Question
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 = |
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