Evaluation of Key Performance Indicators of CapitaLand Limited

1
FINM036 Assignment Two

2
Executive Summary
The main purpose of the report is to critically evaluate and analyze the key performance
indicators of a selected organization CapitaLand Limited; a Singapore listed Real Estate
Company. The report has been directed to its Board of Directors and has assesses its
performance through calculation of some of its key financial and non-financial ratios. It has been
examine through the report that the company is having a good financial and non-financial
performance. Also, its effective corporate governance policies are promoting its sustainable
growth and development. The company is further recommended to effectively monitor and
control its capital structure as a medium-term financial strategy.

3
Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Brief Introduction of the Selected Company ‘CAPITALAND LIMITED’.................................4
Section A: (Part 1): Performance of the selected company (Capitaland)........................................4
Ratio Analysis of Capitaland for last five years..........................................................................4
Profitability analysis.................................................................................................................5
Assets Efficiency Ratios...........................................................................................................8
Liquidity Analysis..................................................................................................................10
Other Ratios............................................................................................................................11
Section B....................................................................................................................................12
Part 1: Critical Evaluation of Corporate Governance Compliance........................................12
Part 2: Proposed Medium-Term Financial Strategies of Selected Company.........................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

4
Introduction
The present report is developed for providing an evaluation of the key accounting and
corporate finance concepts of a selected company to its Board of Directors. This is done on the
perspective of a potential candidate seeking for the job of a finance director of a company listed
on Alternative Investment Market (AIM) within the London Stock Exchange (LSE). It is
developed as a part of the interviewing process for the job role that need to be presented to the
Board of Directors for presenting information in relation to the vision and strategic financial
goals of the selected company. The financial performance of the company is selected with the
use of financial ratios such as profitability, efficiency, liquidity and other that are relevant for
gaining an understanding of its current and future financial outcomes. This is followed by
carrying out a critical evaluation of the corporate governance framework of the selected
company to analyze its impact on the brand and reputation. It has also provided a discussion in
relation to the discussion of the proposed medium term financial strategies of the selected
company for achieving a dominant position within its respective sector.
Brief Introduction of the Selected Company ‘CAPITALAND LIMITED’
The company selected for the analysis purpose is ‘Capital Land Limited’ that is a
public-limited entity traded as SGX in Singapore. It is known to be one of the largest real estate
company recognized for managing a global portfolio of real estate products. The company’s
product portfolio consists of integrated developments, shopping malls, residencies, offices,
homes and financial services. The company is providing its products and services in about 30
countries but its core markets include Singapore and China. It has recorded a turnover of about
$93 billion as of the end of the year 2018. It is recognized as one of the largest investment
management businesses across Asia and is estimated to provide employment to about 8.48K
people around the world.
Section A: (Part 1): Performance of the selected company (Capitaland)
Ratio Analysis of Capitaland for last five years
Ratio analysis is an important management tool that is used to make the quantitative
analysis of financial information contained in the financial statements of the company. The main