32 Investor Nd KLSE TENAGA 5347 TENAGA NASIONAL BHD Investor Accessed May 16

32 investor nd klse tenaga 5347 tenaga nasional bhd

This preview shows page 19 - 23 out of 35 pages.

32 Investor. N.d. “KLSE: TENAGA (5347): TENAGA NASIONAL BHD.” Investor. Accessed May 16, 2018. .
Image of page 19
4.1.1 Return on assets ( ROA ) Return on assets (ROA) is calculated by net income divided by total assets. It is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources (Inc. n.d). Below shows the formula of ROA: ROA = After tax interest + Net Income Total Assets ROA = [ ( 1 T ) ×FinanceCost ] + Net Income Total Assets Each data presented on the table were taken from YTL’s annual report 2016 33 and 2017 34 . Financial year used were year 2014-2015, 2015-2016 and 2016-2017. 2015 2016 2017 Finance Cost 207,980,000 35 258,383,000 36 292,291,000 37 33 YTL Power International Berhad. 2016. Building The Right Thing: Annual Report 2016. LPOWR_AnnualReport_2016-06-30_YTL%20Power-Annual%20Report%202016_- 1926287495.pdf. 34 YTL Power International Berhad. 2017. Building The Right Thing: Annual Report 2017. 0/6742_YTLPRAnnualReport_2017-06-30_YTL%20Power%20%20Annual %20Report%202017_724610779.pdf 35 YTL Power International Berhad. 2016. Building The Right Thing: Annual Report 2016. LPOWR_AnnualReport_2016-06-30_YTL%20PowerAnnual%20Report %202016_1926287495.pdf ,65. 36 YTL Power International Berhad. 2016. Building The Right Thing: Annual Report 2016.- 30/6742_YTLPOWR_AnnualReport_2016-06-30_YTL%20Power-Annual%20Report%202016_- 1926287495.pdf , 107. 37 YTL Power International Berhad. 2016. Building The Right Thing: Annual Report 2016.- 30/6742_YTLPOWR_AnnualReport_2016-06-30_YTL%20Power-Annual%20Report%202016_- 1926287495.pdf , 107.
Image of page 20
After-tax Interest [(1-24%)x207,980,000] ¿ 158,064,800 [(1-24%)x258,383,000] ¿ 196,371,080 [(1-24%)x292,291,000] ¿ 222,141,160 Net Income 9 20,398,000 1 ,178,456,000 787,779,000 Total Assets 4 3,637,810,000 4 3,245,591,000 4 8,498,160,000 ROA =2.47% =3.18% =2.08% 4.1.1.1 ROA Workings table Results shows that YTL’s ROA were 2.47%, 3.18% and 2.08% for the financial year 2015, 2016 and 2017 respectively. This means that YTL’s ROA had raised form FY 2015 to FY2016 but dropped again at FY2017. According to the table, from FY 2016 TO FY 2017, the total assets has increased around 5 billion and the net income has decreased from 1.178 billion to 0.787 billion. Therefore, the company’s ROA worsen around 1.1% which is from 3.18% to 2.08%. The figure in the table basically explained why the ROA worsen, the increase in finance cost caused the net income to decrease, together with the increase in total assets have caused the ROA to decrease. 4.1.2 DuPont System Analysis on ROA DuPont System evaluate a company’s return by breaking it down into several parts. The purpose of this system is to find the underlying reason of a company’s performance, instead of measuring the performance only. Below shows the formula of DuPont system on ROA: ROA = Asset Turnover ×Profit Margin ROA = Revenue Assets × Net income + AfterTax Interest Revenue 000 , 810 , 637 , 43 000 , 398 , 920 800 , 064 , 158 000 , 591 , 245 , 43 000 , 456 , 178 , 1 080 , 371 , 196 000 , 160 , 498 , 48 000 , 779 , 787 160 , 141 , 222
Image of page 21
DuPont ROA aims to discover the asset turnover and profit margin as these two key areas explain the reason of the company’s performance on assets.
Image of page 22
Image of page 23

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture