Bonia Financial Statement Analysis for Past 5 Years

CAGB 6101: ACCOUNTING FOR BUSINESS DECISION MAKING

SEMESTER 1, SESSION 2013 / 2014

20 DECEMBER 2013

FINANCIAL STATEMENT ANALYSIS GROUP ASSIGNMENT

BONIA CORPORATION BERHAD (223934-T)

Table of Contents

INTRODUCTION 4

BONIA 4

VISION 2014/2015 4

FINANCIAL STATEMENT ANALYSIS 5

PART 1: LIQUIDITY AND ACTIVITY MEASURE 5

CURRENT RATIO 5

ACID TEST RATIO 6

ACCOUNT RECEIVABLE TURNOVER 7

ACCOUNTS PAYABLE TURNOVER RATIO 8

INVENTORY TURNOVER RATIO 8

PART 2: DEBT FINANCING AND COVERAGE 10

DEBT RATIO 10

DEBT TO EQUITY RATIO 11

TIMES INTEREST EARNED (TIE) RATIO 12

PART 3: PROFITABILITY RATIOS ANALYSIS 13

RETURN ON EQUITY (ROE) 13

RETURN ON ASSETS (ROA) 14

NET PROFIT MARGIN 15

BONIA MOVING A HEAD. 16

1. Financial Growth Bonia 2008 -2013 16

2. Future Prospect 16

Operational Review 17

References: 19

APPENDIX 20

EXECUTIVE SUMMARY

The purpose of this report is to evaluate Bonia Corporation Berhad financial background and assess Bonia’s potential for investment purpose. In order to review Bonia financial condition, financial statement of the company from the last 6 years, from 2008 until 2013 have been compiled and used as reference point, of which we would like to observe the impact of the global financial crisis in 2007-2008 to Bonia Corporation Berhad.

Our assessment and findings are detailed out in this report, of which we have categorized to 5 sections. In the first section of the report, we have reviewed Bonia Corporation Berhad by understanding its history, vision and mission. We also looked into the diversified portfolio that Bonia has, and the country that Bonia has expanded to.

Next, we proceed to evaluate Bonia Group by reviewing the liquidity and activity measures, of which key ratios are used such as current ratio, acid test ratio, account receivable and payable turnover ratios, and inventory turnover ratio. Overall, we observed that Bonia registered healthy liquidity ratios in terms, indicating that Bonia...