Topic: Assessing Firm's Financial Performance for Amway (Malaysia) Holdings Berhad and Ajinomoto (Malaysia) Berhad

Type of analysis: Trend Analysis (3 years)

Period of study: 2019 - 2021

INSTRUCTION:

- This project must be written in Times New Roman 12-pt. Font and double spaced, and submitted as a Microsoft Word document.

OBJECTIVES:

By doing this project, the students will be able to:

- calculate the financial ratios,
- explain the use of financial ratios,
- value the company's performance and
- get themselves familiar with the actual practice of industry financial standards.

REQUIREMENT:

You must choose two companies listed on Bursa Malaysia. You must download the relevant financial data from the website and perform a ratio analysis for the selected companies. The companies MUST be chosen from the CONSUMER PRODUCTS sector only. For additional information, please refer to the Bursa Malaysia website: (http://www.bursamalaysia.com)

Trend analysis signals whether the company's financial health is likely to improve or deteriorate. Each student will perform the trend analysis and compare the performance of these two companies based on the following financial ratios:

- Liquidity ratios- Current ratio
- Quick ratio
- Asset management ratios- Average collection period
- Receivable turnover
- Inventory turnover
- Total asset turnover
- Fixed asset turnover
- Leverage ratios- Debt ratio
- Debt equity ratio
- Time interest earned
- Profitability ratios- Operating profit margin
- Net profit margin
- Return on asset
- Return on equity
- Market value ratio- Earnings per share (EPS)

CONTENT:

The project must adhere to the guidelines given below.

1. Introduction

- describe what you are going to do and why

- followed by the background of the company.

2. Methodology

Calculate every ratio for each firm.

3. Finding and analysis (interpretation)

After showing the calculations, you compare the performance for 3 years (adding a graph in an advantage). Provide an explanation for each ratio (for example, discuss why this situation happen). Do this for all the required ratios one by one. Then you need to explain the performance of these two firms.

4. Conclusion and recommendation

Conclude your work by answering the questions below:

A. What is your judgment of the current financial condition of the company (overall for 5 major ratios)?

i. Liquidity ratio - Does the company look like a good credit risk in the short term? Prove this argument.

ii. Asset Management ratio - How well the company is using its assets? Prove this argument.

iii. Leverage ratio - -Will the company be able to pay off its long-term debt and pay interest as it comes due? Prove this argument.

iv. Profitable ratio - Do you feel the company performs well in terms of its ability to generate profit? Prove your argument.

v. Market value ratio - Do you feel the company represents a good investment? Prove this argument.

B. Provide your recommendations for improvement (if any).

5. References

Reference must be used when appropriate.
https://bit.ly/3NGRwcO