BBPW3103 FINANCIAL

MANAGEMENT 1
 COMMENTS (CR)

The Current Ratio for 7-Eleven Malaysia Sdn. Bhd is decreasing

drastically by three years in row. T
The company they is less efficient to pay the short-term obligation.
The company poor in cash management.
The company also is using short-term sources of financing to finance
the purchase of long-term assets.
COMMENTS (QR)
The Quick Ratio for 7-Eleven Malaysia Sdn. Bhd is decreasing
drastically by three years in row.
The company they is less efficient to pay the short-term obligation.
The company is using short-term sources of financing to finance the
purchase of long-term assets.
The company is holding too much stocks.
COMMENTS (ITO)
The Inventory Turnover Ratio for 7-Eleven Malaysia Sdn. Bhd is
decreasing continuously from 8.96 times in 2014 to 5.51 times in 2016.
The company less efficient in selling goods to generate revenue.
The company because its show that the company have bad abilities in
holding too much stock, that is overstocking.
comments (ACP)
7-Eleven Malaysia Sdn. Bhd is much efficient in the management of
its debtors even the ratio number of days increasing in the year 2015
and decreased back as in 2016.
comments (FATO)
The company is not fully utilizing that revenue can be generated to
cash invested in fixed assets.
The company, nder utilization of fixed assets which may be due to too
much investment in fixed assets and inefficient use of these assets to
produce sales.
comments (TATO)
The company is efficient and effectiveness of using of their
assets
The company also updating their image identity on that years
effecting increasing the intangible assets of the company.
comments (DEBT RATIO)
The company should monitor its debt in order to avoid the financial
risk and bankruptcy. We can see there that the companys total debt
increases from RM498,941 to RM738,316 in 2016.
COMMENTS (DER)

For the year 2016 the debt ratio there is a high increasing in the debt
ratio.
This indicates that in year 2016, most of the assets of the company are
financed by the debt. 7-Eleven are increasing their long term
borrowing from RM5,355,000 in 2014 to RM90,473,000 in 2016.
The debt ratio in year 2016 indicates that 7-Eleven are facing the high
risk of the bankruptcy because they are depending too much on debt in
order to finance their assets.
COMMENTS (TIE)
Based on the ratio its stated that the company able to meet interest
payment.
In 2016 TIE is declining and it indicates the high interest of the
borrowing that they made in 2015. Thus,
It leads to the high risk of bankruptcy. This is because the company
have high borrowing due to high dividend policy.
COMMENTS (GPM)
7-Eleven Malaysia Sdn. Bhd is more efficient when its increasing and its
efficiently in controlling of Cost of Good Sold even theres a slightly decreased in
2016 by 0.1% but as an overall the year of 2014 with 29.5% to 2016 with 30.7%
makes the company optimize their profit efficiently.
COMMENTS (OPM)
7-Eleven Malaysia Sdn. Bhd is that less efficient in productivity of
assets in providing return.
This is shows that the company operating with a high cost and also
lower gross profit margin makes this is less efficient.
COMMENTS (NPM)
The company be able to get higher return after deducting with all expenses
including tax and interests.
The sales is the key to makes the ratio increases each year that could higher return
of profit
COMMENTS (ROA)
The company is less productive in utilising their assets to generate revenue which
it has invested to earn more profit.
GST implementation makes it even worst for the company to pay the tax with
their profit earned.
The company, it is lower return and the investment from the assets is insufficient
to recover back all the investment of the company made.
COMMENTS (ROE)
The company is able to give higher return to shareholder who invested
the capital in the company itself.