QUESTION 1

a. Briefly summarize the business description.

Yinson Holdings Berhad is a Malaysia-based investment holding and insurance agency. The
Companys business segments are transport, trading and other operations segment, which
includes rental, insurance and investment income. As of January 31, 2010, the Company had 300
trucks and five tugboats in operation. It also engaged about 200 trucks from other transport
operators to supplement its transportation services to its customers. The Companys subsidiaries
include Yinson Transport (M) Sdn. Bhd, which is engaged in the provision of transport services,
trading in construction materials and rental of properties; Yinson Haulage Sdn. Bhd., which is a
transport and haulage contractor; Yinson Shipping Sdn. Bhd., which is engaged in the provision
of shipping and forwarding services, and Yinson Power Marine Sdn. Bhd., which is engaged in
the provision of marine transport services. On July 7, 2011, it incorporated a 51%-owned
subsidiary, REGULUS OFFSHORE SDN. BHD. YINSON Holdings Berhad is a public limited
liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of
Bursa Malaysia Securities Berhad. The YINSON Group of Companies started in 1983 as a
transport agency partnership business in Johor Bahru. Since that time, we have expanded our
businesses to include offshore support services as well as commodity trading. From an initial
land-based logistics provider, Yinson is now a provider of offshore support services which
servicing the upstream Oil and Gas sector. All of trading, logistics and the provision of offshore
oil and gas services are the main complementary services which Yinson is involved in. The
Principal activities of the Company are summarized in "Group Structure". Yinson's Trading and
Logistics network extends to all major cities in Peninsular Malaysia and our fleet of trucks have
grown to over 200 units. We now have over 400 employees and 200 drivers. We provide a
comprehensive range of transportation services and general warehousing facilities to enhance
logistic services to our customers. Over the years, we have invested continually in new resource
in anticipation of customers needs. In addition, we have a dynamic pro-active management team
and we are committed to provide our customers with courteous, reliable and responsive service
at a competitive price. Every customer needs a dependable service and we at YINSON are
committed to fulfill the aim. We pride ourselves on our ability to adapt to each customers
requirement and become your dependable partner
1

b. What is the industry?

Yinson Holding Berhad is Trading Services Industry based on investment holding and
insurance agency. Trade in Services refers to the sale and delivery of an intangible
product, called a service, between a producer and consumer. Trade in services takes place
between a producer and consumer that are, in legal terms, based in different countries, or
economies, this is called International Trade in Services.
c.

What is the sector?

Yinson Holding Berhad is an Oil and Gas Sector

d. Analyst rating: In your opinion, is this rating relatively high?

In our opinion, the YINSON Holdings Berhad is highly rating based on the financial
report performance. This is because every business has financial statements that provide a
picture of how current business models are running and whether they are profitable.
Financial statements and other tools help you manage your company when you can no
longer be hands on with all the details.
There are three primary financial statements that can help the Yinson Holding
Berhad to rate their analysis of their company. Firstly is an Income statement whereby the
income either profit or loss statement tells you the performance of your company. It
shows the revenues earned and related expenses covering a certain period of time like a
fiscal year. This statement is designed to show you if you made a profit.
Second is the balance sheet which is designed to show a picture of the Yinson
Holding Berhad assets and liabilities (debt) at a point time. Third is a cash flow
statement, which is reconciles the net profit from the income statement to the amount of
cash generated for the same period of time.
The income statement shows the performance of your company over a
period of time and the balance sheet shows the value of company. Because current assets
and debts (due within one year) are shown at their current or fair market value, but other
items like machinery, equipment, furniture, etc. are shown at historical costs, meaning
that machine you bought 15 years ago or the building you bought 30 years ago is still
shown at the value you paid for it, not the value it would sell for today. This is only
further confused by depreciation, an accounting tool that attempts to take into account the
2

decline of value over time. Depreciation is subtracted every year to lower the value of
the asset to help reflect a more realistic value.
e. Review and comment on the three most recent new headlines.
1. Yinson clinches $2.54B FPSO Contract from Eni for Ghanas OCTP Block
Malaysias Yinson Holdings Berhad, announced Wednesday (28 January 2015) it has
been awarded a contract for the charteting, operation and maintenance of a floating
production storage and off-loading (FPSO) vessel (the Contract) for development
offshore Ghana by Eni Ghana Exploration & Production Limited (Eni Ghana) via the
consortium of Yinsons Production (West Africa) Pte. Ltd. (YPWA) AND YINSON
Production West Africa Limited (YPWAL). YPWA IS THE FPSO chartering company
while YPWAL is the company engaged in the operation and maintenance of their FPSO.
2. Will new licenses change Yinsons fortunes?
Yinson announced that it had been awarded three PETRONAS licenses that qualify
the company to tender and participate in upcoming works related to floating offshore
facilities, mobile offshore facilities and naval architecture as well as marine engineering.
Yinson is the third company in the country to have a PETRONAS license related to an
FPSO facility, after MISC Bhd and Global Mariner Offshore Services Sdn Bhd.
Although these licenses will provide Yinson with a new avenue to bid for local jobs, its
rationale is that it will only start looking for local jobs from next year onwards based on
the short time-frame left this year.

3. Yinson Holdings Berhad to launch fundraising exercise

Highly ambitious Yinson Holdings is seen to be taking prudent steps and is to launch
a fundraising exercise to reduce its debts, local reports said. Yinson's gearing had spiked
to a massive 2.5 times after it bought FPSO operator Fred Olsen Production (FOP) in a
MYR576m ($173m) deal last year. Reports cited sources as saying Yinson aimed to bring
this down to below 1.5 times and the funds would likely be raised through a rights issue.
While the acquisition of FOP, leapfrogged Yinson into the big leagues in the floating
production storage and offloading (FPSO) stakes, it piled on a huge amount of debt to do
so. The deal was paid for, in addition to two share placements, with MYR400m in bank
borrowings and MYR14m in internal funds, pushing up Yinsons total debt to
MYR1.28bn.

1.

List the companies (COMPARABLE)

Alam Maritim Resources Berhad.

Alam Maritim Resources Berhad ("AMRB") is an investment holding company with

subsidiaries mainly involved in the provision of marine transportation support services,
marine construction-related services, sub-sea engineering & offshore pipeline installation;
designing, manufacturing and operating of Remotely Operated Vehicle (ROV) services,
ship repair and maintenance services to the upstream in oil and gas industry. The business
of the Group is being undertaken by its wholly owned and associated companies
throughout the region. Alam Maritim Resources Berhad ("AMRB") business commenced
in 1998 when Alam Maritim (M) Sdn Bhd, a wholly owned subsidiary of AMRB first
started its operation as a ship operator and manager for third party offshore support
vessels in Asian countries.

2.

For your company and each comparable company, list the current sales.
The current sale for Yinson Holding Berhad
4

Current Sale

2014
RM000

Cost of sales :
Cost of trading goods sold
Cost of service rendered
Other direct expenses

679,812
187,406
124
867,342

Include in cost of sales are :

Vessel lease rental
Depreciation
Direct operating expenses of investment properties :
- Revenue generating during the year
Employee benefit expenses
Transport agent changes
TOTAL

33,760
22,041
124
4,951
55,058
115,934
983,276

The current sale for Alam Maritim Resources Berhad

Current Sale

2014
RM000
25,063
(234)
4,856
8,646
(479)
37,852

Profit before taxation :

- Interest income
- Interest expenses
- Depreciation
- Loss/ (gain) of foreign each

Realized and Unrealized profit

Total retained profit of the company and its subsidiaries
-

Realized
Unrealized

567, 077
(290, 445)
276,632
65,681

Total share retained profit from associated

-

Realized
Unrealized

98,465
16,490
457,117

Total share of retained profit from jointly controlled entities

-

(151)
65,317

Realized
Unrealized

391,800
7,443
208,885
223,917
3,878
164,952
1,448,463

Less consolidation adjustment,

retained profit as performance statement
Current Asset
Inventories
Trade receivable
Other receivable
Tax recoverable
Cash and Bank balance
TOTAL

2,677,181

For current sales, select the peer weight for your company
3. For current sales, select the peer aggregate.
Peer aggregate is the total value of each item in the current sale which is RM983, 276 for
Yinson Holding Berhad, and RM2, 677,181 for Alam Maritim Resources Berhad. That
company shown that our companies Yinson Holding Berhad current sale are lower than
Alam Maritim Resources Berhad.

4.

For current sales, determine the peer mean.

In probability and statistics, mean and expected value are used synonymously to refer to
one measure of the central tendency either of a probability distribution or of the random
variable characterized by that distribution. In the case of a discrete probability
distribution of a random variable X, the mean is equal to the sum over every possible
value weighted by the probability of that value; that is, it is computed by taking the
product of each possible value x of X and its probability P(x), and then adding all these
products together, giving \mu = \sum x P(x). An analogous formula applies to the case of
a continuous probability distribution.
For a data set, the terms arithmetic mean, mathematical expectation, and
sometimes average are used synonymously to refer to a central value of a discrete set of
numbers: specifically, the sum of the values divided by the number of values. The
arithmetic mean of a set of numbers x1, x2, .xn is typically denoted by \bar{x},
pronounced "x bar". If the data set were based on a series of observations obtained by
sampling from a statistical population, the arithmetic mean is termed the sample mean
(denoted \bar{x}) to distinguish it from the population mean (denoted \mu or \mu_x).
The peer mean between this two companies:
YINSON HOLDING BERHAD VS ALAM MARITIM RESOURCES
RM983, 276 + RM2, 677,181
2
= RM 1, 830, 228.50

QUESTION 2
Review directors or nominees for director by name, principal occupation or employment/other
business affiliation, age, and director service.
1

Comment on the composition of the directors

There are Board consisted of eight (8) members, comprising five (5) Executive
Directors and three (3) Independent Non-Executive Directors. This composition
fulfills the requirements as set out under the Main Market Listing Requirements
(Listing Requirements) of Bursa Malaysia Securities Berhad (Bursa), which
stipulate that at least two (2) Directors or one-third of the Board whichever is
higher, must be Independent. The Directors, with their diverse backgrounds and
specializations, collectively bring with them a wide range of experience and
expertise in areas such as engineering, entrepreneurship, finance, taxation,
accounting and audit and legal and economics.

&

3. List the board committee For each boar of committee, determine the

responsibilities of the committee

Title

Chairman
Independen

Name

Mr. Lim Han

Age

62

Date

Director service and

appointed

responsibilities

as director
28/9/2009

Weng

To ensure effective conduct

of the Board and that all

t
Non-

director, both executive and

executive

director

non-executive.
The chairmen encourage
participant and deliberation
by all board members to
enable the wisdom of all the
members board to be tapped

and to promote consensus

building as much as possible.

recognizes the importance of
the role the Committee plays
not only in the selection and
assessment of Directors but
also in other aspects of
corporate governance which
the Committee can assist the
Board to discharge its
fiduciary and leadership

Executive

Mr Lim Han

55

301/1996

functions.
Participate with the Board of

Joeh
Madam Bah

62

9/3/1993

Director in developing a

50

30/1/199

Kim Lian
Mr. Bah

director

vision and strategic plan to

Koon Chye

guide the organization.

Developed an operational
plan which incorporate goals
and objective that work
toward the strategic direction

Independen

t
Non
executive

Dato IR.Adi

30/1/1996

Azmari Bin

impartial opinion, advise

BK Koya

and judgments to board

Moideen

director

50

of the organization
Providing unbiased and

Kutty
Mr. Kam

Chai Hong
Tuan Haji

65

30/11996

64

21/6/2001

deliberation to ensure that

the interest, not only for the
group, but also of its
shareholders, employee,

Hassan Bin

customer, supplier and other

Ibrahim

communities in which the

group conduct its business.

a. component of compensation
Salary and wages
Salary is part of a compensation package that employers provide to employees
in exchange for performing specified services. Besides, it is to covering one
year's worth of services, it is the money an employee earns at regular intervals
often monthly, semi-monthly or even weekly throughout the year. Payment
terms are typically agreed on between an employer and employee at the
beginning of the working relationship, although the details can be changed
over time. While an individual must agree to be a salaried employee, it is the
employer who decides whether to offer this position to a worker. Once hired,
these employees may need to work a minimum number of hours each week,
but compensation is usually based on more than just the time spent at the
office. To maintain their positions, employees must typically continue to meet
certain performance standards.
Wage is a specified amount of money paid to an employee measured by
the amount of time they work. Moreover, wages are different than a salary,
usually people who earn salaries earn a specified amount of money per month
not based on the hours they work. They may still work at least 40 hours a
week, but may be required to work more when necessary. Salary doesnt rise or
fall depending on time at work; wages do. If a wage earner who takes a day off
without vacation pay, the money make in a month will be lower. Alternately, if
the employee works more than 40 hours in a week, the employee may make

more money in a month, and you can be paid extra overtime compensation.
Bonuses
Bonus is often connected directly to performance, such as generating more
sales or motivating a production line to meet or exceed a quota. Knowing there
is a tangible financial reward for increased productivity can be precisely the
kind of motivation many employees need. Besides, employee can use the
promise of extra pay to entice managers to motivate their subordinates towards
a specific goal. Sometimes, simply maintaining an accident-free work

environment can result in a performance bonus for supervisors and managers.

Health insurance
10

Health Insurance referred to as group insurance, employees who meet the

employers criteria in terms of hours worked, time with the company, and other
factors may be enrolled into the program. Depending on the way that the
insurance program is arranged, the employer may absorb the total cost of the
monthly premium for each employee, or pay a percentage of the total premium.
When that is the case, the employee pays for the remainder of the premium due

via a payroll deduction that is withheld by the employer.

retirement plan
Retirement planning is the important task of deciding how the employee will
live once they retire. It involves the consideration of a number of factors,
including at what age the employee hope to retire, how much money the
employee will need to cover living expenses coupled with the things they plan
to do once they retired, and where their money will come from. Therefore,
retirement planning is planning employer finances for the period of life after
the employer stop working. Saving money for retirement through one or all of
the available options is the first place to start. Many employers have retirement
planning options available to their employees. Some companies have pension
plans, others have 401(k) plans, and some have a combination of both. Even
without company sponsored plans, retirement planning is possible for any
individual who wisely invests his or her money. The employee can choose to
talk to a financial planner, but usually for a fee. In addition, another option is to
discuss investment and savings options with the bank where you currently have
your checking or savings account. Many banks offer free advice to their
account holders hoping to gain more of their business through long-term
savings.

b. in your opinion, how significant is the compensation

11

In my opinion, the compensation packages a business offer to employees affects

the companys recruitment rate, retention rate and employee satisfaction. With
compensation also can give the employee more energy to do a work and the employee
also will give their best to so a task that been given to them. Moreover, because of the
compensation also the employee also will follow the rule in the company to get the
compensation. A business owner should understand the importance of compensation
and the prevailing laws to remain competitive in the market.

QUESTION 3
12

Comment on the following trends in:

NO
1. Total

2014
693,594

2013
354,875

2012
300,205,365

2011
246,733,022

2010
166,603,888

2,143,274

800,898

495,594

385,131

241,373

839,436

374,908

263,362,130

214,430,932

127,072,443

liabilities
6.Total

Current liability

Current

Current liability +

Current liability +

Current liability +

liabilities

+ non-current

liability + non-

non-current

non-current

non-current liability

liability

current

liability

liability

127,072,443+8,470,

839,436+

liability

263,362,130+

214,430,932+48,74

962=135,543,405

Current
Asset
Total Cash+
Account
Receivable
Inventory+
Deposit
Paid+
Prepaid
Expenses
2. Total
asset
3. Total
current
asset vs
trend in
total asset
4. total
current
liabilities
5. Total
current
asset vs
total current

13

7. Total

762,792 =

374,908+

75,280,753=

6,931=

1,602,228

142,202 =

338,642,883

263,177,863

541,046

517,110
283,788

156,950,913

121,952,792

105,829,391

common
equity

1. Based on the total current asset for each year from 2010 until 2014, it was found that, total
current asset for Yinson Bhd have a number that fluctuated. The year 2010 is the best among the
other five years because it has a high amount of total current assets of RM166,603,888, while in
2011, increase by 1.481% of the previous year. Next, start from 2011 to 2014 shows the rate of
total current asset was maintained because the increase and decrease each year just a little. From
2012 was decreased by 1.22% from 2011, decrease by 0.11% in 2012 and increase again by
1,95% in 2014.
2. With the total current assets over five years, from 2010 to 2014, it shows that the asset of the
company is increase year by year for the five year period. Year of 2014 is show the highest
increase for the current asset which is 2.68% than 2013.
3. From the report analysis results of total current assets and total assets over five years, it was
show that the increase in total asset is not affected by an increase in the total current asset. This
is because, in the element of asset there are other elements such as long term asset and other
asset that influence changes in total asset.
4. Based on the total current liabilities over five years, from 2010 to 2014, the total current
liabilities in 2012 was the highest of current liabilities which is RM263,362,130 and the lowest
of current liability is in 2013 which is RM374,908.
5. Based on the analysis results of total current assets and total current liabilities over five years,
it shows that the current liabilities can be influence in change of amount of net total current asset.
This is because to get the net asset, the asset should be minus the total liabilities so, a higher
amount of current liabilities, a lower amount of current asset. Its means, the total current

14

liabilities should be lower than total current asset so that the company always in good position in
business.
6. Based on the total liabilities over five years, from 2010 to 2014, in year of 2012 was the
highest total liability which is RM338,642,883 and the lowest is 2013 which is RM517,110.
7. Based on the total common equity over five years, from 2010 to 2014, the total common
equity in the five years show that the common equity is decrease. The highest of the common
equity is in 2012 which is RM156, 950,913. The lowest wan in 2013 which is RM283, 788.

Question 5
a. Comment on significant trends in the common-size balance sheet company Yinson for 5
years
1. Assets
Balance sheets

2010

2010

2011

2011

2012

2012

Amounts

Percentage

Amounts

Percentage

Amounts

Percentage

(RM)

(%)

(RM)

(%)

(RM)

(%)

15

Assets
1. Current assets
- Inventories
- Trade and other

658,558

0.27

628,493

0.16

655,484

0.13

159,302,677

66.00

233,963,687

60.75

249,872,722

50.42

304,911

0.13

488,945

0.13

644,283

0.13

receivables
Current tax

recoverable
Marketable

securities
Cash and bank

49,640

0.02

37,340

0.01

46,930

0.01

balances
Prepayments
Other currents assets

6,288,102

12.60

9,072,546

2.36

30,333,442

6.12

2,542,011

0.66

18,652,454

3.76

166,603,888

69.02

246,733,022

64.07

300,205,365

60.57

53,391,290

22.12

121,519,338

31.55

145,372,841

29.33

9,165,000

3.80

9,265,000

2.41

14,855,00

0.30

11,020,304

4.57

5,696,401

1.48

4,612,193

0.93

40,969

0.17

129,166

0.03

118,178

0.02

100,000

0.04

101,345

0.04

552,169

0.14

29,820,237

6.02

Total current assets

2. Non-current assets
- Property, plant and
-

equipment
Investment

properties
Land use rights
Intangible assets
Investments in

subsidiaries
Other investments
Advance and loan to

subsidiary
Deferred tax asset
Investment in joint

venture
Investment in

associate
Available for sale

investment
Other receivables

Total non-current assets

3. Non-current asset
held for sale
16

Total assets

73,818,908

30.74%

137,162,074

35.61

194,778,449

36.6

950,000

0.39

1,235,559

0.32

610,000

0.12

241,372,796

100

385,130,655

100

495,593,814

100

5 a. Continue for years 2013 and 2014

Balance sheets

2013

2013

2014

2014

Amounts (RM)

Percentage

Amounts (RM)

Percentage

(%)

(%)

Assets
4.
-

Current assets
Inventories
Trade and other receivables
Current tax recoverable
Marketable securities
Cash and bank balances
Prepayments
Other currents assets

Total current assets

5.
-

Non-current assets
Property, plant and equipment
Investment properties
Land use rights
Intangible assets
Investments in subsidiaries
Other investments
Advance and loan to

subsidiary
Deferred tax asset
Investment in joint venture
Investment in associate
Available for sale investment

680,178

0.08

40,041,000

1.87

287,549.076

35.90

376,623,000

17.57

733,885

0.09

420,000

0.02

43,700

0.01

13,000

0.01

23,837,041

2.98

267,077,000

12.46

42,031,405

5.25

9,420,000

0.44

166,603,888

44.31

693,594,000

32.37

232,312,846

29.01

1,023,958,000

47.78

15,175,000

1.89

15,155,000

0.71

4,516,106

0.56

4,442,000

0.21

114,432

0.01

109,000

0.01

17

Other receivables

1,148,000

0.05

153,497,977

19.17

357,965,000

16.70

29,015,630

3.62

29,211,000

1.36

11,391,135

1.42

15,733,000

7.34

1,981,000

0.10

446,023,126

55.68

1,449,680,000

67.64

800,898,411

100

2,143,274,000

100

Total non-current assets

6. Non-current asset held for
sale

Total assets

2. Equity and Liabilities

Balance sheet

2010

2010

2011

2011

2012

2012

Amounts

Percentage

Amounts

Percentag

Amounts

Percentage

(RM)

(%)

(RM)

(RM)

(%)

(%)
1)
-

Equity
Retained earning
Share capital
Reserves
Minority Interests

68,497,500

28.38

68,497,500

17.79

75,347,200

15.20

37,054,174

15.35

53,440,572

13.88

81,428,243

16.53

18

Total equity
2) Liabilities
Current liabilities
-

Short term

borrowings
Trade and other

payables
Current tax

277,717

0.12

14,720

0.01

(324,512)

0.07

105,829,39

43.85

121,952,79

31.67

157,275,44

31.66

38.38
92,644, 933

37.37

36.33

143,947,84

180,025,31

13.74

17.52

16.67

0.52

67,473,574

0.78

82,545,815

0.16

52.65

3,009,514

55.67

791,000

53.14

2.27

214,430,93

11.95

263,362,13

14.51

33,169,418

payables
Total current liabilities
Non- current liabilities
-

Long-term

borrowings
Deferred tax

1,258,092
127,072,44
3

liabilities
Total non-current

2
5,488,962

1.24

liabilities

0.71

0.68

46,007,931

Total liabilities

2,982,000

3.51

71,916,753
12.66

15.19

2,739,000
8,470,962

56.16

3,364,000
68.33

30.38

48,746,931

75,280,753

263,177,86

338,642,88

135,543,40
5

3
3) Total equity +
liabilities

241,372,79

100

495,593,81

100

800,898,411 100

Continues for year 2013 and 2014

Balance sheet

2013

2013

2014

2014

Amounts (RM)

Percentage

Amounts

Percentage

19

(%)

(RM)

(%)

84,345,000

10.53

146,642,000

6.84

208,431,000

26.02

371,141,000

17.32

(11,544,000)

1.49

17,344,000

0.81

2,556,000

0.32

5,919,000

0.28

283,788,000

35.43

541,046,000

25.25

309,135,000

38.60

621,739,000

29.00

Total current liabilities

65,006,000

8.12

180,795,000

8.44

Non- current liabilities

647,000

0.08

36,902,000

1.7

374,908,000

46.80

839,436,000

39.14

139,406,000

17.41

668,394,000

31.19

2,796,000

0.35

94,398,000

4.40

142,202,000

17.76

762,792,000

35.59

517,110,000

0.06

1,602,228,000

74.73

800,898,411

100

2,143,274,000

100

4)
-

Equity
Retained earning
Share capital
Reserves
Minority Interests

Total equity
5) Liabilities
Current liabilities
-

Short term borrowings

Trade and other payables
Current tax payables

Long-term borrowings
Deferred tax liabilities

Total non-current liabilities

Total liabilities

6) Total equity + liabilities

QUESTION 6
Comment on the trend in the following ratios:

20

1.

2.

Quick Ratio=

QUICK RATIO

Current AssetInventories
Current Liabilities

2010

166, 603, 888658, 558

= 1.31
127, 072,443

2011

246,733,022628,493
214, 430,932

= 1.15

2012

300,205,365655,484
263,362,130

= 1.14

2013

384, 875,285680,178
374,907,895

= 0.94

2014

693,59400040,041,000
839,436,000

CURRENT RATIO

Current Ratio =

Current Asset
Current Liabilities
YEARS
2010

CALCULATION
166,603,888/127,072,443

2011

= 1.31
246,733,022/214,430,932

2012

= 1.15
300,205,365/263,362,130

2013

= 1.14
354,875,285/374,907,895

2014

= 0.95
693, 594,000/ 839,436,00
= 0.83

21

= 0.78

3.

ACCOUNT RECEIVABLE DAYS

Net Credit Sales
Average Account Receive

Account Receivable Days=

YEARS
2010

CALCULATION
32,833,141/470,170,328

2011

= 25 Times
52,162,724/ 640,817,583

2012

= 29.7 Times
55,783,286/ 715,824,003

2013

= 28.4 Times
84,581,669/ 865,220,854

2014

= 35.7 Times
74,519,000/ 941,861,000
= 28.9 times

4.

INVENTORY TURNOVER
Inventory turnover = Sales
Inventories

Year
2010

Calculation
470,170,328
658,558

2011

= 713.93
640,817,583
628,493

2012

= 1019.61
715,824,003
655,484

2013

= 1092.05
865,220,854
22

680,178
=1272.05
941,861,000

2014

40, 041, 000

=23.522

1.08. Current ratio in year 2014 is more liquid than the base year.

QUESTION 7
Comment on the trends in the following debt ratios:
1.

Total debt / common equity

23

Total debt in year 2014 are more higher RM342,422 compared to year 2013 only
RM188,720. YINSON Holding Bhd. have to pay more debt compared to the

previous year.
Common equity in year 2014 are more higher RM374,049 compared to year 2013
only

2.

RM209,772.

Total liabilities / Total assets

Total liabilities in year 2014 are more higher RM342,422 compared to year 2013
only RM188,720. YINSON Holding Bhd. have to pay more debt compared to the

previous year.
YINSON Holding Bhd have more assets in year 2014 that cost RM716,471 while
only RM398,492 in the base year 2013.

QUESTION 8
Required Comment on the 5-year trends in the following profitability ratios:
1. Return on assets
24

NET INCOME
TOTAL ASSET
2014= 5699000
7164471
= 7.95
YEAR
2010

CALCULATION
371,054
70,826,303

RATE OF RETURN
00.524

2011

2,025,996
385,130,655

00.526

2012

24,310,805
205,140,573

0.11

2013

5,633,089
800,898,411

00.703

2014

5699000

0.795

7164471

The rate of return is fluctuated over the year with a positive value and at year
2014 it was near to 1 which is show their efficiency in manage the asset in return
to get profit during that period. This ratio help the management and the investors
see how well the company can convert its investment in assets into profits. In
shorts, this ratio measures how profitable this companys assets are.
2. Gross profit margin
GROSS PROFIT= TOTAL REVENUE TOTAL COST OF GOODS
GROSS PROFIT MARGIN= GROSS PROFIT
TOTAL REVENUE
YEAR
2010
2011
2012
2013

CALCULATION
= 1,037,869
1,692,423
=3,913,388

TIMES
0.61
1

3,913,388
= 34834430
34,834,430
= 9,500,000
9,500,500

1
1
25

2014

= 7,949,000
7,949,000

The gross profit margin ratio is used as one indicator of a business's financial
health. It shows how efficiently a business is using its materials and labor in the
production process and gives an indication of the pricing, cost structure, and
production efficiency of the business. Gross profit is fluctuated and getting better
where when the gross profit margin is more than 1 is shows a better performance.
In 2010, the company only gets around 0.61 then after that they are able to
maintain their gross profit margin with 1 times. It shows this company is efficient
which means more money is left over for other operating expenses and net profit.
The higher the percentage, the more the business retains of each dollar of sales.

3. Operating profit margin

OPERATING PROFIT MARGIN= OPERATING INCOME (EBIT)
SALES REVENUE
YEAR
2010

CALCULATION
572,898

TIMES
0.34

1,692,423
2011

2,449,687

0.63

2012

3,913,388
31,063,805

0.89

2013

34,834,430
5,633,089

0.59

2014

9,500,000
5,765,000

0.73

7,949,000

26

Operating profit margin gives the business owner a lot of important information about the firms
profitability, particularly with regard to cost control. It shows how much cash in thrown off after
most of the expenses are met. A high operating profit margin means that the company has good
control and that sales are increasing faster than costs, which is the optimal situation for the
company. In year 2010 they only able to make 0.34 times as return but the company getting
better in year 2011 until 2012, decrease in year 2013 and increase with 0.13 in year 2014.

QUESTION 9
a. Review the EPS estimate forecasts. Comment on how those forecasts could influence the
market value of the common stock.

year
EPS

2011
0.06

2012
0.08

2013
0.06

2014
0.10

2015
0.26

The EPS for Yinson Holding Bhd is 0.10 and show a better performance. This forecast
influenced market value of the common stock because the stock market is forward
looking. That is, stock prices are established based on the expectations that prospective
investors have for the future earnings power of the firm.

b. 1. What is the forward price/earnings ratio for your company?

27

Forward price earnings ratio is a valuation method used to compare a companys current share
price to its expected per-share earnings. The price earnings ratio for Yinson Holding Bhd is 14.08
and if includes extra ordinary items it become 15.23.

2. Comment on how the price/earnings ratio is influenced by the earnings per share forecasts.
a. 1. Toward the top of the page, view Market Capitalization Note how it is computed.
Market capitalization is the market value of a company at any particular moment in time.
It can be determined by multiplying the market price of a single share of company stock
by the total number of the company's outstanding shares. Yinson Holding Berhad market
price based on Bursa Malaysia is RM 2.900 for year 2014.
2. Go back to Annual Ratios Section in the website or annual report under the heading
Leverage Ratios, select the dividend payout. Comment on the dividend payout.
The amount of dividend paid by the Company since 31 January 2013 was as follows: RM000 In
respect of the financial year ended 31 January 2013: First and final dividend of 2.5% less 25%
taxation on 220,390,610 ordinary shares declared on 31 July 2013 and paid on 10 September
2013 4,132 At the forthcoming Annual General Meeting, a final single tier dividend of 1.25 cent
per ordinary shares in respect of the financial year ended 31 January 2014, amounting to
approximately RM12.91 million, will be proposed for shareholders approval. The financial
statements for the current financial year do not reflect this proposed dividend. Such dividend, if
approved by the shareholders, will be accounted for in equity as an appropriation of retained
earnings in the financial year ending 31 January 2015.

d. Why is the market capitalization different than the total shareholder equity?
Market capitalization is the market value of a company at any particular moment in time. It can
be determined by multiplying the market price of a single share of company stock by the total
number of the company's outstanding shares. A company's market capitalization may fluctuate
28

from day to day, or even from moment to moment, based on the current market price of its stock.
Meanwhile, shareholder equity is sometimes referred to as a company's net worth. A company's
shareholder equity is calculated by subtracting the company's liabilities from its assets. The
remainder is shareholder equity. The shareholder equity per share is determined by dividing the
total shareholder equity by the number of outstanding shares. Shareholder equity is not
influenced by the market price of the company stock.

29