ufr present mizah

8/7/2019 ufr present mizah

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If the ratio is more than one , the

company be considers in good condition.

Cash interest cover for HSIB is increasesfrom year to year.

2007 is 1582.76 times

2008 is 2622.23 times

2009 is 64746.68 times

HSIB good : small number of interestpayment.

HTIB : great amount of interest payment.

It shows that HTIB not has propermana gement.

CASH INTEREST COVER

Times



HSIB : N ot efficient in assets utilisation.

Even it keep increases.

COMPAREHTIB: Good to be skilled in assets

utilisation.

Good fixed asset turnover ratio .

F IXED ASSET TURNOVER(sales / non-current assets)



Increasin g from 2007 - 2009

2007 (worst)

: 4.14%

: Lower net profit after taxation

2008 & 2009:

: Net profit increases

because increased of sales.

(ROSF)Return on Ordinary Shareholders¶ Funds

Percentage, %

Year



ROCE: Earning sufficient revenue & profitfor maximise capital assets usage

HSIB

2007 (worst)

bad business performancelower operating profit ($ 6,131,3 09 )material cost was rising

2009 (highest)

buy raw material & other goods at theche ap er price.

HTIB : p ricey raw material.

(ROCE)Return on Capital Employed

%

Year



Net Profit MarginHSIB- Increases- Improvement in controlling cost

2009: lower revenueconsumer spending is affected byeconomic crisisstiff competition between competitors

2008 > 2009 : Cost and inputs controlprecisely .

high ratio : attract investor & satisfycurrent shareholders .

HTIB: expenses > sale.: bad control on expenses: poor operating pricing



G ross Profit Margin

y HSIB: increased year to year

y Gross profit margin is excludedexpenses,

y Vs. Net profit margin is includedexpenses.

y : Need stricter in controlling

y But HSIB still good in performingin gross profit margin compare toHTIB.



HSIB should not pay their dividend at the greater rate than their net profit.

They should keep that money as the retained earnin gs & use the money forresearch and development or clear those outstandin g debts.

It is not a sustainable condition if the ratio exceeds 100%.

Expenses is plan wisely.

Observation and strict control needed for accuracy .

Research for a lower price raw material from suppliersFor reduction of wasta ge = net cash or quantity of profit induction.

The strict control on credit term of trade payment from receivables should be keepcontinue for HSIB.

To minimize the over credit risk by down the amount of bad debt.

RECOMENDATION



Based on our opinion:

Hup Seng Industries Berhad (HSIB) is greater than HwaTai Industries Berhad(HTIB).

HSIB : whelming result in profitability, gearing, and liquidity.

HTIB: good in some cash flow and efficiency.

o So, HSIB s financial for the company in 2007 until 2009 is quick performing betterthan HTIB

However, limitation of HSIB must be taken in count.

CONCLUSIONCONCLUSION

CONCLU SION

ufr present mizah

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