2.

4 Profitability Ratios
Profitability ratios are a class of financial metrics that are used to assess a business’s
ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or
shareholder’s equity over time, using data from a specific point in time. Profitability ratios
can be compared with efficiency ratios which consider how well a company uses its assets
internally to generate income (as opposed to after-cost profits).
Gross Profit Margin = Gross Profit / Sales X 100
Years Gross Profit Margin

2018 RM 1619.413
X 100=12.98 %
RM 12482.22

2019 RM 1781.098
X 100=14.48 %
RM 12296.84

2020 RM 1628.777
X 100=15.56 %
RM 10466.29

2021 RM 1955/761
X 100=15.40 %
RM 12699.95

2022 RM 1892.910
X 100=12.62 %
RM 15001.22

Operating Profit Margin

Operating Profit Margin measures how much profit is generated from each dollar of
sales after accounting for both costs of goods sold and operating expenses. It also indicates
how well the firm is managing its income statement.
Operating Profit Margin = Operating Profit / Revenue X 100
Years Operating Profit Margin

2018 RM 6875.8
X 100=13.64 %
RM 50392.5

2019 RM 8206.8
X 100=16.11%
RM 50939.7

2020 RM 7358.8
X 100=16.73 %
RM 43976.0

2021 RM 8083
X 100=15.36 %
RM 52629.5

2022 RM 9409.5
X 100=18.50 %
RM 50867.7
Net Profit Margin
Net Profit Margin measures how much income is generated from each dollar of sales after
adjusting for all expenses (including income taxes)

Net Profit Margin = Net Income / Sales

Years Net Profit Margin

2018 RM 922.361
X 100=7.93 %
RM 12482.22

2019 RM 1093.349
X 100=8.89 %
RM 12296.84

2020 RM 855.063
X 100=8.16 %
RM 10466.29

2021 RM 883.592
X 100=6.95 %
RM 12699.5

2022 RM 862.971
X 100=5.75 %
RM 15001.86

Operating Return on Assets

Operating Return on Assets ratio is the summary measure of operating profitability. It
takes into account both management’s success in controlling expenses and its efficient use of
assets.

Operating Return on Assets = Net Operating Income / Total Assets

Years Operating Return on Assets

2018 RM 1703.086
X 100=4.47 %
RM 38070.25

2019 RM 1981.122
X 100=4.59 %
RM 43173.71

2020 RM 1751.395
X 100=4.06 %
RM 43181.13

2021 RM 1950.428
X 100=4.43 %
RM 44061.52

2022 ❑
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Return on Equity
Return on Equity (ROE) ratio measures the accounting return on the common stockholders’
investment.
Return on Equity = Net Income / Common Equity

Years Return on Equity

2018 RM 922.361
X 100=¿
RM 14627.16

2019 RM 1093.349
X 100=¿
RM 14310.7

2020 RM 855.063
X 100=¿
RM 13673.08

2021 RM 883.592
X 100=¿
RM 140909.90

2022 ❑
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Market Value Ratios

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.

Price-Earnings Ratio
Price-Earnings (PE) Ratio indicates how much investors have been willing
to pay for $1 of reported earnings.

Price-Earnings Ratio = Market Price Per Share / Earnings Per Ratio

Years Price Earnings Ratio

2018 RM 13.600
=RM 24.00
RM 0.60

2019 RM 13.540
=RM 22.09
RM 0.64

2020

2021 RM 9. 320
=RM 11.80
RM 0.79

2022
 RM 9.630
=RM 1 4.81
RM 0.65

Market to Book Ratio

The book-to-market ratio compares a company's book value to its market value

Market to Book Ratio = Market Price per Share / Book Value per Share

Years Market to Book Ratio

2018 RM 13.600
=1.32׿
RM 10.288

2019 RM 13.540
=1.35׿
RM 10.066

2020 RM 10.520
=1. 10׿
RM 9.5 88

2021 RM 9. 320
=0.95׿
RM 9.8 43

2022 RM 8.020
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