case Study : From Saga to Proton
ACC 4291
INTEGRATED CASE STUDY
SECTION 1
CASE REPORT
CASE 3:
PROTON –
FROM SAGA TO EXORA
Question 1
From a financial analyst perspective, has the proton management done a good job?
Based on the financial performance of PROTON from 2005 till 2009, our observation from a financial analysis perspective showed that Proton management has not done a good job as far as financial performance is concern. The Key Financial Indicators (KFIs) covers measurements such as basic earnings per share, net assets per share; dividend paid as well as retained earnings carried forward. At a glimpse, almost all the KPI of Proton shows decrement throughout the years. Basic earnings per share (EPS) fluctuated vastly from 2005 to 2009. Proton recorded highest basic earnings per share of 80.6 in 2005. However, it can be observed that Proton faced severe problems by making loss in the shares, EPS of -107.3 in 2007 and EPS of -54.9 in 2009.
Besides that, there is also a report with regards the net assets per share (NAPS). This net asset indicates the price at which shares are bought and sold, and represents company’s value per share. Based on the information given, we can see that the NAPS of Proton had deteriorated from 2008 to 2009. The decreasing rate of dividend paid to the shareholders simply means company did not do very well. Dividend was not paid in 2008 as Proton needs to recover from the huge loss they held in 2007.
Furthermore, the Balance Sheet displayed that the total assets owned by company decreased gradually from 2005 (RM 8, 830.9) to 2009 (RM 7,098.9). Other than that, increment in inventories indicates that sales order because higher inventory indicates poor sales resulting in higher cost to be incurred thus leads to the reduction in sales volume. In conclusion, we hold the believe that Proton management had performed badly as portrayed by its deteriorating overall performance graph between the period in low basic earnings per share, low net assets per share, lower
INTEGRATED CASE STUDY
SECTION 1
CASE REPORT
CASE 3:
PROTON –
FROM SAGA TO EXORA
Question 1
From a financial analyst perspective, has the proton management done a good job?
Based on the financial performance of PROTON from 2005 till 2009, our observation from a financial analysis perspective showed that Proton management has not done a good job as far as financial performance is concern. The Key Financial Indicators (KFIs) covers measurements such as basic earnings per share, net assets per share; dividend paid as well as retained earnings carried forward. At a glimpse, almost all the KPI of Proton shows decrement throughout the years. Basic earnings per share (EPS) fluctuated vastly from 2005 to 2009. Proton recorded highest basic earnings per share of 80.6 in 2005. However, it can be observed that Proton faced severe problems by making loss in the shares, EPS of -107.3 in 2007 and EPS of -54.9 in 2009.
Besides that, there is also a report with regards the net assets per share (NAPS). This net asset indicates the price at which shares are bought and sold, and represents company’s value per share. Based on the information given, we can see that the NAPS of Proton had deteriorated from 2008 to 2009. The decreasing rate of dividend paid to the shareholders simply means company did not do very well. Dividend was not paid in 2008 as Proton needs to recover from the huge loss they held in 2007.
Furthermore, the Balance Sheet displayed that the total assets owned by company decreased gradually from 2005 (RM 8, 830.9) to 2009 (RM 7,098.9). Other than that, increment in inventories indicates that sales order because higher inventory indicates poor sales resulting in higher cost to be incurred thus leads to the reduction in sales volume. In conclusion, we hold the believe that Proton management had performed badly as portrayed by its deteriorating overall performance graph between the period in low basic earnings per share, low net assets per share, lower