08 to 2106 in addition to that total assets of inari

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equity of the company decreased from 28.08% to 21.06%. In addition to that, total assets of Inari Amertron Berhad have an increment of RM378, 620,000 during the year 2016. The debt- to- asset ratio has decreased from 47.99% in year 2014 to 22.24% in year 2016 which indicates that the company has less leverage and less risky after the equity financing happened in the company. However, the asset turnover of the company has decreased from 1.6 times to 1.12 times during the year 2015 which right after the company implemented the equity financing strategy but the total asset turnover has a slightly increased to 1.19 in year 2016. The company requires a high asset turnover because the higher the ratio indicates the better the company is performing.
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On the other hand, the sales revenue for the EG Industries Berhad has decreased from RM993, 376,000 to RM636, 075,000 in year 2015. However, after the company implemented the equity financing strategy, the sales revenue of the company has a slightly increased to RM712, 689,000. Furthermore, the total equity of the company also has a dramatic increased after the company implemented the equity financing strategy. Besides that, the assets turnover of the company has decreased from 2.20 times to 1.15 times in year 2016. This indicates that the company is generating less revenue per dollar of assets. Moreover, the debt-to-equity ratio has a slightly decreased year by year from 2014. During the year 2014, the debt-to-equity ratio was 72.08%, 70.74% in year 2015 and 62.01% in year 2016. This indicates that company is generating less leverage and less risk year by year. Average risk and return Inari Amertron Berhad 2014 2015 (right issues) 2016 Return on asset = Net Income Total Assets RM 100,399,000 RM 497,175,000 × 100 = 20.19% RM 150,248,000 RM 836,683,000 × 100 = 17.96% RM 147,091,000 RM 875,795,000 × 100 = 16.80% Return on equity = Net Income Total Equity RM 100,399,000 RM 258,567,000 × 100 = 38.83% RM 150,248,000 RM 535,090,000 × 100 = 28.08% RM 147,091,000 RM 681,008,000 × 100 = 21.60% Inari’s ROA in 2014 is 20.19%, indicates that for every RM1 of the assets, the company generates RM0.20 in the net income. In 2016, the company produces RM0.16 in net income for every RM1 of company’s assets. ROE of 38.83% in 2014 suggests that for every RM1 in shareholders’ equity, the company generates RM0.38 in net income. In 2016, the company generates RM0.21 in net income for every RM1 in shareholders’ equity. EG Industries Berhad 2014 2015 (right issues) 2016 Return on asset = Net Income Total Assets RM 2,284,000 RM 452,218,000 × 100 = 0.51% RM 26,355,000 RM 441,928,000 × 100 = 5.96% RM 17,030,000 RM 617,740,000 × 100 = 2.76%
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Return on equity = Net Income Total Equity RM 2,284,000 RM 122,984,000 × 100 = 1.86% RM 26,355,000 RM 129,309,000 × 100 = 20.38% RM 17,030,000 RM 234,678,000 × 100 = 7.26% The ROA in 2014 is 0.51%, indicates that for every RM1 of the assets, the company generates RM0.0005 in the net income. In 2016, the company produces RM0.027 in net income for every RM1 of company’s assets. ROE of 1.86% in 2014 suggests that for every RM1 in shareholders’ equity, the company generates RM0.018 in net income. In 2016, the company generates RM0.072 in net income for every RM1 in shareholders’ equity.
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