Financial Analysis of Top Glove Corporation Berhad Group

Online Exam FINANCIAL
ANALYSIS

SECTION A
Question A1
a)
Ratio analysis of Top Glove Corporation Berhad Group for the year of 2020 and 2019 is
enumerated below:
Gross profit margin
Particulars Formula 2020 2019
Gross Profit 285041 883995
Sales revenue 7237427 4801139
GP ratio
Gross
profit /
sales * 100 4% 18%
From the evaluation of the above presented information it can be specified that the
profitability of the company is in declining trend. In the year, 2019 and 2020 the gross
profitability of the organization is reducing which is required to be taken into consideration for
making few alterations so that stability can be derived.
Operating profit margin
Particulars Formula 2020 2019
Operating profit 2144373 456700
Sales revenue 7237427 4801139
NP ratio
Net profit /
sales * 100 30% 10%
On the basis of the given information regarding the operating profitability it can be
specified that company's profits in 2020 has increased as compared to 2019. The ideal operating
profit ratio is 10% which is lower than 2020's performance.
Return on capital employed
Particulars Formula 2020 2019
1

EBIT 2144373 456700
Capital employed
Total assets-
total current
liabilities 6573440 4096414
Return on capital
employed
EBIT/
Capital
employed 33% 11%
From the evaluation of given table, it can be specified that firm need to focus on this
ratio as presents that how effectively an organization uses capital to provide return. From the
evaluation it can be specified that company is facing upwind moving trend which can inclined
good Revelations with its investors. It is reflecting good financial health of the company.
Trade receivable settlement (days)
Particulars Formula 2020 2019
Trade Receivable 798805 832623
Sales revenue 7237427 4801139
Trade Receivable days
ratio
Account
receivable /
sales *365 40.29 63.30
It is basically concerned with assessing the collection period taken by the enterprise to
collect the funds from its traders. In addition to this, it can be specified that as compared t
previous year 2019, current period possessing 40.29 days. Current year has low period to collect
funds which is favorable sign of good liquidity position.
Trade payable settlement (days)
Particulars Formula 2020 2019
COGS 4387010 3917144
trade payable 810824 492414
Trade payable days COGS/trade 67.46 2903.57
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