1.

INTRODUCTION Ratio analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as short-term solvency ratios which are the liquidity ratio, debt management ratios, asset management ratios, profitability ratios, and market/book ratios. As our assignment we just have to measured the forth ratio, except the market/book ratio. Ratio Analysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. Because ratio analysis is based upon accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, ratio analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further. There are many concepts to make the ratio analysis. It is based on what concept that you used to make an analysis for the company. Make sure that stay using the same concept for all analysis that you done. It is for your own good. Now, we have the ratio analysis software. What you have to do is just key-in the data and the software will calculate for you. As for our assignment, we are commanded to do the ratio analysis for the company and compare within the 5 years of the company as that we dont have the industry average for construction. The company that we choose is Muhibbah Engineer Sdn. Bhd.

1.1

MUHIBBAH ENGINEER SDN BHD PROFILE Muhibbah Engineering (M) Bhd is a public listed company on the Main Board of the Kuala Lumpur Stock Exchange (KLSE). Muhibbah was the first company in Malaysia to achieve ISO 9002 certification in 1995 in the construction sector, placing strong emphasis on quality and safety in every aspect of operations, and also the first construction company in Malaysia to have accomplished this. Muhibbah is renowned for being a leader in Marine Construction; since its incorporation in 1972. Today, Muhibbah also stands firm in the various discipline of Engineering Construction, both locally and internationally. Their mission and vision is forging ahead with globalization and focus diversification in the pursuit of excellent.

1.1.1

HISTORY 1972 1994 1994 1995 Incorporation of Muhibbah Engineering (M) Bhd Muhibbah listed on the Main Board of Kuala Lumpur Stock Exchange (KLSE) as Muhibbah Engineering (M) Berhad Ventured into overseas market in Australia Ventured into overseas market in Germany Muhibbah achieved the ISO 9002:1994 certification in construction sector in Malaysia for civil, marine, building & steel construction categories 1997 2000 2002 Ventured into crane manufacturing with the acquisition of Favelle Favco Cranes (Australia) Acquisition of Kroll Cranes (Denmark) Ventured into overseas market in Thailand Ventured into overseas market in Sudan Crane division Favelle Favco Cranes in Malaysia receives the ISO 9001:1994 Certification Muhibbah successfully upgraded to new ISO 9001:2000 Certification

2003

Muhibbah receives International Achievement Award from Malaysian CIDB (Construction Industry Development Board) for recognition of Muhibbahs involvement in overseas projects

2004 2006

Muhibbah receives new ISO 14001:2004 certification Favelle Favco Crane upgraded to ISO 9001:2000 certification Crane division Favelle Favco Berhad successfully listed on the Second Board of the Kuala Lumpur Stock Exchange (KLSE) Entered into overseas market in Yemen Ventured into overseas market in Syria Muhibbah received new OHSAS 18001:1999 certification Ventured into overseas market in Qatar Muhibbah upgraded to OHSAS 18001 : 2007 certification

2007 2008 2009 1.1.2

ACHIEVEMENT 1. CATERING FACILITY FOR NEW DOHA INTERNATIONAL AIRPORT

NATIONAL NDIA) PROJECT, QATAR a. Achievement of 1.0 Million Man hours Without Lost Time Accident for NDIA Catering Facility Project (Jan 09) b. The Best Contractor Category (Employee Less Than 5000 Employee). For Outstanding ES&H Performance and House Keeping (June 2009) c. The Best Training & Communication of Year 2009 Award AND The Best Small Contractor Category for Year 2009 Award (for Employee Less Than 5000 Employee) d. Environmental Contractor of the Month, in recognition of their excellence in the 3R program for the month of March 2010. Reduce, Reuse and Recycle e. 7 Million, 6 Million and 5 Million Man-hours Safety Award without Lost Time Accident for NDIA Catering Facility Project (2011). f. 8 Million Man-hours worked without Lost Time Accident for NDIA Catering Facility Project (2012) g. 11,000,000 Man hours worked without Lost Time Accident for NDIA Catering Facility Project (Sept 2012)

2.

EPCIC ALLIANCE FOR THE LNG REGASIFICATION UNIT, ISLAND BERTH AND SUBSEA PIPELINE LEKAS PROJECT, MALACCA a. 500,000 Man-hours worked without Lost Time Incident (2011)

3.

GORGON

LNG

JETTY

&

MARINE

STRUCTURES

PROJECT-

PRE

ASSEMBLY OF HLF & TPBW CAISSON & THE PREPARATION SHIPPING BARGES, TELOK GONG, SELANGOR MALAYSIA a. 5 00,000 Man- hours worked without Lost Time Incident (2012) 4. BERTH K12, K13 & K14 AT KEPPEL TERMINAL, SINGAPORE a. 900,000 Man hours Safety EHS Achievement Award of without Lost Time Incident for Upgrading of Berths K12, K13 & K14 at PSA Keppel Terminal and Dredging Works Project 5. REAM AWARD 2004 FOR SERI WAWASAN BRIDGE (BR9) PROJECT, PUTRAJAYA, MALAYSIA a. Road 6. Engineering Excellence (REAM) Award for 2004 PEW2000 Environmental Award Infrastructure category CIDB INTERNATIONAL PROJECTS OVERSEAS a. Excellence Awards 2003 for International Achievement from the Construction Industry Development Board of Malaysia (CIDB) 7. PAM ARCHITECTURAL STEEL AWARD 2005 FOR TRANSPORT MANAGEMENT CENTRE (TMC), MALAYSIA a. PAM Architectural Steel Design Award 2005 8. HANDING OVER AWARD 1999 FOR TANJUNG PELEPAS WHARF (PHASE 1), MALAYSIA a. Commemorating the Completion and Handing Over Ceremony of Berth 1 & Berth 2, Port of Tanjung Pelepas (July 1999) 9. YEMEN LNG PROJECT a. 500 Man hours Safety Award & 1,000,000 Man hours Safety Hour for project YLNG Jetty and GRP Outfall Pipe laying Works & Other Associated Works at Bal-Half, Sana'a Yemen EXCELLENCE AWARD 2003 FOR VARIOUS

2.0

FINANCIAL STATEMENT ANALYSIS 4

Liquidity Ratio Liquidity ratios measure the ability of a company to repay its short-term debts and meet unexpected cash needs. In this group, it divides into 2 types of ratio that are current ratio and quick or acid ratio. 2.1.1 Current ratio Is also called the working capital ratio, as working capital is the difference between current assets and current liabilities. This ratio measures the ability of a company to pay its current obligations using current assets. The current ratio is calculated by dividing current assets by current liabilities. Different industries have different levels of expected liquidity. Whether the ratio is considered adequate coverage depends on the type of business, the components of its current assets, and the ability of the company to generate cash from its receivables and by selling inventory. Acid-test ratio Is also called the quick ratio. Current assets are defined as cash, marketable (or shortterm) securities, and accounts receivable and notes receivable, net of the allowances for doubtful accounts. These assets are considered to be very liquid (easy to obtain cash from the assets) and therefore, available for immediate use to pay obligations. The acid-test ratio is calculated by dividing quick assets (deduct the inventory) by current liabilities. The traditional rule of thumb for this ratio has been 1:1. Anything below this level requires further analysis of receivables to understand how often the company turns them into cash. It may also indicate the company needs to establish a line of credit with a financial institution to ensure the company has access to cash when it needs to pay its obligations.

Asset Management Ratio

It is measure how effectively the firm is managing its asset. These ratios are designed to answer this question: does the total amount of each type of asset as reported on the balance sheet seem reasonable, too high, or too low in view of current and projected sales levels? If a company has excessive investments in assets, then its operating assets and capital will be unduly high, which will reduce its free cash flow and its stock price. On the other hand, if a company does not have enough assets, it will lose sales, which will hurt profitability, free cash flow, and the stock price. Therefore, it is important to have the right amount invested in assets. There are 4 types of ratio in this group; Inventory turnover ratio It is calculated by dividing the cost of goods sold by average inventory. Average inventory is calculated by adding beginning inventory and ending inventory and dividing by 2. If the company is cyclical, an average calculated on a reasonable basis for the company's operations should be used such as monthly or quarterly. Days sales outstanding Also known as average collection period, is a variation of receivables turnover. It calculates the number of days it will take to collect the average receivables balance. It is often used to evaluate the effectiveness of a company's credit and collection policies. A rule of thumb is the average collection period should not be significantly greater than a company's credit term period. The average collection period is calculated by dividing 365 by the receivables turnover ratio. The decrease in the average collection period is favorable. If the credit period is 60 days, the 20X1 average is very good. However, if the credit period is 30 days, the company needs to review its collection efforts. It is calculated by dividing accounts receivable by average daily sales to find the number of days sales that are tied up in receivable. Fixed assets turnover ratio. It is measure how effectively the firm uses its plant and equipment. Ii is the ratio of sales to net fixed assets. A potential problem can exist when interpreting the fixed assets turnover ratio. Recall from accounting that fixed assets reflect the historical costs of the assets. Inflation has caused the value of many assets that were purchased in the past to be seriously understood. Therefore, if we were comparing an old firm that had acquired many of its fixed assets years ago at low prices with a new company that had acquired its fixed assets only recently, we would probably find that the old firm had the higher 6

fixed asset turnover ratio. However, this would be more reflective of the difficulty accountants have in dealing with inflation than of any inefficiency on the part of the new firm. The accounting profession is trying to devise ways to make financial statements reflect current values rather than historical values. If balance sheet were actually stated on a current value basis, this would help us make better comparisons, but at the moment the problem still exists. Because financial analysis typically does not have the data necessary to make these adjustments, they simply recognize that a problem exists and deal with it judgmentally. This can be measured by dividing the sales to net fixed assets. Total assets turnover. It is measures the turnover of all the firms assets. It is calculated by dividing sales by total assets. 2.3 Debt Management Ratios Attempt to measure the firm's use of financial leverage and ability to avoid financial distress in the long run. These ratios are also known as Long-Term Solvency Ratios. Debt is called Financial Leverage because the use of debt can improve returns to stockholders in good years and increase their losses in bad years. Debt generally represents a fixed cost of financing to a firm. Thus, if the firm can earn more on assets which are financed with debt than the cost of servicing the debt then these additional earnings will flow through to the stockholders. Moreover, our tax law favors debt as a source of financing since interest expense is tax deductible. With the use of debt also comes the possibility of financial distress and bankruptcy. The amount of debt that a firm can utilize is dictated to a great extent by the characteristics of the firm's industry. Firms which are in industries with volatile sales and cash flows cannot utilize debt to the same extent as firms in industries with stable sales and cash flows. Thus, the optimal mix of debt for a firm involves a tradeoff between the benefits of leverage and possibility of financial distress.

Debt ratio

It measured the percentages of funds provided by sources other than equity. Creditors prefer low debt ratios because the lower the ratio, the greater the cushion against creditors losses in the event of liquidation. Stockholders, on the other hand may want more leverage because it magnifies expected earnings. It can be calculate by dividing the total liability to total assets. Time interest earned. It is determined by dividing earnings before interest and taxes by the interest charges. The T.I.E ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs. Failure to meet this obligation can bring legal action by the firms creditors, possibly resulting in bankruptcy note that earnings before interest and taxes, rather than net income, are used in the numerator. Because interest is paid with pre-tax dollars, the firms ability to pay current interest is not affected by taxes. TIE can be calculated by dividing the EBIT to interest charges. Profitability Ratio Profitability ratios measure a company's operating efficiency, including its ability to generate income and therefore, cash flow. Cash flow affects the company's ability to obtain debt and equity financing. Profit margin on sales. Gross profit is what is left after the costs of goods sold have been subtracted from net sales (also known as net income). Cost of goods sold, also called cost of sales, is the price paid by your company for the products it sold during the period you are considering. It is the price of the goods, including inventory or raw materials and labor used in production, but it does not include selling or administrative expenses. The ratio of gross profit as a percentage of sales is an important indicator of your companys financial health. Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future. This can be measured by dividing the net income by sales, gives the profit per dollar of sales.

B.E.P (Basic Earning Power).

This ratio shows the raw earning power of the firms assets, before the influence of taxes and leverages, and it is useful for comparing firms with different tax situations and different degrees of financial leverage. The B.E.P can be measured by dividing earnings before interest and taxes (EBIT) by total assets. Return on Total Assets (ROA). The return on total assets ratio (ROA) is considered an overall measure of profitability. It measures how much net income was generated for each $1 of assets the company has. ROA is a combination of the profit margin ratio and the asset turnover ratio. It can be calculated separately by dividing net income by average total assets or by multiplying the profit margin ratio times the asset turnover ratio. Return on Common Equity ratio (ROE). The return on common stockholders' equity (ROE) measures how much net income was earned relative to each dollar of common stockholders' equity. It is calculated by dividing net income by average common stockholders' equity. In a simple capital structure (only common stock outstanding), average common stockholders' equity is the average of the beginning and ending stockholders' equity.

3.0 3.1

ANALYSIS GRAPH FOR EACH RATIO CALCULATION FOR RATIO

SUMMARY 2009 BIL DESCRIPTION QTTY UNIT 10

1.

LIQUIDITY RATIO a. Current Ratio b. Quick Ratio ASSET MANAGEMENT a. Inventory turnover b. Days Sales Outstandings (DSO) c. Fixed Asset Turnover d. Total Asset Turnover DEBT MANAGEMENT a. Debt Ratio b. Times-Interest-Earned PROFITABILITY a. Profit Margin on Sales b. Gross Profit c. Basic Earning Power (BEP) d. Return on Total Asset (ROA) e. Return on Common Equity (ROE)

1.02 0.91

time time

2.

11.25 165.00 3.13 0.89

time day time time

3.

78.30 17.35

% time

4.

1.28 6.32 2.02 1.14 6.42

% % % % %

1.

LIQUIDITY RATIO a. Current Ratio 11

Current ratio

Total Current Asset Total Current Liabilities 1,823,571,00 0.00 1,781,795,00 0.00 1.02 times

RM RM

b.

Quick Ratio Quick ratio = Total Current Asset - Inventories Total Current Liabilities 1,823,571,00 200,166,000.0 0.00 RM 0 1,781,795,000.0 RM 0 1,623,405,00 0.00 1,781,795,00 0.00 0.91 times

RM

RM RM

2.

ASSET MANAGEMENT a. Inventory Turnover 12

Inventory Turnover

Sales Inventory 2,252,049,00 0.00 200,166,0 00.00

RM RM

= b. Days Sales Outstanding (DSO) DSO =

11.25 times

Receivable Annual Sales/Days 1,018,062,000.0 RM 0 2,252,049,00 0.00 / 365 days 1,018,062,00 0.00 6,169,9 97.26

= RM

RM RM

day

165.00 day

c.

Fixed Asset Turnover Fixed Asset Turnover = Sales Net Fixed Asset 2,252,049,00 0.00 718,552,0 00.00

RM RM

3.13 times

d.

Total Asset Turnover Total Asset Turnover = Sales 13

Total Asset 2,252,049,00 0.00 2,542,123,00 0.00

RM RM

0.89 times

3.

DEBT MANAGEMENT a. Debt Ratio Debt Ratio = Total Liabilities Total Assets 1,990,431,00 0.00 2,542,123,00 0.00

RM RM

100%

= b. Time-Interest-Earned (TIE) TIE =

78.30 %

Earning Before Taxes and Interest Interest Chargest 51,464,0 00.00 2,966,0 00.00

RM RM

17.35 times

4.

PROFITABILITY a. Profit Margin Sales 14

Profit Margin on Sales

Net income available to common stockholder sales 28,885,0 00.00 2,252,049,00 0.00

RM RM

100%

= b. Gross Profit Gross Profit =

1.28 %

Gross Profit sales 142,435,0 00.00 2,252,049,00 0.00

RM RM

100%

= c. Basic Earning Power (BEP) BEP =

6.32 %

Earning Before Taxes and Interest Total Assets 51,464,0 00.00 2,542,123,00 0.00

RM RM

100%

2.02 %

d.

Return on Total Assets (ROA) ROA = = RM Net income available to common stockholder Total Assets 28,885,0 x 100% 15

RM = 1.14 %

00.00 2,542,123,00 0.00

e.

Return on Common Equity (ROE) ROE = Net income available to common stockholder Common Equity 28,885,0 00.00 450,188,0 00.00 6.42 %

RM RM

100%

SUMMARY 2010

BIL

DESCRIPTION

QTTY

UNIT

1.

LIQUIDITY RATIO 16

a. Current Ratio b. Quick Ratio 2. ASSET MANAGEMENT a. Inventory turnover b. Days Sales Outstandings (DSO) c. Fixed Asset Turnover d. Total Asset Turnover 3. DEBT MANAGEMENT a. Debt Ratio b. Times-Interest-Earned 4. PROFITABILITY a. Profit Margin on Sales b. Gross Profit c. Basic Earning Power (BEP) d. Return on Total Asset (ROA) e. Return on Common Equity (ROE)

1.05 0.95

time time

9.88 185.00 2.20 0.65

time day time time

79.36 5.88

% time

6.60 9.31 1.34 4.31 25.86

% % % % %

17

1.

LIQUIDITY RATIO

a.

Current Ratio

Current ratio

Total Current Asset Total Current Liabilities 1,904,543,000.0 0 1,822,022,000.0 0

RM RM

1.05 times

b.

Quick Ratio

Quick ratio

Total Current Asset - Inventories Total Current Liabilities 1,904,543,000. 00 RM 1,822,022,000.0 RM 0 1,725,425,000. 00 1,822,022,000. 00

RM

179,118,000.00

RM RM

0.95 times

18

2.

ASSET MANAGEMENT

a.

Inventory Turnover

Inventory Turnover

Sales Inventory 1,768,884,000. 00 179,118,000 .00

RM RM

9.88 times

b.

Days Sales Outstanding (DSO)

DSO

Receivable Annual Sales/Days 896,562,000. RM 00 1,768,884,000. 00 / 365 days

= RM

19

RM RM

896,562,000 .00 4,846,257 .53

day

= 185.00 day

c.

Fixed Asset Turnover

Fixed Asset Turnover

Sales Net Fixed Asset 1,768,884,000. 00 804,262,000 .00

RM RM

2.20 times

d.

Total Asset Turnover

Total Asset Turnover

Sales Total Asset 1,768,884,000. 00 2,708,805,000. 00

RM RM

0.65 times

3.

DEBT MANAGEMENT 20

a.

Debt Ratio

Debt Ratio

Total Liabilities Total Assets 2,149,740,000. 00 2,708,805,000. 00

RM RM

100%

79.36 %

b.

Time-Interest-Earned (TIE)

TIE

Earning Before Taxes and Interest Interest Chargest 36,220,000 .00 6,156,000 .00

RM RM

5.88 times

4.

PROFITABILITY

a.

Profit Margin Sales 21

Profit Margin on Sales

Net income available to common stockholder sales 116,778,000 .00 1,768,884,000. 00

RM RM

100%

6.60 %

b.

Gross Profit

Gross Profit

Gross Profit sales 164,711,000 .00 1,768,884,000. 00

RM RM

100%

9.31 %

c.

Basic Earning Power (BEP)

BEP

Earning Before Taxes and Interest Total Assets 36,220,000 .00 2,708,805,000. 00

RM RM

100%

1.34 %

22

d.

Return on Total Assets (ROA)

ROA

Net income available to common stockholder Total Assets 116,778,000 .00 2,708,805,000. 00

RM RM

100%

4.31 %

d.

Return on Common Equity (ROE)

ROE

Net income available to common stockholder Common Equity 116,778,000 .00 451,514,000 .00

RM RM

100%

25.86 %

23

SUMMARY 2011

BIL

DESCRIPTION

QTTY

UNIT

1.

LIQUIDITY RATIO a. Current Ratio b. Quick Ratio 1.00 0.90 time time

2.

ASSET MANAGEMENT a. Inventory turnover b. Days Sales Outstandings (DSO) c. Fixed Asset Turnover d. Total Asset Turnover 9.98 160.51 2.19 0.70 time day time time

3.

DEBT MANAGEMENT a. Debt Ratio b. Times-Interest-Earned 77.85 8.98 % time

4.

PROFITABILITY a. Profit Margin on Sales b. Gross Profit c. Basic Earning Power (BEP) d. Return on Total Asset (ROA) e. Return on Common Equity (ROE) 4.23 10.02 3.48 2.97 16.65 % % % % % 24

1.

LIQUIDITY RATIO

a.

Current Ratio

Current ratio

Total Current Asset Total Current Liabilities 1,961,975,00 0.00 1,953,221,00 0.00

RM RM

1.00 times

b.

Quick Ratio

Quick ratio

Total Current Asset - Inventories Total Current Liabilities 25

RM

1,961,975,00 0.00 RM 1,953,221,000.0 RM 0 1,759,010,00 0.00 1,953,221,00 0.00

202,965,000.0 0

RM RM

0.90 times

2.

ASSET MANAGEMENT a. Inventory Turnover Inventory Turnover = Sales Inventory 2,026,366,00 0.00 202,965,00 0.00 9.98 times 26

RM RM

b.

Days Sales Outstanding (DSO) DSO = Receivable Annual Sales/Days 891,074,000. RM 00 2,026,366,00 0.00 / 365 days 891,074,00 0.00 5,551,68 7.67

= RM

RM RM

day

= c. Fixed Asset Turnover Fixed Asset Turnover =

160.51 day

Sales Net Fixed Asset 2,026,366,00 0.00 926,948,00 0.00

RM RM

= d. Total Asset Turnover Total Asset Turnover =

2.19 times

Sales Total Asset 2,026,366,00 0.00 2,888,923,00 0.00

RM RM

0.70 times

3.

DEBT MANAGEMENT 27

a.

Debt Ratio Debt Ratio = Total Liabilities Total Assets 2,248,947,00 0.00 2,888,923,00 0.00

RM RM

100%

= b. Time-Interest-Earned (TIE) TIE =

77.85 %

Earning Before Taxes and Interest Interest Chargest 100,497,00 0.00 11,185,00 0.00

RM RM

8.98 times

4.

PROFITABILITY a. Profit Margin on Sales Profit Margin on Sales = Net income available to common stockholder sales 85,815,00 0.00 2,026,366,00 0.00

RM RM

100%

= b. Gross Profit Gross Profit =

4.23 %

Gross Profit 28

sales 203,000,00 0.00 2,026,366,00 0.00

RM RM

100%

= c. Basic Earning Power (BEP) BEP =

10.02 %

Earning Before Taxes and Interest Total Assets 100,497,00 0.00 2,888,923,00 0.00

RM RM

100%

3.48 %

d.

Return on Total Assets (ROA) ROA = Net income available to common stockholder Total Assets 85,815,00 0.00 2,888,923,00 0.00 2.97 %

RM RM

100%

d.

Return on Common Equity (ROE) ROE = Net income available to common stockholder Common Equity 29

RM RM

85,815,00 0.00 515,393,00 0.00

100%

16.65 %

30

3.2 1.

ANALYSIS RATIO LIQUIDITY RATIO a. Current Ratio YEAR 2007 2008 2009 2010 2011

TIME 1.08 0.98 1.02 1.05 1.00

31

In 2007, the current ratio of 1.08 times. Therefore, the current ratio in 2007 was the highest compared to 5 years. Later in 2008, the current ratio declined sharply to reach 0.98 times. Current ratio in COMMENTS 2008 is the weakest. Later in 2009, the current ratio increased again until the 1:02 times and in 2010 also increased by up to 1.05 times. in 2009 and in 2010, the current ratio is in good condition when compared with 2008. In 2011 the current ratio of 1:00 and weak times. In 2007, current liabilities are higher than current asset, cause the current ratio for 2007 increased. However, in 2008 the current PROBLEMS liabilities greater than current assets, causing the current ratio for the year fell and the company experienced problems. But in the years 2009 to 2011, current assets increased compared to current liabilities, resulting in an increase in the current ratio. If these companies want to increase the current ratio. Things such as this may help to stabilize the position of the company's current ratio. such as collecting outstanding accounts receivable, pay some SOLUTION current liabilities, convert fixed assets to cash: sell equipment that is not used, the increase of current assets with new equity investments, take a few owners of production and reinvest profits back into the business, improve your cash balance with long-term loans.

Current ratio below 1.00 shows critical liquidity problems because it CONCLUSION means that total current liabilities exceed total current assets. So to increase the current ratio, the current liability must be reduced.

b.

Quick ratio YEAR 2007

TIME 0.94 32

2008 2009 2010 2011

0.87 0.91 0.95 0.90

Q uickRatio
0.96 0.94 0.92 0.90 0.88 0.86 0.84 0.82 2007 2008 2009 Y r ea 2010 2011 quick ratio

e m i T

33

Quick ratio in 2007 was 0.94 times. In 2008, Quick ratio of 0.87 to be very weak. In 2008, it decreased dramatically. In 2009, Quick COMMENTS ratio of 0.91 times increased again. Quick ratio this year is in good condition. Quick ratio increased again in 2010, 0.95 times. The year 2010 has a quick ratio is excellent. Next, in 2011, the quick ratio decreased up to 0.90 times. It is in poor condition.

34

A common rule of thumb is that companies with a quick ratio of greater than 1.0 are sufficiently able to meet their short-term PROBLEMS liabilities. Based on graph, all 5 year of quick ratio lower than 1.0, so that company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly.

Quick ratio is somewhat similar to the current ratio, but excludes SOLUTION inventory from current assets, it can be improved through a lot of the same actions that will increase the current ratio. Convert inventory to cash or accounts receivable also increase this ratio.

Company would liquidate its current assets to pay current liabilities, which is not always realistic, considering some level of working capital is needed to maintain operations. It is also important to understand that the timing of asset purchases, payment and CONCLUSION collection policies, allowances for bad debt and even capital-raising efforts can all impact the calculation and can result in different quick ratios for similar companies. Capital needs that vary from industry to industry can also have an effect on quick ratios. For these reasons, liquidity comparisons are generally most meaningful among companies within the same industry.

2.

ASSET MANAGEMENT

a.

Inventory Turnover YEAR 2007 2008 2009 2010 TIME 8.83 9.43 11.25 9.88 35

2011

9.98

Inv entoryT urnover

12.00 10.00 8.00 6.00 4.00 2.00 0.00 2007 2008 2009 Yea r 2010 2011 Inventory Turnover

COMMENTS

e m i T

Inventory Turnover in 2007 had a very weak as compared to 8.83 times the next 5 years. Inventory Turnover in 2008 was 9:43 times. It increased slightly compared with the previous year. In 2009, the Inventory Turnover rose again reached 11.25 times. The year 2009 was a year with very good Inventory Turnover. In 2010, the Inventory Turnover declined slightly but still in good condition. Inventory Turnover in 2011 was 9.98 times. It rose again and is in better 36

condition than the previous year. Based on graph, the company is replenishing cash quickly and has a lower risk of becoming stuck with obsolete inventory. It may indicate a company is enjoying strong sales or practicing just-in-time inventory PROBLEMS methods. However, higher is not always better, and exceptionally high inventory turnover may indicate a company is running out of items frequently or making ineffective purchases and therefore losing sales to competitors. Inventory turnover is a measure of the number of times that inventory converts to sales in a period. Generally, the faster the products sell, the better and more efficient is the inventory operation. The higher the SOLUTION inventory turnover is, the less of a financial investment you need to put into inventory to keep the operation running. If you have challenges in this area, devise a strategy to improve your inventory turnover rate by either increasing goods sold or decreasing your investment. A higher value indicates better performance and lower value means inefficiency in controlling inventory levels. A lower inventory turnover ratio may be an indication of overstocking which may pose risk of obsolescence and increased inventory holding costs. However, a very CONCLUSION high turnover may result in loss of sales due to inventory shortage. Inventory turnover is different for different industries. Businesses which trade in perishable goods have very higher turnover with comparison to those dealing in durables

b.

Day Sales Outstanding (DSO) YEAR 2007 2008 2009 2010 2011 DAYS 98.42 129.41 165.00 185.00 160.51 37

D S ays alesOutstanding(D O S)
200.00 150.00 DSO 100.00 50.00 0.00 2007 2008 2009 Yea r 2010 2011

s y a D

Day Sales Outstanding (DSO) in 2007 was 98 days. DSO in 2007 was very good compared to 5 years. In 2008, 2009, 2010 DSO COMMENTS increased dramatically. DSO in 2008 was 129 days, in 2009 was 165 days and in 2010 is 185 days. All three of these have a DSO is not satisfactory due to take quite a long time. In 2011, the DSO decreased slightly by 161 days but still in poor condition. PROBLEMS Based on graph, in year 2007, length of time that the company wait after making a sales before receiving cash more faster compare 38

with 2008 until 2011. It need more time to wait the company to receive cash after making the sales.

The lower of a day sales outstanding in a company shows the company is well positioned. Thus, the reduction in annual sales SOLUTION each year will affect the Day sales outstanding. Thus, the stability between receivable and annual sales should be balanced to stabilize days sales outstanding position for the company.

Since it is profitable to convert sales into cash quickly, this means that a lower value of Days Sales Outstanding (DSO) is favorable CONCLUSION whereas a higher value is unfavorable. However it is more meaningful to create monthly or weekly trend of DSO. Any significant increase in the trend is unfavorable and indicates inefficiency in credit sales collection.

c.

Fixed Asset Turnover YEAR TIME 2007 2.87 2008 2.89 2009 3.13 2010 2.20 2011 2.19

39

Fixed Asset Turnover in 2007 was 2.87 times. In 2008, Fixed Asset Turnover increased marginally 2.89 times. In 2009, the Fixed Asset COMMENTS Turnover rose again up to 3.13 times. Fixed Asset Turnover in 2009 was the highest compared to other years. In 2010, the Fixed Asset Turnover dropped sharply to reach 2.20 times. In 2011, the Fixed Asset Turnover has decreased up to 2.19 times. The year 2011 has a Fixed Asset Turnover most little and weak. PROBLEMS The flow of graph show that the time of fixed asset turnover is starting rise gradually and then decrease slowly. It show that this company does not has sustain their company of effectively and efficiently by using its fixed assets to generate revenues. An increasing trend in fixed assets turnover ratio is desirable because it 40

means that the company has less money tied up in fixed assets for each unit of sales. A declining trend in fixed asset turnover may mean that the company is over investing in the property, plant and equipment. If the fixed asset turnover ratio is too high, then the business firm is likely operating over capacity and needs to either increase its asset base (plant, property, equipment) to support its sales or reduce its SOLUTION capacity. This ratio is usually used in capital-intensive industries where major purchases are for fixed assets. This ratio should be used in subsequent years to see how effective the investment in fixed assets has been. Fixed asset turnover ratio which is comparison between the sales revenue a company to its fixed assets. This ratio indicates the CONCLUSION productivity of fixed assets in generating revenues. If a company has a high fixed asset turnover ratio, it shows that the company is efficient at managing its fixed assets. Fixed assets are important because they usually represent the largest component of total assets.

d.

Total Asset Turnover YEAR TIME 2007 0.80 2008 0.78 2009 0.89 2010 0.65 2011 0.70

41

In 2007, Total Asset Turnover is good which is 0.80 times. Total Asset Turnover in 2008 decreased slightly by 0.78 times. Later in 2009, Total Asset Turnover increased to 0.89 times. Year 2009 Total Asset COMMENTS Turnover has the best compared to others. In 2010, Total Asset Turnover dropped to 0.65 times and Total Asset Turnover in 2011 increased again to be 0.70 times. Total Asset Turnover in 2011 was satisfactory. The lowest time of total asset turnover show that the more sluggish the firm's sales. This may indicate a problem with one or more of the asset PROBLEMS categories composing total assets - inventory, receivables, or fixed assets. The small business owner should analyze the various asset classes to determine in which current or fixed asset the problem lies. The problem could be in more than one area of current or fixed assets. 42

The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. There is no standard guideline about the best level of asset turnover ratio. Therefore, it is important to SOLUTION compare the asset turnover ratio over the years for the same company. This comparison will indicate whether the company is performing better or worse than others. To make the total asset turnover is excellent, this company should utilize all its assets - its asset base - efficiently to generate sales and that is a very good thing. This ratio is a measure of how efficiently a company's assets generate revenue. It measures the number of dollars of revenue generated by one dollar of the company's assets. CONCLUSION It is only when the ratio is compared in the company over time and when it is compared to other companies in its industry that it begins to reveal how effective the company is. If the ratio is increasing over time, it means that the company is becoming more efficient in generating revenues. If the ratio decreases over time, it could mean that the company is purchasing more assets than it can use effectively.

3.

DEBT MANAGEMENT a. Debt Ratio YEAR PERCENT (%) 2007 73.76 2008 79.73 2009 78.30 2010 79.36 2011 77.85

43

D R ebt atio
82.00 80.00 78.00 76.00 74.00 72.00 70.00 2007 2008 2009 Y r ea 2010 2011 Debt Ratio

) % ( g a t n c r e P

From this graph, it can be conclude that the most highest percentage debt ratio in year 2008 which is 79.73% while the most lowest percentage in year 2007 as much 73.76% . Within 5 years, percentage debt ratio start with COMMENTS 73.76% in year 2007 and ending with 77.85% in year 2011. Hence it show that the fluctuation wisely of this graph. Then , on year 2008 the percentage gradually rise until reach 79.73% . Next , 1.43% slightly decline from 79.73 to 78.30% on following year in year 2009. In year 2010, the percentage of debt ratio is 79.36% which is rise gradually with 1.06% from previous year. The percentage of debt ratio begin rise from 2007 and then located the PROBLEMS highest in 2008 and also in year 2010 . A debt ratio of greater than 1 indicates that a company has more debt than assets, meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.

44

Proposed a lower ratio is better. Value of 1 or less in debt ratios shows good financial health of a company. The lower the company's reliance on debt for asset formation, the less risky the company is. On the other hand, the higher SOLUTION ratio means a company has high insolvent risk since excessive debt can lead to a heavy debt repayment burden. A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. These ratios compare the company's debt load to its net worth. The higher the debts are in relation to net worth, the more leveraged the company. It also as an expression of the relationship between a companys total debt and CONCLUSION asset, is a measure of the ability to service the debt of a company. It indicates what proportion of a companys financing asset is from debt, making it a good way to check a companys long-term solvency. The debt ratio also can help investors determine a company's level of risk. This ratio also meaning a measure of the financial stability of a company, is a common evaluation for any investment which requires a loan. b. Time-Interest-Earned (TIE) YEAR 2007 2008 2009 2010 2011 TIME 23.55 7.99 17.35 5.88 8.98

45

This graph start with 23.55 time interest-earned in year 2007. Later, in year 2008 the time-interest-earned dramatically slump until it reach 7.99 COMMENTS time only on that year.On the following year, it climbed steadily with 9.36 time in year 2009. Then, in year 2010 time-interest-earned substantially decrease almost 11.47 time. Finally , it rise slightly to reach 8.98 timeinterest-earned in year 2011. 2007 is a lot of time-interest-earned with 23.55 time while 2010 is the most little with 5.88 time. In year of 2010 is the most lowest time interest earned which means fewer PROBLEMS earnings are available to meet interest payments. Failing to meet these obligations could force a company into bankruptcy. It is used by both lenders and borrowers in determining a companys debt capacity.

46

Higher value of times interest earned ratio is favourable meaning greater ability of a business to repay its interest and debt. Lower values are unfavourable. In general, times interest earned of 1.5 or below is unsafe. A ratio of 1.00 means that income before interest and tax of the business SOLUTION is just enough to pay off its interest expense. That is why times interest earned ratio is of special importance to creditors. They can compare the debt repayment ability of similar companies using this ratio. Other things equal, a creditor should lend to a company with high times interest earned ratio.

Times interest earned ratio measures a companys ability to continue to service its debt. It is an indicator to tell if a company is running into financial trouble. A high ratio means that a company is able to meet its interest obligations because earnings are significantly greater than annual CONCLUSION interest obligations. However, a high ratio can also mean that a company has an undesirably low level of leverage or pays down too much debt with earnings that could be used for other investment opportunities to get higher rate of return. It is a solvency ratio measuring the long term viability of a business to pay off its debts. 4. PROFITABILITY

a.

Profit Margin on Sales PERCENT YEAR (%) 2007 2008 2009 2010 2011 6.40 1.71 1.28 6.60 4.23

47

ProfitMarg onS in ales

8.00 6.00 4.00 Profit Margin on Sales

) % ( g a t n c r e P

2.00 0.00 2007 2008 2009 Y r ea 2010 2011

Profit Margin On Sales in 2007 of 6.40%. After that, Profit Margin On Sales declined sharply by 1.71% in 2008. Followed, in 2009 Profit COMMENTS Margin On Sales declined further by 28.1% ie. This shows Profit Margin On Sales for the year are very weak compared to other years. Next, in 2010 it rose to the highest percentage of 6.60%. This shows Profit Margin On Sales rank well. In 2011 it fell by 4.23% and this shows it weak.

48

The profit margin On sales is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so PROBLEMS much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss, or a negative margin.

Profit margin is an indicator of a company's pricing strategies and how SOLUTION well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies

Low profit margin a ratio indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues. A low profit CONCLUSION margin ratio indicates that the business is unable to control its production costs. The profit margin ratio provides clues to the company's pricing, cost structure and production efficiency. The profit margin ratio is a good ratio to benchmark against competitors.

b.

Gross Profit PERCENT (%) 11.28 6.59 6.32 9.31 10.02

YEAR 2007 2008 2009 2010 2011

49

In period of 5 years, the percentage of gross profit begin with 11.28% in year 2007.Then, the percentage considerably decline almost 4.69% in year 2008 and it continue decrease on next following year until reach COMMENTS 6.32% in year 2009 .In year 2010, the percentage of gross profit rise slowly with 2.99% to make that year become 9.31%.Lastly, the percentage is continued increase until it reach 10.02%. Therefore, the most highest percentage gross profit is 11.28% in year of 2007 while the most lowest percentage is 6.32% in year 2009.

50

Based on graph, higher the gross profit ratio, the better it is as it implies that the cost of production of the company is relatively low or that the PROBLEMS company is able to realize higher sales price for its goods and services. A low margin may indicate that the company has a very high production cost for its goods and services or its sale price is very low. It is a measure to assess the availability of the portion of revenue that is left after paying for the goods that were sold. The available portion is used SOLUTION to fund other operating expenses including fixed costs and provide a return to the owners of the business. An analysis of factors responsible for low margin must be carried out to ensure correction and sustenance of the business. The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication of financial health. Without an adequate gross margin, a company will be unable to pay its operating and CONCLUSION other expenses and build for the future. this company has a highest gross margin of 11.28 % in 2007 . In general, a company's gross profit margin should be stable. It should not fluctuate much from one period to another, unless the industry it is in has been undergoing drastic changes which will affect the costs of goods sold or pricing policies.

c.

Basic Earning Power (BEP) YEAR 2007 2008 2009 2010 2011 PERCENT (%) 4.85 0.96 2.02 1.34 3.48

51

52

Based on this graph, the mot highest percentage of basic earning power is 4.85% in beginning of year 2007 meanwhile the most lowest is 0.96% COMMENTS which is following year after that in year 2008. Then , in 2009 the percentage is increase rapidly with 1.06% from 0.96% Between year of 2009 to 2010, it slightly decline to reach 1.4% on that year. Next year which is 2011, the percentage is gradually increase with 2.14% to become 3.48% . Based on this graph, In 2009 BEP is 0.96%. BEP this year was the lowest PROBLEMS and weaker than other years. Many metrics are used to solely determine a company's earnings power. Analyzing a company's return on assets (ROA) and return on equity (ROE) determines the company's ability to generate profit from its assets and shareholder's equity, respectively. This company may place greater importance on certain metrics for earnings power purposes compared to others. The dividend yield may be SOLUTION more relevant for a long-lived blue chip company compared to a rapidly growing start-up, because the start-up will more likely be investing its money back into the firm to sustain its growth rather than dispensing dividends.

A business's ability to generate profit from conducting its operations. CONCLUSION Earnings power is used to analyze stocks to assess whether the underlying company is worthy of investment. Possessing greater longterm earnings power is one indication that a stock may be a good investment.

d.

Return on Total Assets (ROA) 53

YEAR 2007 2008 2009 2010 2011

PERCENT (%) 5.15 1.34 1.14 4.31 2.97

54

From this graph, it can be conclude that the starting of year 2007 is the highest percentage of return on total assets meanwhile the lowest percentage is 1.14% in year 2009. In the second year, which is 2008 the COMMENTS percentage decreased dramatically with almost 3.81% Then , the percentage continued go down to reach 1.14% in year 2009. Next, the following year show that the graph steadily increases with 3.17% in year 2010. Lastly, in year 2011, the percentage of return on total asset is 2.97% which is decline of 1.34%. Based on graph, the assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of PROBLEMS how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. In 2009 ROA is 1.14%. This year ROA is not very good compared to other years. Based on this graph, company is better at converting its investment into profit. When you really think about it, management's most important job is SOLUTION to make wise choices in allocating its resources. Anybody can make a profit by throwing a ton of money at a problem, but very few managers excel at making large profits with little investment. In conclusion, an indicator of how profitable a company is relative to its CONCLUSION total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".

55

e.

Return on Common Equity (ROE) YEAR PERCENT (%) 2007 23.39 2008 7.90 2009 6.42 2010 25.86 2011 16.65

COMMENTS

This graph of return on common equity starts with 23.39% in year of 2007. In the following year which is in 2008, it decline substantially with almost 15.49% and then keep go down until it reach 6.42% in year of 2009.In year 2010, the percentage of return on common equity increase rapidly with 25.86% on that year. Lastly, it decrease slightly by 9.21% to make 56

that year only has 16.65% . From this graph it show that 25.86% is the most highest percentage in year 2010 while the most lowest is 6.42% in year 2009.

Based on graph, it is important to note that if the value of the shareholders' equity goes down, ROE goes up. Thus, write-downs and PROBLEMS share buybacks can artificially boost ROE. Likewise, a high level of debt can artificially boost ROE; after all, the more debt a company has, the less shareholders' equity it has (as a percentage of total assets), and the higher its ROE is. ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. It also indicates how well a company's SOLUTION management is deploying the shareholders' capital. In other words, the higher the ROE the better. Falling ROE is usually a problem. As a result, comparisons of returns on equity are generally most meaningful among companies within the same industry, and the definition of a "high" or "low" ratio should be made within this context. In conclusion, net income is considered for the full fiscal year after taxes and preferred stock dividends but before common stock dividends. Shareholders' Equity does not include preferred stocks and is used as an annual average. Return on Equity varies substantially across different CONCLUSION industries. Therefore, this company recommended to compare return on equity against company's previous values or return of a similar company. Some industries have high return on equity because they require less capital invested. Return on Equity is one of the profitability ratios and is usually expressed as a percentage. 4.0 CONCLUSION

In conclusion, it can be concluded over the past 5 years, the company Muhibbah Engineering Sdn Bhd has a strong financial position in terms of the ratios of the analysis that has been made. 57

Current ratio below 1.00 shows critical liquidity problems because it means that total current liabilities exceed total current assets. So to increase the current ratio, the current liability must be reduced. Company would liquidate its current assets to pay current liabilities, which is not always realistic, considering some level of working capital is needed to maintain operations. It is also important to understand that the timing of asset purchases, payment and collection policies, allowances for bad debt and even capital-raising efforts can all impact the calculation and can result in different quick ratios for similar companies. Capital needs that vary from industry to industry can also have an effect on quick ratios. For these reasons, liquidity comparisons are generally most meaningful among companies within the same industry. A higher value indicates better performance and lower value means inefficiency in controlling inventory levels. A lower inventory turnover ratio may be an indication of overstocking which may pose risk of obsolescence and increased inventory holding costs. However, a very high turnover may result in loss of sales due to inventory shortage. Inventory turnover is different for different industries. Businesses which trade in perishable goods have very higher turnover with comparison to those dealing in durables Since it is profitable to convert sales into cash quickly, this means that a lower value of Days Sales Outstanding (DSO) is favorable whereas a higher value is unfavorable. However it is more meaningful to create monthly or weekly trend of DSO. Any significant increase in the trend is unfavorable and indicates inefficiency in credit sales collection.

Fixed asset turnover ratio which is comparison between the sales revenue a company to its fixed assets. This ratio indicates the productivity of fixed assets in generating revenues. If a company has a high fixed asset turnover ratio, it shows that the company is efficient at managing its fixed assets. Fixed assets are important because they usually represent the largest component of total assets. This ratio is a measure of how efficiently a company's assets generate revenue. It measures the number of dollars of revenue generated by one dollar of the company's 58

assets. It is only when the ratio is compared in the company over time and when it is compared to other companies in its industry that it begins to reveal how effective the company is. If the ratio is increasing over time, it means that the company is becoming more efficient in generating revenues. If the ratio decreases over time, it could mean that the company is purchasing more assets than it can use effectively. These ratios compare the company's debt load to its net worth. The higher the debts are in relation to net worth, the more leveraged the company. It also as an expression of the relationship between a companys total debt and asset, is a measure of the ability to service the debt of a company. It indicates what proportion of a companys financing asset is from debt, making it a good way to check a companys long-term solvency. The debt ratio also can help investors determine a company's level of risk. This ratio also meaning a measure of the financial stability of a company, is a common evaluation for any investment which requires a loan. Times interest earned ratio measures a companys ability to continue to service its debt. It is an indicator to tell if a company is running into financial trouble. A high ratio means that a company is able to meet its interest obligations because earnings are significantly greater than annual interest obligations. However, a high ratio can also mean that a company has an undesirably low level of leverage or pays down too much debt with earnings that could be used for other investment opportunities to get higher rate of return. It is a solvency ratio measuring the long term viability of a business to pay off its debts.

59

Low profit margin a ratio indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues. A low profit margin ratio indicates that the business is unable to control its production costs. The profit margin ratio provides clues to the company's pricing, cost structure and production efficiency. The profit margin ratio is a good ratio to benchmark against competitors. The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication of financial health. Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future. this company has a highest gross margin of 11.28 % in 2007 . In general, a company's gross profit margin should be stable. It should not fluctuate much from one period to another, unless the industry it is in has been undergoing drastic changes which will affect the costs of goods sold or pricing policies. A business's ability to generate profit from conducting its operations. Earnings power is used to analyze stocks to assess whether the underlying company is worthy of investment. Possessing greater long-term earnings power is one indication that a stock may be a good investment. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". Net income is considered for the full fiscal year after taxes and preferred stock dividends but before common stock dividends. Shareholders' Equity does not include preferred stocks and is used as an annual average. Return on Equity varies substantially across different industries. Therefore, this company recommended comparing return on equity against company's previous values or return of a similar company. Some industries have high return on equity because they require less capital invested. Return on Equity is one of the profitability ratios and is usually expressed as a percentage.

60

5.0

REFERENCE Internets: http://www.commbank.com.au/business/betterbusiness/business-

finance/five-financial-ratios.html (retrieved at 10/12/2012 - 10:00 a.m.) http://beginnersinvest.about.com/od/financialratio/a/ratiocategories.htm

(retrieved at 10/12/2012 - 11:30 a.m.) http://toolkit.smallbiz.nsw.gov.au/part/6/30/143 (retrieved at 10/12/2012 -

9:35 p.m.) http://www.netmba.com/finance/financial/ratios/ (retrieved at 10/12/2012

10:30 p.m.) Books: Correia, C., Flynn, D., Uliana, E., & Wormald, M. (2010). Financial Management. Cape Town, South Africa: Juta & Co. Gallager, T. J., & Andrew, J. D. (2007). Financial Management (Principle & Practice). Fireload Press.

6.0

APPENDIX Income Statement & Balance Sheet Muhibbah Engineering Sdn. Bhd.

61