FIN3233 FINANCIAL MANAGEMENT 1

1. COURSEWORK 2: INDIVIDUAL ASSIGNMENT 2

(WRITTEN REPORT)

You are required to choose financial statement of ANY ONE public limited company listed below for financial year ending 2019 and 2020:

Petronas Gas Bhd (PetGas)

Tenaga Nasional Bhd

LPI Capital Bhd

Carlsberg brewery Malaysia Berhad

Kuala Lumpur Kepong Berhad

Required:

1. Introduction of the company.

(Answer should cover name of company, major product and services, companys share market price, major products & market share, high lights of big results on financial performance and success story).

(20 marks)

2. Calculate and comment on each of the following ratios for 2019 and 2020.

i) Current ratio (answer i.e.1.97:1)

ii) Average collection period (answer i.e 59.7days)

iii) Inventory turnover.i.e. (answer i.e.7.2 times in a year)

iv) Net Profit margin (answer i.e. 7.20%)

v) Return on equity (ROE) (answer i.e. 12.60%)

vi) Return on assets (ROA) (answer i.e. 6.10%)

vii) Price/Earnings ratio (P/E) (answer i.e. 11.1 times)

viii) Debt-equity ratio (answer i.e. 0.8:1)

ix) Total Asset Turnover (answer i.e. 0.85 or 85.00%

x) Fixed Asset Turnover (Net sales / Total Fixed Asset = answer i.e. 0.85 or 85.00%)

Assuming that you are appointed as the senior financial Officer of your selected company. Your primary aim is to ensure continues profitability of the firm. Your initial investigation reveals that your company is operating in a competitive environment. You have briefed in the recent meeting that there are two strategies to manage working capital to improve organizational performance. The first one is working capital financial strategies and the other is working capital management strategies.

c) You are required to recommend TWELVE (12) working capital management strategies comprising any four working capital variables being applied within the selected organization to ensure the company remain competitive in the market.

d) You are required to propose two methods to compare organizational performance other than ratio analysis.