Financial Decision Making: Analysis of Genting Singapore Plc

This article provides a financial analysis of Genting Singapore Plc, including horizontal and vertical analysis, profitability ratios, and economic conditions of the hospitality and entertainment industry in Singapore. The article also includes non-financial parameters for Genting Singapore Plc and a review of its corporate governance compliance.

Financial Decision Making 1
Financial Decision Making
Author
Course Title
Professor
City
Date

Financial Decision Making 2
Table of Contents
SECTION A...............................................................................................................................3
Introduction................................................................................................................................3
Horizontal Analysis and Vertical Analysis................................................................................3
Economic Condition of the Hospitality and Entertainment Industry in Singapore...................7
PROFITABILITY......................................................................................................................8
Gross profit ratio....................................................................................................................8
Figure 1: Graph of gross profit ratio Net Margin...................................................................9
Return on assets....................................................................................................................10
Return on Equity..................................................................................................................11
DIVIDEND RATIOS...............................................................................................................12
Dividend Yield ratio.............................................................................................................12
Figure 5: Dividend Yield Dividend Payout ratio.................................................................13
Figure 5: dividend payout Price earnings ratio....................................................................14
Figure 7: P/E ratio Earnings per share.................................................................................15
STABILITY AND LIQUIDITY RATIOS...............................................................................16
Debt to Equity ratio..............................................................................................................16
Figure 9: Debt/equity ratio Interest coverage ratio..............................................................17
Current ratio.........................................................................................................................18
Figure 11: Current ratio Quick ratio.....................................................................................19
EFFICIENCY Ratios...............................................................................................................20
Asset Turnover ratio.............................................................................................................20
Inventory turnover ratio.......................................................................................................21
Debtor’s turnover ratio.........................................................................................................22
Cash Cycle...........................................................................................................................23
Comparative of Genting Singapore with Industry Average.....................................................24
Returns on Investment..........................................................................................................24
Return on Assets..................................................................................................................24
Return on Equity..................................................................................................................25
Risk......................................................................................................................................25
Asset Value per Share as well as Genting Singapore Ltd Market Share Price Compared to
STI............................................................................................................................................26
Non-Financial Parameters for Genting Singapore plc.............................................................26
Section B..................................................................................................................................27
Genting Singapore Ltd Corporate Governance Compliance...............................................27
Impact of Proposed Policies on Company’s Brand and Reputation....................................28

Financial Decision Making 3
Review of corporate governance..........................................................................................28
Directors and their role.....................................................................................................28
Non-Executive Directors and Their Role.........................................................................28
Conclusion................................................................................................................................29
REFERENCES.........................................................................................................................31

Financial Decision Making 4
Financial Decision Making
SECTION A
Introduction
Genting Singapore Plc is the Singapore-based regional hospitality, leisure as well as
integrated resorts listed on Singapore Stock Exchange (Reuters.com 2018). Through its
subsidiaries, Genting Singapore plc is usually engaged in development as well as operations
of casinos, integrated resort, provision of marketing and sales support services to hospitality
and leisure related investment and businesses. The company operates through hospitality and
leisure operations segment in Singapore. It also carries its operations in the other regions such
as Asia Pacific including development of integrated resort within Korea (Genting Singapore
plc 2017). To be more specific, Genting Singapore plc is engaged in operation and
development of the integrated resorts, comprising of gaming, incentives, hospitality, casino,
meetings and conferences. The company also provides international marketing, information
technology and sales services. It gaming plan is usually owning and operating hospitality,
entertainment, gaming and leisure facilities (Reuters.com 2018). The company operates under
gabling, lodging and entertainment industry. Its main competitors include 2016 GCG
Limited, Las Vegas Sands Corporation as well as Melco Resorts and Entertainment Ltd.
Horizontal Analysis and Vertical Analysis
Based on the company’s horizontal analysis presented in Table 1 and 2 below, it is evident
that Genting Singapore plc revenue experienced a significant increase in the year 2014. The
decrease in total revenue over the two years was attributable to the stiff competition within
the industry resulting in decreased sales. Nonetheless, in the year 2017, Genting Singapore
plc is found to have enjoyed increment in its revenue. Its profits both net profit, operating and
gross profit experienced decrease in 2013, 2014, 2015 and 2016; nonetheless, the profits
increased in 2017. The increase in profits in 2017 was attributable to higher business volume

Financial Decision Making 5
for the company from its casino business. Further, its total assets over the last five years
experienced a decreasing trend. The decrease was mostly attributable its recent acquisition
which has ended up making the company generate weak assets. Additionally, its total
liabilities are viewed to experience a decreasing trend in 2013, 2014, 2015 and in 2016,
however the total liabilities increased with 11.50%. The increase reported in 2017 was
attributable to increased debt financing over the period. The increase in sales and profits is
consistent with the industry trend where the lodging industry recorded a tremendous increase
in 2017.
2014 2015 2016 2017
Revenue 0.52% -19.20% -7.76% 6.90%
Gross profit -0.80% -43.43% -0.58% 35.91%
Operating income 22.02% -68.46% -5.48% 38.68%
Income before taxes -5.09%
-
188.53% 43.86% 42.21%
Net income from continuing operations -11.50%
-
229.02% 49.87% 43.88%
Net income -11.34%
-
229.02% 49.87% 43.88%
Table 1: Horizontal analysis of Genting Singapore plc Income Statement
2014-12 2015-12 2016-12 2017-12
Cash and cash equivalents 1.81% 26.09% -0.79%
-
29.45%
Short-term investments 3.73% 0 0 0
Total cash 2.31% -0.18% -0.79%
-
29.45%
Receivables -1.34% -82.02%
-
264.97%
-
63.54%
Inventories -3.70% 5.26% 8.06% -

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26.53%
Total current assets 1.68% -7.76% -0.17%
-
41.16%
Gross property, plant and equipment 1.47% -0.60% 0.28% 0.56%
Accumulated Depreciation 23.01% 13.82% 11.83% 8.63%
Net property, plant and equipment -4.92% -5.87% -4.67% -3.41%
Goodwill 0.00% 0.00% 0.00% 0.00%
Intangible assets
-
55.56%
-
100.00% 71.43%
-
50.00%
Deferred income taxes 0 100.00% 0 0
Other long-term assets
-
46.01% 25.09%
-
170.05% 21.09%
Total non-current assets -7.98% -3.09% -10.19% -2.51%
Total assets -3.17% -5.36% -5.08%
-
19.14%
Short-term debt 0.39%
-
215.85% 9.89% 10.34%
Capital leases
-
600.00
% 66.67% 0.00% 0
Accounts payable
-
25.00% 0.00% -33.33%
-
200.00
%
Total current liabilities 6.16%
-
138.33% -2.21% 26.91%
Non-current liabilities
Long-term debt
-
43.75% 18.90% -49.28% 3.36%
Deferred taxes liabilities
-
15.22% 18.73% 5.67% -6.01%
Total liabilities
-
15.43% -23.66% -25.31% 11.50%
Table 2: Horizontal analysis of Genting Singapore plc Balance sheet

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2013-12 2014-12 2015-12 2016-12 2017-12
Cash and cash equivalents 27.77% 29.17% 41.59% 43.36% 39.91%
Short-term investments 9.68% 10.37% 0.00% 0.00% 0.00%
Total cash 37.44% 39.54% 41.59% 43.36% 39.91%
Receivables 8.08% 8.23% 4.76% 1.37% 1.00%
Inventories 0.43% 0.43% 0.47% 0.54% 0.51%
Total current assets 47.41% 49.76% 48.65% 51.03% 43.07%
Gross property, plant and
equipment 56.75% 59.42% 62.23% 65.58% 78.57%
Net property, plant and equipment 46.62% 45.84% 45.62% 45.80% 52.76%
Goodwill 0.63% 0.65% 0.69% 0.73% 0.86%
Intangible assets 0.43% 0.28% 0.15% 0.55% 0.44%
Deferred income taxes 0.00% 0.00% 0.02% 0.00% 0.00%
Total assets
100.00
% 100.00%
100.00
% 100.00%
100.00
%
Current liabilities 0.00% 0.00% 0.00% 0.00%
Short-term debt 3.95% 4.09% 1.36% 1.59% 2.11%
Capital leases 0.05% 0.01% 0.02% 0.03% 0.00%
Accounts payable 0.04% 0.03% 0.03% 0.03% 0.01%
Taxes payable 1.19% 1.43% 0.57% 0.82% 2.08%
Other current liabilities 5.85% 6.61% 3.39% 3.06% 4.81%
Total current liabilities 11.07% 12.17% 5.38% 5.53% 9.01%
Long-term debt 13.02% 9.34% 12.14% 8.54% 10.53%
Deferred taxes liabilities 2.03% 1.82% 2.35% 2.62% 2.95%
Deferred revenues 0.08% 0.06% 0.05% 0.03% 0.02%
Other long-term liabilities 0.02% 0.03% 0.01% 0.01% 0.01%
Total non-current liabilities 15.14% 11.26% 14.58% 11.21% 13.52%
Total liabilities 26.21% 23.43% 19.96% 16.74% 22.54%
Table 3: Vertical Analysis of Genting Singapore plc Balance sheet
2013 2014 2015 2016 2017
Revenue 100.00% 100.00 100.0 100.00 100.0

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% 0% % 0%
Cost of revenue 64.81%
65.30
%
71.14
% 69.08%
55.08
%
Gross profit 35.19%
34.73
%
28.86
% 30.92%
44.92
%
Operating income 26.62%
33.96
%
24.03
% 24.55%
37.28
%
Income before taxes 29.72%
28.13
%
11.62
% 22.31%
35.94
%
Net income from continuing operations 24.87%
22.19
% 8.04% 17.28%
28.67
%
Net income 24.83%
22.19
% 8.04% 17.28%
28.67
%
Net income available to common
shareholders 24.83%
22.19
% 8.04% 17.28%
28.67
%
Table 4: Vertical analysis of Genting Singapore plc Income Statement
Economic Condition of the Hospitality and Entertainment Industry in Singapore
The hospitality and entertainment market or industry is the largest revenue generator in
Singapore due to the immense number of companies involved in lodging business. Basically,
Singapore is a small country well-known for its luxurious hotels and food (Study.com 2018).
It has more than 400 hotels and lodges and still more are being built (Singapore Tourism
Board 2017). Its strongest supporters are the international visitors and for the past years, the
lodging and entertainment industry has recorded significantly high or increased profitability
and efficiency. According to DJ Kang (2017) there are more tourists visiting Singapore than
ever who are spending more cash in the country. For instance, the country gained $11.5
billion in 2016 from hospitality and entertainment industry and around $12.7 billion in 2017.
PROFITABILITY

Financial Decision Making 9
Gross profit ratio
This ratio helps in measuring amount of sales that is convertible to gross income.
2013 2014 2015 2016 2017
Industr
y
Gross Margin 35.21 34.72 28.85 30.95 44.92 44.81
Table 1: Gross profit ratio
Based on the Table 1 above, Genting Singapore Ltd ratio was 35.21 in 2013 that experienced
a significant decrease to 34.72 by 2014, then to 28.85 in 2015 but later increased to 44.92 in
2017. This ratio was relatively as per the industry ratio which was 44.81 meaning that the
company was profitable. The increase reported in the last two years was attributed to
increased revenue resulting from its higher business volume from its casino business.
2013 2014 2015 2016 2017 Industry
0
5
10
15
20
25
30
35
40
45
35.21 34.72 28.85 30.95
44.92 44.81
Gross Margin
Gross Margin
Figure 1: Graph of gross profit ratio
Net Margin

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2013 2014 2015 2016 2017
Industr
y
Net Margin % 20.7 18.07 3.13 11.95 25.12 18.23
Table 1: Net margin
The ratio decreased over the period moving from 20.7 in 2013 to 18.07 in 2014, then to 3.13
in 2015 but later an increased to 25.12 in 2017. This ratio is relatively above the industry
threshold of 18.23 meaning that the firm is profitable enough over the period. The increase
was usually due to increased volume of sales reported over the period.
2013 2014 2015 2016 2017 Industry
0
5
10
15
20
25
30
20.7 18.07
3.13
11.95
25.12
18.23
Net Margin %
Net Margin %
Figure 2: Net Margin
Return on assets

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2013 2014 2015 2016 2017
Industr
y
Return on Assets % 4.53 4.02 0.61 2.27 5.71 8.79
Table 3: ROA
By 2013, the ratio was 4.53 which is said to have decreased to 4.02 in 2014 and further to
0.16 in 2015 but later increased to 2.27 and further to 5.71 in 2017. This ratio was below the
industry threshold of 8.79. The increase reported in the last two years was attributable to
increased net income over the same period.
2013 2014 2015 2016 2017 Industry
0
1
2
3
4
5
6
7
8
9
4.53 4.02
0.61
2.27
5.71
8.79
Return on Assets %
Return on Assets %
Figure 3: ROA
Return on Equity
2013 2014 2015 2016 2017 Industr

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y
Return on Equity % 6.34 5.35 0.78 2.78 7.08 31.00
Table 4: ROE
By 2013, the ROE was 6.34 which later decrease to 5.35 in 2014 and to 0.78 in 2015 but later
increased to 7.08 in 2017. This means that the firm was efficient in utilizing its equity to
generate income. Its value was relatively below the industry threshold of 31. The increase
was attributable to increasing trend in its net income over the period.
2013 2014 2015 2016 2017
0
1
2
3
4
5
6
7
8
6.34 5.35
0.78
2.78
7.08
Return on Equity %
Return on Equity %
Figure 4: ROE
DIVIDEND RATIOS
Dividend Yield ratio
2013 2014 2015 2016 2017
Industr
y
Dividends yield 0.62 0.98 1.37 3.11 2.24 2.60

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Table 5: Dividend Yield
In 2013, dividend yield was 0.62 which increased to 3.11 in 2016 and later decreased to 2.24.
Despite the decrease which was attributable to decrease in the amount of dividends payment,
the amount was as per the industry threshold of 2.60.
2013 2014 2015 2016 2017 Industry
0
0.5
1
1.5
2
2.5
3
3.5
0.62 0.98 1.37
3.11
2.24 2.6
Dividends yield
Dividends yield
Figure 5: Dividend Yield
Dividend Payout ratio
2013 2014 2015 2016 2017
Industr
y
Dividends Payout Ratio % * 0.19 0.24 1.60 1.34 0.61 0.07
Table 6: Dividend payout

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By 2013, dividend payout for the company was 019 which increased to 1.61 in 2016 but later
decreased to 0.16 in 2017. The decrease is attributable to the . Despite the decrease in
dividend payout, the ratio is higher than the industry threshold meaning that the company
performance is per the industry requirements.
2013 2014 2015 2016 2017
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0.19 0.24
1.6
1.34
0.61
Dividends Payout Ratio % *
Dividends Payout Ratio % *
Figure 5: dividend payout
Price earnings ratio
2013 2014 2015 2016 2017
Industr
y
P/E Ratio 30.61 25.71
128.3
3 41.36 26.20
21.90
Table 7: P/E ratio
In 2013, P/E ratio was 30.61 which decreased to 25.71 in 2014 and later increased to 128.33
in 2016. The increase was for a while since the ratio later decreased to 26.20 in 2017. Despite

Financial Decision Making 15
the decrease, the value is higher than the industry value of 21.90 meaning that the company
shares are properly valued. The decrease is attributable to decrease in price of the company
shares over the period.
2013 2014 2015 2016 2017 Industry
0
20
40
60
80
100
120
140
30.61 25.71
128.33
41.36 26.2 21.9
P/E Ratio
P/E Ratio
Figure 7: P/E ratio
Earnings per share
2013 2014 2015 2016 2017
Industr
y
Earnings Per Share SGD 1.91 1.60 0.22 0.77 1.85 2.00
Table 8: EPS
By 2013, Genting Singapore EPS was 1.91 that decreased to 0.22 in 2015 but later increased
to 1.85 in 2017. The increase in the company EPS was attributable to increase the company

Financial Decision Making 16
net income over the period. The ratio was below the industry value of 2 but was relatively as
per this value meaning that the company is competitive in the industry.
2013 2014 2015 2016 2017
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
1.91
1.6
0.22
0.77
1.85
Earnings Per Share SGD
Earnings Per Share SGD
Figure 8: EPS
STABILITY AND LIQUIDITY RATIOS
Debt to Equity ratio
2013 2014 2015 2016 2017
Industr
y
Debt/Equity 0.23 0.18 0.17 0.12 0.16 0.70
Table 9: Debt/equity ratio
In 2013, Genting Singapore debt/equity was 0.23 which is reported to have decreased to 0.12
in 2016 but later increased to 0.16. The decrease in this ratio is good since it means that the
firm is dependent on equity financing rather than debt financing; hence, it is financially,

Financial Decision Making 17
stable. Besides, the ratio is below the industry value of 0.70. The decrease is attributable to
decreasing trend in the company’s debts as well as increase in its equity.
2013 2014 2015 2016 2017 Industry
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.23 0.18 0.17 0.12 0.16
0.7
Debt/Equity
Debt/Equity
Figure 9: Debt/equity ratio
Interest coverage ratio
2013 2014 2015 2016 2017
Industr
y
Interest Coverage 20.55 33.88 14.18 17.83 39 37.97
Table 10: Interest coverage
Genting Singapore ratio in 2013 was 20.55 which later increased to 33.88 but later decreased
to 14.18 in 2015. The decrease was for a while since the ratio increased to 39 by 2017. This
value is relatively above industry value of 37.97 meaning that the company is not struggling
to settle its interest expenses at all. The increase in interest coverage was attributable to
increased net income over the period.

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2013 2014 2015 2016 2017 Industry
0
5
10
15
20
25
30
35
40
20.55
33.88
14.18 17.83
39 37.97
Interest Coverage
Interest Coverage
Figure 10: Interest coverage
Current ratio
2013 2014 2015 2016 2017
Industr
y
Current Ratio 4.28 4.09 9.04 9.23 4.78 3.59
Table 11: Current ratio
Current ratio in 2013 was 4.28 which later decreased to 4.09 in 2014 and increased to 9.23 in
2016. This later decreased to 4.78 in 2017. The decrease was attributable to decreasing trend
in the company current assets compared to increase in its current liabilities. Despite the
decrease, the value was above the industry value of 3.59 and therefore means that the
company has idea current assets to be used in settling its short-term debts.

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2013 2014 2015 2016 2017 Industry
0
1
2
3
4
5
6
7
8
9
10
4.28 4.09
9.04 9.23
4.78 3.59
Current Ratio
Current Ratio
Figure 11: Current ratio
Quick ratio
2013 2014 2015 2016 2017
Industr
y
Quick Ratio 4.13 3.94 8.67 8.13 4.55 3.41
Table 12: Quick ratio
In 2013, quick ratio was 4.13 which is reported to decrease to 3.94 in 2014 but later increased
to 8.67. Later the ratio decreased to 4.55 in 2017. The decrease was attributable to decrease in
current assets though with a smaller margin compared to current liabilities. Despite the
decrease, the value is above the industry value of 3.41 meaning that Genting Singapore Ltd is
having easy time in settling its short-term debts with its most liquid assets

Financial Decision Making 20
2013 2014 2015 2016 2017 Industry
0
1
2
3
4
5
6
7
8
9
4.13 3.94
8.67 8.13
4.55 3.41
Quick Ratio
Quick Ratio
Figure 12: Quick ratio
EFFICIENCY Ratios
Asset Turnover ratio
2013 2014 2015 2016 2017
Industr
y
Asset Turnover 0.22 0.22 0.19 0.19 0.23 0.56
Table 13: Asset turnover
In 2013, Genting Singapore ratio was 0.22 which remained constant in 2014 but decreased to
0.19 in 2015 and later increased to 0.23. The increase was attributable to increase sales value
for the company. Despite the increase, the company value is below the industry value of 0.56
meaning that Genting Singapore was inefficient in turning its assets into revenue.

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2013 2014 2015 2016 2017
0
0.05
0.1
0.15
0.2
0.25
0.22 0.22 0.19 0.19
0.23
Asset Turnover
Asset Turnover
Figure 13: Asset turnover
Inventory turnover ratio
2013 2014 2015 2016 2017
Industr
y
Inventory Turnover 33.66 34.06 30.83 25.92
23.9
3
120.13
Table 14: Inventory turnover
Genting Singapore Ltd inventory turnover was 33.66 in 2013 which increased to 34.06 in
2014 but later decreased to 23.93 in 2017. The decrease is attributable to decrease in the cost
of revenue incurred by the company. The value was below the industry value of 120.13
meaning that Genting Singapore is inventories are not lean at all and the entity might be in a
position to correspond to increased demand.

Financial Decision Making 22
2013 2014 2015 2016 2017
0
5
10
15
20
25
30
35
33.66 34.06 30.83 25.92 23.93
Inventory Turnover
Inventory Turnover
Figure 14: Inventory turnover
Debtor’s turnover ratio
2013 2014 2015 2016 2017
Industr
y
Debtor’s Turnover 2.99 2.73 2.97 6.11 18.95 31.60
Table 15: Debtor’s turnover ratio
In 2013, the ratio was 2.99 which is reported to decrease to 2.72 in 2014 but later increased to
18.95. The increase was attributable to increased sales within the company. Besides, the ratio
was below the industry ratio of 31.60 meaning that the company has been efficient in
collecting money from debtors. Furthermore, the increasing trend in its ratio means that the
company has been gaining efficiency on how it collects money from debtors.

Financial Decision Making 23
2013 2014 2015 2016 2017
0
2
4
6
8
10
12
14
16
18
20
2.99 2.73 2.97
6.11
18.95
Debtor’s turnover ratio
Debtor’s turnover ratio
Figure 15: Debtor’s turnover ratio
Cash Cycle
2013 2014 2015 2016 2017
Industr
y
Cash Conversion Cycle
145.5
9
143.1
7 98.47 39.19 29.20
30.00
Table 16: Cash conversion cycle
In 2013, the cash cycle was 145.59 which later decreased to as low as 29.20. The value was
below the industry value of 30 meaning that the company management has not been effective
enough in converting cash on hand to account payable and inventory.

Financial Decision Making 24
2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
145.59 143.17
98.47
39.19 29.2
Cash Conversion Cycle
Cash Conversion Cycle
Figure 16: Cash conversion cycle
Comparative of Genting Singapore with Industry Average
Returns on Investment
2013 2014 2015 2016 2017
Industr
y
Return on Invested 5.28 4.64 0.91 2.64 6.4 11.11
Table 17: ROI
The ROI for the company was 5.28 in 2013 which later decreased to 0.91 in 2015. This
decrease was for a while since the ratio later decreased to 6.4 by 2017. The ratio is far below
the industry value of 11.11 though above the set threshold meaning that despite value being
below the industry value, the company is competitive enough within the industry.
Return on Assets

Financial Decision Making 25
The ratio measures how efficient an organization is in converting its assets into income
(Kumbirai & Webb 2010).
2013 2014 2015 2016 2017
Industr
y
Return on Assets % 4.53 4.02 0.61 2.27 5.71 8.79
Table 18: ROA
Based on the table, it is evident that the company ROA decreased from 4.53 in 2013 to
around 0.61 in 2015 and later increased to 5.71 by 2017. The increase which is attributable to
increased volume in casino is a good sign for the company. Besides, the value is below
industry value but as per the industry threshold meaning that the company has been efficient
in converting its assets into income.
Return on Equity
The ratio measures efficiency of an organization in converting equity into income (Sueyoshi
2005).
2013 2014 2015 2016 2017
Industr
y
Return on Equity % 6.34 5.35 0.78 2.78 7.08 31.00
Table 19: ROE
The ratio was 6.34 in 2013 which decreased to 0.78 in 2015 but later increased to 7.08 in
2017. The increase was mostly as a result of increased income over the period. Besides, the
ratio was below industry average of 31 meaning that despite the increase, the company was
still doing poor on how it utilizes its equity to generate some incomes.
Risk
The ratio measure the level of financial risk associated with level to which the firm utilizes
debts in acquiring extra assets (Lewellen 2004).

Financial Decision Making 26
2013 2014 2015 2016 2017
Industr
y
Risk 1.36 1.31 1.25 1.2 1.29 1.32
Table 20: Risk
The ratio was 1.36 in 2013 which decreased to 1.2 in 2016 but later increased to 1.29. By
comparing the value with the industry average it means that Genting Singapore Ltd is at
lesser financial risk in comparison to the industry average.
Asset Value per Share as well as Genting Singapore Ltd Market Share Price Compared
to STI
Based on Figure 17 below, it is evident that Genting Singapore Ltd experienced a decreasing
trend in its market share price between January 2013 and May 2016 (Stockopedia Ltd 2018).
This trend then changed and an increase was reported over the period up to February this year
where the price seems to be experiencing a decreasing or volatile trend (GuruFocus 2018).
Besides, comparing the company market share price with Strait Times Index, it is evident that
the share price for Genting Singapore Ltd was in linear with the STI though below the index.
Basically, the Strait Times Index value for the last five years was relatively above Genting
Singapore Ltd share price (D&B Hoovers 2018). The similarity in their curve movement over
the past five years shows that Genting Singapore Ltd share price were moving in line with the

Financial Decision Making 27
Index and therefore good for existing and potential investors.
Figure 18: Comparison of Genting Singapore share price with Strait Times Index
Non-Financial Parameters for Genting Singapore plc
There are two casinos across Singapore, but Getting Singapore’s rivals include each single
casino and the integrated resort. Besides, given that the firm target tourists, the level of
completion is relatively strong especially in the gaming industry. Genting Singapore brand is
also widely known as it is the leading gaming firm in the country. This has boosted its
reputations in the market; hence, the probability of generating better finances. According to
Genting Singapore plc (2017), Genting Singapore value for its clients has enhanced high
level of customer retention over the period. Besides, the company values its personnel for
their loyalty and commitment by rewarding them for their long services, which has in turn
result in increased or improved performance. Additionally, the company continues to engage
closely with the government, providing regular updates vial statutory reporting. Besides, the
company maintains regular and open regulations with its investors; hence, motivating these
investors to invest more money in their shares.
Section B
Genting Singapore Ltd Corporate Governance Compliance

Financial Decision Making 28
Corporate Governance is usually the policy of an organization in managing affairs of a
specific group in line with appropriate standards for proper corporate governance. In this
case, Genting Singapore plc has adopted several corporate governance policies (Genting
Singapore plc 2016). To assist its board in discharging their duties, Genting Singapore
management supplies it board with timely, adequate and complete information. Notice of the
meeting, setting agenda together with relevant support providing explanatory information and
background like information required, expected benefits, financial effect, mitigation
measures, risk analysis, recommendation and conclusion are set to the board on time to
enable them in perusing and obtaining extra information on matters that needs to be
deliberated (Genting Singapore plc 2017). The company board offers understandable and
balanced evaluation of the company performance, prospects and position through its financial
statement, annual review and quarterly analyst briefings.
Impact of Proposed Policies on Company’s Brand and Reputation
The proposed corporate governance policies are expected to influence the company brand and
reputation positively. To become dominant in the hospitality and entertainment industry,
expert proposes adopting of some new financial accounting technologies.
Review of corporate governance
Directors and their role
Genting Singapore Directors comprises of Tan Sri Lim, Lim Kok Hoong, Koh Seow Chuan,
Tan Hee Teck and Tjong Yik Min. The directors play a significant role in the company. First,
the directors are responsible for ensuring proper conduct of an organization’s operations
entailing overseeing its affairs and performance, guiding and setting strategic objectives and
direction as well as offering entrepreneurial leadership (Genting Singapore plc 2017). This

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have a significant part in the company; hence, the impact the company performance either
negatively or positively.
Non-Executive Directors and Their Role
The non-executive directors include Lim Kok Hoong, Koh Seow Chuan and Tan Sri Lim
(Genting Singapore plc 2016). These persons play a crucial role since they examine and
determine independence of every board member as well as the directors. Additionally, they
are responsible in leading the firm to ensure smooth flow of operations.
Genting Singapore vision as well as its strategic financial goals
Based on the non-financial and financial parameters analysis, Genting Singapore vision
should be to be the leading multinational firms in the gaming and entertainment services. On
the other hand, its strategic financial objectives would be to be the leading company in the
industry and to achieve relatively high profit by end of this year.
Conclusion
In conclusion, Genting Singapore Plc is usually engaged in development as well as operations
of casinos, integrated resort, provision of marketing and sales support services to hospitality
and leisure related investment and businesses. The company operates through hospitality and
leisure operations segment in Singapore. Through horizontal and vertical analysis, it can be
stated that the company revenue experienced a significant increase in the year 2014. Further,
it is evident that the company is profitable or financially health based on the fact that it net
profit, operating and gross profit increased in 2017 attributable to higher business volume for
the company from its casino business. Moreover, based on the profitability, efficiency,
dividends, long-term solvency and liquidity analysis it is evident that the company has been
quite profitable over the period. With increasing efficiency ratios, it can be stated that

Financial Decision Making 30
Genting Singapore plc management has been efficient over the period. Besides, through
solvency and liquidity ratios it can be stated that the company is stable and is exposed to
minimal financial risk.

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