UNIVERSITI TEKNOLOGI MALAYSIA

FACULTY OF BUILT ENVIRONMENT

AND SURVEYING

PROPERTY FINANCE AND ACCOUNTING

SBEH2233

SEMESTER 1 (2023/2024)

INTERPRETATION OF FINANCIAL STATEMENT AND RATIOS

FOR THE COMPANY:

1. 7-ELEVEN SDN.BHD.

2. MYNEWS MALAYSIA

DR. MUHAMMAD YUSAIMI BIN ABDUL HAMID

NAME MATRIC NUMBER

NORSAHIDATUL IZZATI BINTI SAMAT B23BE0139
NURIN SYAZARIN SEMAHAT B23BE0159
NURLISA NABILA HUDA BINTI ABDULLAH B23BE0179
AISYAH BINTI ALIAS B23BE0181
 TABLE OF CONTENTS

CONTENTS
Background Of The Company
i. 7-ELEVEN SDN.BHD.
ii. MYNEWS MALAYSIA
Profitability Ratio
Gross Profit Ratio (MGM)
Net Profit Margin (NPM)
Liquidity Ratio
Current Ratio (CR)
Quick Ratio (QR)
Efficiency Ratio
Asset Turnover Ratio (ATR)
Inventory Day Ratio (IDR)
Receivable Day Ratio (RDR)
Payable Day Ratio (PDR)
Total Working Day Ratio

Capital Structure Ratio

Gearing Ratio (GR)
Debt to Equity Ratio (D/E)
Conclusion Summary
Appendixes
1.0 BACKGROUND OF THE COMPANY

Our group conducted a financial investigation to interpret the Financial Statement and Ratios
between 7-Eleven Sdn. Bhd. and myNEWS Malaysia.

1.1 BACKGROUND OF COMPANY (7 ELEVEN SDN.BHD.)

7-Eleven was founded by J. C. Thompson in 1927 as The Southland Ice Company in

Dallas, Texas. Started as an ice vendor, the company eventually began offering milk, bread
and eggs on Sundays and evenings when grocery stores were closed. This new business idea
produced satisfied customers and increased sales, spawning the precursor of the modern
convenience retail concept.

The company's first convenience outlets were known as Tote'm stores since customers
"toted" away their purchases, and some even sported genuine Alaskan totem poles in front. In
1946, Tote'm became 7-Eleven to reflect the stores' new, extended hours - 7 a.m. until 11
p.m., seven days a week. The company's corporate name was changed from The Southland
Corporation to 7-Eleven, Inc. in 1999.

We are the pioneer and the largest 24-hour convenience store operator in Malaysia.
Upon achieving its 1,000 marks in stores network, 7-Eleven Malaysia opened its door to local
entrepreneurs through its unique franchising program in 2009. We are the first franchisor in
the local market to offer existing profit-making stores to franchisees.
 7-Eleven stores can be found across bustling commercial districts to serene sub-urban
residential compounds throughout Malaysia, from petrol stations and LRT stations to
shopping malls and medical institutions. 7-Eleven is Always There For You.

Each 7-Eleven store carries over 2,200 SKUs, including our proprietary brands such
as Slurpee frozen beverages and Big Gulp fountain soft drinks. The variety of services
available at 7-Eleven include the bill payment service, sale of mobile phone reloads cards,
IDD/STD, Touch N Go reload, internet games' starter packs, reloads via MOL Point top-up,
ink cartridge refill, photocopying, fax, automated teller machine (ATM), and bulletin board
for neighbourhood community notices.

In 2009, 7-Eleven introduced fresh brewed coffee and other hot beverages together
with packaged fresh food and bakery for the convenience of customers looking for ready-to-
eat hot food. All food items sold in 7-Eleven undergo stringent quality control to ensure
tastefulness and freshness.

Being the premier neighbourhood convenience store, community building is in the

heart of 7-Eleven’s corporate social responsibility framework. 7-Eleven Community Care is a
non-profit entity set up to implement 7-Eleven Malaysia’s corporate social responsibility and
philanthropic initiatives. We believe in giving back to the society we operate in, with a
commitment to support the underprivileged groups and to sustain environmental conservation
effort at the local community level across all regions.
1.2 CORPORATE STRUCTURE OF 7-ELEVEN COMPANY SDN.BHD.
1.3 EXTRA INFORMATION ABOUT 7-ELEVEN MALAYSIA.

 There are 7 things that people do not know about 7-Eleven Malaysia:-

 The first 7-Eleven store in Malaysia opened on 9 October 1984 in Jalan Bukit
Bintang, Kuala Lumpur and it is in still operation today.

 New “clear cup” of Slurpee was introduced on 21 January 2008, so that customers
can create their own concoction of Slurpee frozen beverage.

 The first 8oz, mini cup of Slurpee was launched on 10 November 2008 for a limited
time only.

 7-Eleven stores use degradable plastic bags in response to environmental protection.

 7-Eleven Malaysia celebrated its 25th Anniversary on 6 April 2009, it also marked a
milestone opening of the 1000th store in Bandar Sunway.

 In Malaysia, 7-Eleven Day is celebrated on 7 November (7/11) instead of July 11,

which is the official birthday of the 7-Eleven convenience store.

 7-Eleven Malaysia opened its 1600th store in Publika Solaris on 18 th June 2014 with
a fresh new concept look and feel.
1.4 ORGANIZATIONAL CHART OF COMPANY INFORMATION (7-ELEVEN
SDN.BHD.)

MEMBERSHIP

(EXECUTIVE/NON-EXECUTIVE)

CHAIRMAN
OF THE BOARD

CHIEF EXECUTIVE
OFFICER
OR
CO-CHIEF EXECUTIVE
OFFICER
(CEO)

EXECUTIVE DIRECTOR NON-EXECUTIVE

DIRECTOR
2.0 BACKGROUND OF COMPANY (MYNEWS MALAYSIA).

myNEWS is a convenience retail chain store located in Malaysia. Since the

company’s inception in December 1996, myNEWS has evolved from a single newsstand of
200 sq.ft to the largest homegrown retail convenience store chain in Malaysia.

Founded by Dang Tai Luk, its first flagship store opened on 25 December 1996. As of
June 2020, myNEWS has more than 530 outlets, with most of them located in the urban areas
of Peninsular Malaysia. It is currently serving over six million customers monthly and has
more than 2000 employees.

MYNEWS HOLDINGS BERHAD is the holding company of the group. In addition

to operating its proprietary brand myNEWS, the group also operates WHSmith stores in
Malaysia, as a joint-venture partner with WHSmith Travel which is one of the UK’s leading
retailers. It partners with Japanese fresh food producer Gourmet Kineya to produce ready-to-
eat meals for its convenience stores. At the same time the group is partnering with Ryoyupan
Baking Co. of Japan in producing bakery products to serve its customers. Both the ready-to-
eat meals and bakery products factories are located at the state-of-the-art food processing
centre in Kota Damansara.
2.1 CORPORATION STRUCTURE OF MYNEWS MALAYSIA.
2.2 ORGANIZATIONAL CHART OF COMPANY INFORMATION (MYNEWS
MALAYSIA).
 CALCULATIONS
7-ELEVEN SDN. BHD.
FINANCIAL STATEMENT
7-ELEVEN SDN.BHD.
 CALCULATIONS
MYNEWS MALAYSIA
FINANCIAL STATEMENT
MYNEWS MALAYSIA
3.0 INTERPRETATION OF FINANCIAL STATEMENT CONCLUSION SUMMARY

A comprehensive analysis of financial statements involves analysing current and

previous financial data of a company to assess the company’s financial performances.
Financial ratio analysis which is the indicator of financial performance is an important tool
that has always been the financial decision-support information used by not only the
management of the firm but stakeholders as well to assess the company’s financial stability
and development potential. Financial performance of a company is derived from its financial
statements and a comparative analysis is a metric to analyse both chosen companies’
operating profitability, liquidity, leverage, activity, and market. Through this analysis, we can
know whether a company’s financial standing and condition is in good health or otherwise. In
this comprehensive analysis, we decided to do a trend analysis on financial performance of
both 7-Eleven and MyNEWS from the year 2018 – 2022.

7-Eleven earned 1.39% in 2020 while MyNEWS earned 3.25% and this shows in the
profitability ratios, MyNEWS earned more than 7-Eleven. This is a performance ratio that
reflects the percentage of profit a company makes from its operations prior to taxes and
interest charges. MyNews has superior revenue and net profit growth compared to 7-Eleven
Malaysia. As investors, we should invest the factors fuelling MyNews’ growth and why such
causes are not apparent for 7-Eleven Malaysia.

In a nutshell, the financial statement analysis is a way to calculate the number of

ratios on a company's income statement to determine how efficiently it generates profit and
shareholders value.