Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

find the calculation 1. Earning per share 2. Return on equity 3. Net profit margin 4. Profitability ratio - ROA - ROE Analysis of Financial

find the calculation

1. Earning per share 2. Return on equity 3. Net profit margin 4. Profitability ratio - ROA - ROE

Analysis of Financial Performance of Great Eastern Takaful Berhadfor year 2018,2019 and 2020

Liquidity ratio

Liquidity Ratio is a ratio that measures the company's ability to meet its short-term debt obligations as they mature. This ratio measures the company's ability to pay off its short-term obligations as they fall due. Basically, this Liquidity Ratio is the result of dividing cash and other current assets with short-term loans and current liabilities. This ratio shows how many times short-term debt obligations can be covered by cash and other current assets. If the value is more than 1, it means that short-term liabilities can be fully closed.

Current Ratio

Current ratio, which consists of the calculation of the liquidity ratio in the simplest way of calculation with other calculations. Calculation of the current ratio can be interpreted to determine the level of the company's ability to meet its current liabilities with current assets, where this type of asset can be exchanged for cash within a period of one year.

Current Ratio = Current Asset/Current Liabilities

Name of the Company

2018

2019

2020

Great Eastern Takaful Berhad

853,402 / 789,630

= 1.080

1,788,074/ 1,720,973

= 1.038

3,117,694/3,002,352

= 1.038

Quick Ratio

Quick Ratio is the ratio used to measure the company's ability to meet its short-term obligations by using the most liquid assets or assets that are closest to cash (fast assets). Included as Quick Assets are current assets or current assets that can be quickly converted into cash and are close to their book value.

Quick Ratio = (Current Asset Inventories) /Current Liabilities

Name of the Company

2018

2019

2020

Great Eastern Takaful Berhad

(853,402 -0) / 789,630

= 1.080

(1,788,074-0)/ 1,720,973

= 1.038

(3,117,694-0) /3,002,352

= 1.038

Profitability Ratio

The aim of these measures is to assess the profitability of companies, when the company's earnings are supported in making the dividends payments to the capital expenditures. Those ratios are therefore too essential to analyze.

Earnings per Share (EPS)

For shareholders, this ratio is essential in calculating the profit available for each share owned in an enterprise. If they have shares in the firm, they can determine their earnings. The dividends may be compared to calculate the pay-out ratio. For shareholders it is vital to be aware that the firm uses its revenue to settle capital expenses or to pay dividends.

Earnings per Share (Sen) = (Net Income - Dividends on Preferred Stock) / Number of Outstanding Shares

Name of the Company

2018

2019

2020

Great Eastern Takaful Berhad

Net Income - Dividends on Preferred Stock) / Number of Outstanding Shares

Net Income - Dividends on Preferred Stock) / Number of Outstanding Shares

Net Income - Dividends on Preferred Stock) / Number of Outstanding Shares

Gross Profit Margin and Net Profit Margin

Gross Profit Margin

Gross profit margin is a financial measurement use by the company to measures efficiency of the company production for a product sold or more. It is calculated by subtract or deduction of a cost of goods sold from the revenues of the company. The higher the company gross profit margin the more efficient the company from the less gross profit margin company.

Net Profit Margin

Otherwise the net profit margin is indicated the company net income after all the related cost have been deducted, it illustrated to know how much each dollar in the revenue collect by the company translate into profit.

Profitability Ratio

Profitability ration it is a key metric that used for evaluate a business ability to generate their earning related to their revenue, shareholder equity and balance sheet of asset.

Return on Asset

The company can calculate the return by dividing the business net income by the total asset, the net income can find by the business total profit deduct expenses.

Return on Equity

To measure for the return on equity generate on the asset by the company, the calculation can be done by dividing the company net income by the shareholder equity,

Gross Profit Margin = ( Revenues Cost of Goods Sold) / Revenue

Name of the Company

2018

2019

2020

Great Eastern Takaful Berhad

( Revenues Cost of Goods Sold) / Revenue

( Revenues Cost of Goods Sold) / Revenue

( Revenues Cost of Goods Sold) / Revenue

Net Profit Margin = Net Profit / Revenue

Name of the Company

2018

2019

2020

Great Eastern Takaful Berhad

Net Profit / Revenue

Net Profit / Revenue

Net Profit / Revenue

Profitability Ratio

2018

2019

2020

Return on asset (ROA)

Net income / total asset

=

Net income / total asset

Net income / total asset

Return on Equity (ROE)

Net income/ shareholders equity

=

Net income/ shareholders equity

=

Net income/ shareholders equity

=

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Montgomery Auditing Continuing Professional Education

Authors: Patrick J. McDonnell, Barry N. Winograd, James S. Gerson, Henry R. Jaenicke, Vincent M. O'Reilly

12th Edition

0471346055, 978-0471346050

More Books

Students also viewed these Accounting questions

Question

If {Y (t), t 0} is a Martingale, show that E[Y (t)] = E[Y (0)]

Answered: 1 week ago

Question

1. Write down two or three of your greatest strengths.

Answered: 1 week ago

Question

What roles have these individuals played in your life?

Answered: 1 week ago

Question

2. Write two or three of your greatest weaknesses.

Answered: 1 week ago