GROUP ASSIGNMENT

BPB 14203 : BUSINESS FINANCIAL MANAGMENT

SEMESTER 1, SESSION 2023/24

Faculty of Technology Management and Business

Department of Production and Operations Management

1.LOHES A/L SIVANESAN (CP230012)

2.SHAHRIZAT BIN SHAHAR (CP230016)
GROUP NAME 3.MUHAMMAD RAFIQ BIN MD NASOHA (AP230528)
4.NURIN HAZIQAH BINTI HAPIZAN (AP230015)
5.NISHANI MALAR A/P SARAVANAN (AP230385)
6.MUHAMMAD SYAMIL BIN SUMALI (AP230489

LECTURER PROF. MADYA DR KAMILAH BINTI AHMAD

SECTION SECTION 1
Introduction

Top Glove Corporation Bhd, commonly known as Top Glove, stands out as the largest glove
manufacturer globally, having its origins rooted in Malaysia where it was established in 1991 by Tan
Sri Dr Lim Wee-Chai as a modest business venture with a single factory, one production line, and a
workforce of 100 employees. Presently, the company operates around 50 production facilities spread
across Malaysia, Thailand, Vietnam, and China, complemented by marketing offices not only in these
nations but also in the United States, Germany, and Brazil.

At present, Top Glove commands a substantial 26% share of the worldwide rubber glove market.
Eager to build upon this success, the company has set ambitious goals, aiming to boost its global
market share to 30% by the year 2020. Furthermore, Top Glove envisions securing a coveted position
in the Fortune Global 500 by the year 2030. To facilitate this growth path, the company expresses a
commitment to aggressive business expansion and actively seeks mergers and acquisitions within its
industry and related sectors.Top Glove joined the Kuala Lumpur Bursa Stock Exchange in 2001 and
the Singapore Stock Exchange in 2016. As of May 2021, it has a shareholder fund of RM8.2 billion
and a yearly turnover of around RM4.2 billion.The company collaborates with government and
ministry agencies to stay updated on the latest rubber research technology.

Supermax Corporation Berhad began in 1987 as a trader and exporter of latex gloves before moving
into manufacturing in 1989. It's Malaysia's largest Private Brand Manufacturer and the second-largest
rubber glove producer globally. Founded by Dato' Seri Stanley Thai and Datin Seri Cheryl Tan, the
Supermax Group initially focused on trading latex gloves.

Supermax has a strong presence in Canada, the US, the UK, and Brazil, exporting almost 100% of its
production to medical and dental buyers. During the COVID-19 pandemic in 2020, the high demand
for rubber gloves caused Supermax's stock price to surge fivefold, contributing to founder Kim Sim's
estimated net worth of $1 billion.In November 2020, the company donated RM75 million to the
Government's COVID-19 fund. However, in October 2021, the US banned imports from Supermax
due to forced labor concerns, and a month later, Canada terminated its contract with the company.
Trend Analysis

Supermax

The group company showed good financial health in 2020, with total assets of RM 3,204,390,447.
The significant investment in the land, machinery, and other resources that made up non-current
assets highlighted a solid basis for future growth. Liquidity and operational effectiveness were
demonstrated by the current assets, which included cash and bank balances, receivables, and
inventory. Strong share capital, reserves, and non-controlling interests made up the equity structure,
which added up to RM 1,550,541,363 in total equity. The equity included treasury shares, which were
shares that had been returned. Both current and non-current liabilities were properly managed,
demonstrating sound financial management. The group company was positioned well for future
stability and expansion by the overall financial condition, which demonstrated a sound balance
between assets and liabilities.
The group company showed significant changes in strategy and financial growth in 2021 over the
prior year. With a substantial increase of RM 1,739,277,966, non-current assets were mostly driven by
strategic investments in companies and property, plant, and equipment. At RM 5,654,887,031, current
assets increased significantly, demonstrating significant increases in cash and bank balances,
receivables, and inventory. With the addition of non-controlling interests and a significant increase in
reserves and equity due to owners, the equity structure strengthened significantly to RM
4,894,387,621. In terms of liabilities, current liabilities climbed to RM 2,369,776,467, primarily due
to sums owed to subsidiaries and increasing payables. Non-current liabilities, on the other hand, a
little declined, indicating strategic financial management. The group company's overall financial
performance sets it prepared for success and growth in 2021.
The group company demonstrated strong financial performance and strategic adjustments in 2022.
With major expenditures in subsidiaries and associates, coupled with expansions in property, plant,
and equipment, non-current assets surged to RM 1,972,064,881. Despite having a sizable cash and
bank balance, current assets dropped to RM 3,984,892,626 due to decreases in inventories and
receivables. The inclusion of non-controlling interests, along with increases in reserves and equity
attributable to owners, caused the total equity to soar to RM 5,032,124,621. The significant fall in
non-current liabilities to RM 119,703,659 is supportive of good financial management. Moreover,
current liabilities dropped to RM 805,129,227 as a result of lower loans and payables. The group
company is positioned for continuing stability and growth in 2022 by this overall financial profile.
Top Glove

During the year 2019-2020, the company achieved significant financial growth. Total assets
increased from RM1,038,479 to RM3,190,501, mainly due to a significant increase in long-term
assets, particularly investments in subsidiaries. Current assets also increased significantly due to
increases in trade receivables, investment securities, and cash on hand. Liabilities recorded a
relatively modest increase from RM1,542 to RM3,228, due to the contribution of short-term debt such
as accounts payable and lease liabilities. Nevertheless, the company's overall financial position
remained strong. Capital recorded a notable increase from RM1,036,937 to RM3,187,273, indicating
a positive trend. This increase in capital is due to a significant increase in share capital, retained
earnings and other reserves. In summary, the company demonstrated strong financial performance
during this period, characterized by a significant increase in assets and a healthy capital position.
The company's financial statement for 2020 and 2021 reflects a slight decrease in total assets from
RM 3,190,501 to RM 2,980,314. Non-current assets, primarily driven by investments in subsidiaries,
rose from RM 1,617,656 to RM 2,033,410, while right-of-use assets decreased slightly to RM 357.
Current assets declined from RM 1,572,411 in 2020 to RM 946,547 in 2021, attributed to lower trade
receivables and cash, offset by increased investment securities. Liabilities decreased from RM 3,228
in 2020 to RM 25,139 in 2021. Current liabilities, including trade and lease payables, decreased, and
non-current liabilities, particularly lease liabilities, also saw a reduction. Equity for 2021 was RM
2,955,175, down from RM 3,187,273 in 2020. The decrease is primarily due to a significant reduction
in treasury shares, while share capital and retained earnings increased. Other reserves also
experienced growth. In summary, the company underwent changes in its asset composition, a decline
in current assets, and significant shifts in equity components, influencing its overall financial position
between 2020 and 2021.
The 2021 and 2022 annual financial statements provide insight into the company's financial health.
In 2022, total assets decreased slightly from RM2,980,314 to RM2,610,468. Due to investments in
subsidiaries, fixed assets increased to RM2,311,752, while beneficial interests decreased to RM280.
Current assets recorded a significant decline from RM946,547 in 2021 to RM298,436 in 2022. This
was due to decreases in accounts receivable, cash on hand, and other current assets, and changes in
securities investments. Debt decreased from RM25,139 in 2021 to RM6,725 in 2022. Current
liabilities such as trade payables and lease liabilities decreased. Fixed liabilities, particularly lease
liabilities, also decreased. The 2022 capital was RM2,603,743 compared to 2021 capital of
RM2,955,175. This change was primarily due to adjustments in treasury stock, although there were
some changes in share capital and retained earnings. Other reserves also recorded increases. In
summary, the Company experienced changes in its asset structure fro2021 to 2022 due to a significant
decrease in current assets, as well as changes in its debt and equity components, which affected its
overall financial position.
Sales

Supermax

In the financial year 2019-2020, the company demonstrated outstanding financial performance across
various key metrics. Revenue recorded a notable increase, increasing from RM1,538,157,000 to
RM2,131,808,000, a significant increase. Pre-tax profit recorded a significant improvement from
RM172.408 million to RM680.163 million, demonstrating solid operational efficiency and
profitability. Profit after tax followed suit, increasing fourfold from RM123.103 million to
RM534.778 million. The balance sheet also reflected significant growth, with net assets increasing
from RM1,134,226,000 to RM1,550,541,000 and total assets doubling from RM1,842,708,000 to
RM3,204,390,000. Capital increased significantly from RM 1,123,710,000 to RM 1,529,066,000.
Paid-up capital remains constant at RM340.077 million, but the absence of interim dividends and
undisclosed final dividends suggests the possibility of reinvestment or strategic financial decisions.
Notably, the net asset per share index increased from RM0.86 to RM1.18 and the earnings per
common share increased from 9.39 sen to 40.16 sen, reflecting the company's overall strong
performance highlighted during the period reflects financial soundness.
In the fiscal year 2020-2021, the company experienced an extraordinary financial performance,
witnessing substantial growth across key financial metrics. Revenue soared to RM 7,164,186,000, a
significant increase from the previous year's RM 2,131,808,000. The pre-tax profit exhibited an
exceptional surge, reaching RM 5,019,993,000, a substantial rise from RM 680,163,000 in the
preceding year. After-tax profit mirrored this impressive trend, skyrocketing to RM 3,929,944,000
from RM 534,778,000. The balance sheet demonstrated remarkable expansion, with net assets
increasing from RM 1,550,541,000 to RM 4,894,388,000 and total assets growing from RM
3,204,390,000 to RM 7,394,165,000. Shareholders' equity experienced a remarkable rise, escalating
from RM 1,529,066,000 to RM 4,758,875,000. Despite the constant paid-up capital at RM
340,077,000, the company distributed an interim dividend of RM 439,763,000, while the final
dividend amounted to RM 79,882,000. The metrics of net assets per share increased to RM 1.82,
reflecting improved value, and earnings per ordinary share surged to 147.03 Sen, emphasizing the
company's robust profitability and financial health during the stated period.

In the fiscal year 2021-2022, the company sustained a strong financial performance, albeit with some
variations compared to the previous year. Revenue decreased from RM 7,164,186,000 to RM
2,687,227,000, reflecting a shift in market dynamics. Pre-tax profit and after-tax profit also
experienced a decline, reaching RM 1,059,501,000 and RM 757,122,000, respectively, down from the
previous year's robust figures. Net assets, however, continued to grow, rising from RM 4,894,388,000
to RM 5,032,125,000, contributing to a steady increase in total assets from RM 7,394,165,000 to RM
5,956,958,000. Shareholders' equity remained strong at RM 4,865,561,000, despite a slight decrease
from the previous year's value. The company maintained a consistent paid-up capital of RM
340,077,000. Notably, an interim dividend of RM 603,474,000 was distributed, and a final dividend
of RM 157,873,000 was declared (Note^), demonstrating a commitment to shareholder returns. The
metrics of net assets per share held steady at RM 1.83, indicating sustained value, while earnings per
ordinary share decreased to 27.19 Sen, possibly influenced by the changes in revenue and profit.
Overall, the company continued to exhibit financial strength and adaptability in the evolving business
landscape.
Top Glove

From 2020 to 2022, the company experienced major financial changes, with sales increasing from
RM7.24 billion in 2020 to RM16.36 billion in 2021, before increasing to RM5.57 billion in 2022.
decreased significantly. This trend is reflected in EBITDA and EBITDA. Pre-tax profit decreased
from RM10.03 billion in 2021 to RM358.42 million in 2022. The tax was increased from RM2.21
billion in 2021 to RM76.83 million in 2022, and the return on equity has since fallen significantly
from 131.3 times. The share price fell from RM4.00 in 2021 to RM0.81 in 2022, impacting return on
equity, and the market capitalization decreased from RM32.03 billion in 2021 to RM6.45 billion. In
2022. These financial changes signal a period of adjustment and challenge and require a focus on
market dynamics and strategic considerations for sustainable growth.

Net Income
Top Glove
In 2020, the group company demonstrated a robust financial performance with revenue totaling RM
7.24 billion, a significant increase from RM 4.80 billion in 2019. The gross profit rose substantially to
RM 2.85 billion from RM 884 million in the previous year. Other income sources, including interest
and miscellaneous income, contributed positively, while distribution costs, administrative expenses,
and finance costs were effectively managed. The profit before tax soared to RM 2.17 billion,
reflecting a notable improvement from RM 424 million in 2019. After accounting for income tax
expenses, the net profit for the financial year reached RM 1.79 billion, attributed to the owners of the
parent, holders of Perpetual Sukuk, and non-controlling interests. This strong financial performance in
2020 showcased the group's resilience and effective financial management.

In 2021, the group company continued its strong financial performance, reporting a substantial
increase in revenue to RM 16.36 billion from RM 7.24 billion in 2020. The gross profit also saw
significant growth, reaching RM 11.10 billion compared to RM 2.85 billion in the previous year.
Interest and other income sources contributed positively, while distribution costs, administrative
expenses, and finance costs were effectively managed. The profit before tax surged to RM 10.03
billion, marking a remarkable increase from RM 2.17 billion in 2020. After accounting for income tax
expenses, the net profit for the financial year reached RM 7.82 billion. The profit was attributed to the
owners of the parent, holders of Perpetual Sukuk, and non-controlling interests, emphasizing the
group's sustained financial strength and effective management.
The group company's revenue decreased from RM 16.36 billion in 2021 to RM 5.57 billion in 2022.
Even with the drop, the gross profit was still quite high at RM 953 million as opposed to RM11.10
billion the year before. In addition to the positive contributions from interest and other sources of
income, distribution, administrative, and financing costs were all skilfully managed. The earnings
before taxes decreased from RM 10.03 billion in 2021 to RM 358 million. Following the deduction of
income tax charges, RM 281 million was the net profit for the fiscal year. The parent company's
owners, Perpetual Sukuk holders, and non-controlling interest holders were all credited with the profit.
The group's financial position held up well in spite of the difficulties, highlighting the need for
flexibility in a changing business environment.

Supermax
In 2020, the group company excelled financially with revenue surging to RM 2.13 billion from RM
1.54 billion in 2019, driven by increased purchases and positive contributions from other sources.
Administrative costs rose to RM 478.27 million, yet the profit from operations saw a remarkable
boost, reaching RM 697.24 million. Despite a slight decrease in finance costs, the profit before tax
soared to RM 680.16 million, and the net profit for the year reached RM 534.78 million.
Comprehensive income, including reclassified items, showed a positive trend, totaling RM 483.52
million. Overall, the group's 2020 financial performance reflects impressive revenue growth,
increased profitability, and positive comprehensive income, signaling a robust financial position.

In 2021, our group companies continued to achieve impressive results. Revenue increased to RM7.
16 billion from RM2.13 billion in 2020. This was primarily driven by increased purchases and strong
other operating income. Management expenses, including executive remuneration and personnel
expenses, increased to RM646.28 million from RM478.27 million last years. Despite the increase in
costs, operating profit improved significantly from RM697.24 million to RM5.03 billion. Funding
costs decreased from RM17.08 million to RM8.11 million. Pre-tax profit reached a staggering
RM5.02 billion, up from RM680.16 million. Net profit for the financial year increased to RM3.93
billion from RM534.78 million in 2020.Total profit including reclassified items was RM3.95 billion,
confirming the group's sustainable financial strength.
In 2022, the group company maintained a robust financial performance. Revenue reached RM 2.69
billion, down from RM 7.16 billion in 2021, primarily influenced by decreased purchases. Other
operating income, including the share of results of associates, and changes in inventories in finished
goods also played a role. Administrative costs, inclusive of directors' remuneration and staff costs,
amounted to RM 583.69 million, reflecting a decrease from the previous year. Despite this, the profit
from operations remained strong at RM 1.07 billion. Finance costs decreased to RM 5.71 million,
contributing to a profit before tax of RM 1.06 billion. After taxation, the net profit for the financial
year stood at RM 757.12 million. Comprehensive income, including reclassified items, totalled RM
839.18 million, with foreign currency translation playing a significant role. Overall, the group's
financial resilience persisted in 2022, with a focus on operational strength and positive comprehensive
income.
Supermax
RM 2020 2021 2022

SALES 2131808 7164186 2687227

NET INCOME 63178901 972502362 886117292

TREND % 38.59 235.21 -68.48

GROUP NET 218.09% 717.35% -78.77%

INCOME %

COMPANY NET 19.20% 1439.28% -8.88%

INCOME%

From 2020 to 2022, Supermax Company demonstrated dynamic financial performance. Revenue
increased from RM2.13 billion in 2020 to RM7.16 billion in 2021, recording an impressive growth of
235.21%. However, 2022 saw a significant decline of -68.48%, indicating sales challenges.
Net profit recorded significant growth, increasing from RM63.18 million in 2020 to RM972.5 million
in 2021. However, in 2022, it decreased to 886.12 million ringgits. The trend percentages highlight
these changes, with sales and net income trending positively in 2021, but declining significantly in
2022. Analysing the percentage of net profit of the group and company, we see a remarkable growth
of 717.35% at the group level in 2021, followed by the company's net profit recorded an exceptional
growth of 1439.28% in 2021 decreased by -8.88% in 2022. These change present an adjustment
period and potential challenges for Supermax, requiring a closer look at market dynamics and
strategic considerations for sustainable growth.
Top Glove

RM 2020 2021 2022

SALES 5572349 16361443 7237427

NET INCOME 1637339 6461350 151481

TREND % 50.74% 126.07% -65.94%

GROUP NET 386.70% 3374.80% -96.40%

INCOME %

COMPANY NET 682.60% 294.67% -97.65%

INCOME%

From 2020 to 2022, Top Glove Company experienced significant fluctuations in its financial
performance. Revenue showed a positive trend, increasing from RM5.57 billion in 2020 to RM16.36
billion in 2021, but decreased significantly to RM7.24 billion in 2022, resulting in a trend The rate
was -65.94%. Net profit followed a similar pattern, increasing from RM1.64 billion in 2020 to
RM6.46 billion in 2021, but decreasing to RM151.48 million in 2022, with a trend rate of -
96.40 %was. Group and company net profit percentage analysis shows that both indicators increased
significantly in 2021, with group net profit increasing by 3374.80% and enterprise net profit
increasing by 294.67%. However, both experienced significant declines in 2022, with the group's net
profit decreasing by -97.65%. These trends indicate difficult times for Top Glove Company and
highlight the need to carefully consider market dynamics and strategic planning for sustainable
growth.
Liquidity
Current Ratio

TOP GLOVE CORPORATION BHD & SUPERMAX CORPORATION BHD

The chart above shows the percentage of current ratio between 2 company which is Top Glove
Corporation Bhd and Supermax Corporation Bhd from 2020 until 2022. The current ratio in 2020
show that Top Glove have the highest ratio than Supermax. This can be seen through the data
provided that the Top Glove has a ratio of 2.01060248 whereas the Supermax has a proportion of
1.26989562. Other than that, in 2021 Supermax shows improvement ratio than Top Glove. This can
be seen through the data provided that the Supermax has a ratio of 2.386251044 where as the Top
Glove has proportion of 1.976702191. Next to that, Supermax continue to have a ratio increase from
Top Glove. This can be seen with Supermax recording as many as 4.949374635 of Top Glove as
2.118556132 pads in 2022.

Quick Ratio

TOP GLOVE CORPORATION BHD & SUPERMAX CORPORATION BHD

The chart above shows the percentage of quick ratio between 2 company which is Top Glove
Corporation Bhd and Supermax Corporation Bhd from 2020 until 2022. Based on the above graph
indicates that in 2020, Top Glove shows a higher quick ratio than Supermax. This is demonstrated by
the fact that Supermax recorded 1913.551956, whereas Top Glove recorded 4287.401125.
Nonetheless, Supermax displayed a rise in the Top Glove ratio in 2021. As an illustration, compare
Top Glove, which recorded a ratio of 4345.235863 lower than Supermax's 5654.671199. Other than
that, in 2022 Supermax is still showing a higher ratio than Top Glove in 2022. According to the graph,
Top Glove recorded 2110.538017, whereas Supermax recorded 3984.557681. But ratio in 2022
recorded a decrease compared to 2021.

Profitability
Return of Equity

TOP GLOVE CORPORATION BHD

The chart above shows the percentage of Return of equity (ROE) of Top Glove Corporation
from 2020 to 2022. The ROE for year 2020 is approximately 51.36%. This means every RM1
of equity, the company generated RM0.5136 in net income during the period. The ROE for
 year 2021 is 218.65% which indicated that the company generated RM2.1865 in net income
for every RM1 of equity and for the year 2022 is 5.82% with RM0.0582 net income per RM1
of equity.

SUPERMAX CORPORATION BHD

The chart above shows the percentage of Return of equity (ROE) of Supermax Corporation
from 2020 to 2022. The ROE for year 2020 is approximately 20.36%. This means every RM1
of equity, the company generated RM0.2036 in net income during the period. The ROE for
year 2021 is 143.30% which indicated that the company generated RM1.4330 in net income
for every RM1 of equity and for the year 2022 is 96.41% with RM0.9641 net income per
RM1 of equity.

In conclusion, both company Top Glove and Supermax are doing well during the year of
2020 and 2021 but Supermax ROE in 2022 are much more higher than Top Glove with huge
gap of 90%.

Gross Profit Margin

TOP GLOVE CORPORATION BHD

Based on the analysis above is gross profit margin for Top Glove corporation value
percentage from year 2020 to 2022. For the year 2020 with a gross profit margin of 39.38%,
the business keeps around RM0.3938 of every ringgit of revenue after deducting cost of
goods sold. The margin for year 2021 is doing excellent as its increase the value up to 67.86%
which equal to RM0.6786 of RM1 of revenue after deducting cost of goods sold. But in the
end of 2022, the company have sudden drop in margin to 17.11% which signifies to
RM0.1711 of every ringgit of revenue.

SUPERMAX CORPORATION

Based on the chart above, Supermax gross profit margin for 2020 is very high with the
percentage of 100.41%, this indicates that business keeps around RM1.0041 of every ringgit
of revenue after deducting cost of goods sold. In 2021, the margin experienced a slight
 decrease, but it was still very strong at 91.33%, or RM0.9133. At the end of year 2022, the
margin rise again better than year 2021 but not exceed margin for the year 2020. The
percentage of 97.80% or RM0.9780 of every ringgit of revenue.

In conclusion, Supermax corporation have higher gross profit margin than Top Glove
company with the average gross profit margin 96.51%. The average gross profit margin for
Top Glove corporation is 41.45%. The difference of average gross profit margin between
these two corporation is 55.06% for three-year period of business.

Net Profit Margin

TOP GLOVE CORPORATION BHD

Based on the analysis above is the net profit margin for Top Glove Corporation's value percentage
from the year 2020 to 2022. For 2020 the net profit margin of 100.03% shows that this company had a
huge profit. The margin for the year 2021 is decreasing the value to 99.51%. But at the end of 2022,
the company had a sudden drop in margin to 74.85% which signifies RM0.748 of every ringgit of
revenue.

SUPERMAX CORPORATION BHD

Based on the chart above, Supermax's net profit margin for 2020 is high with a percentage of 97.20%,
this indicates that the business keeps around RM0.97. In 2021, the margin experienced a slight
decrease, at 91.23%, or RM0.91. At the end of the year 2022, the margin increased more than the year
2021. The percentage of the year is 97.78% or RM0.97 of every ringgit of revenue.

Return on Asset

The chart above shows the percentage of return of asset between 2 companies which is Top Glove
Corporation and Supermax Corporation Bhd from 2020 until 2022. The return of asset in 2020 show
that Top Glove have the highest ROA than Supermax. This can be seen through the data provided that
the Top Glove has a 51.31% while Supermax has a percentage 16.92%. Other than that, in 2021 both
company Top Glove and Supermax shows excellent improvement. For Top Glove, the ROA is
216.80% while Supermax is 139.93%. Lastly, for 2022 the ROA for Supermax is higher which is
94.77% compared to Top Glove 5.80%
Earning per Share of Common Stock
TOP GLOVE CORPORATION BHD & SUPERMAX CORPORATION BHD

The percentage of earnings per share of common stock between Top Glove Corporation Bhd and
Supermax Corporation Bhd is displayed in the above chart for the years 2020 through 2022. From the
chart, in 2020 Top Glove has EPS higher than the Supermax. It can be show Top Glove recorded
1778.19 than Supermax recorded 524.80. Then, in 2021, Top Glove outperformed Supermax in terms
of EPS. Top Glove recorded an EPS of 7761.68 compared to Supermax, which recorded 3816.89 and
the highest EPS between the following three years. In the third year, both companies recorded the
lowest EPS of the three years. When Supermax recorded an EPS of 719.16 compared to Top Glove's
275.73, EPS Supermax surpassed EPS Top Glove.

Divident Payout Ratio

TOP GLOVE CORPORATION BHD & SUPERMAX CORPORATION BHD
The above figure shows the dividend payout ratio percentage for the years 2020 through 2022 for Top
Glove Corporation Bhd and Supermax Corporation Bhd. From the graph above, top Glove
Corporation recorded dividend payout more high than Supermax Corporation in 2020. Top Glove
Corporation recorded dividend as much as RM 3570.66 than Supermax Corporation recorded
dividend as much as RM 0 or has no dividend payout. By 2021, Top Glove's payout dividend was
higher than the previous year. Even though Top Glove's dividend payout is higher than Supermax.
Top Glove record RM 22176.23 and Supermax record RM 12002.78. Other than that, Top Glove
record lower than Supermax dividend payout. It can be show from Top Glove record RM 229.77 and
Top Glove record RM 6537.81.

Efficiency
Total Asset Turnover
TOP GLOVE CORPORATION BHD

The graph above shows the percentage of total asset turnover of Top Glove Corporation from 2020 to
2022. The total asset turnover for year 2020 is 51.30%. This means every RM1 invest in an asset, the
company get turnover RM0.5130 during the period. The total asset turnover for year 2021 is 217.88%
which indicated that the company get turnover RM2.1788 during the period and for the year 2022 is
7.75% with RM0.0775 turnover per RM 1 invest.
SUPERMAX CORPORATION BHD
The graph above shows the percentage of total asset turnover of Supermax Corporation from 2020 to
2022. The total asset turnover for year 2020 is 17.41%. This means every RM1 invest in an asset, the
company get turnover RM0.1741 during the period. The total asset turnover for year 2021 is 153.39%
which indicated that the company get turnover RM1.5339 during the period and for the year 2022 is
96.91% with RM0.9691 turnover per RM 1 invest.
In conclusion, both company Top Glove and Supermax are doing well during the year of 2021 but
Top Glove Total Asset Turnover are much more higher than Supermax with huge gap of 64.49%

Total Fix Asset Turnover

TOP GLOVE CORPORATION BHD

Based on the analysis above is total fix asset turnover for Top Glove Corporation value percentage
from year 2020 to 2022. For the year 2020 with total fix asset turnover of 101.14% the business get
turnover RM1.0114 of every ringgit invest on fix asset. The total fix asset turnover for year 2021 is
doing excellent as its increase the turnover up to 319.28% which equal to RM3.1928 of every RM
company invest. But in the end of 2022, the company have sudden drop in asset turnover to 8.75%
which signifies to RM0.0875 of every ringgit invest.

SUPERMAX CORPORATION BHD

 Based on the graph above, Supermax total fix asset turnover for 2020 is 27.57% keeps
around RM0.2757 which means the lowest between 2020 to 2022. The total fix assets
turnover for 2021 is doing excellent as its increase the value up to 166.45% which equal to
RM1.6645 of every ringgit company invest.As at the end of 2022, the total fix asset turnover
drop to 105.29% which signifies to RM1.0529 of every ringgit company invest.
In conclusion, Supermax company have higher total fix asset turnover than Top Glove
corporation at the end of 2022 with huge gap of 96.54%.

Debt Ratio

Solvency refers to the examination of how a company is funding its assets, serving the purpose of
determining whether the company relies on debt or equity for financing its assets.The debt ratio
reveals the percentage of a company's assets financed by debt, encompassing both short-term and
long-term debt. Having a lower ratio is better as it offers increased protection to creditors if the
company faces bankruptcy, ultimately reducing financial risk. To calculate the debt ratio, divide the
total debt by the total assets and express it as a percentage.

Based on graph 4.0 in 2020, Top Glove had a debt ratio of 0.10%, which is lower than Supermax's
16.90%, indicating that Top Glove performed better in terms of debt ratio that year. Moving to 2021,
Top Glove maintained a lower debt ratio of 0.84% compared to Supermax's higher ratio of 2.35%,
solidifying Top Glove's favorable position in debt management. Similarly, in 2022, Top Glove
sustained its advantage with a debt ratio of 0.26%, outperforming Supermax's higher ratio of 1.70%.
Therefore, across the years 2020, 2021, and 2022, Top Glove consistently demonstrated superior debt
ratios compared to Supermax.

Times Interest Earned

The Times Interest Earned (TIE) ratio serves as a metric to gauge the frequency with which a firm's
profits can cover its interest expenses, concurrently revealing the firm's capacity to generate sufficient
funds for the payment of interest obligations at maturity; consequently, a higher TIE ratio is deemed
preferable, signifying a heightened ability of the firm to meet its interest expenses, and this ratio can
be calculated by dividing Earnings Before Interest and Taxes (EBIT) by the interest expenses,
yielding the number of times the firm can cover its interest costs.

In 2020, Supermax demonstrated a robust Times Interest Earned (TIE) ratio of 30.25 times, while Top
Glove did not disclose a TIE ratio during that period. Moving to 2021, Supermax exhibited a
significantly increased TIE ratio of 1075.38 times, surpassing Top Glove's TIE ratio of 402255.56,
indicating a notable disparity. However, in 2022, Supermax did not provide a TIE ratio, whereas Top
Glove revealed a TIE ratio of 9329, once again portraying a higher level compared to Supermax for
that specific year.

Equity Ratio

The equity ratio serves to gauge the proportion of total assets funded by the owner (stockholders)
instead of debt. Debtors typically favor a higher percentage in the equity ratio because it enhances the
certainty of debt repayment. To compute the equity ratio, divide shareholder's equity by total assets
and express the result as a percentage.

In 2022, Top Glove's equity ratio is 99.74%, surpassing Supermax's lower ratio of 98.30%. Similarly,
in 2021, Top Glove maintained a higher equity ratio of 99.16% compared to Supermax's 97.65%.
Going back to 2020, Top Glove exhibited a superior equity ratio of 99.90%, whereas Supermax had a
lower ratio of 83.10%. Therefore, across the years 2020, 2021, and 2022, Top Glove consistently
outperformed Supermax in terms of equity ratio.

Debt to Equity Ratio

The debt-to-equity ratio serves as a metric to assess the percentage of a company's liabilities covered
by its equity. Opting for a lower ratio is considered favorable, as it signifies the company's ability to
take on debt when needed. Typically, it is advised to keep this ratio below 2.0. The calculation
involves dividing the total debt by the total equity to express the result as a percentage, providing
insights into the company's financial structure and its capacity to manage both debt and equity
effectively.

In 2020, Supermax's debt-to-equity ratio was 20.33%, exceeding Top Glove's lower and favorable
ratio of 0.10%. Moving to 2021, Supermax continued to have a higher ratio at 2.40%, compared to
Top Glove's 0.85%, maintaining the preference for Top Glove's lower ratio. Similarly, in 2022,
Supermax's debt-to-equity ratio remained higher at 1.73%, whereas Top Glove maintained a lower
and favorable ratio of 0.26%. Therefore, across the years 2020, 2021, and 2022, Top Glove
consistently demonstrated a more favorable debt-to-equity ratio compared to Supermax.

Conclusion

Supermax looks to be more resilient than Top Glove based on the data supplied, especially in view of
the more moderate fall in net income percentages in 2022. Nevertheless, further information and a
deeper comprehension of the businesses' financial arrangements, competitive landscapes, and strategic
goals would be necessary for a thorough study. Improving the resilience of a company involves
strategic planning and execution across various aspects of the business. Here are the steps or method
Top Glove can implement to have better resilience in future. It would be having better financial
management. Maintaining healthy balance sheet and liquidity to navigate economic uncertainties and
also consider prudent financial strategies, such as debt management and cost control. Another option
we are able to suggest Is having relationship or communication with serious stakeholders. For an
example, maintaining transparent communication with stakeholders, including customers, investors,
and employees so that they can team up to build strong relationships with stakeholders to create a
supportive network during challenging times. Combining such strategies, which are adapted to Top
Glove's special situation and shifts in the market, can help the company become more resilient and
flexible. Long-term resilience also depends on these tactics being routinely updated and adjusted in
response to changing conditions. It is evident that Supermax has sufficient cash flow to meet its
objectives for the upcoming year. Not to mention that Top Glove can still mend their skeleton, which
results in a drop in research every year. To remain competitive in the market, they must find a way to
preserve their economies and budgets. While Top Glove appears to surpass any audit in 2020,
Supermax continues to solve its issues and establish a strong presence in the market each year after
that.

Appendix

Company Announcements. (2019). Bursamalaysia.com.

https://www.bursamalaysia.com/market_information/announcements/company_announcement
Top Glove - The World’s Largest Manufacturer of Glove. (2023). Topglove.com.
https://www.topglove.com/home
Welcome to Supermax Corporation Berhad. (2020). Supermax.com.my.
http://www.supermax.com.my/