FACULTY OF BUSINESS AND MANAGEMENT
DIPLOMA IN BANKING STUDIES (BA119)
INDIVIDUAL ASSIGNMENT
FUNDAMENTALS OF FINANCE (FIN242)
‘SPRITZER MALAYSIA COMPANY’
FINANCIAL MANAGER 1
PREPARED BY:
SAIYIDAH ‘AISYAH BINTI ABDULL JAMAL
(2019216396)
KBA119 3G
PREPARED FOR:
DR. MADAM DAHLIA IBRAHIM
SUBMISSION DATE:
15 DECEMBER 2020
CONTENT
CONTENT PAGE
1. ACKNOWLEDGEMENT 1
2. RATIO GRAPH 2-4
3. RATIO ANALYSIS (COMPERATIVE) 4-8
4. ADVICE FOR TOP MANAGEMENT 9
5. REFERENNCE 10
6. DECLARATION FORM 11
ACKOWLEDGEMENT
Alhamdulillah finally I’ve done my first assignment of Fundamentals of Finance (FIN242)
subject in grouping and individual. I would like to express my special thanks to my lecturer, Dr.
Dahlia Binti Ibrahim who give me a golden opportunity to do this challenging assignment with the
topic ‘Analysis Company’s Financial Performance’. This assignment also teach me how to be a better
Financing Manager in comparative financing ratio.
Besides, a big thanks to my number one supporters, which is my parents and family that
always help me in mental and physical support. They always understand me and not bothering me
when I’m focusing on my work. Not to forget my group assignment members that always help me
whenever I’ve difficulties in order to do this assignment.
I also appreciate my classmates and friends from the same program that help me a lot when
I’m not understand how to do the assignment. They also give a moral support to me when I felt
down. Alhamdulillah, everything went well and successfully finished.
RATIO GRAPH
LIQUID RATIO
CURRENT RATIO
4
3.5
2.5
1.5
0.5
0
SPRITZER F&N HOLDING
2018 2019
EFFICIENCY RATIO
INVENTORY TURNOVER
RATIO
7
6
5
4
3
2
1
0
SPRITZER F&N HOLDING
MALAYSIA
2018 2019
AVERAGE COLLECTION
PERIOD RATIO
80
70
60
50
40
30
20
10
0
SPRITZER F&N
MALAYSIA HOLDING
2018 2019
TOTAL ASSETS TURNOVER
RATIO
1.4
1.2
1
0.8
0.6
0.4
0.2
0
SPRITZER F%N HOLDING
MALAYSIA
2018 2019
PROFITABILITY RATIO
GROSS PROFIT MARGIN
60
50
40
30
20
10
0
SPRITZER F&N
MALAYSIA COMPANY
2018 2019
NET PROFIT MARGIN
12
10
8
6
4
2
0
SPRITZER F&N HOLDING
MALAYSIA
2018 2019
RETURN OF TOTAL ASSETS
14
12
10
8
6
4
2
0
SPRITZER F&N HOLDING
MALAYSIA
2018 2019
COMPARATIVE ANALYSIS
LIQUID RATIO
RATIO SPRITZER FRASER & SPRITZER FRASER &
COMPANY 2018 NEAVE SDN. COMPANY NEAVE SDN.
million BHD 2018 2019 million BHD 2019
million million
CURRENT = RM226 825 / RM1 649 509 / = RM 189 943 = RM1 755 692
RATIO RM 63 449 RM 855 662 / RM 60 229 / RM795 008
= 3.57 TIMES = 1.93 TIMES = 3.15 TIMES = 2.21 TIMES
NET = RM226 825 – = RM 1 649 = RM189 943 – = RM 1 755
WORKING RM63 449 509 – RM 855 RM60 229 692 – RM 795
CAPITAL = RM163 376 662 = RM129 714 008
= RM793 847 = RM 960 684
The table below shown the result of liquid ratio for both Spritzer Malaysia and Fraser and Neave
(F&N) Holding. Liquid ratio shows the availability of company to pay its bills. For current ratio,
Spritzer Malaysia was decrease from previous year while the F&N Holding has increase the current
ratio on 2019. Even though the net working capital of Spritzer Malaysia decrease on 2019, the
computed above resulted are still in positive amount. Meanwhile, F&N Holding are increase and still
in positive amount too.
EFFICIENCY RATIO
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
INVENTORY = RM214 824 / = RM 2 721 272 / = RM184 815 / = RM 2 810 372 /
TURNOVER RM36 804 RM 497 162 RM42 546 RM 578 404
= 5.84 TIMES = 5.47 TIMES = 4.34 TIMES = 4.86 TIMES
Inventory turnover ratio above shows that both company have a highest ratio on 2018. Spritzer
Malaysia have a decreases inventory turnover ratio in 2019 where the ratio turn to 4.34 times less
than 2018 where it was 5.84 times. The F&N Holding also have a decreases in 2019 where the ratio
turn to 4.86 times less than 5.47 times. The ratio means that both company was poor and not
efficiency in inventory turnover and lower than 2018 results.
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
AVERAGE = (RM 65 059 / = (RM6 046 44 / = (RM71 091 / = (RM599 996 /
COLLECTION RM347 684) X 360 RM3 870 954) X RM374 377) X RM4 077 138) X
PERIOD DAYS 360 DAYS 360 DAYS 360 DAYS
= 67.36 DAYS = 56.23 DAYS = 68.36 DAYS = 52.98 DAYS
= 67 DAYS = 56 DAYS = 68 DAYS = 53 DAYS
The table shows the average collection period of Spritzer Malaysia and F&N Holding. Spritzer
Malaysia was great at 67 days to collect the payments in 2018 than 68 days of collect the payment in
2019. Meanwhile, the F&N Holding was greater in 2019 because the collection of payments were
made in every 53 days than 2018 where it was at every 56 days.
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
TOTAL ASSETS = RM347 684 / = RM3 870 954 / = RM374 377 / = RM4 077 138 /
TURNOVER RM476 361 RM3 345 258 RM49 890 RM3 503 845
= 0.72 TIMES = 1.16 TIMES = 0.77 TIMES = 1.16 TIMES
The total assets turnover ratio of Spritzer Malaysia has increase to 0.77 times better than 0.72 times
in 2018. It shows that the Spritzer Malaysia using its assets efficiently. Meanwhile there are no
changes in F&N Holding on their assets turnover where it is still same 1.16 times in both year.
PROFITABILITY RATIO
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
GROSS PROFIT = (RM132 860 / = (RM1 149 682 / = (RM189 562 / = (RM1 266 766 /
MARGIN RM347 684) X RM 3 870 954) X RM374 377) X RM 4 077 138) X
100 100 100 100
=38.21% = 29.70% =50.63% = 31.07%
Profitability ratios measure the combined effect of liquidity, assets management, and debt
management on overall operating results of the firm. Gross profit margin for Spritzer has increase
and it is good that the variable cost is 50.63% for each Ringgit of sale for 2019. The F&N gross profit
also increase from the past year.
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
OPERATING = (RM33 856 / =(RM424 144 / = (RM41 299 / = (RM532 956 /
PROFIT MARGIN RM347 684) X RM 3 870 954) X RM374 377) X RM 4 077 138) X
100 100 100 100
= 9.7% = 10.96% = 11.03% = 13.07%
The table of operating profit margin shows that both company has a better ratio on 2019. Spritzer
Malaysia has increase the percent of operating profit margin 2019. It has high ratio and better than
the percentage of operating profit margin in 2018. Same goes to F&N Holding that have a better ratio
then past year operating margin. It has increase from 10.96% to 13.07%.
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
NET PROFIT = (RM24 225 / =(RM386 511 / = (RM31 249 / = (RM410 224 /
MARGIN RM347 684) X RM 3 870 954) X RM374 377) X RM 4 077 138) X
100 100 100 100
= 6.97% = 9.98% = 8.34% = 10.06%
Based on the table, the ratio shows that both company has a better net profit margin on 2019. The
net profit margin of Spritzer Malaysia increase from 6.97% in 2018 to 8.34% in 2019 and it is good for
company stability. Net profit margin ratio for F&N Holding also increase in 2019. The net profit margin
in 2019 is higher than 2018 which it is better from 9.98% to 10.06%.
RATIO SPRITZER FRASER & NEAVE SPRITZER FRASER & NEAVE
COMPANY 2018 HOLDING 2018 COMPANY 2019 HOLDING 2019
million million million million
RETURN OF = (RM24 225 / =(RM386 511 / = (RM31 249 / = (RM410 224 /
TOTAL ASSETS RM476 362) X RM 3 345 258) X RM489 900) X RM 3 503 845) X
100 100 100 100
= 5.09% = 11.55% = 6.38% = 11.71%
The ratio of return of total assets in the table shows that both company have a better result from
2018. The Spritzer Malaysia shows that the ratio of 2019 is better than 2018 which it is from 5.09% to
6.38%. For F&N Holding, the return of total assets also increase even in a small amount. It is increase
from 11.55% to 11.71%.
Advice for Top Management
The Spritzer Malaysia Company should obtain loan from Hong Leong Islam Bank RM500 000 for the
upcoming project Smart Packaging 2020. The objective of the project is to improve the current
packaging to the new packaging with some element minimalistic, recognizable and eco-friendly. The
company should obtain loan from the bank because we can generate more profit from the obtain loan
if the project successful. We also can recover the debt because it is long term period of loan to repay.
We have the ability to repay the loan with monthly repayments cost RM2 374.61. The estimated profit
amount between RM700 000 to RM900 000 that we can earn from the project.
REFERENCE
1. F&N (FRASER AND NEAVE) BURSA MALAYSIA. Have accessed from
https://www.bursamalaysia.com/market_information/announcements/company_announce
ment?company=3689&cat=AR,ARCO
2. WSJ Market. Spritzer Bhd. Have access from
https://www.wsj.com/market-data/quotes/MY/XKLS/7103/company-people
DECLARATION FORM
TURNITIN
