Key Performance Indicators (KPIs) of AHB Holdings Berhad: An Analysis

MANAGEMENT ACCOUNTING

Introduction
• The Key performance Indicators of a business are areas
which determine the overall performance of the business.
The assessment identifies the KPIs of AHB Holdings Berhad
for the current year(Ahb.com.my., 2018).
• The performance indicators in a business are considered by
potential investors before they take any investment
decisions for the business.

Identification of KPIs
• The KPIs which are identified judging from the annual report of
AHB Holdings Berhad are given below:
• Net Profit: The net profit of AHB Holdings Berhad is shown to be
RM 513,644 for the year 2017. The net profits of the business are
the main indicators of financial performance of a business.
• Operating Costs: The operating costs of any business
determine the profitability of a business and for AHB Holdings
Berhad, the operating costs of the business is shown to have
reduced slightly for the year 2017. The improvements in the
costs of the business has positive impact on profitability of the
business

Identification of KPIs (Continuation)
• Total Assets: The total assets which is shown in the balance sheet
which is prepared by the business is shown to be RM 31,885,321.
The increase is total assets of the business is sign of increase in
financial strength of business.
• Cash Balance: The cash balance of the business reflects the
liquidity position of the business and thereby are considered to
be one of KPI of the business.
• Earning Per Share: The Earning Per Share (EPS) of the business
reflect the profit generated by the business per shares for the
owners of the business. The EPS of the business is shown to have
fallen and the same is shown to be RM 1.60 per share.