FULL NIGHT — 9999894380 Call Girls In Ashok Vihar | Delhi
Financial management (group assignment)
1. An Assignment cover sheet needs to be included with each assignment. Please complete all details clearly.
When submitting the printed copy of this assignment, please attach this sheet to the front of your assignment. When submitting the
assignment online, please ensure this cover sheet is included as the first page of your document.
Please check with your subject lecturer for assignment submission locations.
Names: Student IDs:
Hoi Wei Han 0323335
Ng Huoy Miin 0319097
Leong Yu Xuan 0325102
Hing Pui Kei 0325961
Hooi Zhao Hong 0318564
Programme: Bachelor of Quantity Surveying (Honours), SCHOOL OF ARCHITECTURE, BUILDING & DESIGN
Email (Group Leader): Contact No (Group Leader):
Subject code and title: QSB3413/QSB3414/FIN60203 FINANCIAL MANAGEMENT
Module Lecturer/ Tutor: Tay Shir Men
Assignment number: Group Written Assignment Due date:
Assignment topic as stated in the guidelines provided: Business and financial analyses and forecasts of a company.
Further Information: (e.g. state if extension was granted and attach evidence of approval and Revised Submission Date)
I have read and understood the Taylor’s University Regulations on cheating, plagiarism and collusion and state that this piece of
work is my own and does not contain any unacknowledged work from any other sources.
I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand
this will involve the University or its contractor copying my work and storing it on a database to be used in future to test work
submitted by others.
Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a
signed statement.
Signed: Name: Date:
Date received from student : Received by:
2. M K LAND HOLDINGS BERHAD
M K Land Holdings Berhad is a property development company as well as an investment
holding company which was founded by Mustapha Kamal bin Abu Bakar and Kasi K. L.
Palaniappan on August 2nd, 1978 and became the headquartered in Petaling Jaya, Malaysia. It
engages in the provision of management and business in real estate by operating through four
segments, Property Development and Related Activities, Leisure, Education and Investment
Holding.
For the Property Development and Related Activities segment markets and constructs
mixed properties, for example, shop lots and terraced houses with facilities such as schools,
clubhouse, surau, police beat base and so on. The Leisure segment focus on the management
and operation of hotels, resorts, theme parks and golf courses. For the Education segment, it
provides training programmes and Educational services. The Investment Holding segment deals
with the investments in subsidiaries and properties.
M K Land Holdings Berhad has also made its debut on the Main Board of the Kuala
Lumpur Stock Exchange (KLSE), and now known as Bursa Malaysia on 27th August 1999 as a
result of a Second Board manufacturing company reverse takeover. It has also became one of
the largest capitalised property organizations with about RM1.2 billion paid-up capital.
M K Land Group has a wide array of projects, which includes residential and commercial
development, hotels and resorts, a water theme park, an education arm and property
investment. Figure 1.1 and 1.2 below show the completed project whereas Figure 1.3 shows the
on-going project undertaken by the company.
1
3. Figure 1.1 - Armanee Terrace II, a luxury duplex condominium with private gardens located in
the Golden Triangle of Petaling Jaya. (Source from: M K Land Holding Berhad 2017)
Figure 1.2 - Bukit Merah Laketown Resort, owns a magnificent 7000 - acre Bukit Merah
freshwater lake. For the corporates, Bukit Merah is an ideal location for team-building
activities.(Source from: M K Land Holding Berhad 2017)
2
4. Figure 1.3 - Residensi Suasana@Damai,it is an on-going project with a completed earthwork
and foundation work. It is highly equipped with top-class and family friendly facilities. (Source
from: M K Land Holding Berhad 2017)
3
5. Table 1 - The Board of Directors of MK land (Source from: M K Land Holding Berhad 2017)
Property development and related activities are the main contributor to the group’s
revenue.It have contributed approximately 81.5% to the group’s revenue while remaining as the
core business of the group. The revenue of FY2017 has sharply decreased about 35% from
FY2016 due mainly to lower revenue from the property development segment as a result of
re-scheduling of sales launches and later commencement of construction of Residensi
Suasana@Damai.
4
6. Chart 1 - Revenue Contributions of M K LAND Holdings Berhad. (Pie Chart)
Chart 2 -Revenue Contributions of M K LAND Holdings Berhad. (Bar Chart)
5
7. Besides that, M K Land Holdings Berhad also engaged in property management and
educational segment like provides education services and offer training programs. M K Land
Holdings Berhad have been paid-up capital about RM 1.2 billion worth of projects for the largest
capitalised property companies. The portfolio of the projects including low-rise and high-rise
housing,commercial development, hotels and Resorts, water theme park, education arm and
property investment. It can be seen that the company is actually diversifying its business by
engaging in different segments.
The liquidity of the company can affect the strength and weakness of the company.
Based on the current ratio of M K Land Holdings Berhad for the past few years, it shows that the
ratios had increased from FY2015 to FY2017.In order to stay solvent, the current ratio must be
at least 1.0X. As the result, M K Land Holdings Berhad is solvent since all of the current ratio is
over 1.0X but less than 2.0X (Table 6). In this case, it exactly met its current debt obligations.
However in general, for a company to be in safe and liquid condition, the current ratio needs to
be at least 2 times or more.
Furthermore, a company’s health or efficiency can be determined by analyzing their
gross profit margin and net profit margin in the recent fiscal years (FY). M K Land Holdings
Berhad’s gross profit margin had increased from FY2015 to FY2016, increased by 10.52% in
FY2017 (Table 14). This means that for every dollar generated from sales, the company has 11
cents left over to cover its operating costs and profit. Based on the analysis, the net profit
margin had increased from 5.5% in FY2016 to 9.4% in FY2017 (Table 16). The increase in this
margin indicates that the company is effective in converting their revenues into actual profit.
In addition, the return on equity of M K Land Holdings Berhad had decreased from
FY2015 to FY2016 but increased in FY2017 (Table 18). Return on equity is an important
measurement because it indicates the ability of a firm to generate profits for its shareholders'
investments in the company. The increase in the return on equity may be considered as a good
situation because it could increase the value of the company and affect the decisions of the
investors.
6
8. According to the analysis, the debt ratio has decreased from FY2015 to FY2017 (Table
11). A lower debt ratio means that the company is in a better financial condition. It means that
the company has the ability to pay off its liabilities with its assets. A lower debt ratio usually
implies a more stable business with the potential of longevity because a company with lower
ratio also has lower overall debt. In other words, a company with lower debt level will be more
competitive.
As there is a large competition in the industry, and despite the company’s liquidity had
decreased over the years, M K Land Holdings Berhad seizes more opportunities by venturing
into property development segment to provide property management and educational services.
However, construction industry in Malaysia had grown vigorously for the past few years
with double-digit growth and it is expected to continue to be growing in the future. There are
10% to the nation’s gross domestic product (GDP) contributed by the wave of construction
sector which has never-ending rolled across the domain of Malaysia’s economic. The number of
construction projects is expected to increase significantly with the country are moving towards
the status of a developed nation by 2020.
The current economic conditions shows the prospects for future growth in this market
sector will remain flat in 2017 due to many factors such as weakness in the local currency, the
effect of GST, political scandals and stringent lending policies by banks has slowed down the
property sector.
All other sub-sectors were on the downtrend, except for the agricultural sub-sector. The
residential sub-sector influenced the overall performance which has been contributing the lion’s
share of the market. The residential market for the primary states (Kuala Lumpur, Johor,
Selangor and Penang) recorded a transaction volume drop of between 16.7% and 24.4%.
7
9. In the first quarter of 2016, the overall market performance had softened. Both volume
and value of transactions recorded double-digit contraction against the fourth quarter of 2015.
House prices in Malaysia continue to rise, but at a slower pace, and sales are slightly down, and
residential construction activity is slowing.
Datuk Faizan Abdul Rahman who was the Valuation and Property Services Department
(JPPH) director-general have mentioned that, “The economy, politics, and even the recent
Brexit in UK have an indirect impact on sentiment. It is also among the reasons that caused the
drop in transactions in all property sectors in the first quarter of 2016”. Furthermore the
malaysia's economic are affected by china's economy which is slowing down which are those
that correlated to the property market.
On the other hand, the capital investment of a company is also important. Capital
investment define as a firm’s attainment of capital or fixed assets such as land, building or
machinery for production over many years in the business’ operation. In the last three financial
years, the major capital investments of the company are identified as investments in property,
plant and equipment, and also land held for property development and property development
cost.
8
10. 2014
(RM’000)
2015
(RM’000)
2016
(RM’000)
2017
(RM’000)
Property,Plant
and Equipment
192,564 191,484 195,619 188,298
Land held for
property
development
611,986 709,115 702,474 721,244
Investment
properties
147,297 146,053 145,090 149,020
Total 951,847 1,046,652 1,043,183 1,058,562
Table 2 - The table above shows the amount invested in property, land, plant and equipment.
According to the above information (Table 2), it states that the company has spent
most of the funds in land held for property development for the year 2017. It comprises 68.13%
of total amount invested in property, plant and equipment for that year. For the previous 3 years,
the company has also invested more funds in acquiring land held for property development.
Activities 2015 2016 2017
Net cash (used in)/from operating activities 14,387 20,881 (36,126)
Net cash generated from/(used in) investing activities (16,121) 5,263 21,538
Net cash from/(used in) financing activities (64,138) (56,253) 10,474
Net (decrease)/increase in cash and cash equivalents (65,872) (30,109) (4,114)
Cash and cash equivalents at beginning of financial year 173,922 108,050 77,941
Cash and cash equivalents at end of financial year 108,050 77,941 73,827
Table 3 - The table above shows the cash flow of M K Land Holdings Berhad from 2015 to
2017.
9
11. Figure 2 - The chart above illustrates the company’s cash flow from operating, investing and
financing activities.
The sources of funding for these investments are coming from cash flows from investing
activities and financing activities. In the year 2017, sources of finance from investing activities
are proceeds from financing activities. In year 2015, there are proceeds from disposal of
subsidiaries. In financing the purchase of plant and equipment, hire purchase and term loans
are acquired other than cash payment by analyzing from year 2015 to year 2017.
A positive or negative cash flow from operating, investing, financing activities sheds
important insight into how the company is making or losing money. Having a positive cash flow
is important because it means that the company may be liquid and solvent. (Boundless 2016)
In FY2016, a negative cash flow from operating activities indicates that the company had
spent more money in payments for expenses. In FY2015, there was a positive cash flow from
investing activities. M K Land Holdings Berhad had received proceeds from disposal of
subsidiaries (RM 1,923,305) which means that the company is earning money from this. In
statement of cash flow of FY2016, it shows a positive cash flow from financing activities
because of the receipt of proceeds from term loans.
10
12. Cash and Cash Equivalents
FY
Changes
RM ‘0002016
RM ‘000
2017
RM ‘000
Cash on hand and at banks
Deposits with licensed banks
77,687
6,082
70,043
6,306
(7,644)
(224)
Deposits with licensed banks more than 3 months
Deposit pledged for bank guarantee facilities
-
(5.828)
(1,774)
(748)
(1,774)
(5,080)
Total amount 77,941 73,827 (4,114)
Table 4 - The table shows the changes in cash and cash equivalents in the latest 2 years. (2016
& 2017)
Figure 3 - The figure above illustrates the net decrease in Cash and Cash Equivalents
amounting to RM 4,114,000 from FY2016 to FY2017.
Furthermore, 'Cash and Cash Equivalents' is an asset that appears on the statement of
financial position of a business and includes currency (coins and banknotes) held by a business
(in hand and in bank accounts) and cash equivalents. Cash equivalents refer to the short-term
investments that a company can convert to cash quickly, usually within three months. It
represents the highest cushion of protection against a loss for the banker because they offer the
highest rate of liquidity. According to the above analysis (Table 4), cash and cash equivalents
had slightly decreased from FY2016 to FY2017, but M K Land Holdings Berhad is considered
healthy and generated profit. As it has sufficient cash in order to be able to pay its liabilities.
Different profit margins are used to measure a company's profitability at various cost
levels, including gross margin, operating margin and net profit margin. According to M K Land’s
profitability ratio, the return on equity (ROE), net profit margin (Table 16), gross profit margin
(Table 14) and operating profit margin (Table 15) has improved and showed positive signs from
FY2016 to FY2017. The overall profit has indicated that the business is doing fairly well.
11
13. Other than that, the return on total assets is also a profitability ratio that measures the
net income produced by total assets during on period by comparing net income to the average
total assets. A higher ratio is more favourable to investors because it shows that the company is
more effectively in managing the its assets to produce greater common of net income. Based on
the result, FY2017 is slightly higher than FY2016 (Table 17).
FY
2015
RM ‘000
2016
RM ‘000
2017
RM ‘000
Net cash provided by operating activities 35,332 20,881 (36,126)
Cash payments planned for investments
in long-term assets
(176) (2,571) (1,247)
Cash dividends (48,184) (24,092) -
Free Cash Flow (13,028) (5,782) (37,373)
Table 5 - The table above shows the free cash flow of the company on yearly basis.
Free cash flow is a subset of cash flow to measure the amount of cash available after
the company has paid all planned investment and cash dividends to shareholders. From 2015 to
2017, M K Land Holdings Berhad had negative free cash flow at RM 13,028,000, RM 5,782,000
and RM 37,373,000 respectively. Negative free cash flow means that the company is generating
less cash which is used to operate the company and to reinvest to grow the business. Growth in
the free cash flow is a signal of financial health. It shows that the company has increased in its
future earnings and enhanced stakeholder value.
The free cash flow of M K Land Holding Berhad increases significantly from FY 2015 to
FY2016 whereby in FY2017, the company meets its lowest free cash flow. A negative free cash
flow indicates that the company may not be liquid enough to support the business. Although
both company and investors wish to see positive cash flow, having a negative cash flow from
investing activities is not always bad. It is entirely possible for a growing company to have
negative cash flow due to heavily invest to rapidly grow their business in the future.
12
14. Figure 4 - Liquidity Ratio Analysis
Years 2015 2016 2017
Current Ratios 1.33x 1.44x 1.62x
Quick Ratios 1.09x 1.17x 1.29x
Table 6 - The table above shows the current ratios and quick ratios for FY2015 - FY2017.
The financial condition of this company can be analysed by using liquidity ratios which
contains the Current ratios and Quick ratios. These ratios indicate the ability of the firm to meet
its current debt obligations based on its current assets. A company will have a higher margin of
safety to meet its current liabilities when they have higher liquidity ratios. The trend shows that
the company has increased ability to pay off its short term debts from FY2015 to FY2017. This
shows that the company is becoming more liquid. Ideally, a healthy firm is less likely to fall into
financial difficulties if its liquidity ratios are higher than 1.
13
15. Figure 5 - Inventory Turnover Analysis
Years 2015 2016 2017
Inventory Turnover Ratios 1.76x 1.1x 0.66x
Table 7 – The table above shows the inventory turnover ratios for FY2015 – FY2017.
The activity of the company can be analyzed using inventory turnover ratio, average
collection period, average payment period and total asset turnover ratio. These ratios indicate
the efficiency of the firm in using its asset to generate revenue. From FY2015 to FY2017, the
decrease in the inventory turnover ratio is in line with the company’s decrease in revenue.
Based on its income statements, an decrease from RM 448,316,000 in FY2015 to RM
295,063,000 in FY2016 in revenue can be visualised. There is a huge spike in the inventory
turnover ratio from FY2015 to FY2016 but only a slightly decrease in revenue from the current
year. However, the drastic decrease in inventory turnover from FY2015 to FY2017 indicates that
the company has weaker sales and declining demand for a company’s products.
14
16. Figure 6 - Average Collection Period Analysis
Years 2015 2016 2017
Average Collection Period (days) 197 194 183
Table 8 – The table above shows the average collection period ratios for FY2015 – FY2017.
The average collection period is used to determine the effectiveness of a company's
ability to collect payments from its debtors. This activity ratio can be used in conjunction with
liquidity ratios to highlight problems in cash flow or solvency. The slightly decrease in number of
days from FY2015 to FY2017 indicates that the company is able to pay its creditors faster.. The
lower of these numbers, the more efficient the business is at collecting payment from its
customers.
15
17. Figure 7 - Average Payment Period Analysis
Years 2015 2016 2017
Average Payment Period (days) 623 489 830
Table 9 – The table above shows the average payment period ratios for FY2015 – FY2017.
The average payment period calculation can reveal insight about a company’s cash flow
and creditworthiness, exposing potential concerns. From FY2015 to FY2016, the number of
days had decreased and this means that the company is able to do payments to its creditors
faster. This may be an indicator of better financial condition and good liquidity because more
smartly. However, in FY2017, the average payment period increased, it will create the risk for
liquidity position because some creditor can demand and in long period.
16
18. Figure 8 - Total Asset Turnover Analysis
Years 2015 2016 2017
Total Asset Turnover 0.25x 0.16x 0.12x
Table 10 – The table above shows the total asset turnover ratios for FY2015 – FY2017.
The total assets turnover ratio is used to determine how efficiently an entity uses its
assets to make sales. From FY2015 to FY2017, M K Land Holdings Berhad had their efficiency
decreased as it was generating less revenues.
17
19. Figure 9 - Debt Ratio Analysis
Years 2015 2016 2017
Debt Ratio 39.78x 35.53x 28.75x
Table 11 – The table above shows the debt ratios for FY2015 – FY2017.
The debt level of the company can be analyzed using leverage ratios, time interest
earned and fixed-payment coverage ratios. The leverage ratios include debt ratio and
debt-to-equity ratio which are used to measure the risk of the company. As the debt ratio had
decreased partially from FY2015 to FY2017, this means that the company has suffered lower
risk of associated with the firm’s operation. It indicates that the company will have an
opportunity to borrow in the future at no significant risk.
18
20. Figure 10 - Times Interest Earned Analysis
Years 2015 2016 2017
Times Interest Earned 8.27x 4.39x 6.87x
Table 12 – The table above shows the times interest earned ratios for FY2015 – FY2017.
The times interest earned ratio had decreased significantly from FY2015 to FY2016. In
FY2015, the company meets the highest times interest earned since the interest expenses is
the lowest compared to other years. Lower time interest earned ratio indicate high credit rick.
However, in FY2017, the times interest earned ratio increased back and it is a signal of financial
health and it shows that the company has effective operations to meet the interest payment. It
also means that the company presents less risks of insolvency to its investors and creditors.
19
21. Figure 11 - Fixed Payment Coverage Ratio Analysis
Years 2015 2016 2017
Fixed Payment Coverage Ratio -7.02x -1.07x -1.84x
Table 13 – The table above shows the fixed payment coverage ratios for FY2015 – FY2017.
The fixed-charge ratio analyze the amount of cash flow of this company available for its
debt repayment and determine the company's ability to take on additional debt. From FY2015 to
FY2016, the ability had increased drastically and from FY2016 to FY2017, the ratio is slightly
decreased. A low ratio means a drop in earnings could be dire for the company, a situation
lenders try to avoid. With the highest ratio in FY2016, it indicates that the company is capable to
sustain against the fixed charges and are considered as improving although a slightly drops in
the recent year.
20
22. Figure 12 - Fixed Payment Coverage Ratio Analysis
Years 2015 2016 2017
Gross Profit Margin(%) 42.77 48.59 59.11
Table 14 – The table above shows the gross profit margin for FY2015 – FY2017.
Gross profit margin shows the company’s financial health and business model by
revealing how much money is left after taking into account cost of goods sold (COGS) from
revenue. The gross profit margin of M K Land Holdings Berhad has increased significantly from
FY2015 to FY2017. This means that the company had generate profits over these three years
after deducting the costs associated with making and selling its products, or the costs
associated with providing its services.
21
23. Figure 13 - Operating Profit Margin Analysis
Years 2015 2016 2017
Operating Profit Margin (%) 17.01 14.11 23.14
Table 15 – The table above shows the operating profit margin ratios for FY2015 – FY2017.
Operating profit margin shows how profitable is the company comparison to its
competitors after deducting operating expenses and depreciation. The company’s operating
profit margin decreased steadily from FY2015 to FY2016, and peaked in FY2017. In FY2017,
the high operating profit margin ratios means the company can better able to pay for their fixed
costs and interest on debt and survive economic downturn. It can be more competitive by
offering lower prices than competing companies with lower profit margin ratios are unable to
match.
22
24. Figure 14 - Net Profit Margin Analysis
Years 2015 2016 2017
Net Profit Margin (%) 11.05 5.53 9.43
Table 16 – The table above shows the net profit margin ratios for FY2015 – FY2017.
Net profit margin is one of the most important factor in assessing a company’s overall
success. It can be used to develop projected profits based on sales. The net profit margin of M
K Land Holdings Berhad has decreased from FY2015 to FY2016 and increased back to
FY2017. In FY2017, the high net profit margin indicates that a business is pricing its products
correctly and is exercising good cost control.
23
25. Figure 15 - Return on Total Assets Ratio Analysis
Years 2015 2016 2017
Return on Total Assets (%) 2.79 0.91 1.10
Table 17 – The table above shows the return on total assets ratios for FY2015 – FY2017.
Return on Total Assets used to measure the performance and profitability produced by
the company’s assets before interest and tax expenses are paid. The company had earned the
highest return over its total assets in FY2015 but reduced sharply from FY2015 to FY2016. In
FY2017, the return on total assets increase back and the higher the return on total assets, the
more profit a company makes relative to its investment.
24
26. Figure 16 - Return on Common Equity Ratio Analysis
Years 2015 2016 2017
Return on Common Equity (%) 4.63 1.41 1.54
Table 18 – The table above shows the return on common equity ratios for FY2015 – FY2017.
Return on the Common Equity shows how much profit is earned by the company with
respect to the shareholders’ equity. A higher ROE is expected from a growing company. The
ROE of M K Land Holdings Berhad decreased from FY2015 to FY2016 by 3.22%. However, it
slightly increased by 0.13% in FY2017 which is still at a lower percentage than that in FY2015.
25
27. Figure 17 - Earning Per Share Ratio Analysis
Years 2015 2016 2017
Earnings Per Share (RM) 0.04 0.01 0.01
Table 19 – The table above shows the earning per share ratios for FY2015 – FY2017.
Earning per share is the amount of money each share of stock would receive if all of the
profits were distributed to the outstanding shares at the end of the year. Earnings per share of M
K Land Holdings Berhad had decreased from FY2015 to FY2016 and steadily maintain from
FY2016 to FY2017 which the earning per share are 0.01. The highest earnings per share in
FY2015 is better than a lower ratio because this means the company is more profitable and the
company has more profits to distribute to its shareholders.
26
28. Figure 18 - Price-To-Earnings Ratio Analysis
Years 2015 2016 2017
Price-To-Earnings Ratio 8.71 x 23.61x 18.60 x
Table 20 – The table above shows the price-to-earning ratios for FY2015 – FY2017.
The price-to-earnings ratio of the company sharply increase from FY2015 to FY 2016
however decrease in FY2017. In FY 2015, the low price-to earnings ratio might be due to the
company being undervalued or is doing extraordinarily well as compared to other years.A
increasing of price-to-earnings implies that investors are expecting the higher profit growth in
coming years compared to firms with a lower price-to-earnings.
27
29. Figure 19 - Price-To-Book Ratio Analysis
Years 2015 2016 2017
Price-To-Book Ratio 0.39x 0.32x 0.28x
Table 21 – The table above shows the price-to-book ratios for FY2015 – FY2017.
Through the indication from the graph, the market performance of M K Land Holdings
Berhad is getting better from FY2015 to FY2017. A higher P/B ratio implies that investors expect
management to create more value from a given set of assets and hence giving better market
performance.A lower P/B ratio could mean that the stock is undervalued. So the slightly
increased of P/B ratio could indicate that the market is potentially worthwhile for investment.
28
30. CONCLUSION AND RECOMMENDATIONS
Based on the analysis of M K Land Holdings Berhad above, the company has lower the
amount in debt ratio that measure the proportion of total assets financed by the firm creditors.
The higher the debt ratio, the greater the amount of other people's money being used to
generate profit. Every year, the debt ratio has getting lower which means that the company does
not reply that much on the investor's money to generate income.
The price earning (P/E) ratio of M K Land has a better performance in market ratio which
commonly used to assess the owner's appraisal of share value. The P/E ratio measures the
amount that investor are willing to pay for each dollar of a firm's earning. The level of the ratio
indicates the degree of confident that investor have in the firm future performance and since M
K Land have a higher value that make the company become the better choice for investor. The
(P/B) ratio provides an assessment of how investor view the firm's performance. The higher
value of (P/B) is more favourable to investor as its shows that people are willing to buy a share
that is higher than the actual book value of the share proving that the company have a higher
performance thus M K Land is considered as a better company as it has higher (P/B) ratio.
The expected current economic conditions for future growth in this market sector will
remain soft in the upcoming years due to global influences and politics issues. Based on the
analysis of the financial performances of M K Land Holdings Berhad is recommended to
maintain its current performance with minimum re-investments for the time being. It is advisable
that company should focus more on decreasing collection period from their debtors and
maximising their cash flow. Regarding the management perspective, M K Land Holdings should
set different goals during the upcoming years due to softer demand in this industry. The
management has to be more conservative and focus more on generating more cash for future
investments.
( 3411 words )
29
31. REFERENCES
The Balance Small Business (2017) Analysis of Liquidity Position Using Financial Ratios.
Available from:
https://www.thebalancesmb.com/liquidity-position-analysis-with-ratios-393233
Investopedia (2017) Liquidity Measurement Ratios. Available from:
https://www.investopedia.com/university/ratios/liquidity-measurement/
Investopedia (2017) Cash Dividends And Dividend Payment. Available from:
https://www.investopedia.com/walkthrough/corporate-finance/5/dividends/cash-payment.
aspx
My Accounting Course (2018) Gross Profit Margin. Available from:
https://www.myaccountingcourse.com/financial-ratios/gross-profit-margin
Investopedia (2017) Inventory Turnover. Available from:
https://www.investopedia.com/terms/i/inventoryturnover.asp
Reuters (2018) M K Land Holdings Financial. Available from:
https://www.reuters.com/finance/stocks/financial-highlights/MKLH.KL
The Balance Small Business (2017) How to Determine Operating Profit Margin Ratios
Available from:
https://www.thebalancesmb.com/what-is-the-operating-profit-margin-ratio-393205
Accounting tools (2018) Net Profit Margin. Available from:
https://www.accountingtools.com/articles/what-is-net-profit-margin.html
Accounting for Management (2018) Average payment period: Available from:
https://www.accountingformanagement.org/average-payment-period/
30
32. Investopedia (2017) Average Collection Period. Available from:
https://www.investopedia.com/terms/a/average_collection_period.asp
Investopedia (2017) Debt Ratio. Available from:
https://www.readyratios.com/reference/debt/debt_ratio.html
Treasury Today (2006) Return on Total Assets (ROTA). Available from:
http://treasurytoday.com/2006/09/return-on-total-assets-rota
Boundless.com (2016) Interpreting overall cash flow. Available from:
https://www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-state
mentstaxes-and-cash-flow-2/the-statement-of-cash-flows-35/interpreting-overall-cash-flo
w-197-7279/
Gregory Hamel (n.d.) What Does Net Profit Margin Ratio Measure? Available from:
http://smallbusiness.chron.com/net-profit-margin-ratio-measure-24448.html
Raul Avenir (2009) What is a High-Low profit margin? Available from:
https://yourbusiness.azcentral.com/highlow-profit-margin-9214.html
Celan Bryant (2017) What are cash equivalents and why are they so important? Available from:
https://blog.apruve.com/what-are-cash-equivalents-and-why-are-they-so-important
31
39. (vi) Revenue Contribution of M K Land Holdings Berhad for the year 2016 & 2017.
M K LAND HOLDINGS BERHAD
REVENUE CONTRIBUTION FOR THE YEAR 2016 & 2017
2016 2017
RM'000 RM'000
Revenue from property development and related activities 257,036 156,850
Sale of completed properties 8,816 9,727
Revenue from resort operations 27,386 23,858
Educational services 1,825 1,925
Total Amount 295,063 192,360
38
