015 to 2017. Gabungan AQRS ROE has
increased significantly from -3.00% in 2015 to 6.45% in 2016 and continue to rise to 10. 3% in
2017. The improved performance was mainly due to an increase in their income contributed by
new and completed construction projects in 2016, and sales from property developments and land
bank.

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While for Crest Builder Holdings Berhad, their ROE has increased also but not so significant
compared to their competitor. They achieved a slightly higher ROE in 2016, and in 2017, their
ROE has increase in double amount from 3.28% to 6.61%.

CONCLUSION FOR PROFITABILITY RATIO

As a whole it can be said that Gabungan AQRS is better than Crest Bulider Holdings for
performance in terms of profitability ratios.

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B. EFFICIENCY RATIOS
GABUNGAN AQRS BERHAD BERHAD CREST BUILDER HOLDINGS BERHAD
EFFICIENCY RATIOS 2017 2016 2015 2017 2016 2015
AR TURNOVER IN TIMES 0.98 0.78 0.67 2.55 1.28 1.39
AR TURNOVER IN DAYS 373.65 467.86 542.73 143.01 284.92 261.69
INVENTORY TURNOVER IN
11.48 8.26 6.59 7.35 2.48 3.24
TIMES
INVENTORY TURNOVER IN
31.80 44.20 55.39 49.65 146.99 112.57
DAYS

1. AR TURNOVER IN TIMES AND DAYS

AR TURNOVER IN TIMES
3 2.55
2.5
2
1.28 1.39
1.5
0.98
1 0.78 0.67
0.5
0
GBGAQRS CBHB
2017 2016 2015

AR TURNOVER IN DAYS
600 542.73
500 467.86
373.95
400
284.92 261.69
300
200 143.01
100
0
GBGAQRS CBHB
2017 2016 2015

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The account receivables turnover ratio measures how effectively a firm uses its assets. A high ratio
indicates that the company operates on a cash basis or that its extension of credit and collection of
accounts receivable is efficient. A low ratio indicates the company should re-evaluate its credit
policies. In this analysis, we can see a fluctuated trend of Crest Builder’s account receivables
turnover from 2015 to 2017. It starts with 1.39 times, declines to 1.28 times and increases to 2.55
times respectively. In a mean time, the trend for Gabungan AQRS is in an increasing trend from
0.67 times slightly increases to 0.78 times then up to 0.98 times in 2015 to 2017 respectively.

On the other hand, we can see also a fluctuated trend in account receivables turnover in days for
Crest Builder whereby it starts with 261.69 days then increases to 284.92 days and down to 143.01
days from 2015 to 2017 respectively. In between of these three periods, there is a decreasing trend
for Gabungan AQRS’s account receivables turnover in days whereby it takes 542.73 days in 2015,
467.86 days in 2016 as well as 373.95 days in 2017. A decline in the number of days’ receivables
outstanding shows that its extension of credit and collection of accounts receivable is efficient.

In conclusion, the account receivables turnover ratio (in times and days) for Crest Builder is higher
than its competitor, Gabungan AQRS which indicates the company is more efficient in collecting
the outstanding receivables.

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2. INVENTORY TURNOVER IN TIMES AND DAYS

INVENTORY TURNOVER IN TIMES

15
11.48
10 8.26
6.59 7.35

5 3.24
2.48

0
GBGAQRS CBHB
2017 2016 2015

INVENTORY TURNOVER IN DAYS

200
146.99
150
112.57
100
44.2 55.39 49.65
50 31.8

0
GBGAQRS CBHB
2017 2016 2015

The inventory turnover ratio shows how many times a company’s inventory is sold and replaced
over a period. A low turnover implies poor sales and excess inventory when a high ratio implies
strong sales or ineffective buying. In this analysis, we can observe that the graph for Crest Builder’s
inventory turnover ratio is fluctuated from 3.24 times then declines to 2.48 times from 2015 to
2016 and slightly increases to 7.35 times in 2017. On the other hand, Gabungan AQRS shows an
increasing trend whereby its ratio starts from 6.59 times increases to 8.26 times up to 11.48 times
from 2015 to 2017 respectivel

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In a mean time, this analysis shows that the inventory turnover ratio in days for Crest Builder has
a fluctuated trend as well whereby it takes 112.57 days then starts increasing to 146.99 days and
down to 49.65 from 2015 to 2017 respectively. As for its competitor, the trend appears to be a
decreasing trend whereby it takes 55.39 days then decreases to 44.20 days and keep decreasing to
31.80 days from 2015 to 2017.

CONCLUSION FOR EFFICIENCY RATIO

As a whole it can be said that Crest Builder Holdings is more efficient than Gabungan AQRS in
collecting debts but for inventory turnover, the situation is opposite.

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C. LEVERAGE RATIOS

1. DEBT RATIO

DEBT RATIO
80 66.5 71.14 68.99 69.69
64.11
57.86
60

40

20

0
GBGAQRS CBHB
2017 2016 2015

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of its total
assets. In a sense, the debt ratio shows a company’s ability to pay off its liabilities with its assets.
In other words, this shows how many assets the company must sell in order to pay off all of its
liabilities.

This ratio measures the financial leverage of a company. Companies with higher levels of liabilities
compared with assets are considered highly leveraged and more risky for lenders. This helps
investors and creditors analysis the overall debt burden on the company as well as the firm’s ability
to pay off the debt in future, uncertain economic times.

Gabungan AQRS has showed a decrease trend from 2015 to 2017 and this shows a positive sign
that they are able to manage their liabilities very well. For Crest Builder Holdings Berhad, they

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have fluctuate trend in their debt ratio between 2015 and 2017 where they had lower debt ratio in
2016 (68.99%) but the ratio increase in the next year to 71.14%.

2. DEBT TO EQUITY RATIO

DEBT TO EQUITY RATIO

300
246.53 229.98
250 222.47
199.76
200 178.65
138.45
150
100
50
0
GBGAQRS CBHB
2017 2016 2015

The debt to equity ratio is a financial, liquidity ratio that compares a company’s total debt to total
equity. The debt to equity ratio shows the percentage of company financing that comes from
creditors and investors. A higher debt to equity ratio indicates that more creditor financing (bank
loans) is used than investor financing (shareholders).

A lower debt to equity ratio usually implies a more financially stable business. Companies with a
higher debt to equity ratio are considered more risky to creditors and investors than companies
with a lower ratio. Unlike equity financing, debt must be repaid to the lender. Since debt financing
also requires debt servicing or regular interest payments, debt can be a far more expensive form of
financing than equity financing. Companies leveraging large amounts of debt might not be able to
make the payments.

Based on the results, Gabungan AQRS is more stable than CBH because they are using less debt
financing and the ratio is getting lower by years.

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3. TIME INTEREST EARNED

TIME INTEREST EARNED

120
100.1
100
80
55.83 58.28
60
40
20 0.48 0.84
0.13
0
GBGAQRS CBHB
2017 2016 2015

The times interest earned ratio, sometimes called the interest coverage ratio, is a coverage ratio
that measures the proportionate amount of income that can be used to cover interest expenses in
the future.

Times interest earned (TIE) for Gabungan AQRS has shown downtrend from 2015 to 2017 but for
CBH, its TIE has fluctuated trend between the 3 years in research. Creditors would favor a
company with a much higher times interest ratio because it shows the company can afford to pay
its interest payments when they come due. Higher ratios are less risky while lower ratios indicate
credit risk. In this ratio, creditors would favor CBH because of its higher TIE.

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4. FIXED CHARGE COVERAGE

FIXED CHARGE COVERAGE

120 100.1
100
80
55.83 58.28
60
40
20 6.65 0.29
0
-20 GBGAQRS -0.08 CBHB

2017 2016 2015

The fixed charge coverage (FCC) ratio is a financial ratio that measures a firm’s ability to pay all
of its fixed charges or expenses with its income before interest and income taxes. The fixed charge
coverage ratio is basically an expanded version of the times interest earned ratio or the times
interest coverage ratio.

The fixed charge coverage ratio is very adaptable for use with almost any fixed cost since fixed
costs like lease payments, insurance payments, and preferred dividend payments can be built into
the calculation.

Based on the results, Gabungan AQRS has increase significantly from 0.29 in 2016 to 6.65 in 2017
while for CBH, its FCC has fluctuated trend between 2015 to 2017 where in 2017, its FCC increase
almost double than the figures shown in 2016. Creditors would favor a company with a much
higher FCC ratio because it shows the company can afford to pay its fixed charges when they come
due. Higher ratios are less risky while lower ratios indicate credit risk. In this ratio, creditors would
favor CBH because of its higher FCC.

CONCLUSION FOR EFFICIENCY RATIO

From the analysis, Gabungan AQRS has managed their debtors very well by having lower Debt
ratio and Debt to Equity ratio compared to CBH. For TIE and FCC, creditors would prefer CBH
because CBH TIE and FCC are lower compared to Gabungan AQRS.

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D. LIQUIDITY RATIOS
GABUNGAN AQRS BERHAD BERHAD CREST BUILDER HOLDINGS BERHAD
LIQUIDITY RATIOS 2017 2016 2015 2017 2016 2015
CURRENT RATIO 1.59 1.50 1.38 1.29 1.47 1.70
WORKING CAPITAL 364,333,543 277,304,324 214,297,756 177,269,988 200,288,494 273,326,987
QUICK RATIO 1.11 1.45 1.37 0.68 1.38 1.53
FREE CASH FLOW 149,278,070 29,014,029 (76,060,047) 62,432,439 4,309,838 34,728,286

1. CURRENT RATIO

CURRENT RATIO
2 1.7
1.59 1.5 1.47
1.5 1.38 1.29

0.5

0
GBGAQRS CBHB
2017 2016 2015

Current ratio is the one the most fundamental liquidity ratio. It measures the ability of business to
repay current liabilities with current assets.

In the above table, Gabungan AQRS Berhad has highest current ratio for two consecutive years
that indicates AQRS Berhad is most capable in repay their current liabilities (e.g: account payable,
salaries etc.) with current asset (e.g: cash and cash equivalents, account receivable, short term
investment etc.). Even though the current ratio for company Crest Builder Holding Berhad
decrease from 2015-2017 but company not face any liquidity problem because the company
captured the ratio above 1, meaning that the company current asset is higher than current liabilities.

In general, higher current ratio is better both companies Crest and AQRS current asset still enough
to cover its liabilities.

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2. WORKING CAPITAL

WORKING CAPITAL
400,000,000.00 364,333,543.00

300,000,000.00 277,304,324.00 273,326,987.00

214,297,756.00 200,288,494.00
200,000,000.00 177,269,988.00

100,000,000.00

0.00
GBGAQRS CBHB
2017 2016 2015

Based on the data above, it shows that working capital of Gabungan AQRS Berhad has shown
increasing a positive value for three years which means that it is a good thing because it means a
business it about to meet its short-term obligation and bill with it liquid asset. It also means that
the business should be able to finance some degree of growth without having to acquire an outside
loan or raise funds with new issuance of stocks.

For Crest Builder Holding Berhad, working capital value is positive for 2015 until 2017. Ratio
resulted positive value for both company. However, Crest Builder Holding Berhad decreasing
value from 2015-2017. If current assets of a business at the point in time are more than its current
liabilities the working capital is positive, and this tells that the company is not expected to suffer
from liquidity crunch in near future. However, if current assets are less than current liabilities the
working capital is negative, and this communicates that the business may not be able to pay off its
current liabilities when due.

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3. QUICK RATIO

QUICK RATIO
2
1.45 1.53
1.5 1.37 1.38
1.11
1 0.68
0.5

0
GBGAQRS CBHB
2017 2016 2015

The acid test ratio is used to measure the ability of company to pay its current liabilities when they
come due. Based on the data above, Gabungan AQRS Berhad has acquired acid test ratio for 2015
is 1.37 times, slightly increase to 1.45 times in 2016 and decreased back to 1.11 in 2017. It shows
that, the company has an ability to pay it current debt by using all the current asset. This represents
a negetive trends. Even the trends is negative but the company Current Assets is still higher than
current liabilities.

For Crest Builder Holding Berhad, it has acquired acid test ratio for 2015 is 1.53 times which is a
positive and favorable to cover it current liabilities. In year 2016, the ratio has decreased to 1.38
times and keep decreasing in 2017, the ratio has decreased to 0.68 times. This represents a negative
trend. It shows Current Liabilities is higher than Current Assets for Crest Builder Holding Berhad.

Overall, it shows that, Gabungan AQRS Berhad has stable ratio in order to cover it current
liabilities but Crest Builder Holding Berhad has a low ratio which is indicates weakness in liquidity
position because the firm would have a problem in meeting its short term obligation without selling
off his inventory.

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4. FREE CASH FLOW

FREE CASH FLOW

200,000,000.00
149,278,070.00
150,000,000.00
100,000,000.00 62,432,439.00
50,000,000.00 29,014,029.00 34,728,286.00
4,309,838.00
0.00
-50,000,000.00 GBGAQRS CBHB
-100,000,000.00 -76,060,047.00
2017 2016 2015

Based on the data above, Gabungan AQRS Berhad has negative free cash flow for 2015. For 2016
and 2017 it shows an improvement trend by stated improvement of free cash flow. It same goes to
Crest Builder Holding Berhad, it acquired positive trend for 2015 until and 2017 but slightly
decreased in 2016 but still has a positive trend.

Positive trend means that the company is doing well and its operations are able fund all of its
activities while throwing off excess cash for its investor. But it is important to note that, excess
cash does not always mean company is doing well because it could be the equipment will break
down and the business might have to cease operations until the equipment is replaced.

Negative trend means that, it would not have enough money coming in to pay for his operations
and expansion. It also indicates that the company is investing heavily in new equipment and other
capital asset causing the excess cash to disappear. In conclusion, both companies show a good
improvement trends since year 2015 to 2017 by stated improvement of free cash flow and manage
their cash properly to make sure the companies still sustain in the future.

CONCLUSION FOR LIQUIDITY RATIO

As a whole it can be said that Gabungan AQRS is more liquid than Crest Builder Holdings since
Gabungan AQRS performs better in each ratio in liquidity ratio.

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E. MARKET RATIOS
GABUNGAN AQRS BERHAD BERHAD CREST BUILDER HOLDINGS BERHAD
MARKET RATIOS 2017 2016 2015 2017 2016 2015
EPS 16.44 7.73 5.74 11.74 5.80 (2.49)
MPS 0.92 0.91 1.02 1.54 0.72 0.66
DILUTED EPS 16.44 7.73 5.74 11.74 5.80 (2.49)
DIVIDEND PER SHARE 4.00 4.00 4.00 2.00 - -
P/E RATIO 5.60 11.77 17.77 17.56 12.41 (26.51)
DIVIDEND PAYOUT RATIO 24.33 51.75 69.69 22.81 - -
DIVIDEND YIELD 4.35 4.40 3.92 1.30 - -

1. EARNING PER SHARE

EPS
20
15
10
5
0
CBHB GAB
-5
2017 2016 2015

Earnings per share are most widely used ratio to measure the performance of a company. A higher
value indicates higher profit per share and this will have course, be preferred by the existing
shareholder as well as potential investor.

Based on the data analysis, Crest Builder Holding Berhad has acquired Basic EPS for 2017 is
16.44 sen higher than in 2016 is 7.73 sen and also 5.74 sen in 2015. For Gabungan AQRS
Berhad, the EPS acquired in 2017 is 11.74 sen, 5.80 sen in 2016 and lower in 2015 which is (2.49)
sen per share.

Overall, both companies show higher earnings per share in year 2017 which is company still earned
sufficient earnings in order to pay dividends and use for expansion of business.

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2. P/E RATIO

P/E RATIO
20
10
0
CBHB GAB
-10
-20
-30
2017 2016 2015

There is another important measurement for assessing the worth company and this ratio is
measures the relationship between market price of a share of OSC and that OSC’s current EPS.

Based on the data, the P/E ratio of Crest Builder 2017 is 5.60% lower than 2016 and 2015. But in
Gabungan AQRS is higher than P/E ratio of Crest Builder in 2017 which are 17.56.

For Gabungan AQRS, the P/E ratio in 2016 is 12.41% higher than 2015. If compare with Crest
Builder, P/E ratio 2016 is 11.77% lower than 12.41%. A company with a high ratio usually
indicated positive future performance and investor are willing to pay more for the company’s
shares. In general, a higher ratio means that investor anticipate higher performance and growth in
future. But, a company with lower ratio is usually an indication or poor current and future
performance.

So, if we compare year 2017 between Crest Builder and Gabungan AQRS as competitor, P/E ratio
Gabungan AQRS has better future performance.

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3. DIVIDEND PAYOUT RATIO

DIVIDEND PAYOUT RATIO

80

60

40

20

0
CBHB GAB
2017 2016 2015

Dividend payout is measures the portion of current EPS being paid out in dividends. A stable
dividend policy is developed by consideration of recurring earnings. EPS are diluted in the formula
because this is the most conservative view point. Dividend payout ratio has a similar problem as
the percentage of earning retained. Investor may assume that dividend payout implies EPS
represent cash. Under accrual accounting, EPS do not present a cash pool.

Based on the data, Crest Builder in year 2017, 2016 and 2015 dividend payout ratios, which is
decrease from 69.69% in 2015 to 51.75% in 2016 and decrease to 24.33% in 2017. For Gabungan
AQRS, there only have dividend payout in 2017 which is 22.81%.

A consistent trend in ratio is usually more important than a high ratio or low ratio. But, if a
company ratio has fallen a percentage each year, it might indicate that the company can no longer
afford to pay such high dividends. This could be an indication of poor performance.

So, if compare with Crest Builder and Gabungan AQRS, they have indication of poor performance.

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4. DIVIDEND YIELD

DIVIDEND YIELD
5
4
3
2
1
0
CBHB GAB
2017 2016 2015

The dividend yield indicates the relationship between the dividends per common share and the
market price per common share.

Data shows the dividend yield for Crest Builder for 2017, 2016 and 2015. The dividend yield has
been lowering in 2015 3.92% but increase in 2016 4.40% and decrease in 2017 4.35%. For
Gabungan AQRS, the dividend yield is only in 2017 is 1.30%. This ratio is to compute the cash
flow they are getting for every dollar that the stock is worth.

When dividends yield higher, there is more income but greater risk. When dividends yield is lower,
there is less income but mostly offered most stable company with long record of constant grow at
steady pass.

So if compare dividend yield in 2017 between Crest Builder and Gabungan AQRS , dividend yield
Crest Builder is higher 4.35% compare with Gabungan AQRS is 1.30% which is there is more
income but greater risk.

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5. DIVIDEND PER SHARE

DIVIDEND PER SHARE

5
4
3
2
1
0
CBHB GAB
2017 2016 2015

The data show the DPS for Crest Builder is 4 sen in 2015, 2016 and 2017. For Gabungan AQRS,
DPS is only in 2017 which is 2 sen. The increase in DPS tells investors about the company past
financial health and it current financial stability. This can signal to investors that the company may
be in poor financial health and can withstand the current market condition.

So, company Crest Builder have a same figure in DPS is 4 sen and Gabungan AQRS only declared
in 2017 for 2 sen which is company Gabungan AQRS maybe in poor financial health and can
withstand the current market condition.

CONCLUSION FOR MARKET RATIO

As a whole it can be said that Crest Builder Holding Berhad has better performance than its
competitor does in the market since it able to pay 4 sen dividends in every year common share
outstanding as compared to Gabungan AQRS Berhad which is 2 sen only in 2017 and no dividend
in 2016 and 2015.

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F. CASH FLOW FINANCIAL RATIOS

1. OPERATING CASH FLOW TO CURRENT MATURITIES OF DEBT

OPERATING CASH FLOW TO CURRENT

MATURITIES OF DEBT
10.00 8.19
5.05
5.00
0.65 1.50
0.39
0.00
GBGAQRS -0.75 CBHB
-5.00
2017 2016 2015

The objective of this ratio is to assess the efficiency and effectiveness of company in generating
its cash. It is important to the economics of a business to have enough cash on hand to pay the
expenses and purchase needed materials or assets for the business.

In the above table, Operating Cash Flow Ratio measure the number of times a company can pay
off current debts with cash generated in the same time period. Crest Builder Holding Berhad
decreasing and increase ratio from year 2015 to 2017. The highest ratio can be seen from Crest in
year 2017 (8.19 times). Even though Crest has slightly decrease in 2016 as at 0.65 times but it
manages to improve the ratio in 2017 that shows the ability to pay any debts that are maturing
within the next year.

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Meanwhile, Gabungan AQRS Berhad has a negative ratio in 2015 (-0.75 times) but it shows
improvement from year to year, higher ratio indicates company will be able to pay off the debt that
are due within a year. AQRS show an increment of ratio from year 2015 to 2017. it shows that the
company have lower risk of defaulting its debt. From the result, both company shows a very good
firm liquidity and the company will be able to manage their debt very well in the future.

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2. OPERATING CASH FLOW TO TOTAL DEBT

OPERATING CASH FLOW TO TOTAL DEBT

1.00 0.91
0.80
0.60
0.60
0.40 0.23
0.16
0.20 0.05
0.00
-0.20 GBGAQRS CBHB
-0.10
2017 2016 2015

This coverage ratio compares a company's operating cash flow to its total debt. Operating cash
flow is defined as the amount of cash generated by the company's normal business operations
activities. Debt is the sum of short-term borrowings, the current portion of long-term debt. In the
above table, Crest Builder Holding Berhad show a better ratio than Gabungan AQRS Berhad that
indicate Crest is more capable to pay the total debt with the yearly operating cash flow. Crest ration
is slightly decrease in 2016 (0.16 time) but it manages to improve their ratio in 2017 (0.91 times).

Meanwhile, Gabungan AQRS Berhad has a negative ratio in 2015 (-0.10 time) from that ratio that
shows the company is unable to pay the debt in the particular year properly. In 2016 and 2017
AQRS show a good improvement from 2015. The ratio is increasing from -0.10 times to 0.23
times. Even though the ratio is below 1, but the both company show an improvement from year to
year. The higher the ratio the better the firm ability to carry its total debt.

24 | P a g e
3. OPERATING CASH FLOW PER SHARE

OPERATING CASH FLOW PER SHARE

0.50
0.38
0.40
0.27
0.30 0.23
0.20
0.08 0.06
0.10
0.00
-0.10 GBGAQRS CBHB
-0.20 -0.16
2017 2016 2015

Cash flow per share represents the portion of a company's cash flow allocated to each share of
common stock. The higher the better/positive as a company is regarded as improving prospects
and more financial & operational flexibility. Both shows a rise of cash flow in each share that
indicate of a firm ability to make capital expenditure decision and pay dividend than is earning per
share.

Based on the above table, Crest Builder Holding Berhad show a positive trend by stated 0.23 times
in 2015 but it declining in 2016 by 0.06. however, the company manage to improve the ratio in
2017 0.38 times that indicate the company improve of cash flow than is required for operational
expenses and capital expenditures. Gabungan AQRS Berhad started in a negative trend by stated
-0.16 in 2015 but the ratio keeps increasing from year to year. In 2017 AQRS stated 0.27 times
from -0.16 in 2015. That indicate AQRS cash flow per share is getting more sustain from time to
time. Even though both company ratio is below 1 but the the ratio is increasing in 2017.

Since the cash flow per share takes into consideration a company's ability to generate cash, it is
regarded by some as a more accurate measure of a company's financial situation than earnings per
share. Cash flow per share represents the net cash a firm produce on a per-share basis and both
company make an improvement from year to year.

25 | P a g e
4. OPERATING CASH FLOW TO CASH DIVIDEND

OPERATING CASH FLOW TO CASH DIVIDEND

20.00 16.83
15.00
8.57
10.00 5.98
5.00 0.00 1.60
0.00
-5.00 GBGAQRS CBHB
-10.00
-15.00
-13.60
-20.00
2017 2016 2015

Operating cash flow to cash dividend shows the percentage of company’s net income that is being
paid in the form of cash dividends. This is to measure the sustainability of company in its current
level of dividend. If a company's cash dividend payout ratio is high, then it's using a large
percentage of its cash flow to pay common shareholders. If a company's cash dividend payout ratio
is higher than 100%, it means that it's paying more in dividends than it's receiving in cash.
However, it is unsustainable in the long run.

Under Crest Builder Holding Berhad, it can be seen that in year 2015 the ratio of the company is
5.98. this is because the company used large operating cash flow to pay its shareholder. However,
in year 2016, the ratio plummet into 1.60. it seems that there is a declining pay of operating cash
flow to its stakeholders. In year 2017, the ratio increase to 8.57 due to large scale used of operating
cash flow. However, this scenario is not suitable in the long run as it used more dividends to pay
its stakeholder than using cash.

Under Gabungan AQRS Berhad, there is an increment of cash dividend ratio from year 2015 until
2017. In year 2015, it can be seen that the ratio of company is -13.06. in year 2016, the ratio keeps
increasing into 0.00. the ratio in year 2016 is 0.00 because there is no cash dividend provided by

26 | P a g e
the company. However, in year 2017, there is a rise of ratio by 16.83. it can be seen that the
company tend to use more operating cash flow to pay in dividend as compared in receiving cash.

CONCLUSION FOR CASH FLOW FINANCIAL RATIO

As a whole it can be said that Crest Builder Holdings is more efficient than Gabungan AQRS in
collecting debts but for inventory turnover, the situation is opposite.

27 | P a g e
 APPENDICES

HORIZONTAL & VERTICAL ANALYSIS

HORIZONTAL ANALYSIS
Gabungan AQRS Berhad
Statements of Profit or Loss and Other Comprehensive Income for the year ended 31 December
2017 2016 2015
RM % RM % RM %

Revenue 72.27% 21.12% 100.00%

469,468,051 330,058,008 272,510,910
Cost of Sales 45.33% 8.19% 100.00%
(325,678,695) (242,451,407) (224,098,762)
Gross Profit 197.01% 80.96% 100.00%
143,789,356 87,606,601 48,412,148
Other Income -13.44% 54.08% 100.00%
4,948,211 8,808,262 5,716,730
Operating costs 5.88% -27.81% 100.00%
(54,977,657) (37,486,642) (51,925,132)
Finance Cost 22.54% 47.97% 100.00%
(12,572,879) (15,182,582) (10,260,520)
Share of loss of an - -
100.00%
associate, net of tax (119,784) 1.634442432 (76,678) 140.61% 188,802
Share of profit/(loss) of a -
205.59% 100.00%
joont venture, net of tax 153,114 25.10864431 (19,408) (6,351)
-
Profit/(loss) before tax -1131.46% 100.00%
81,220,361 43,649,553 654.33% (7,874,323)
Tax expense 280.72% 84.99% 100.00%
(31,624,975) (15,366,444) (8,306,541)
Profit for the financial -
-406.51% 100.00%
year 49,595,386 28,283,109 274.79% (16,180,864)
Other comprehensive
- - -
income, net of tax
Total comprehensive -
-406.51% 100.00%
income, net of tax 49,595,386 28,283,109 274.79% (16,180,864)

Attributable to:
Owners of the parents 196.56% -78.51% 100.00%
622,416 45,102 209,880
Non-controlling interests - - -

196.56% -78.51% 209,880 100.00%

622,416 45,102

28 | P a g e
 Gabungan AQRS Berhad
Statements of Financial Position as at 31 December
2017 2016 2015
RM % RM % RM %

Assets
PPE -41.42% -20.85% 100.00%
32,253,103 43,582,892 55,060,953
Land held for
property -57.98% -33.05% 100.00%
37,931,203 60,438,655 90,276,322
development
Investment
-13.04% -2.51% 100.00%
properties 33,701,258 37,782,012 38,754,730
Investment in
- - -
subsidiaries
Investment in an
-8.24% -3.49% 100.00%
associate 3,387,026 3,562,410 3,691,288
Investment in a
54.71% -7.94% 100.00%
joint venture 378,110 224,996 244,404
Deferred tax
-35.11% -28.81% 100.00%
assets 2,938,048 3,223,170 4,527,405
Intangible assets 100.00%
29,783,152
Total Non
-27.10% 148,814,135 -22.72% 100.00%
Current Asset 140,371,900 192,555,102

Property
development -15.59% 244,973,146 7.06% 100.00%
193,140,221 228,813,135
costs
Inventories -5.88% 25,116,175 -25.27% 100.00%
31,633,677 33,609,025
Trade and other
31.41% 522376389 11.28% 100.00%
receivables 616,875,875 469,432,543
Other
100% 2,511,775 100.00% -
investments 8,122,815
Current tax
0.17% 335,080 -63.59% 100.00%
assets 921,802 920,270
Short term funds 10413.63% 951,587 16.26% 100.00%
86,053,973 818,499
Cash and bank
18.76% 31,980,361 -24.55% 100.00%
balances 50,337,485 42,384,701
Total Current
27.21% 828,244,513 6.74% 100.00%
Asset 987,085,848 775,978,173
Total Asset 1,127,457,748 16.41% 977,058,648 0.88% 968,533,275 100.00%

29 | P a g e
 Equity
Share capital 173.28% 97,730,000 0.00% 100.00%
267,080,518 97,730,000
Reserves -10.67% 246,001,039 10.09% 100.00%
199,614,812 223,460,056

Equity
attributable to
45.30% 343,731,039 7.02% 100.00%
the owner of 466,695,330 321,190,056
company
Non-controlling
580.77% 6893462 455.10% 100.00%
Interest 8,454,099 1,241,836
Total Equity 47.36% 350,624,501 8.74% 100.00%
475,149,429 322,431,892

Liabillities
Borrowings -64.49% 72525745 -11.74% 100.00%
29,182,894 82,173,643
Deferred tax
-83.40% 2,932,213 30.47% 100.00%
liabilities 373,120 2,247,359
Total
Noncurrent -64.99% 75,457,958 -10.62% 100.00%
29,556,014 84,421,002
Liabilities

Trade and Other

26.60% 342,243,062 0.58% 100.00%
Payables 430,773,371 340,257,306
Borrowings -24.91% 195,889,567 -7.47% 100.00%
158,976,648 211,713,963
Current tax
239.89% 12807560 31.91% 100.00%
Liabilities 33,000,286 9,709,122
Total Current
10.87% 550,940,189 -1.91% 100.00%
Liabilities 622,750,305 561,680,391
Total Liabilities 0.96% 626,398,147 -3.05% 100.00%
652,306,319 646,101,393
Total equity
16.41% 977,022,648 0.88% 100.00%
and Liabilities 1,127,455,748 968,533,285

30 | P a g e
 Statements of Comprehensive Income for the year ended 31 December
2017 2016 2015
RM % RM % RM %
Revenue 11,565,262 -25.33% 17,172,503 10.88% 15,488,086 100%
Cost of Sales - - -
Gross Profit 11,565,262 -25.33% 17,172,503 10.88% 15,488,086 100.00%
Other Income 344,109 100.00% - -
Administration Expenses (972,611) (7,386,792) (1,977,225) 100.00%
-
Operating Profit 10,936,760 -19.05% 9,785,711 13,510,861 100.00%
27.57%
Finance Cost (2,011,527) (3,075,887) (4,947,700) 100.00%
-
Profit before taxation 8,925,233 4.23% 6,709,824 8,563,161 100.00%
21.64%
Income tax expense (769,872) (305,669) (229,765) 100.00%
-
Profit for the financial year 8,155,361 -2.14% 6,404,155 8,333,396 100.00%
23.15%

Other comprehensive income, net

- - -
of tax
Total comprehensive income for
8,155,361 -2.14% 6,404,155 -23.15% 8,333,396 100.00%
the financial year

31 | P a g e
 Crest Builder Holdings Berhad
Statements of Financial Position as at 31 December
2017 2016 2015
RM % RM % RM %

ASSETS
Non-current assets
Property, plant and
- - -
equipment
Investment in subsidiary
106,365,270 9.24% 97,365,270 0.00% 100.00%
companies 97,365,270
Amount due from
121,886,057 658.07% 67,574,150 320.28% 100.00%
subsidiary companies 16,078,393
Total Non-current Assets 228,251,327 82.42% 164,939,420 45.39% 113,443,663 100.00%

Current Assets
Amount due from
26,591,960 -78.32% 82,883,600 -32.41% 100.00%
subsidiary companies 122,630,289
Prepayments 19,896 17.18% 17,916 5.52% 100.00%
16,979
Current tax assets 170,992 -76.24% 642,686 -10.69% 100.00%
719,636
Short term investments 18,787,117 -35.57% 20,100,783 -31.07% 100.00%
29,161,197
Fixed deposits placed with
2,999,860 2.55% 2,925,380 0.00% 100.00%
licensed banks 2,925,380
Cash and bank balances 115012 -7.96% 115075 -7.91% 100.00%
124,962
Total Current Assets 48,684,837 -68.71% 106,685,440 -31.43% 155,578,443 100.00%
Total Assets 276,936,164 2.94% 271,624,860 0.97% 269,022,106 100.00%

EQUITY AND
LIABILITIES
Equity attributable to
owners of the Company
Share capital 181,190,804 2.41% 176,921,657 0.00% 176,921,657 100.00%
Share premium - -100.00% 4,269,147 0.00% 4,269,147 100.00%
Treasury shares -5,795,292 83.86% -5,795,292 83.86% -3,152,005 100.00%
Reserves 29,268,189 5.47% 27,940,490 0.69% 27,750,286 100.00%
Total Equity 204,663,701 -0.55% 203,336,002 -1.19% 205,789,085 100.00%

Non-current liabilities
Loans and borrowings 8,002,000 -68.53% -34.26% 100.00%
16,714,000 25,426,000
Total Non-current
8,002,000 -68.53% 16,714,000 -34.26% 25,426,000 100.00%
Liabilities

32 | P a g e
 Current liabilities
Loans and borrowings 11,401,943 19.82% 13,007,075 36.69% 9,516,089 100.00%
Other payables 314,168 -34.58% 328,138 -31.67% 480,209 100.00%
Amount due to subsidiary
52,554,352 88.97% 38,239,645 37.50% 27,810,723 100.00%
companies
Total Current Liabilities 64,270,463 70.00% 51,574,858 36.42% 37,807,021 100.00%
Total Liabilities 72,272,463 14.30% 68,288,858 8.00% 63,233,021 100.00%
Total Equity and
276,936,164 2.94% 271,624,860 0.97% 269,022,106 100.00%
Liabilities

Horizontal analysis, also called time series analysis, focuses on trends and changes in
numbers over time. Horizontal analysis allows us to detect growth patterns, cyclicality, etc. and to
compare these factors among different companies. It is almost impossible to tell which is growing
faster by just looking at the numbers. So we have to do some calculations. We can perform
horizontal analysis on the income statement by simply taking the percentage change for each line
item year-over-year. By using horizontal analysis, we can see the comparison figure for some
period and indirectly we can identify either the performance of company is good or not.

Based on the data above, we can see that the revenue and cost of sales for Gabungan AQRS
Berhad (GBG) have grown over the time. Despite of the fluctuated changes in the expenses over
the three years, GBG managed to produce a significant increase of profit from a loss of
RM16,180,864 to a profit of RM 28,283,109 which brings to a 274.79% changes in 2016 to
RM49,595,386 of 406.51% in 2017 from 2015. The increase in sales revenue also might resulted
from the credit sales made to the customer as the percentage in the trade and other receivables has
been increasing by 11.28% in 2016 and 31.41% in 2017.

In a mean time, the total of non-current asset has decreased by 20.85% in 2016 then lower
down to 41.42% in 2017. However, the total asset shows that the percentage has increased over
the three years by 0.88% from 2015 to 2016 and up to 16.41% in 2017 due to the increasing in
other investments. As for the equity and liabilities, there is a reducing percentage of borrowings
by 11.74% in 2016 and 64.49% in 2017 for the long term borrowings and by 7.47% in 2016 and
24.91% in 2017 for short term borrowings. Despite the decreasing in borrowings, there is an
increasing in the trade and other payables by 0.58% in 2017 and 26.60% in 2017.

33 | P a g e
VERTICAL ANALYSIS

Gabungan AQRS Berhad

Statements of Profit or Loss and Other Comprehensive Income for the year ended 31 December
2017 2016 2015
RM % RM % RM %
Revenue 469,468,051 100% 330,058,008 100.00% 272,510,910 100.00%
Cost of Sales (325,678,695) -69.37% (242,451,407) -73.46% (224,098,762) -82.23%
Gross Profit 143,789,356 30.63% 87,606,601 26.54% 48,412,148 17.77%
Other Income 4,948,211 1.05% 8,808,262 2.67% 5,716,730 2.10%
Operating costs (54,977,657) -11.71% (37,486,642) -11.36% (51,925,132) -19.05%
Finance Cost (12,572,879) -2.68% (15,182,582) -4.60% (10,260,520) -3.77%
Share of loss of an
-0.03% (76,678) -0.02% 188,802 0.07%
associate, net of tax (119,784)
Share of profit/(loss)
of a joint venture, net 153,114 0.03% (19,408) -0.01% (6,351) 0.00%
of tax
Profit/(loss) before
81,220,361 17.30% 43,649,553 13.22% -7,874,323 -2.89%
tax
Tax expense (31,624,975) -6.74% (15,366,444) -4.66% (8,306,541) -3.05%
Profit for the
49,595,386 10.56% 28,283,109 8.57% (16,180,864) -5.94%
financial year
Other comprehensive
- - -
income, net of tax

Total comprehensive
49,595,386 10.56% 28,283,109 8.57% (16,180,864) -5.94%
income, net of tax

Attributable to:
Owners of the parents 622,416 0.13% 45,102 0.01% 209,880 0.08%
Non-controlling
- - -
interests
622,416 0.13% 45,102 0.01% 209,880 0.08%

34 | P a g e
 Gabungan AQRS Berhad
Statements of Financial Position as at 31 December
2017 2016 2015
RM % RM % RM %

Assets
PPE 32,253,103 2.86% 4.46% 5.68%
43,582,892 55,060,953
Land held
for property 37,931,203 3.36% 6.19% 9.32%
60,438,655 90,276,322
development
Investment
33,701,258 2.99% 3.87% 4.00%
properties 37,782,012 38,754,730
Investment
in - - -
subsidiaries
Investment
in an 3,387,026 0.30% 0.36% 0.38%
3,562,410 3,691,288
associate
Investment
in a joint 378,110 0.03% 0.02% 0.03%
224,996 244,404
venture
Deferred tax
2,938,048 0.26% 0.33% 0.47%
assets 3,223,170 4,527,405
Intangible
29,783,152 2.64%
assets
Total Non-
Current 140,371,900 12.45% 148,814,135 15.23% 19.88%
192,555,102
Asset

Property
development 193,140,221 17.13% 244,973,146 25.07% 23.62%
228,813,135
costs
Inventories 31,633,677 2.81% 25,116,175 2.57% 3.47%
33,609,025
Trade and
other 616,875,875 54.71% 522376389 53.46% 48.47%
469,432,543
receivables
Other
8,122,815 0.72% 2,511,775 0.26% -
investments
Current tax
921,802 0.08% 335,080 0.03% 0.10%
assets 920,270
Short term
86,053,973 7.63% 951,587 0.10% 0.08%
funds 818,499
Cash and
bank 50,337,485 4.46% 31,980,361 3.27% 4.38%
42,384,701
balances
Total
Current 987,085,848 87.55% 828,244,513 84.77% 80.12%
775,978,174
Asset

35 | P a g e
 Total 1,127,457,748 100.00% 977,058,648 100.00% 100.00%
968,533,276

Equity
Share
267,080,518 23.69% 97,730,000 10.00% 10.09%
capital 97,730,000
Reserves 199,614,812 17.70% 246,001,039 25.18% 23.07%
223,460,056
Equity
attributable
to the 466,695,330 41.39% 343,731,039 35.18% 33.16%
321,190,056
owner of
company
Non-
Controlling 8,454,099 0.75% 6893462 0.71% 0.13%
1,241,836
Interest
Total
475,149,429 42.14% 350,624,501 36% 33.29%
Equity 322,431,892

Liabillities
Borrowings 29,182,894 2.59% 72525745 7.42% 8.48%
82,173,643
Deferred tax
373,120 0.03% 2,932,213 0.30% 0.23%
liabilities 2,247,359
Total
Noncurrent 29,556,014 2.62% 75,457,958 7.72% 8.72%
84,421,002
Liabilities

Trade and
Other 430,773,371 38.21% 342,243,062 35.03% 35.13%
340,257,306
Payables
Borrowings 158,976,648 14.10% 195,889,567 20.05% 21.86%
211,713,963
Current tax
33,000,286 2.93% 12,807,560 13.11% 1.00%
Liabilities 9,709,122
Total
Current 622,750,305 55.23% 550,940,189 56.39% 57.99%
561,680,391
Liabilities
Total
652,306,319 57.86% 626,398,147 64.11% 66.71%
Liabilities 646,101,393
Total
equity and 1,127,455,748 100.00% 977,022,648 100.00% 100.00%
968,533,285
Liabilities

36 | P a g e
 Crest Builder Holdings Berhad
Statements of Comprehensive Income for the year ended 31 December
2017 2016 2015
RM % RM % RM %
Revenue 11,565,262 100.00% 17,172,503 100.00% 100.00%
15,488,086
Cost of Sales - - -
Gross Profit 11,565,262 100.00% 17,172,503 100.00% 100.00%
15,488,086
Other Income 344,109 2.98% - - -
Administration
(972,611) -8.41% (7,386,792) -43.02% -12.77%
Expenses (1,977,225)
Operating
10,936,760 94.57% 9,785,711 56.98% 87.23%
Profit 13,510,861
Finance Cost (2,011,527) -17.39% (3,075,887) -17.91% -31.95%
(4,947,700)
Profit before
8,925,233 77.17% 6,709,824 39.07% 55.29%
taxation 8,563,161
Income tax
(769,872) -6.66% (305,669) -1.78% -1.48%
expense (229,765)
Profit for the
8,155,361 70.52% 6,404,155 37.29% 53.81%
financial year 8,333,396

Other
comprehensive
- - - - -
income, net of
tax
Total
comprehensive
8,155,361 70.52% 6,404,155 37.29% 53.81%
income for the 8,333,396
financial year

37 | P a g e
 Crest Builder Holdings Berhad
Statements of Financial Position as at 31 December
2017 2016 2015
RM % RM % RM %

ASSETS
Non-current
assets
Property, plant
- - -
and equipment
Investment in
subsidiary 106,365,270 38.41% 97,365,270 35.85% 97,365,270 36.19%
companies
Amount due
from
121,886,057 44.01% 67,574,150 24.88% 16,078,393 5.98%
subsidiary
companies
Total Non-
228,251,327 82.42% 164,939,420 60.72% 113,443,663 42.17%
current Assets

Current Assets
Amount due
from
26,591,960 9.60% 82,883,600 30.51% 122,630,289 45.58%
subsidiary
companies
Prepayments 19,896 0.01% 17,916 0.01% 16,979 0.01%
Current tax
170,992 0.06% 642,686 0.24% 719,636 0.27%
assets
Short term
18,787,117 6.78% 20,100,783 7.40% 29,161,197 10.84%
investments
Fixed deposits
placed with 2,999,860 1.08% 2,925,380 1.08% 2,925,380 1.09%
licensed banks
Cash and bank
115012 0.04% 115075 0.04% 124,962 0.05%
balances
Total Current
48,684,837 17.58% 106,685,440 39.28% 155,578,443 57.83%
Assets
Total Assets 276,936,164 100.00% 271,624,860 100.00% 269,022,106 100.00%

EQUITY
AND
LIABILITIES
Equity
attributable to
owners of the
Company
Share capital 181,190,804 65.43% 176,921,657 65.13% 176,921,657 65.76%
Share premium - 4,269,147 1.57% 4,269,147 1.59%
Treasury
(5,795,292) -2.09% (5,795,292) -2.13% (3,152,005) -1.17%
shares

38 | P a g e
 Reserves 29,268,189 10.57% 27,940,490 10.29% 27,750,286 10.32%
Total Equity 204,663,701 73.90% 203,336,002 74.86% 205,789,085 76.50%

Non-current
liabilities
Loans and
8,002,000 2.89% 16714000 6.15% 25426000 9.45%
borrowings
Total Non-
current 8,002,000 2.89% 16,714,000 6.15% 25,426,000 9.45%
Liabilities

Current
liabilities
Loans and
11,401,943 4.12% 13,007,075 4.79% 9,516,089 3.54%
borrowings
Other payables 314,168 0.11% 328,138 0.12% 480,209 0.18%
Amount due to
subsidiary 52,554,352 18.98% 38,239,645 14.08% 27,810,723 10.34%
companies
Total Current
64,270,463 23.21% 51,574,858 18.99% 37,807,021 14.05%
Liabilities
Total
72,272,463 26.10% 68,288,858 25.14% 63,233,021 23.50%
Liabilities
Total Equity
276,936,164 100.00% 271,624,860 100.00% 269,022,106 100.00%
and Liabilities

Vertical analysis is the proportional analysis of a financial statement, where each line item
on a financial statement is listed as a percentage of another item. This means that every line item
on an income statement is stated as a percentage of gross sales, while every line item on a balance
sheet is stated as a percentage of total assets.

Based on the data above, we can see that the profit of Gabungan AQRS Berhad (GBG) has
been increasing from a loss of 5.94% to 8.57% profit and up to 10.56% in 2015 to 2017
respectively but the cost of sales has decreased from 82.23% in 2015 to 73.46% in 2016 and
69.37% in 2017. This affects the low in gross profit with 17.177%, 26.54% and 30.63% from the
total revenue in 2015 to 2017 respectively. Despite the fact that GBG had spent more than 50% of
revenue for its cost of sales over these three period. GBG has a good condition as the company is
able to increase their revenue but at the same time the cost is still under the control.

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 Furthermore, the total asset GBG in 2017 is RM276,936,164 and its receivables hold
54.71% while the payables hold 38.21% of the total assets. The higher the proportion of short-term
assets, the stronger your company's working capital position and its ability to meet its near-term
obligatio

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