FINANCIAL TH SIME DARBY ANALYSIS

RATIO PLANTATION PLANTATION

(2021) (2021)
Firm Liquidity
CURRENT = = Currently TH Plantation showing their ability to pay short-term obligations
RATIO RM 1,170,761 RM 1,205,757 or those due within one year more than Sime Darby Plantation can do. From
RM 705,914 RM 2,799,809 the ratio, we can see that TH Plantation did well than Sime Darby Plantation
in managing their short-term obligations.
= 1.65:1 = 0.4:1
ACID TEST = = TH Plantations has a higher acid-test ratio than Sime Darby Plantation. This
RATIO RM 1,168,679 RM 592,414 suggests that the business is well-positioned to satisfy its short-term
RM 705,914 RM 2,799,809 obligations and has a high degree of liquidity.

= 1.65:1 = 0.2:1
DAYS IN RM 20,113 RM 343,187 Sime Darby Plantation is less successful than TH Plantations in selling all of
INVENTORY = RM 41,569 = RM 14,168 its inventory due to its higher days in inventory. A greater days-in-stock
365 days 365 days number indicates a sluggish sales process or excessive stock holding.

= 176.62 days = 8,840.47 days

INVENTORY RM 41,569 RM 408,036 TH Plantation inventory turnover is higher than Sime Darby Plantation's,
= =
TURNOVER RM 20,113 RM 343,187 indicating that the company manages its inventory more effectively.

= 2.1 = 1.2
Operating Profitability
OPERATING = = Sime Darby Plantation has a higher ROA than TH Plantations. This
RETURN ON RM 215,421 RM 339,342 indicates that Sime Darby Plantation is more productive than TH Plantation.
ASSET RM 2,861,906 RM 20,175,149

= 0.1% = 1.7%
OPERATING RM 254,706 RM 2,914,581 TH Plantation has a higher operational profit margin than Sime Darby
= =
PROFIT RM 252,777 RM 9,187,140 Plantation. It indicates that Sime Darby Plantation typically has low
MARGIN operating margins while TH Plantation typically has good operating
= 100.76% = 31.72% margins.
TOTAL = = Sime Darby Plantation and TH Plantation have different total asset turnover
ASSET RM 501,407 RM 9,187,140 rates and this show that Sime Darby Plantation has a higher total asset
TURNOVER RM 2,861,906 RM 20,175,149 turnover. This suggests that Sime Darby Plantation manages its assets more
effectively than TH Plantation.
= 0.2:1 = 0.5:1
FIXED RM 501,407 = TH Plantations and Sime Darby Plantation share the same fixed asset
= RM 9,187,140
ASSETS RM 834,655 turnover when it comes to producing revenue from non-current asset
TURNOVER RM 14,640,584 investments.
= 0.6:1
= 0.6:1
Financing Decisions
DEBT = = Sime Darby Plantation and TH Plantation have the same debt ratio,
RATIO RM 557,246 RM 7,111,926 indicating that both plantations are capable of effectively managing their
RM 1,590,273 RM 20,175,149 ongoing costs and making timely payments to avoid any penalties or
worries. This is due to the fact that a high ratio indicates a riskier investment
= 0.35:1 = 0.35:1 as the company may not be able to generate enough revenue to pay off its
debts.
TIMES RM 254,706 = Sime Darby Plantation's times interest earned is slightly higher than TH
= RM 2,914,581
INTEREST RM 236,860 Plantations', suggesting a larger likelihood of interest payments on loans.
EARNED RM 2,668,456 This is due to the fact that a high ratio indicates that a business can pay its
= 1.08times interest as earnings exceed annual interest payments by a large margin.
= 1.09times Should these commitments not be fulfilled, a business may be forced into
bankruptcy.
Return On Equity
RETURN ON = 10.75% = 14.8% Sime Darby Plantation has a greater return on equity than TH Plantation
EQUITY Berhad, which suggests that it is making more money off of the capital that
shareholders have contributed.