Our Project Team would like to take this opportunity to specially thank Mr. Tan Geok Kian, our Accounting and Finance Lecturer, for his guidance and patience throughout this Project.
Kudos to each and every member of the group for the invaluable contribution to this Project Work. May we always persevere!
Team Members: Elroy Chan (Team Leader), Nordian Ibrahim, Sharon Tan, Hazimah Ishak, Junainah A Latif and Kenneth Wong.
1 Acknowledgement 1
3 Executive summary 3
4 Background information 4
5 Swot Analysis 4
6 Financial Ratio Analysis and Recommendations 6
6.1 Leverage Ratios 6
6.2 Liquidity Ratios 6
6.3 Efficiency Ratios 7
6.4 Profitability Ratios 7
6.5 Investment Ratio 7
7 Limitations and assumptions made 8
8 Conclusion 8
9 Appendices 9
9.1 Old Chang Kee Financial Ratios in percentages 9
9.2 References 9
9.2.1 2014 Annual Report 9
9.2.2 Brealey, R.A., Myers, S.C., & Marcus, A.J. (2010). Fundamentals of corporate finance. New York, NY. 9
3 EXECUTIVE SUMMARY
The main objective of this report is to conduct financial analysis on the Group’s financial status and make recommendations and improvement for Old Chang Kee. The previous years’ figures have therefore been used as a benchmark against this year’s performance.
The Group’s strengths, weaknesses, opportunities and threats were firstly identified through a SWOT analysis. Financial Ratios on the Group’s leverage, liquidity, profitability, investment and efficiency have therefore been carefully selected to help the group remained focus.
There were several increasing trends that could be seen in this year’s performance. However, these increases were only able to s...
... middle of paper ...
9.1 OLD CHANG KEE FINANCIAL RATIOS IN PERCENTAGES
OLD CHANG KEE SELECTED FINANCIAL RATIOS
Leverage Ratios Times % Times %
Total Asset Ratio .3231 32.3% .3182 31.8%
Time-interest earned Ratio 109.757 163.864
Net Working Capital to Total Assets ratio or Current Ratio .2737 .2919
Current Ratio 2.249 2.239
Quick (or Acid Test) Ratio 2.011 1.890
Sales to Asset Turnover Ratio 1.579 1.745
Accounts Payable Turnover Ratio 8.66 8.70
Operating Profit Margin 8.79% 8.76%
Return on Equity 20.3% 17.9%
Earnings Per Share 0.0497 0.496
Net Asset Value Per Share 0.259 0.393
9.2.1 2014 Annual Report
9.2.2 Brealey, R.A., Myers, S.C., & Marcus, A.J. (2010). Fundamentals of corporate finance. New York, NY.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- ... Old Chang Kee Ltd has a smaller appriopriate of board members to effectively facilitate the operations of the group with the right duties, expertise and experience. Hence, the commitment level within the board members is higher and the operations of the group is more managable from time to time. Conflicts are interest are constanly reviewed. Unlike Breadtalk, as is more board members, there will be greater unresolved conflicts of interest within the board members.Especially board members that does not have the adequate skills and experience will either fall behind or conflict with the companies interests.... [tags: Dividens, Business, Investors]
1277 words (3.6 pages)
- 1. Financial statements are divided into two main categories which are general and special purpose financial reports. As for the general purpose financial reports, the major users are owners, shareholders, managers, customers, the general public and so on. Turning to the special purpose financial reports which are usually required by lenders, government and creditors. These reports need to record different information for different user’s need. Profit is the most significant element for the owners because they would like to know it from the Restaurant Brands Ltd (RBD)’s statement of comprehensive income.... [tags: Financial statements, Balance sheet]
1017 words (2.9 pages)
- Chang-Rae Lee’s Native Speaker expresses prominent themes of language and racial identity. Chang-Rae Lee focuses on the struggles that Asian Americans have to face and endure in American society. He illustrates and shows readers throughout the novel of what it really means to be native of America; that true nativity of a person does not simply entail the fact that they are from a certain place, but rather, the fluency of a language verifies one’s defense of where they are native. What is meant by possessing nativity of America would be one’s citizenship and legality of the country.... [tags: Chang-Rae Lee]
2640 words (7.5 pages)
- The Power of a Mother In their articles, Chang Rae-Lee and Amy Tan establish a profound ethos by utilizing examples of the effects their mother-daughter/mother-son relationships have had on their language and writing. Lee’s "Mute in an English-Only World" illustrates his maturity as a writer due to his mother’s influence on growth in respect. Tan, in "Mother Tongue," explains how her mother changed her writing by first changing her conception of language. In any situation, the ethos a writer brings to an argument is crucial to the success in connecting with the audience; naturally a writer wants to present himself/herself as reliable and credible (Lunsford 308).... [tags: Chang Rae Lee Amy Tan]
778 words (2.2 pages)
- Financial reports are virtual part of any kind of business field. They are used for to keep track on the business progress, and conditions. Without having knowledge of how much money was spent, how much money is in currently in use and how much money will be needed in the future, any organization will be in a big trouble. These troubles do not only concern the owners of the business but also everyone related to the business. For example, employees, customers, suppliers, etc. In general, financial reports are made up of different types of reports.... [tags: Generally Accepted Accounting Principles]
779 words (2.2 pages)
- Performing a financial analysis of a company allows an investor or creditor to fully understand the make-up of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them. Pepsi Co, Inc. shows a great deal of assets and property ownership while The Coca-Cola Companies net revenue is lower their net income is higher. The Pepsi Co, Inc. has more assets than the Coca-Cola Company, but more of their assets are owned by creditors.... [tags: Financial Analysis, Financials, economics, ]
1757 words (5 pages)
- Place yourself in this picture; you are in an unfamiliar land where you have no idea what to expect, where to go, or what your role is. All you know is that your forefathers were promised to inherit a land all their own, and now after years of living in a foreign country as an unpaid labourer, it is time for that promise to be realised in your life. You are scared and at the same time excited to be finally going to a place you can call home… A critical moment in the story of God in the Old Testament is when Abram at around 2081BC1 (well after the flood) is told by God in Genesis 12 to, "Go to the land that I will show you".(v1) And, "I will make you a great nation" (v2)... [tags: Old Testament, Bible, Israelites, Torah]
1089 words (3.1 pages)
- The Rape of Nanking: The Forgotten Holocaust of World War II The book that I chose to read was The Rape of Nanking: The Forgotten Holocaust of World War II by Iris Chang. This book describes the mass murder and large scale depravity by the Japanese army during World War II in China. The Rape of Nanking describes the events that occurred before, during and after the invasion and desecration of the Chinese people and their city. Iris Chang was born in Princeton, New Jersey on March 28, 1968. The Chang family then moved to Champagne-Urbana, Illinois due to her mother and father accepting professor positions at the University of Illinois(Becker).... [tags: Iris Chang]
1854 words (5.3 pages)
- In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market.... [tags: Business Finance]
1455 words (4.2 pages)
- Confidential The names in this Observation Report have been changed to protect the privacy of the parents and the child. Student’s Name : Calvin Sex : Male Place of Observation : Inside the classroom of County Preschool. Time of Observation : In the morning, 10.30 a.m. and it was a sunny day. General View : • The classroom was pretty well organized ( clean, tidy and many facilities inside such as books, games, a computer and so on ) • It was a pretty large group in the class, 13 children were there and the teacher was present as well.... [tags: Direct Observation Report 2014]
1000 words (2.9 pages)