Please calculate ROE (Return on Equity) for MK Restaurant Group Public Company Limited and its subsidiaries for the year 2019 and 2018 and use DuPont Analysis to separate ROE into three elements in order to comment on the companys effectiveness in Operational management, Investment management, and Financing decision. To add to your analysis, you may calculate some alternative ratio that you think useful.

ROE of MK Restaurant Group PCL for the year 2019

ROE of MK Restaurant Group PCL for the year 2018

Use DuPont Analysis to separate ROE into three elements in order to comment on the companys effectiveness in Operational management, Investment management, and Financing decision.

2. What is operating cycle? Why managing operating cycle is crucial to a company? Calculate operating cycle of MK Restaurant Group Public Company Limited and its subsidiaries and use the figure to justify your answer.

Transcribed image text: B c D E G H K 15 37 29 0 Common Size Vertical Vertical Horizontal 1 2 2019 2018 3 2019 5 6 10.34% 11 33% 95 37% 0.20% 0.26% 8f4396 MK Restaurant Group Public Company Limited and its subsidiaries Statements of financial position (continued) As at 31 December 2019 (Unit Baht) Consolidated financial statements As at As at Note 31 December 2019 31 December 2018 Liabilities and shareholders' equity Current liabilities Trade and other payables 6, 17 1,855,307 507 1,945,410,377 Current portion of deferred income of membership foo 36,477.189 44,795,771 Current portion of liabilities under financial lease agreements 12,849,656 Income tax payable 278,647215 288 953,094 Other current liabilities 283,314 646 232 932 743 Total current liabilities 2.466,596 213 2.512,091,985 Liabilities and shareholders' equity Non-current liabilities Deferred income of membership fee - net of current portion 152.705 Liabilities under finance lease agreements - net of current portion 18 38 502 572 Provision for long-term employee benefits 19 617 352 274 465,500 611 Deferred tax liabilities 23 170 985.763 Other non-current liabilities 21 461 956 19 900.217 Total non.current liabilities 848 302,565 485 553,533 Total liabilities 3,314 896 778 2 997 645 518 18 1 0.0796 1.55% 1.58% 13 75% 0.00% 1.6896 1 369 14.6396 96.4396 121.6396 98. 1996 3 5 0.0096 0.009 0.00 132.6296 02194 3.4498 0939 0129 4759 0.0096 2.7196 0.005 0.1296 28390 17459 107-8536 1747 0.58 1 13.469 The accompanying notes are an integral part of the financial statements A D E F G 30 M 2 3 MK Restaurant Group Public Company Limited and its subsidiaries Statements of financial position (continued) As at 31 December 2019 4 5 (Unit: Baht) Consolidated financial statements As at 31 December 2019 31 December 2018 Vertical Common Size Vertical 7 Horizontal As at 2019 2018 2019 0 1 2 3 920,878,100 920,878.100 4 5 G 920,878,100 8,785.027,903 920.878,100 8,785,027 903 5.1996 48.96% 5.36% 51.15% 100.0096 100 000 Note Liabilities and shareholders' equity (continued) Shareholders' equity Share capital 20 Registered 920,878,100 ordinary shares of Baht 1 each Issued and fully paid 920 878,100 ordinary shares of Baht 1 each Share premium Capital reserve for share-based payment transactions Retained earnings Appropriated - Statutory reserve 24 Unappropriated Other component of shareholders' equity Equity attributable to owners of the Company Non-controlling interests of the subsidiaries Total shareholders' equity Total liabilities and shareholders' equity 8 656.331,057 656,331,057 3.66% 3.8296 10000% 1 05296 21 4396 100.00% 10341% 92.585.000 3.844.557.041 7.098.631 14.306.477,732 320.210.479 14.626.688.211 17 941,586,989 92585,000 3.717,674.184 3,566.443 14.175,062.687 05496 21.6596 00296 82 5596 0.00% 82.555 0.0496 79.7496 17898 81.52 100.00% 199 0494 700 929 103.7095 14.176.082,687 17.173.708,205 The accompanying notes are an integral part of the financial statements F For the year ended 31 December 2019 (Unit Baht) Consolidated financial statements 2019 2018 Common Stre Vertical 2018 Vertical 2019 Note Horizontal 2019 17.408,959,581 131,732,290 16,770.437.131 120,711,441 103 81% 109.13% 11 97.42% 0.74% 0.00% 1.85% 100.00% 97 31% 0.7096 0.00% 1999 100.00% 330,138,147 17,870,830,018 342,610,746 17,233,759,318 96 36 103.709 22 5,482,624,603 7.901,861,167 1.281,077,006 5,294 999 439 7,568,500,503 1.137.361,034 30 68% 44 2296 7.179 0.0096 8206% Revenues Sales and service income Interest income Dividend income Other income Total revenues Expenses Cost of sales and services Seling and distribution expenses Administrative expenses Other expenses Total expenses Profit before share of loss from investments in joint ventures, finance cost and income tax expenses Share of loss from investments in joint ventures Profit before finance c income tax expenses Finance cost Profit before income tax expenses Income tax expenses Profit for the year 30.7296 44 509 6,60% 0.0096 81 8296 103 54% 103.0496 112545 12 14,665,562,776 14,100 859,976 104.00% 3,205,267.242 3.132 899 342 179496 18.1896 102 3.196 12 -41,091,701 -1.415.956 -0 2396 -0.011 290209 3,131 483 384 101 049 18 174 0.00 3.164 175,541 -590.344 3.163.485,197 -553 253 624 2610 231 573 1771 0.009 17.70% -3.095 14 6195 3.131.483 386 -557.950.748 2,573,532,638 23 32496 14 939 101 028 99 1695 10143 Profit attributable to: Equity Holders of the Co Non-controlling interests of the subsidiaries 2,673.532,638 2.603 590 376 -6641.197 2610 231 573 2.573,532638 C D E 51 F For the year ended 31 December 2019 H 50 (Unit Baht) Consolidated financial statements 2019 2018 Note 55 55 Profit for the year 2610 231,573 57 2,573,532,638 50 50 60 61 Other comprehensive Other comprehensive income reclassified or to be reclassified to profit or loss in subsequent periods Exchange differences on translation of financial statements in foreign currency Gain (loss) on changes in value of available for sale investments Less: Income taxelect Gain (loss) on changes in value of available for sale investments - net of inco 931,013 63 -1,018 238 64 8 65 5.579.000 - 1.115.799 23 -2.464.921 492.985 66 4,463.201 -1.971,936 60 60 TO 192 23 -102 805,823 20 377 574 Other comprehensive income not to be reclassified to profit or loss in subsequent periods Actuarial losses Less Income tax effect Other comprehensive income not to be reclassified to profit or loss in subsequent periods -net of income tas Other comprehensive income for the year - 15 862 207 2846 279 25 TE -22.427.949 -78.895.761 - 13.015,928 16006.100 Total comprehensive income for the year 2.531 335,652 2557526,538 Total comprehensive income attributable to! Equity holders of the Co Non-controlling interests of the subsidiaries 2.567 520 530 2.524 694 615 8641197 3.531 335.812 2.557 526 530 fr E F G 100 H 101 102 (Unt Baht) Consolidated financial statements 2019 2018 103 104 105 3.163,485,197 3,131,483,386 106 107 103 109 -63,862 879 - 15.593 630 -22.095,047 -69,654 282 15.008920 780,287 110 111 112 1,704,002 1.659,812 113 114 115 116 Cash flows from operating activities Pront before tax Adjustments to reconcile profit before tax to nel cash provided by (paid from) operating activities Gain on sales of invest Loss (gain) on evaluation of short-term investments Unrealised loss (gain) on exchange Amortised premium on investments in available-for-sale securti Allowance for impairment loss on investment in joint venture Share of loss from investments in joint ventures Loss on damaged invent Amortisation of prepaid expenses Depreciation and aror Loss (gain) on disposals and write-off of equipment and intangible assets Provision for long-term employee benefits Reduction of inventory to net realisable value reversal Realisation of gift voucher net of sales and cash received during the Realsation of deferred income net of sales and cash received during the year Dividend income Irderest income Interestexpenses Proftrom operating activities before changes in operating assets and sal 41,091,701 3,058 429 26,898,820 777,055 950 1.415,956 4.255,517 17 357110 819,177,869 117 118 27 451,552 58,527 808 -21974, 191 145 251 200 107 534 82716 -22 854,432 -20.795 052 14795771 -42 313.771 - 120 711 441 -131,584195 090.344 3.799.080.324 3.581014020 A E F G H MK Restaurant Group Public Company Limited and its subsidiaries Cash flow statements (continued) For the year ended 31 December 2019 (Unit: Baht) Consolidated financial statements 2019 2018 Cash flows from operating activities (continued) Operating assets (increase) decrease Trade and other receival -14.848,892 -9.018,116 Inventories -20,783 377 16,915,861 Other current assets 209,570,432 11875.979 Deposits -30.916.019 -43.766,384 Operating liabilities increase (decrease) Trade and other payable - 103,516,906 255 882,002 Other current liabilities 52 501 503 11,386,306 Deferred income 34 879 203 35.681 308 Provision for long-term employee benefits -24 311 958 -6.122.192 Other non-current liabil 198914 6.314.696 Cash from operating act 3 901 851 224 4,140,163 486 Cash received from interest income 106,142,822 105,961 807 Cash paid for income tax -573 754 557 -520.030.999 Net cash from operating activities 3,434 239.489 3.727044294 The accompanying G 193 195 201 202 B D E F H 192 MK Restaurant Group Public Company Limited and its subsidiaries 194 Cash flow statements (continued) For the year ended 31 December 2019 196 (Unit. Baht) 197 Consolidated financial statements 198 2019 2018 199 Cash flows from investing activities 200 Decrease (increase) in short-term investments and other long-term investments 1 885 808 873 -93,313,104 Cash paid for invesments in join ventures -223,875,000 -646,750,000 203 Cash paid for investment in subsidiaries - 1,939,453,967 204 Cash paid for purchases of plant and equipment -658,967,945 -517,086,188 205 Cash paid for intangible -26, 141,789 -20.069,674 206 Cash paid for leasehold 404,321 -24,589 830 207 Proceeds from disposals of equipment 5,978,682 100,450,571 208 Dividend income 209 Net cash used in investing activities -957055.467 - 1201,358,225 2:10 Cash flows from financing activities 211 Dividend paid -2.394 279,570 -2.210 104,658 212 Net cash used in financing activities -2.394 279 570 -2,210 104 658 213 Net increase (decrease) in cash and cash equivalents 82 904,452 315 581 411 215 Cash and cash equivalents at beginning of year 725 203,243 409.621 832 215 Cash and cash equivalents at end of year (Note 7 808 107695 725 203 243 Supplemental disclosure of cash flows information Non-cash items Increase idecrease in accounts payable for purchases of plant and equipment Equipment and computer software under hance lease agreemen 44.075.044 47.666 708 50,861 883 Transcribed image text: B c D E G H K 15 37 29 0 Common Size Vertical Vertical Horizontal 1 2 2019 2018 3 2019 5 6 10.34% 11 33% 95 37% 0.20% 0.26% 8f4396 MK Restaurant Group Public Company Limited and its subsidiaries Statements of financial position (continued) As at 31 December 2019 (Unit Baht) Consolidated financial statements As at As at Note 31 December 2019 31 December 2018 Liabilities and shareholders' equity Current liabilities Trade and other payables 6, 17 1,855,307 507 1,945,410,377 Current portion of deferred income of membership foo 36,477.189 44,795,771 Current portion of liabilities under financial lease agreements 12,849,656 Income tax payable 278,647215 288 953,094 Other current liabilities 283,314 646 232 932 743 Total current liabilities 2.466,596 213 2.512,091,985 Liabilities and shareholders' equity Non-current liabilities Deferred income of membership fee - net of current portion 152.705 Liabilities under finance lease agreements - net of current portion 18 38 502 572 Provision for long-term employee benefits 19 617 352 274 465,500 611 Deferred tax liabilities 23 170 985.763 Other non-current liabilities 21 461 956 19 900.217 Total non.current liabilities 848 302,565 485 553,533 Total liabilities 3,314 896 778 2 997 645 518 18 1 0.0796 1.55% 1.58% 13 75% 0.00% 1.6896 1 369 14.6396 96.4396 121.6396 98. 1996 3 5 0.0096 0.009 0.00 132.6296 02194 3.4498 0939 0129 4759 0.0096 2.7196 0.005 0.1296 28390 17459 107-8536 1747 0.58 1 13.469 The accompanying notes are an integral part of the financial statements A D E F G 30 M 2 3 MK Restaurant Group Public Company Limited and its subsidiaries Statements of financial position (continued) As at 31 December 2019 4 5 (Unit: Baht) Consolidated financial statements As at 31 December 2019 31 December 2018 Vertical Common Size Vertical 7 Horizontal As at 2019 2018 2019 0 1 2 3 920,878,100 920,878.100 4 5 G 920,878,100 8,785.027,903 920.878,100 8,785,027 903 5.1996 48.96% 5.36% 51.15% 100.0096 100 000 Note Liabilities and shareholders' equity (continued) Shareholders' equity Share capital 20 Registered 920,878,100 ordinary shares of Baht 1 each Issued and fully paid 920 878,100 ordinary shares of Baht 1 each Share premium Capital reserve for share-based payment transactions Retained earnings Appropriated - Statutory reserve 24 Unappropriated Other component of shareholders' equity Equity attributable to owners of the Company Non-controlling interests of the subsidiaries Total shareholders' equity Total liabilities and shareholders' equity 8 656.331,057 656,331,057 3.66% 3.8296 10000% 1 05296 21 4396 100.00% 10341% 92.585.000 3.844.557.041 7.098.631 14.306.477,732 320.210.479 14.626.688.211 17 941,586,989 92585,000 3.717,674.184 3,566.443 14.175,062.687 05496 21.6596 00296 82 5596 0.00% 82.555 0.0496 79.7496 17898 81.52 100.00% 199 0494 700 929 103.7095 14.176.082,687 17.173.708,205 The accompanying notes are an integral part of the financial statements F For the year ended 31 December 2019 (Unit Baht) Consolidated financial statements 2019 2018 Common Stre Vertical 2018 Vertical 2019 Note Horizontal 2019 17.408,959,581 131,732,290 16,770.437.131 120,711,441 103 81% 109.13% 11 97.42% 0.74% 0.00% 1.85% 100.00% 97 31% 0.7096 0.00% 1999 100.00% 330,138,147 17,870,830,018 342,610,746 17,233,759,318 96 36 103.709 22 5,482,624,603 7.901,861,167 1.281,077,006 5,294 999 439 7,568,500,503 1.137.361,034 30 68% 44 2296 7.179 0.0096 8206% Revenues Sales and service income Interest income Dividend income Other income Total revenues Expenses Cost of sales and services Seling and distribution expenses Administrative expenses Other expenses Total expenses Profit before share of loss from investments in joint ventures, finance cost and income tax expenses Share of loss from investments in joint ventures Profit before finance c income tax expenses Finance cost Profit before income tax expenses Income tax expenses Profit for the year 30.7296 44 509 6,60% 0.0096 81 8296 103 54% 103.0496 112545 12 14,665,562,776 14,100 859,976 104.00% 3,205,267.242 3.132 899 342 179496 18.1896 102 3.196 12 -41,091,701 -1.415.956 -0 2396 -0.011 290209 3,131 483 384 101 049 18 174 0.00 3.164 175,541 -590.344 3.163.485,197 -553 253 624 2610 231 573 1771 0.009 17.70% -3.095 14 6195 3.131.483 386 -557.950.748 2,573,532,638 23 32496 14 939 101 028 99 1695 10143 Profit attributable to: Equity Holders of the Co Non-controlling interests of the subsidiaries 2,673.532,638 2.603 590 376 -6641.197 2610 231 573 2.573,532638 C D E 51 F For the year ended 31 December 2019 H 50 (Unit Baht) Consolidated financial statements 2019 2018 Note 55 55 Profit for the year 2610 231,573 57 2,573,532,638 50 50 60 61 Other comprehensive Other comprehensive income reclassified or to be reclassified to profit or loss in subsequent periods Exchange differences on translation of financial statements in foreign currency Gain (loss) on changes in value of available for sale investments Less: Income taxelect Gain (loss) on changes in value of available for sale investments - net of inco 931,013 63 -1,018 238 64 8 65 5.579.000 - 1.115.799 23 -2.464.921 492.985 66 4,463.201 -1.971,936 60 60 TO 192 23 -102 805,823 20 377 574 Other comprehensive income not to be reclassified to profit or loss in subsequent periods Actuarial losses Less Income tax effect Other comprehensive income not to be reclassified to profit or loss in subsequent periods -net of income tas Other comprehensive income for the year - 15 862 207 2846 279 25 TE -22.427.949 -78.895.761 - 13.015,928 16006.100 Total comprehensive income for the year 2.531 335,652 2557526,538 Total comprehensive income attributable to! Equity holders of the Co Non-controlling interests of the subsidiaries 2.567 520 530 2.524 694 615 8641197 3.531 335.812 2.557 526 530 fr E F G 100 H 101 102 (Unt Baht) Consolidated financial statements 2019 2018 103 104 105 3.163,485,197 3,131,483,386 106 107 103 109 -63,862 879 - 15.593 630 -22.095,047 -69,654 282 15.008920 780,287 110 111 112 1,704,002 1.659,812 113 114 115 116 Cash flows from operating activities Pront before tax Adjustments to reconcile profit before tax to nel cash provided by (paid from) operating activities Gain on sales of invest Loss (gain) on evaluation of short-term investments Unrealised loss (gain) on exchange Amortised premium on investments in available-for-sale securti Allowance for impairment loss on investment in joint venture Share of loss from investments in joint ventures Loss on damaged invent Amortisation of prepaid expenses Depreciation and aror Loss (gain) on disposals and write-off of equipment and intangible assets Provision for long-term employee benefits Reduction of inventory to net realisable value reversal Realisation of gift voucher net of sales and cash received during the Realsation of deferred income net of sales and cash received during the year Dividend income Irderest income Interestexpenses Proftrom operating activities before changes in operating assets and sal 41,091,701 3,058 429 26,898,820 777,055 950 1.415,956 4.255,517 17 357110 819,177,869 117 118 27 451,552 58,527 808 -21974, 191 145 251 200 107 534 82716 -22 854,432 -20.795 052 14795771 -42 313.771 - 120 711 441 -131,584195 090.344 3.799.080.324 3.581014020 A E F G H MK Restaurant Group Public Company Limited and its subsidiaries Cash flow statements (continued) For the year ended 31 December 2019 (Unit: Baht) Consolidated financial statements 2019 2018 Cash flows from operating activities (continued) Operating assets (increase) decrease Trade and other receival -14.848,892 -9.018,116 Inventories -20,783 377 16,915,861 Other current assets 209,570,432 11875.979 Deposits -30.916.019 -43.766,384 Operating liabilities increase (decrease) Trade and other payable - 103,516,906 255 882,002 Other current liabilities 52 501 503 11,386,306 Deferred income 34 879 203 35.681 308 Provision for long-term employee benefits -24 311 958 -6.122.192 Other non-current liabil 198914 6.314.696 Cash from operating act 3 901 851 224 4,140,163 486 Cash received from interest income 106,142,822 105,961 807 Cash paid for income tax -573 754 557 -520.030.999 Net cash from operating activities 3,434 239.489 3.727044294 The accompanying G 193 195 201 202 B D E F H 192 MK Restaurant Group Public Company Limited and its subsidiaries 194 Cash flow statements (continued) For the year ended 31 December 2019 196 (Unit. Baht) 197 Consolidated financial statements 198 2019 2018 199 Cash flows from investing activities 200 Decrease (increase) in short-term investments and other long-term investments 1 885 808 873 -93,313,104 Cash paid for invesments in join ventures -223,875,000 -646,750,000 203 Cash paid for investment in subsidiaries - 1,939,453,967 204 Cash paid for purchases of plant and equipment -658,967,945 -517,086,188 205 Cash paid for intangible -26, 141,789 -20.069,674 206 Cash paid for leasehold 404,321 -24,589 830 207 Proceeds from disposals of equipment 5,978,682 100,450,571 208 Dividend income 209 Net cash used in investing activities -957055.467 - 1201,358,225 2:10 Cash flows from financing activities 211 Dividend paid -2.394 279,570 -2.210 104,658 212 Net cash used in financing activities -2.394 279 570 -2,210 104 658 213 Net increase (decrease) in cash and cash equivalents 82 904,452 315 581 411 215 Cash and cash equivalents at beginning of year 725 203,243 409.621 832 215 Cash and cash equivalents at end of year (Note 7 808 107695 725 203 243 Supplemental disclosure of cash flows information Non-cash items Increase idecrease in accounts payable for purchases of plant and equipment Equipment and computer software under hance lease agreemen 44.075.044 47.666 708 50,861 883