Financial Analysis of Care Pharmacy Group Berhad

business management

REPORT 1
EXECUTIVE SUMMARY
The following work is aimed at exploring the financial statements of the Malaysian entity
Care Pharmacy Group Berhad. The significance of the financial statements lies in the fact
that these assist various stakeholders in various decisions such as investing, regulating,
business, and others. The work introduces the company and the concept of preparation of
financial statements. The ratio analysis, its various forms are highlighted in relation to the
company. The comparative graphs for the years 2018 and 2017 represent that overall
financial position of the Care Pharmacy Group Berhad has improved from last year. The
liquidity position of the entity is extremely satisfactory. The declines in efficiency ratios and
the increment in the margin ratios back the financial stability of the company. Therefore, it is
recommended to invest in the company.

REPORT 2
Contents
INTRODUCTION......................................................................................................................3
ANALYSIS OF FINANCIAL STATEMENTS: PRACTICAL APPLICATION.....................4
Ratio Analysis.......................................................................................................................4
Profitability.......................................................................................................................4
Liquidity or the Working Capital Management...........................................................5
Efficiency...........................................................................................................................6
Solvency.............................................................................................................................7
CONCLUSION AND RECOMMENDATION.........................................................................7

REPORT 3
INTRODUCTION
The company Care Pharmacy Group Berhad is a popular Malaysian company and is a
investment holding company. The entity was founded in the year 1994 and the headquarters
are located at Petaling Jaya, Malaysia. The chief operation of the company is management
and operation of the community pharmacies (Care Pharmacy Group Berhad, 2018). The
company carries on its objectives under the brand name of CARiNG in Malaysia. The
business includes the retail of products namely the healthcare, pharmaceutical and the
personal care. The following report is aimed at analysing the financial performance of the
company for the year 2017 and 2018. The analysis would be done with the help of
computation of the various financial ratios and evaluating the results thereof. In addition, the
report will include a conclusion as to whether one should invest in the chosen company based
on the various financial vitals.
FINANCIAL ANALYSIS OF THE COMPANY USING THE FINANCIAL RATIOS
Financial statements render the base to take a number of strategic, business and investing
decisions (Fabozzi and Drake, 2009). Various stakeholders are looking for various kinds of
information. While the long terms lenders are keen to know the lending, buying capacity and
the capital structure, the regulators are interested to know the compliance of the applicable
accounting framework and industrial statutes. Thus, before making the business decisions, the
stakeholders must analyse the statements according to their needs and present economic,
industrial scenario. It is significant to note that the various accounting frameworks prescribe
the use of the comparative format while presenting results, to enable evaluation.
A number of techniques have been devised for performing financial analysis of the entities.
One such technique is the computation of ratios. The ratio analysis aids the stakeholders and
experts to gain an insight of the efficiency, liquidity, profitability, and solvency positions of a
company (Fridson and Alvarez, 2011).