INTRODUCTION

The report is providing information of two companies that shows comparison which is
Apollo Holding Bhd and Berjaya Sdn Bhd in 5 years back start from 2014 until 2018. Its
obtain through 4 ratios which is liquidity ratios, leverage ratios, profitability ratio and
activities ratios. In liquidity ratio calculation made is current ratio, quick ratio and net
working capital. For the leverage ratio is debt ratio, debt equity ratio and times interest
earned. The profitability ratio we calculated about gross profit rate and return on asset. For
the activities ratio is about their average collection period ( days ), inventory turnover and
total asset turnover. The market ratio we calculated earning per share, price-earning ratio,
dividend pay-out ratio, dividend yield ratio and book value per share.
Our group also have highlight about SWOT analysis which is strength, weakness,
opportunities and threats. Our group also include the comment about each ratio in back of
five years. We also add some recommendation and conclusion about both companies in their
current performances.
All ratios analysis that involve is comes from balance sheet and income statement that
company provide. All the calculation is based on what they give and make a simple to look
nice. Its more conveniences to see as current performances of both companies which is
Apollo Holding Bhd and Berjaya Sdn Bhd.
 BERJAYA FOOD BHD COMPANY BACKGROUND

Berjaya Food Berhad (BFood) was incorporated in Malaysia on 21 October 2009. It was converted
into a public limited company on 3 December 2009 and listed on The Main Market of Bursa
Malaysia Securities Berhad on 8 March 2011. As part of The Listing Scheme, Berjaya Roasters
(M) Sdn Bhd. (BRoasters) was acquired and became a wholly-owned subsidiary of BFood in
January 2011. Berjaya Roasters is engaged in the development and operation of the Kenny Rogers
Roasters (KRR) chain of restaurants in Malaysia. On 26 July 2011, Berjaya Food Berhad entered
into a conditional joint venture agreement with PT Mitra Samaya, Indonesia, PT Harapan Swasti
Sentosa, Indonesia and PT Boga Lestari Sentosa, Indonesia (PT Boga) to develop and operate the
Kenny Rogers Roasters franchise in Java Island and Bali, Indonesia under PT Boga.
On 19 July 2012, BFood completed the acquisition of 11,500,000 ordinary shares of RM1.00 each,
representing 50% equity interest in Berjaya Starbucks Coffee Company Sdn Bhd. (BStarbucks)
for a cash consideration of RM71.7 million. The remaining 50% equity interest was held by
Starbucks Coffee International, Inc (SCI). On 9 August 2012, Berjaya Food Berhad completed its
Rights Issue and the 115,081,760 new shares and 115,081,760 warrants arising from the Rights
Issue was listed on the Main Market of Bursa Malaysia Securities Berhad on 13 August 2012. On
18 September 2014, Berjaya Food Berhad completed the acquisition of 11,500,000 ordinary
shares of RM1.00 each, representing the remaining 50% equity interest in Berjaya Starbucks not
owned by Berjaya Food for a total cash consideration of USD88,000,000 (equivalent to about
RM279.52 million). Berjaya Starbucks is now a 100% owned subsidiary of BFood. On 7
December 2012, BFood acquired 100% equity interest in Jollibean Foods Pte Ltd, Singapore
(Jollibean Foods) for a cash consideration of RM19.02 million. On 7 October 2013, Berjaya Food
(International) Sdn Bhd. (BFI), a wholly-owned subsidiary of BFood entered into a Joint Venture
Cum Shareholders' Agreement with Deluxe Daily Food Sdn Bhd. (Deluxe) for the subscription of
 80% equity interest in Berjaya Food Supreme Sdn Bhd., a Brunei Darussalam Incorporated
company to undertake the operations of ‘Starbucks Coffee’ chain of cafes in Brunei Darussalam
for a total cash consideration of about BND2.40 million (or about RM6.20 million). The
remaining 20% was subscribed by Deluxe.
Berjaya Food's holding company, Berjaya Group Berhad (BGroup) effectively holds the worldwide
Kenny Rogers Roasters franchise following Berjaya Group's acquisition of Kenny Rogers
Roasters International Corp, USA in April 2008. There are currently 91 Kenny Rogers Roasters
restaurants across Malaysia. Kenny Rogers Roasters restaurants feature rotisserie-roasted chicken
as their main core product complemented by a variety of hot and cold side dishes and Kenny
Rogers Roaster famous in their muffins, vegetable salads, pasta, soups, desserts, sandwiches and
beverages served in a friendly and comfortable environment. All Kenny Rogers Roasters
restaurants serve their customers in a full service, mid-casual dining setting with free ‘Wi-Fi’
services, providing customers with a wholesome dining experience. Over the years, Kenny
Rogers Roasters has received prestigious awards such as the Malaysia's Choice category by
Superbrands Malaysia 2013 and was the fourth consecutive recipient for The Brand Laureate Best
Brands Award 2013 until 2014 under the category of Food & Beverage - Rotisserie-roasted
Chicken. In addition, Kenny Rogers Roasters was awarded the title of Best Franchise Corporate
Social Responsibility Award in the Malaysia Franchise Awards 2014 and the Social Media
Excellence Award under Food and Beverage category in the World Bloggers and Social Media
Awards 2015.
Starbucks in Malaysia is operated by Berjaya Starbucks. From its first store opening in Kuala
Lumpur on 17 December 1998, Berjaya Starbucks has expanded to Sabah and Sarawak and
celebrated its 18th year of operations in December 2016. Berjaya Starbucks has more than 239
stores nationwide and is recognised as the leading specialty coffee company and industry
benchmark in Malaysia. Berjaya Starbucks also introduced its first drive-thru concept store in
December 2009 in Johor Bahru. As at 30 April 2017, there are a total of 31 drive-thru concept
stores across Malaysia. In 2012, it opened its first suburban store in Seri Manjung, Perak. In 2015,
Berjaya Starbucks opened its first reserve concept store to introduce premium and exceptional
coffees to the Malaysia market. On 16 February 2014, Berjaya Starbucks opened its first store in
Brunei Darussalam at the Mabohai Shopping Complex. The store features a traditional coffee bar
also known as ‘slow bar’, which allows customers to savour their coffee using the ‘pour over’
brewing method. On 7 September 2014, Berjaya Starbucks opened its first drive-thru concept
store in Beribi. As at 30 April 2017, there are 4 Starbucks stores in Brunei. Starbucks Malaysia
was awarded the Outstanding Entrepreneurship Award at the Asia Pacific Entrepreneurship
Awards 2014 and received the Summer Sales Award at Starbucks China & Asia Pacific Marketing
& Category Brand Forum held in Hong Kong for being the top sales country for the Starbucks
 Frappuccino Blended Beverage during the summer campaign. In addition, Starbucks Malaysia
was also awarded two significant awards for its human capital development namely the Gold
Award of HR Best Practices in the Malaysia Human Resources Awards 2014 by Malaysian
Institute of Human Resource Management and the ‘Best of the Best’ title at the Aon Hewitt Best
Employers in Malaysia 2015 Awards.
Jollibean Foods was incorporated in November 1993. Presently, there are a total of 25 ‘Jollibean’
outlets, 8 ‘Sushi Deli’ outlets, all of which are based on the Quick Service Concept, and one ‘Kopi
Alley’ outlet in Singapore. Jollibean's signature products are its fresh daily made ‘Jollibean’ soy
milk drinks using Grade A, non-genetically modified organism (non-GMO), identity-preserved
Canadian soy beans to ensure its quality. It also introduced traditional snacks such as the street
pancake which is called Mee Chiang Kueh that complements its soy milk drinks. ‘Sushi Deli’
serves an array of ‘pick-and-choose’ sushi, assorted sashimi sets, sushi & maki sets, Japanese
salads, bento sets, party platters and Japanese sweets like Tofu Cheese Cake. ‘Kopi Alley’ is a
traditional coffee cafe concept which offers traditional food & beverage items such as coffee, tea,
toasted bread and nasi lemak.
 APOLLO FOOD HOLDING BHD COMPANY BACKGROUND

Apollo Food Holdings Berhad is a holding company, which is engaged in the provision of
management services to subsidiaries. It operates in two segments, which is investment holding,
and manufacturing, marketing and distribution, which is engaged in manufacturing, marketing
and distributing in compound chocolates, chocolate confectionery products and cakes. It offers
products in two categories which is Chocolate Wafer products, and Layer cake, Chocolate Layer
Cake and Swiss roll products. It distributes its products in Malaysia and other overseas market,
including Singapore, Indonesia, Thailand, Philippines, Vietnam, China, Hong Kong, Taiwan,
Japan, India, Middle East, Mauritius and Maldives. Its subsidiaries include Apollo Food
Industries (M) Sdn. Bhd., which is engaged in manufacture and trading in compound chocolates,
chocolate confectionery products and cakes, and Hap Huat Food Industries Sdn. Bhd., which is an
investment holding company. Its ultimate holding company is Keynote Capital Sdn. Bhd.
 RATIO ANALYSIS OF BERJAYA FOOD BHD

PROFITABILITY RATIO

We use profitability ratio to measure and evaluate the ability of Berjaya Food Bhd to generate income
in 2014 until 2018. Firstly, we look on gross profit rate. Gross profit rate is financial calculation to
show how much money is left from revenue after paying for production, to cover operation and other
business expenses. In year 2014, gross profit rate for Berjaya Food Bhd is 40% and increase a little
amount in 2015 which is 44.83. In the following year, the gross profit rate in year 2016 and 2017
decrease to 44.58% and 42.15% and increase again in 2018 which is 44.06%. Graph gross profit rate
for Berjaya Food Bhd is fluctuation in 5 year. We can see that in year 2015 , the gross profit rate is
better compared to others. This means Berjaya Food Bhd still have 44.83% left in revenue after
deducting all the operating expenses.

Return on assets are also importance element under profitability ratio. It measures the amount of
profit generated by the assets employed by dividing the profits earned by the total assets. In 2014, the
percentage of return on assets /is 12.6% and rise in a sharp in 2015 which is 39.15%. In 2016 until
2018, return on assets of Berjaya Food Bhd is decrease constantly which in 2016 2.91%, 2017 is
1.49% and 2018 is 0.51%.
 LIQUIDITY RATIO

Current ratio is used to analysis a company’s liquidity. Basically, current ratio is computed to see the
ability of company to handle short term debt by using short term assets (current asset). Current ratio
for Berjaya Food Bhd in year 2014 is 1.7 times. In year 2015 until 2017 the current ratio is decrease
constantly. Which is in 2015 is 0.84 times, in 2016 is 0.64 times and 2017 is 0.33 times. In 2018, the
current ratio increase a little amount which is 0.34 times. The highest current ratio is in 2014.

Quick ratio is also known as acid;test ratio. From the formula,it is similar with current ratio, just need
to exclude the inventories for current assets. It is because inventories have the least liquidity. Thus,
quick ratio measures a company’s ability to meet its short term obligations with its most liquid assets.
This company has 1.53 times in 2014 and then decrease constantly from 2015 until 2018. Which is in
2015 is 0.6 times, in 2016 is 0.44 times, in 2017 is 0.17 times and 2018 is 0.15 times. The highest is in
2014 which is 1.53 times. This shows that the company cannot cover their current liabilities and not
able to meet its short term obligation.
 EFFICIENCY RATIO

Average collection period is the amount of time it takes for a business to receive payments
owed in terms of accounts receivable. The average collection period is calculated by dividing the
average balance of accounts receivable by total net credit sales for the period. For Berjaya Berhad in
2014, the days receivable shows 0 same goes to the years of 2015 as that years do not have Account
Receivables. In 2016, average collection period suddenly increased to 26 days. However, in year 2017
decreased to 13 days. It keeps decreasing on year 2018 at 3 days. It shows in year 2018 is good
compared than other years. The lower the average collection, the better.
Inventory turnover ratio shows how effectively inventory is managed by comparing cost of
goods sold with average inventory for a period. This measures how many times average inventory is
turned or sold during a period. In other words, it measures how many times a company sold its total
average inventory dollar amount during the year. For Berjaya Berhad in 2014, inventory turnover is
22.4 times. However, in years 2015, inventory turnover decreasing at 11.96 times. It keeps decreasing
in years 2016, 9.37 times. Then, in years 2017 and 2018 it increasing at 9.62 times and 9.96 times
respectively. We can see that the years that have the highest turnover is 2014. The higher the ratio, the
more efficient that the firm can manage their inventory.
Total asset turnover ratio is to measures the efficiency with which a company uses its assets to
produce sales. The asset turnover ratio formula is equal to net sales divided by the total or average
assets of a company. A company with a high asset turnover ratio operates more efficiently compared
to competitors with lower ratios. In year 2014, Berjaya Food shows its total asset turnover at 0.84
time. Its decrease in 2015 and 2016, at 0.83 time and 0.76 time respectively. However, its increasing
in years 2018, at 0.8 time. The best year of Berjaya Food in total asset turnover is 2014.
 LEVERAGE RATIO

2014 2015 2016 2017 2018

Debt Ratio 0.16% 0.46% 0.46% 0.5% 0.53%
Debt Equity Ratio 0.19% 0.84% 0.87% 1.01% 1.11%
Times Interest Earned 0% 0.023% 0.02% 0.02% 0.01%

Total debt ratio can be computed by using total liabilities divided by total assets. Total debt ratio
can be used by factors to determine the portion of the debt in financing the company assets. In
other words, this show many assets that company must sell in order to pay off all its liabilities.
The company debt ratio is keeps increasing but only in year 2015 until year 2016 is still remains
the same, which is in year 2014 was 0.16%, in year 2015 and year 2016 were 0.46%, in year 2017
was 0.5% and more increase to in year 2018 which is 0.53%. The debt ratio for year 2014 was
better than other years because of the value for that year is the lowest. As with many solvency
ratios, a lower ratio is more favourable than a higher ratio. A lower debt ratio usually implies a
more stable business with the potential of longevity a company with lower ratio also has lower
overall debt.
Next, total debt equity ratio can be calculated by using total liabilities divided by shareholder
equity. This ratio is used to evaluate a company's financial leverage. The debt equity ratio is an
important metric used in corporate finance. It is a measure of the degree to which a company is
financing its operations through debt versus wholly owned funds. More specifically, it reflects the
ability of shareholder equity to cover all outstanding debts in the event of a business downturn.
The company total equity ratio is keeps increasing which is in the year 2014 was 0.14%, in year
2015 was 0.84%, in year 2016 was 0.87%, in year 2017 was 1.01% and in year 2018 1.11%.
Based on that, we can conclude that for year 2014 was the lowest than other years.

Lastly, total times interest earned can be computes by using income before interest and taxes or
EBIT divided by interest expenses. The ratio indicates how many times a company could pay the
interest with its before tax income, so obviously the larger ratios are considered more favourable
than smaller ratios. The company total times interest earned is keeps fluctuated which is in year
2014 was 0%, in year 2015 was 0.023%, in year 2016 was 0.02%, in year 2017 was 0.02% and
for year 2017 was 0.01%. Based on that, we can conclude that for year 2015 was the higher than
other year which is 0.023%.
 MARKET RATIO

Year 2014 2015 2016 2017 2018

Earnings per share 0.07 0.54 0.06 0.03 0

Dividend Pay-out 7.88 0 74.4 119.76 454.55
ratio
Dividend Yield-ratio 17.39 -0.37 3.21 1.81 0.63
Book value per share 0.58 1.06 1.06 1.06 1.03
Earnings per share (EPS) or basic earnings per share is calculated by subtracting preferred
dividends from net income and dividing by the weighted average common shares
outstanding. The earnings per share formula looks like this. EPS are the allocation of the net
income of the company to its outstanding shares. Basically, EPS is used to measure the
efficiency of a company to generate income from the investors fund. In 2015, Berjaya Food
Sdn Bhd EPS achieve the highest from 2014 until 2018 which is 0.54% per share. In 2014,
there is increased from 0.07% in 2014 to 0.54% in 2015. But in 2016, there is decreases in
EPS is 0.06%. Then, in 2017 and 2018 it decreases more worst at 0.03% and 0%
respectively. The higher the earnings per share of a company, the better is its profitability. A
higher earnings per share ratio often makes the stock price of a company rise. So, it can be
conclude that 2015 is the better because the highest earning per share for 5 years.
The dividend payout ratio is the ratio of the total amount of dividends paid out to
shareholders relative to the net income of the company. It is the percentage of earnings paid
to shareholders in dividends. The amount that is not paid to shareholders is retained by the
company to pay off debt or to reinvest in core operations. Dividend pay-out ratio Berjaya Sdn
Bhd is increasing from 2014 until 2018. In 2018, Berjaya Food Sdn Bhd dividend pay-out
ratio achieve the highest from 2014 until 2018 which is 454.55%. In 2014, dividend pay-out
ratio is 7.88% and decreasing to 0% in 2015. In 2016, there is increased from 74.4% to
119.76% in 2016 to 2017. So it can be conclude that, in 2018 is the better performance
because the highest dividend pay-out ratio that can attract more investors toward Berjaya
Food Sdn Bhd.
The dividend yield is the ratio of a company's annual dividend compared to its share price.
The dividend yield is used by investors to show how their investment in stock is generating
either cash flows in the form of dividends or increases in asset value by stock appreciation.
Investors invest their money in stocks to earn a return either by dividends. The dividend yield
formula is calculated by dividing the cash dividends per share by the market value per share.
The highest dividend yield ratio which is in 2014, 17.39%. But in 2015, dividend yield
decline to -0.37% and increasing in 2016 which is 3.21%. Dividend yield start decreasing
from 1.81% to 0.63% in 2017 and 2018 respectively. It can be conclude that, 2014 is the
better performance that have the dividend that attract more investors toward Berjaya Sdn
Bhd

Book value per share is the equity available to common shareholders divided by the number
of outstanding shares. In 2015 untill 2016 kept remain the same, Berjaya Food Sdn Bhd book
value per share achieved the highest from 2014 until 2018 which is 1.06%. In 2014, the book
value per share is 0.58%. While in 2018 it decreases from 1.06% to 1.03% in 2017 and 2018
respectively.It can be conclude that in 2015 until 2017, is the best performance of book value
per share because the highest in 5 years.
 RATIO ANALYSIS OF APOLLO FOOD HOLDING BHD

PROFITABILITY RATIO

Gross profit rate is a popular financial ratio used to measure the profitability of a business firm. A
high profit margin indicates that the company able to control the cost and maximize profit more
efficiently. However, the profit rate will be different for different industries. In 2014, Apollo Food
Holdings Bhd profit rate is 29.06%. In 2015, the profit rate is 26.48% which is decrease from 2014.
Then increase again in 2016 which is 27.39%. In 2017, gross profit rate decrease again which is
20.34% but in 2018 increase to 21.1. In five year performance, graph company Apollo Food Holdings
Bhd shows fluctuation.

Return On Assets (ROA) is one of the popular indicators for investor to determine the profitability of
business firm. Sometimes, it is also referred as Return on Investment (ROI). Investors use ROA to
know how efficient the company using their assets to generate profit. Apollo Food Holdings Bhd’s
ROA is 12.73% which is the highest in five year performance in 2014. In 2015, ROA is 9.3% which is
decrease from 2014. In 2016, ROA is 10.67% which is increase a little amount. In 2017 and 2018,
ROA is decrease which is 6.37% and 4.1%.

In conclusion, Berjaya Food Bhd is more profitability compared to Apollo Food Holdings Bhd
because Berjaya Food Bhd has more profit rather than Apollo Food Holdings Bhd.
 LIQUIDITY RATIO

Current ratio is used to analysis a company’s liquidity. Basically, current ratio is computed to see the
ability of company to handle short term debt by using short term assets (current assets). current ratio
in year 2014 is 13.7 times, in year 2015 decrease to 12.56 times. However, in year 2016 it comes
increase to 13.56, in year 2017 is 15.59 times and 2018 is 17.86. From 2015 until 2018 the current
ratio is increase constantly. Refer on this five years of data, current ratio in 2018 is the better among
these. This ratio shows that company has able to pay short term obligations.

Quick ratio is also known as acid test ratio. From the formula, it is similar with current ratio,just need
to exclude the inventories for current assets. It is because inventories have the least liquidity. Thus,
quick ratio measures a company’s ability to meet its short term obligations with its most liquid assets.
This company has 11.8 times in 2014 then dropped to 10.87 times in 2015. However, in 2016 is
increase to 12.04 times, in 2017 14.04 times and 2018 is 15.99 times. Based on the data, 2018 has a
better quick ratio. It shows the company can cover their current liabilities and still able to meet its
short obligations.

In conclusion, Apollo Food Holdings Bhd is more ability to pay its short term obligations rather than
company Berjaya Food Bhd.
 EFFICIENCY RATIO

Average collection period is the amount of time it takes for a business to receive payments
owed in terms of accounts receivable. The average collection period is calculated by dividing the
average balance of accounts receivable by total net credit sales for the period. For Apollo Holdings in
2014, the days receivable shows at 56 days and increased to 57 days in year 2015. Besides that, it
keeps increasing in year 2016 and 2017 at 62 and 64 days respectively. However, in 2018 it decreased
to 57 days. We can see that; the best average collection period is 2014. The lower the average
collection, the better.
Inventory turnover ratio shows how effectively inventory is managed by comparing cost of
goods sold with average inventory for a period. This measures how many times average inventory is
turned or sold during a period. In other words, it measures how many times a company sold its total
average inventory dollar amount during the year. For Apollo Holdings, in 2014, inventory turnover is
8.09 times. However, in years 2015, inventory turnover increasing at 8.19 times. Then, it decreased to
8.06 in years 2016. The higher the ratio, the more efficient that the firm can manage their inventory.
Total asset turnover ratio is to measures the efficiency with which a company uses its assets to
produce sales. The asset turnover ratio formula is equal to net sales divided by the total or average
assets of a company. A company with a high asset turnover ratio operates more efficiently compared
to competitors with lower ratios. In year 2014, Apollo Holdings shows its total asset turnover at 0.84
time. Its decrease in 2015 and 2016, at 0.78 time and 0.75 time respectively. Its keeps decreasing in
years 2018, at 0.71 time. The best year of Apollo Holdings in total asset turnover is 2014. This is
because generally, a higher ratio is favored because there is an implication that the company is
efficient in generating sales or revenues.
 LEVERAGE RATIO

2014 2015 2016 2017 2018

Debt Ratio 9.92% 9.7% 9.11% 8.81% 8.08%
Debt Equity Ratio 11.01% 10.74% 10.02% 9.66% 8.79%
Times Interest Earned 0.6% 0.44% 0.53% 0.27% 0.14%

Debt ratio can be computed by using total liabilities divided by total assets. Total debt ratio can be
used by investors to determine the portion of the debt in financing the company assets. The
company debt ratio keeps decreasing form year 2014 which is 9.92%, in year 2015, the debt ratio
was 9.7%, in year 2016 was 9.11%, in year 2017 was 8.81% and in year 2018 was 8.08%. The
debt ratio for year 2018 was better than other years because of the value was the lowest.
Therefore, we can conclude that the debt financing has been decreasing in 2018.

Furthermore, total debt equity ratio can be computed by using total liabilities divided by
shareholder equity. The ratio is used to evaluate a company's financial leverage. The debt equity
ratio is an important metric used in corporate finance. It is a measure of the degree to which a
company is financing its operations through debt versus wholly owned funds. More specifically, it
reflects the ability of shareholder equity to cover all outstanding debts in the event of a business
downturn. The company debt equity ratio is keeps decreasing from year 2014 which is 11.01%,
in year 2015 was 10.74%, in year 2016 was 10.02%, in year 2017 9.66% and in year 2018 was
8.79%. The debt ratio for year 2018 was better than other years because of the value was the
lowest.
Lastly, total times interest earned ratio can be calculated by using income before interest and taxes
divided by interest expenses. The ratio indicates how many times a company could pay the
interest with its before tax income, so obviously the larger ratios are considered more favourable
than smaller ratios. In other words, a ratio of 4 means that a company makes enough income to
pay for its total interest expense 4 times over. Said another way, this company’s income is 4 times
higher than its interest expense for the year. The company debt equity ratio is fluctuated form year
2014 which is 0.6%, in year 2015 was 0.44%, in year 2016 was 0.53%, in year 2017 was 0.27%
and in year 2018 was 0.14%. The times interest earned for year 2016 was better than other years
because of the value was the highest.
 MARKET RATIO

Year 2014 2015 2016 2017 2018

Earnings per share 0.42 0.32 0.37 0.22 0.14

Dividend Pay-out 0.6 0.78 0.81 1.14 2.86
ratio
Dividend Yield-ratio 5.68 4.38 5.73 5.62 5.51
Book value per share 2.96 3.03 3.2 3.11 3.02

Earnings per share (EPS) or basic earnings per share is calculated by subtracting
preferred dividends from net income and dividing by the weighted average common shares
outstanding. The earnings per share formula looks like this. EPS are the allocation of the net
income of the company to its outstanding shares. Basically, EPS is used to measure the
efficiency of a company to generate income from the investors fund. In 2014, Apollo Holding
Bhd EPS achieve the highest from 2014 until 2018 which is 0.42% per share. In 2015, there
is increased from 0.42% in 2014 to 0.32% in 2015. But in 2016, there is increases but slow in
EPS is 0.37%.
Then, in 2017 and 2018 it decreases more worst at 0.22% and 0.14% respectively. The
higher the earnings per share of a company, the better is its profitability. A higher earnings per
share ratio often makes the stock price of a company rise. So, it can be conclude that 2014 is
the better because the highest earning per share for 5 years.

The dividend payout ratio is the ratio of the total amount of dividends paid out to
shareholders relative to the net income of the company. It is the percentage of earnings paid
to shareholders in dividends. The amount that is not paid to shareholders is retained by the
company to pay off debt or to reinvest in core operations. Dividend pay-out ratio Apollo is
increasing from 2014 until 2018. The highest dividend pay out ratio which is in 2018, that
2.86%. The lowest is in 2014 at 0.6% and increasing to 0.78% in 2015. In 2016, increase to
0.81% . The dividend increase 1.14% to 2.86% in 2017 and 2018 respectively. So it can be
conclude that, in 2018 is the better performance because the highest dividend pay-out ratio
that can attract more investors toward Apollo Bhd.

The dividend yield is the ratio of a company's annual dividend compared to its share price.
The dividend yield is used by investors to show how their investment in stock is generating
either cash flows in the form of dividends or increases in asset value by stock appreciation.
Investors invest their money in stocks to earn a return either by dividends. The dividend yield
formula is calculated by dividing the cash dividends per share by the market value per share.
Based on the diagram 1, it shows that the graph are fluctuating from 2014 until 2018. The
highest dividend yield ratio is in 2017, 5.62%. In 2014, the dividend yield ratio decrease from
5.68% to 4.38% at 2015. And increase to 5.37% in 2016 and increase to 5.62% in 2017. In
2018, the dividend start decreasing to 5.51%. High dividend yield pays its investors a large
dividend compared to the fair market value of the stock. This means the investors are getting
highly compensated for their investments compared with lower dividend yielding stocks. It
can be conclude that, 2017 is the better performance that hatve the divedend that attract more
investors toward Apollo.

Book value per share is the equity available to common shareholders divided by the number
of outstanding shares. The highest book value per share is in 2017, 3.11%. In 2014, the book
value per share is 2.96% and increasing to 3.03% in 2015. The book value per share is 3.2%
and 3.11% at 2016 and 2017 respectively. But in 2018, book value per share start decrease to
3.02%. It can be conclude that in 2017, is the best performance of book value per share
because the highest in 5 years.
 COMPARATIVE RATIO PERFORMANCE OF BERJAYA FOOD BHD AND
APOLLO FOOD HOLDING BHD

Based on the liquidity ratio, Apollo Holdings has the best of all ratio which are current ratio,
quick ratio, net working capital rather than Berjaya Food. This showed this company are to pay off
current debt obligations without raising external capital. Liquidity ratios measure a company's ability
to pay debt obligations and its margin of safety through the calculation of current ratio, quick ratio,
and operating cash flow ratio. This means Apollo Holdings have ability to pay off its current liabilities
with current assets. However, Berjaya Food have a problem in paying debt obligations or current
liabilities as the company shows a bad performance in their liquidity ratios. This because they show
lower results of liquidity ratio. The higher, the better of the liquidity.
Secondly, based on the profitability, Berjaya Food had the highest profitability than Apollo
Holdings. The profitability consists of gross profit margin and return on assets. Profitability ratios are
used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance
sheet assets, and shareholders' equity over time, using data from a specific point in time.
Next is efficiency ratio, its typically used to analyse how well a company uses its assets and
liabilities internally. An efficiency ratio can calculate the turnover of receivables, the repayment of
liabilities, the quantity and usage of equity, and the general use of inventory and machinery. This ratio
can also be used to track and analyse the performance of commercial and investment banks. In
average collection period, Berjaya Food is better than Apollo Holdings. In inventory turnover, Berjaya
Food is the highest than Apollo Holdings. For total asset turnover, Berjaya Food also shown the
highest than Apollo Food.
Besides that, is leverage ratio. Leverage ratio indicates the level of debt incurred by a business
entity against several other accounts in its balance sheet, income statement, or cash flow statement.
These ratios provide an indication of how the company’s assets and business operations are financed
using debt or equity. Apollo Holdings has better debt ratio than Berjaya Food. This shows that Apollo
Holdings able to pay off its liabilities with its assets. Thus, the higher the ratio is the more risk the
company will face. So, the lower ratio is more favourable than a higher ratio. A lower debt ratio
usually shows that more stable business with the potential of a long term because a company with
lower also has lower overall debt.
Lastly, market ratio. Market value ratios are used to evaluate the current share price of a
publicly-held company's stock. These ratios are employed by current and potential investors to
determine whether a company's shares are over-priced or under-priced. Based on the observation that
we had made; Berjaya Food have good performance in the market than Apollo Holdings. This is
because their dividend pay-out ratio is higher than Apollo Holdings. This will attract more investor
toward Berjaya Food.
 SWOT ANALYSIS

STRENGTH WEAKNESS

BERJAYA FOOD BHD Collecting payment are good. Berjaya is expose with default risk as
its Debit Ratio is more than 1, which
is liabilities are more than assets.

APOLLO FOOD BHD Apollo I able to fully pay its current Apollo has low profit and result
liabilities in the short term because shows more decrease than increase.
of the quick ratio shows more than 1.
 RECOMMENDATION

In our opinion, there are few point that both companies need to improve. First, let’s see the
Berjaya Food Sdn Bhd performances. As we can conclude in liquidity ratio, their show that
they not able to pay in short obligation, what they need is get more asset and less the
liabilities to pay its obligation. So, there should be an improvement in terms of liquidity
performance with the measurement of liquidity management using current, quick and liquid
ratio to see the asset availability. One of benefit liquidity management, company is having
enough liquidity. By this liquidity management also, the conversion of an asset into cash
could be managed well where this cash use to pay obligation in the right time.
In order to reach stable performance, Berjaya food need make more advertisement for
customer desire their products. This activity can improve their income and generate sale.
Next, they also need to categories their products since they produce many type of foods and
beverage. From this category we can see conclusion of which type is more desirable to
customer. And we can focus on improve the most desirable by customer for better choice in
future. By focusing on the reorganization of menu and items can help more stable
performance.
For the second companies which is Apollo Holding Bhd, they can improve their variety
of food so they need seriously in advertising their product to generate more sale. As we can
conclude in profitability ratio, Apollo has less profit rather than Berjaya Food. Other than
that, the involvement of board of directors with the catalyst character “more proactive” BOD
is required with taking the leading role in establishing and modifying the mission, objectives,
strategy and policies to reduce any failure of top management strategy which leads to
inefficiency operation. Next, Apollo needs to improve the expense of working capital
management. It may also useful to copare Apollo rations with other companies are within the
same industry to get of few idea of industries.
As conclusion, both company can generate sale properly if they take seriously in
produce their product and make consumer believe that their product is the best as compare
with other companies in the same categories.
 CONCLUSION

From the comparison that our group have been made show that Berjaya Food Berhad
company has more profitable compare to the Apollo Food Holdings Berhad. Even though
the profit was not more than 50% but the Berjaya Food Berhad perform for five years
have reach 40% but in Apollo Food Holdings Berhad company to reach in 40% is not
capable. Berjaya Food Berhad is more stable in order to manage their sale. This is
because of Berjaya Food Berhad was listed on The Main Market of Bursa Malaysia
Securities Berhad so that company is among the largest company in Malaysia.

Based on the leverage ratio that we have been computed, Berjaya Food Berhad is have
less debt as compared to Apollo Food Holdings Berhad. The debt that Berjaya Food
Berhad has is not more than 1% but for Apollo Food Holdings Berhad is more than 1% so
it shows that the lower debt ratio usually implies a more stable business with the potential
of longevity a company. Based on that, Berjaya Food Berhad is more stable in doing their
business compared to the Apollo Food Holdings Berhad.