Analysis of Financial Position of Smrt and Sbs Transit, Singapore

Topics: Financial ratio, Balance sheet, Asset Pages: 25 (7870 words) Published: October 13, 2010
Table of Contents
1. Executive Summary
2. About the Company
2.1 Key People
2.2 Milestones
2.3 Business Structure
3. Company Analysis of SMRT Corporation Ltd.
4. Company Financial and Data Analysis
4.1. Profitability ratio
4.1.1 Return on Capital Employed (ROCE)
4.1.2. Operating Profit Margin
4.1.3. Profit Ratio
4.1.4. Return on Equity (ROE) Ratio
4.1.5. Return on Assets (ROA) Ratio
4.2. Liquidity Ratio
4. 2. 1. Current Ratio
4.2.2. Acid-Test Ratio
4.3. Stability ratio
4.4. Efficiency Ratio
4.4.1. Sales Revenue per Employee Ratio 4.4.2. Asset Turn Over Ratio
4. 5.Investors ratios
4.5.1. Earnings per Share (EPS)
4.5.2. Price/Earnings (P/E) ratio
4.5.3. Dividend Payout Ratio
4.5.4. Dividend Cover
5. Changes in Accounting Policies
6. Key Risk Factors
7. Company's Growth and Factors Attracting Investor
8. Appendices
8.1 Accounting Policies
8.2. Financial Statements
8.3 The Bibliography

1. Executive Summary:
This assignment is designed to provide an overview of Singapore’s premier public transport service (SMRT Corporation Ltd ) provider's financial condition and results of operations through the use of analytical review techniques. Ratio analysis is the most common form of financial analysis. It provides relative measures of the company's conditions and performance. Financial ratios analysis makes two types of comparisons such as industry comparison and trend analysis. The ratios of a company are compared with those of similar companies or with industry averages or norms to determine how the company is faring relative to its competitors. In trend analysis, a company's present ratio is compared with its past and expected future ratios to determine whether the company's financial condition is improving or deteriorating over time. All the analysis in this report is based on the resource available in the company's Annual Financial Report which is available on their website.

2. . About the Company
SMRT Corporation Ltd (SMRT) is Singapore’s premier multi-modal public transport service provider offering integrated transport services island-wide. Established in 1987, SMRT has been listed on the Singapore Exchange since July 2000. It is the second-largest public-transport company in Singapore after ComfortDelGro. It operates bus, rail, taxi and other public-transport services via several wholly owned subsidiaries. Here some information about this company is enlisted. IndustryPublic transport

ProductsBus and Rail Services
RevenueS$879.0 million SGD (FY2009)
Operating income S$188.7 million SGD (FY2009)
Net incomeS$162.7 million SGD (FY2009)
Employees6620 (2QFY10)
ParentTemasek Holdings Pte Ltd

2.1Key People:
Mr Choo Chiau Beng (Chairman)
Mdm Saw Phaik Hwa (President and Chief Executive Officer)
Mr Yeo Meng Hin (Deputy President and Chief Operating Officer) Mdm Lim Cheng Cheng (Executive Vice-President and Chief Financial Officer)

Its major competitor in Singapore's duopoly transport system is SBS Transit Limited, which also operates bus, rail, taxi and other transport services. SMRT was recently ranked among the best in the Governance and Transparency Index. The index measures companies' governance, transparency and investor relations. It is collaboration between Corporate Governance & Financial Reporting Centre (CGFRC) and the Business Times, and is backed by CPA Australia and the Investment Management Association of Singapore.


2.2 Milestones

2009Received three awards including ‘Best Metro’ and ‘Best Metro (Asia Pacific)’ awards at international Metro Awards Circle Line Stage 3 to open from May 2009
2007First major overseas...
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