Proton From Saga to Exora
Question 1: From a financial analysis perspective, has the Proton management done a good job?
Liquidity Ratio
2005
2006
2007
2008
2009
Current Ratio [Current Asset / Current Liabilities]
5,026.5 / 2,210
= 2.27
4,431 / 2,341.1
= 1.89
3,165.5 / 1,533.8
= 2.06
3,446.1 / 1,639.2
= 2.10
3,404.6 / 1,883.6 = 1.81
Quick Ratio [(Current Asset – Inventories) / Current Liabilities]
4,059.4 / 2,210
= 1.84
3,042 / 2,341.1
= 1.30
1,891.9 / 1,533.8
= 1.23
2,345.8 / 1,639.2
= 1.43
2,009.5 / 1,883.6
= 1.07
Liquidity ratio shows the ability of the company to repay its short term liabilities. It can be seen that Proton has current and quick ratio above 1.0 which means that Proton is having enough money to repay its short term debt. However, the current ratio was rapidly decrease by 0.47 from 2005 to 2009. For quick ratio, it can be seen that the ratio in 2009 had decrease to 1.07 compared to 1.85 in 2005. It shows that Proton is not strong in their finance and affects the ability to pay the debt with the cash assets. As a conclusion, Proton has quite poor performance in term of its liquidity during 2009.
Profitability Ratio
2005
2006
2007
2008
2009
Net Profit Margin [Profit after tax / Revenue]
442.4 / 8,483.3
= 5.215%
46.7 / 7,796.9
= 0.599%
(589.5) / 4,687.3
=(12.577)%
184.6 / 5,621.6
= 3.284%
(301.8) / 6,486.6
= (4.653)%
Return on Equity [Profit after tax / Total Equity]
442.4 / 5,860.2
= 7.549%
46.7 / 5,870.6
= 0.795%
(589.5) / 5,230.6
= (11.270)%
184.6 / 5,421.2
= 3.405%
(301.8) / 5,101.6
= (5.916)%
Return on Assets [Profit after tax / Total asset]
442.4 / 8,830.9
= 5.010%
46.7 / 8,312.8
= 0.562%
(589.5) / 6,946.8
= (8.486)%
184.6 / 7,293.3
= 2.531%
(301.8) / 7,098.9
= (4.251)%
Profitabiliy ratio measures the company’s ability to generate profit relative to sales, assets and equity. This ratio highlight the effectiveness of company’s profitability is being managed. Through out the ratio analysis of Proton, it shows that in 2009, Proton was unable to generate profit due to
Liquidity Ratio
2005
2006
2007
2008
2009
Current Ratio [Current Asset / Current Liabilities]
5,026.5 / 2,210
= 2.27
4,431 / 2,341.1
= 1.89
3,165.5 / 1,533.8
= 2.06
3,446.1 / 1,639.2
= 2.10
3,404.6 / 1,883.6 = 1.81
Quick Ratio [(Current Asset – Inventories) / Current Liabilities]
4,059.4 / 2,210
= 1.84
3,042 / 2,341.1
= 1.30
1,891.9 / 1,533.8
= 1.23
2,345.8 / 1,639.2
= 1.43
2,009.5 / 1,883.6
= 1.07
Liquidity ratio shows the ability of the company to repay its short term liabilities. It can be seen that Proton has current and quick ratio above 1.0 which means that Proton is having enough money to repay its short term debt. However, the current ratio was rapidly decrease by 0.47 from 2005 to 2009. For quick ratio, it can be seen that the ratio in 2009 had decrease to 1.07 compared to 1.85 in 2005. It shows that Proton is not strong in their finance and affects the ability to pay the debt with the cash assets. As a conclusion, Proton has quite poor performance in term of its liquidity during 2009.
Profitability Ratio
2005
2006
2007
2008
2009
Net Profit Margin [Profit after tax / Revenue]
442.4 / 8,483.3
= 5.215%
46.7 / 7,796.9
= 0.599%
(589.5) / 4,687.3
=(12.577)%
184.6 / 5,621.6
= 3.284%
(301.8) / 6,486.6
= (4.653)%
Return on Equity [Profit after tax / Total Equity]
442.4 / 5,860.2
= 7.549%
46.7 / 5,870.6
= 0.795%
(589.5) / 5,230.6
= (11.270)%
184.6 / 5,421.2
= 3.405%
(301.8) / 5,101.6
= (5.916)%
Return on Assets [Profit after tax / Total asset]
442.4 / 8,830.9
= 5.010%
46.7 / 8,312.8
= 0.562%
(589.5) / 6,946.8
= (8.486)%
184.6 / 7,293.3
= 2.531%
(301.8) / 7,098.9
= (4.251)%
Profitabiliy ratio measures the company’s ability to generate profit relative to sales, assets and equity. This ratio highlight the effectiveness of company’s profitability is being managed. Through out the ratio analysis of Proton, it shows that in 2009, Proton was unable to generate profit due to