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Category: Business and Industry
Date Submitted: 04/27/2014 06:38 AM
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...