COMPARATIVE ANALYSIS

NAME OF TOP GLOVE’S TOP GLOVE’S 2020 INDUSTRY AVERAGE

THE RATIO 2019 RATIO RATIO RATIO (IAR)
Current Ratio 1.12 2.01 1.94
(CR)
Quick Ratio 0.72 1.76 2.4
(QR)
Inventory 7.62 13.64 6.55
Turnover (ITO)
Total Asset 0.84 0.83 1.43
Turnover
(TATO)
Debt to Equity 60% 6% 7.9%
Ratio (DER)
Gross Profit 18% 39% 43.85%
Margin (GPM)
Operating 9% 30% 35.26%
Profit Margin
(OPM)
Net Profit 8% 25% 27.45%
Margin (NPM)
Return on 6% 21% 31.42%
Total Assets
(ROA)
Return on 14% 29% 47.61%
Equity (ROE)

Firstly, for liquidity ratio it shows Top Glove Corporation Berhad's current ratio in 2019 is
equal to 1.12 times lower than Industry Average ratio (IAR). A quick ratio in 2019 is equal to
0.72 times lower than IAR. Overall, we can conclude Top Glove Corporation Berhad in 2019
is worse than lAR and it shows that the company is not able to meet its short-term obligation.

In 2020, for liquidity ratio it shows Top Glove Corporation Berhad's current ratio is equal to
2.01 times higher than Industry Average ratio (IAR). A quick ratio is equal to 1.76 times lower
than IAR. Overall, we can conclude Top Glove Corporation Berhad in 2020 is moderate than
lAR and it shows that the company is moderately to meet its short-term obligation.
Secondly, for efficiency ratio it shows Top Glove Corporation Berhad’s inventory turnover in
2019 is equal to 7.62 times higher than IAR. Total assets turnover (TATO) in 2019 is equal
to 0.84 times lower than IAR. Overall, we can conclude Top Glove Corporation Berhad is
moderate than lAR and it shows that the company is moderately to manage their asset
effectively to generate sales.

For 2020, for efficiency ratio it shows Top Glove Corporation Berhad’s inventory turnover is
equal to 13.64 times higher than IAR. Total assets turnover ratio (TATO) is equal to 0.83
times lower than IAR. Overall, we can conclude Top Glove Corporation Berhad is moderate
than lAR and it shows that the company is moderately to manage their asset effectively to
generate sales.

Thirdly, for leverage ratio it shows the Top Glove Corporation Berhad's debt to equity in
2019 is equal to 60% higher than IAR. Overall, we can conclude Top Glove Corporation
Berhad is worst than IAR and it shows that Top Glove Corporation Berhad is not able to
manage their debt to generate profit.

For 2020, for leverage ratio it shows the Top Glove Corporation Berhad's debt to equity is
equal to 6% lower than IAR. Overall, we can conclude Top Glove Corporation Berhad is
better than IAR and it shows that Top Glove Corporation Berhad is able to manage their debt
to generate profit.

Lastly, for profitability ratio it shows Top Glove Corporation Berhad's gross profit margin in
2019 is equal to 18% lower than IAR. An operating profit margin in 2019 is equal to 9% lower
than IAR. A net profit margin in 2019 is equal to 8% lower than IAR. Return on assets in
2019 is equal to 6% lower than IAR. Return on equity in 2019 is equal to 14% lower than
IAR. Overall, we can conclude the company is worst than lAR and it shows that the company
is not able to generate higher profit.

In 2020, for profitability ratio it shows Top Glove Corporation Berhad's gross profit margin is
equal to 39% lower than IAR. An operating profit margin is equal to 30% lower than IAR. A
net profit margin is equal to 25% lower than IAR. Return on assets is equal to 21% lower
than IAR. Return on equity is equal to 29% lower than IAR. Overall, we can conclude Top
Glove Corporation Berhad is worst than lAR and it shows that the company is not able to
generate higher profit.