I NEED to evaluate a listed company annual report. Please advise on my findings.***
Horizontal Analysis
Net change= 2020-2019
Percentage of Change= Net change/ 2019
Vertical analysis:
% over total= Account/ Base Amount (total)
To: Board of Directors of Genting Singapore Ltd
Title: Report on the Financial Analysis
The team have calculated the financial analysis of Genting Singapore Ltd. For the year 2019-2020. The ratios are categorized into Profitability, Liquidity, Efficiency, Leverage and Investor as well as the horizontal and vertical analysis. The use of this financial analysis is to help the users on their decision making.
Profitability Ratios shows that Gross Profit Margin increased by 10.97. Unfortunately, the Operating Profit Margin decreased by 54.43% and so for ROE and Return on Capital employed decreases also.
Liquidity ratios, Current ratio and Quick Ratio raised at 1.80 and 1.70.
For the Efficiency Ratios, all decreases except for Inventory turnover.
Leverage Ratio shows that the Capital Gearing ratio on 2019 recorded at 5.72% and raised up to 5.87% on 2020. Debt to Equity ratio and Interest cover raised while Debt ratio decreases.
Investors Ratio- Earnings per share raised at 0.01 on the year 2020.
Financial statements of our company, decreases on the year 2020. Assets , Liabilities and Equity decreases and the Income as well.
Summary: The company is experiencing crisis and falling down on its stability. Cash inflows are lower than last year while outflows continues on increasing.
Perspective:
Financial perspective: our Goals/Measures is to increase the profitability ratios as well as the income
Customer perspective: to demand for lower prices
Internal Business perspective: to minimize its resources and maximize its profit
Innovation perspective: 1. search for new products 2. research and development effort
Recommendations:
The company must do the Research and development to innovate new product and new ways to minimize their resources. They must think of ways to use its resources on an efficient and effective way. They can introduce new product to the public, use cheaper materials on their production, decreased the number of workers so they can utilize its cost and they can also hire a Management Advisor to help them analyze their day to day transactions.
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Need to evaluate a listed company annual report.
1. Based on the information from the published annual reports of the selected listed company for the two years 2019 and 2020, what is the vertical and horizontal analysis of the Consolidated Income Statement and Statement of Financial Position.
2. Based on the categories of financial ratios (i.e. Profitability, Liquidity, Efficiency, Leverage and Investor), as well as the vertical and horizontal analysis provided, and any other relevant information from the annual report, what is the report to the board of directors of the company on the performance of the company over the two years.
3. In addition to the financial analysis and interpretation of the company, design a balanced scorecard to measure both the financial and non-financial performance of the company to help the management of the company meet its strategic objectives. Include in the scorecard: the strategic objectives, the performance measures, targets and the initiatives. A strategy map is required showing the links to the four perspectives.
4. Make recommendations to improve the company's performance considering the competitive and changing business environment.
Genting Singapore Limited Website:
http://www.gentingsingapore.com/#!/en Annual Report:
http://www.gentingsingapore.com/#!/en/investors/annual-reports
Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM%3D&... @ J 922047 4/9 125% + Page | 4 Approved Singapore Stock Exchange listed company for coursework 1: Genting Singapore Limited Website: http://www.gentingsingapore.com/#!/en Annual Report: http://www.gentingsingapore.com/#!/en/investors/annual-reports Horizontal Analysis Increase / Percent Statement Of Comprehensive Income 2020 2019 Decrease Change (for the financial year ended 31 December 2020) $'000 $'000 over 2019 over 2019 % Revenue 1,063,749 2,480,340 (1,416,591) -57.1% Cost of sales (831,893) (1,451,319) (619,426) -42.7% Gross profit 31,856 1,029,02 (797,165) -77.59 Other operating income 12,204 14,417 (2,213) -15.39 Interest income 45,54 (34,527) -43.1% Administrative expenses (131,075) (193,806) (62,731) -32.4%% Selling and distribution expenses 17,155) (61,682 (44,527) -72.29 Other operating expenses (25,597) (4,609) 20,988 455.4% Operating profit 15,77 863,414 (747,635) -86.6% Finance costs (4,047) (20,495) (16,448) -80.39 Share of results of joint venture 1,244 3,987 (2,743 -68.8% Profit before taxation 12,976 846,906 (733,930) -86.7% Taxation 43,735 (158,302) (114,567) -72.4% Profit for the financial year 69,241 688,604 (619,363) -89.9%Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM% 3D&... @ J 922047 5 / 9 - 125% Page |5 Horizontal Analysis Increase / Percent Statement of Financial Position 2020 2019 Decrease Change (as at 31 December 2020) $'000 $'00 over 2019 over 2019 Non-current assets Property, plant and equipment 4,453,307 4,667,062 -213,755 -4.6% Intangible assets 131,293 152,880 -21,587 14.1% Interests in joint venture 63,483 62,239 1,244 2.0% Interests in subsidiaries 0.0% Deferred tax assets 111 276 -165 -59.89 Financial assets at fair value through profit or loss 37,916 233,251 -195,335 -83.79 Trade and other receivables 7,431 971 6,460 665.3% Total Non-current asset 4,693,541 5,116,679 -423,138 -8.3% Current assets Inventories 43,784 48,695 -4,911 -10.1% Trade and other receivables 56,143 137,454 81,311 -59.2% Cash and cash equivalents 3,994,084 3,947,250 46,834 1.2% Total Current assets 4,094,011 4,133,399 -39,388 1.0% Current liabilities Trade and other payables 343,130 489,474 -146,344 -29.9% Borrowings 3,977 3,991 -14 -0.4% Income tax liabilities 116,142 209,906 -93,764 44.7% Total Current liabilities 463,249 703,371 240,122 34.1% Net current assets 3,630,762 3,430,028 200,734 5.9% Non-current liabilities Deferred tax liabilities 225,525 231,382 -5,857 -2.5%% Borrowings 262,792 256,654 6,138 2.4% Provision for retirement gratuities 205 263 -58 -22.19 Other payables 21 817 598 -73.2% Total Non-current liabilities 488,741 489,116 -375 -0.1% Net assets 7,835,562 8,057,591 -222,029 -2.8% Equity attributable to owners of the Company Share capital 5,527,705 5,527,705 0.0% Treasury shares (23,485) (29,541) 6,056 20.59 Retained earnings 2,312,123 2,542,651 -230,528 -9.1% Other reserve 19,217 16,774 2,443 14.6% Attributable to ordinary shareholders 7,835,560 8,057,589 -222,029 2.8% Non-controlling interests 0.0% Total equity 7,835,562 8,057,591 -222,029 2.870Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x J CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM% 3D&... @ 922047 6 /9 150% Page | 6 Vertical Analysis Statement Of Comprehensive Income 2020 % over 2019 % over ( for the financial year ended 31 December 2020) $'000 Revenue $'000 Revenue Revenue 1,063,749 100% 2,480,340 100% Cost of sales (831,893) 78% 1,451,319) -59% Gross profit 231,856 22% 1,029,021 41% Other operating income 12,204 1% 14,417 1% Interest income 15,546 4% 80,073 3% Administrative expenses (131,075) -12% (193,806) -8% Selling and distribution expenses (17,155) -2% (61,682 -2% Other operating expenses (25,597) -2% (4,609) 0% Operating profit 115,779 11% 863,414 35% Finance costs (4,047 0% (20,495) -1% Share of results of joint venture 1,244 0% 3,987 0% Profit before taxation 112,976 11% 846,906 34% Taxation (43,735) -4% (158,302) -6% Profit for the financial year 69,241 7% 688,604 28%Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM% 3D&... @ J 922047 719 125% + Page |7 Vertical Analysis Statement of Financial Position 2020 % over 2019 % over (as at 31 December 2020) $'000 Total Assets $'000 Total Assets Non-current assets Property, plant and equipment 4,453,307 50.7% 4,667,062 50.5% Intangible assets 131,293 1.5% 152,880 1.7% Interests in joint venture 63,483 0.7% 62,239 0.7% Interests in subsidiaries 0.0% 0.0% Deferred tax assets 11 0.0% 276 0.0% Financial assets at fair value through profit or loss 37,916 0.4% 233,251 2.5% Trade and other receivables 7,431 0.1% 971 0.0% Total Non-current assets 4,693,541 53.4% 5,116,679 55.39 Current assets Inventories 43,784 0.5% 48.695 0.5% Trade and other receivables 56,143 0.6% 137,454 1.5% Cash and cash equivalents 3,994,084 45.5% 3,947,250 42.7% Total Current assets 4,094,011 46.6% 4,133,399 44.7% Total Assets 8,787,552 9,250,078 Current liabilities Trade and other payables 343,130 3.9% 189,474 5.3 Borrowings 3,977 0.0% 3,991 0.0% Income tax liabilities 116,142 1.3% 209,906 2.3% Total Current liabilities 463,249 5.3% 703,371 7.6% Non-current liabilities Deferred tax liabilities 225,525 2.6% 231,382 2.5% Borrowings 262,792 3.0% 256,654 2.8% Provision for retirement gratuities 205 0.0% 263 0.0% Other payables 219 0.0% 817 0.0% Total Non-current liabilities 488,741 5.6% 189,116 5.3% Net assets 7,835,562 89.2% 8,057,591 87.1% Equity attributable to owners of the Company Share capital ,527,705 62.9% 5,527,705 59.8% Treasury shares (23,485) -0.3% (29,541) -0.3% 8 Retained earnings 2,312,123 26.3% 2,542,651 27.59 Other reserve 19,217 0.2% 16,774 0.2% Attributable to ordinary shareholders 7,835,560 89.2% 8,057,589 87.1% |Non-controlling interests 0.0% 0.0% Total equity 7,835,562 89.2% 8,057,591 87.1%Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM%3D&... @ J 922047 8 / 9 - 160% + Genting Singapore Limited Profitability Ratios 2020 2019 Benchmark Gross Profit Margin Gross Profit 231856 1029021 189521 Sale 5 1063749 480340 1727923 21.80% 41.49% 10.97%% Operating Profit Margin Profit before int and tax 115779 863414 (940,557) EE Sales 1063749 2480340 1727923 10.88% 34.81% 54.43% Return on Equity (for SH) Profit after int and tax 69241 688604 (1,454,614) Equity (Capital+Reserves) 7,835,562 8,057,591 1838071 0.88% 8.55% -79.14% Return on Capital Employed Profit before int and tax 115779 863414 (940,557) Capital Employed (Equity+LT Debt) 8,324,303 8,546,707 9020967 1.39% 10.10% 10.43% Liquidity Ratios Current Ratio Current Asset 4,094,011 4,133,399 2008823 Current Liabilities 463,249 703,371 116250 8.84 5.88 1.80 Quick Ratio Current Asset - Inventory 4,050,227 4,084,704 1971546 Current Liabilities 463,249 703,371 1116250 8.74 5.81 1.77 Efficiency Ratios Asset Turnover Ratio (times) Sales 1063749 2480340 1727923 Capital Employed(Equity+LT Debt) 8,324,303 8,546,707 9020967 0.13 0.29 0.19 Fixed Asset Turnover (times) Sales 1063749 2480340 1727923 Non Current Asset 4,693,541 5,116,679 7012144 0.23 0,48 0.25 Inventory Turnover (times) COGS 831893 1451319 1538402 Average Inventory 46239.5 48750.5 40618 8 17.99 29.77 37.87 Inventory Turnover (days) Average Inventory 46239.5 48750.5 40618 COGS 831893 1451319 1538402 20.29 12.26 9.64 Accounts Receivable Days (days) Average Account Receivable 96798.5 140623 206976 Credit Sale 1063749 480340 1727923 33.21 20.69 43.72 Accounts Payable Days (days) Average Account Payable 416302 472119 15682.5 Credit Purchases (COGS) 831893 1451319 1538402 182.66 118.7 3.72Bb MF Session 1 & 2 * Content X Bb 922047 Brief Analysis_Genting.pdf X *Homework Help - Q&A from Or x CD learn-ap-southeast-1-prod-fleet02-xythos.content.blackboardcdn.com/5e2f6fa45e889/922047?X-Blackboard-Expiration=1631350800000&X-Blackboard-Signature=A9HoNhv5fGRju%2Bj8JUS3mTg2yzPcW34eBAzkBj%2BWCpM%3D&... @ J 922047 8 / 9 160% Sales 1063749 2480340 1727923 Non Current Asset 4,693,541 5,116,679 7012144 0.23 0.48 0.25 Inventory Turnover (times) COGS 831893 1451319 1538402 Average Inventory 46239.5 48750.5 40618 17.99 29.77 37.87 5 Inventory Turnover (days) Average Inventory 46239.5 18750.5 40618 COGS 831893 1451319 1538402 20.29 12.26 9.64 EE Accounts Receivable Days (days) Average Account Receivable 96798.5 140623 206976 Credit Sales 1063749 2480340 1727923 33.21 20.69 43.72 Accounts Payable Days (days) Average Account Payable 416302 472119 15682.5 Credit Purchases (COGS) 831893 451319 1538402 182.66 118.74 3.72 Leverage (Debt) Ratio Capital Gearing Ratio LT Liabilities 188,741 489,116 6066646 Capital Employed (E+D) 3,324,303 8,546,707 9020967 5.87% 5.72% 57.25% Debt Ratio Total Debt (CL+NCL) 951,990 1,192,487 7182896 Total assets (CA+NCA) 3,787,552 9,250,078 9020967 10.83% 12.89% 79.62% Debt to Equity Ratio LT Liabilities 488,741 489,116 6066646 Equity ,835,562 8,057,591 1838071 6.24% 6.07% 330.06% Interest Cover (times) Profit before int and tax 115779 863414 (940,557) Interest Expense 4047 20495 348794 28.61 42.13 2.70 Investors Ratio Earnings Per Share (EPS) Profit After tax and Pref Dividends 69241 688604 (1,454,614) # Ordinary Shares Issued 12094027 12094027 1456547942 0.01 $ 0.057 -$ 0.001 Dividend Cover (times) 8 Profit after tax and Pref Dividend 69241 688604 (1,454,614) Dividend Paid on Ordinary Shares 301620 22003 80168398.73 0.23 1.63 -0.02 Dividend Yield Ratio Dividend Paid on Ordinary Shares 0.02 0.03 0.05504 Market value of Ordinary Shares 0.93 0.85 18.55 2.7% 4.1% 0.3% Price Earning Ratio (times) =Market Value of Ordinary Shares 0.93 0.85 18.55 Earnings per share 0.006 0.057 -0.0010 162.44 14.93 -18574.66
