Case Analysis Of Berjaya Land Berhad

In the historical balance sheet we can see a very important decrease of the short-term debt, so UGC could also increase this debt. Obtaining cash from the stock market, negotiate an increase of the number of days of the accounts payables, reducing inventory or decreasing the number of days in their accounts receivable could also be very important cash resources. Still, it is difficult to estimate the financial need due to the fact that we cannot forecast the cash from operations.

Interpretation: 53% of the total assets are financed through debts; the remaining 39% is financed through equity.

The current cash debt ratio only measures the ability of a firm 's cash, along with investments easily converted into cash, to pay its short-term obligations. In 2007, the company has a current cash debt ratio greater than 1 and is in better financial shape than in 2006, when the ratio was less than 1.

The company maintains a minimum cash balance of at least $50,000 at the end of each month. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

e. The largest source of cash from financing activities is from Proceeds from Long-Term Borrowing at $498 million. p. 42

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

First of which, is the current ratio. It has been rapidly declining since 2000. To me this indicates that there is a liquidity issue. Each year their trade debt increase exceeds the increase of net income for the company. As a result, the working capital has taken a nosedive from $58,650 in 2002 to only $5,466 in 2003.

* Sales results over the past 5 years indicated strong growth in forklift and truck sales. The rental market has been in decline. Result in company decided to reposition itself to focus solely on retail sales and service and exit the rentals market.

During the last two quarters of 1999-2000, the company has experienced increasing revenues but profit margin contraction. There is insufficient information disclosure in the financials to source the driving factor. However, the largest driver of sales is through its distributors and Bonny Doon’s EuroDoon products (Figure 2). From a P/L standpoint, we believe that the margin fluctuations can be ignored, with a view of focusing on strategic initiatives to maximize revenue and the quantity sold.

Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

Although margins have been maintained, sales have not increased. There is a threat of losing consumers do to now being the highest-price paint in the service area. Therefore, Jones/Blair must draw attention to their core competencies to leverage themselves in the marketplace.

|250000 indirect employees & 9000 vehicle for distribution). |position in profitability due to drop in prices by nearly 30% since 1950’s. |

The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

BEML limited (formerly bharat earth movers limited) was established in May 1964 as a public sector undertaking for manufacture of rail coaches & spare parts and mining equipment at its Bangalore complex. The company has partially disinvested and presently government of India owns 54 percent of total equity and rest 46 percent is held by public, financial institutions, foreign institutional investors, banks and employees.

The long-term liquidity risk ratio such as LT debt/Equity, D/E, and Total Liabilities to Total Assets all show a decline from year 2005 due to the repayment of debts. The interest coverage ratio also shows a healthy number of 29.45 in comparison to the industrial average of 15.04 indicating a high ability to pay out its interest expense. Such a low relative risk is not surprising due to the nature of its business depending heavily in R&D development and large intangible assets.