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SPRITZER BHD                       LARGEST WATER                           BOTTLE                         PRODUCERS  NATUR...
GUINNESS ANCHOR BHD                       QUALITY                       BRANDED                    LEADER OF BEER         ...
FRASER & NEAVE BHD                          LARGEST                      ISOTONIC DRINK                        PRODUCERS F...
YEO HIAP SENG BHD                      ONE OF LARGEST                          FOOD &                        BEVERAGE     ...
 Weighted Average Cost of Capital tell us the return of bothstakeholders which are equity owners and lender can expect. W...
5-YEARS WACC COMPARISONS         80.00%         60.00%         40.00%WACC %         20.00%          0.00%     -20.00%     ...
5-YEARS CAPM COMPARISONS       80.00%       60.00%       40.00%       20.00%CAPM        0.00%       -20.00%       -40.00% ...
Capital structure shows a company how much the company isfinanced by equity and debt. Besides, it also illustrates thelong...
5-YEARS DEBT TO EQUITY RATIO COMPARISONS         SPRITZ                            GAB         2% 5%                      ...
5-YEARS DEBT TO EQUITY RATIO COMPARISONS           F&N                             YEOS          5% 2%             10%    ...
LEVERAGED / UNLEVERAGED COMPARISONS            LEVERAGED /COMPANIES                       REASONS            UNLEVERAGED  ...
Dividends are payments made by the company to its shareholders.It is the portion of corporate profits paid out to stockhol...
5-YEARS DPS AND EPS COMPARISONS18                                                   50                                    ...
5-YEARS DPS AND EPS COMPARISONS70                                                18                                       ...
5-YEARS DIVIDEND PAYOUT RATIO COMPARISONS  100.00%   90.00%   80.00%   70.00%   60.00%                                    ...
Working capital actually shows the companys current position. It tells uswhat would be left if a company raised all of its...
5-YEARS NET WORKING CAPITAL COMPARISONS           700,000           600,000           500,000           400,000Millions   ...
5-YEARS OPERATING CYCLE COMPARISONS       350       300       250       200DAYS       150       100        50         0   ...
5-YEARS CASH CYCLE COMPARISONS       300       250       200DAYS       150       100        50         0               200...
PART 1 SUMMARY : AVERAGE WACC          COMPANIES               5 YEARS AVERAGE WACC            SPRITZ                     ...
PART 2 SUMMARY : DEBT TO EQUITY RATIOTherefore, based on the comparisons, we would highly recommendinvestors to invest in ...
PART 4 SUMMARY : AVERAGE NET WC & AVERAGE OC, PP & CC     AV             SPRTZ           GAB                F&N           ...
CONCLUSIONS                              NET                 DIVIDEND             OPERATINGCOMPANIES WACC              WOR...
Corporate finance consumer product
Corporate finance consumer product
Corporate finance consumer product
Corporate finance consumer product
Corporate finance consumer product
Corporate finance consumer product
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Corporate finance consumer product

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Corporate finance consumer product

  1. 1. SPRITZER BHD LARGEST WATER BOTTLE PRODUCERS NATURAL MINERAL WATER, DISTILLED CERTIFIED BY WATER, CARBONATED& QUASI,LLC,USA & ISONON CARBONATED FRUIT 9001: 2008 BY SIRIM FLAVOURED DRINK MALAYSIA’S BEST SELLING NATURAL WATER
  2. 2. GUINNESS ANCHOR BHD QUALITY BRANDED LEADER OF BEER & STOUT TIGER, GUINNESS, CERTIFIED BY MINISTRYHEINEKEN, ANCHOR OF HEALTH & ISO 9001: SMOOTH, MALTA, 2001STRONGBOW & SOL MALAYSIA’S BEST SELLING BEER & STOUT
  3. 3. FRASER & NEAVE BHD LARGEST ISOTONIC DRINK PRODUCERS F&N FUN FLAVORS, 100 PLUS, SEASONS, CERTIFIED HALALSUNKIST, MAGNOLIA , PRODUCT & TRUSTEDFARMHOUSE & FRUIT BRAND FOR TEE GENERATION MALAYSIA’S BEST ISOTONIC DRINK (100 PLUS)
  4. 4. YEO HIAP SENG BHD ONE OF LARGEST FOOD & BEVERAGE PRODUCERS BOTTLED SOYA BEAN CERTIFIED HALALMILK, CHRYSANTHEMUM PRODUCT & TEA, CANNED CURRY PARTNERSHIP CHICKEN, INSTANT AGGREEMENT NOODLES & YOGURT 1ST GLOBAL BRAND IN SOYBEAN PACKAGES
  5. 5.  Weighted Average Cost of Capital tell us the return of bothstakeholders which are equity owners and lender can expect. WACCrepresents the investors opportunity cost of taking on the risk of puttingmoney into a company. Thus, the formulation of WACC is formed bythree components as following: WACC = S/V(Rs) + B/V (Rb) * (1-Tc) + P/V (Rp)  The cost of equity capital is derived from Capital Asset Pricing Model (CAPM). Thus, the formulation of CAPM is formed as following: Ri = Rf + βi [ Rm – Rf ]
  6. 6. 5-YEARS WACC COMPARISONS 80.00% 60.00% 40.00%WACC % 20.00% 0.00% -20.00% -40.00% -60.00% 2005 2006 2007 2008 2009 SPRITZ 1.22% 22.29% 13.37% -38.30% -38.30% GAB -0.47% 10.15% 25.01% -23.46% 1.87% F&N 2.17% 20.22% 8.99% -22.00% 11.66% YEOS 1.72% 12.46% 24.84% -37.10% 56.74%
  7. 7. 5-YEARS CAPM COMPARISONS 80.00% 60.00% 40.00% 20.00%CAPM 0.00% -20.00% -40.00% -60.00% 2005 2006 2007 2008 2009 SPRITZ -1.28% 22.56% 14.23% -41.78% 30.33% GAB -0.47% 10.15% 25.02% -23.46% 1.88% F&N 2.14% 20.42% 9.47% -28.89% 14.05% YEOS 1.67% 12.53% 25.36% -38.25% 58.14%
  8. 8. Capital structure shows a company how much the company isfinanced by equity and debt. Besides, it also illustrates thelong-term financing of the company. Therefore, debt to equityratio indicates the extent to which the business relies on debtfinancing. Thus, the formulation is as follows: Debt to Equity Ratio = Long Term Debt Total Shareholder’s EquityCompany financed with debt can save cost of taxation during itsoperation that’s called leveraged; otherwise it will be anunleveraged company.
  9. 9. 5-YEARS DEBT TO EQUITY RATIO COMPARISONS SPRITZ GAB 2% 5% 2005 40% 27% 2006 2005- 2007 2009 2008 26% 2009
  10. 10. 5-YEARS DEBT TO EQUITY RATIO COMPARISONS F&N YEOS 5% 2% 10% 2005 18% 2005 24% 40% 2006 2006 18% 2007 2007 21% 43% 2008 2008 19% 2009 2009
  11. 11. LEVERAGED / UNLEVERAGED COMPARISONS LEVERAGED /COMPANIES REASONS UNLEVERAGED HIGHLY COST OF DEBT IS VERY SPRITZ LEVERAGED HIGH GAB UNLEVERAGED 100% EQUITY FINANCING COST OF DEBT IS HIGH F&N LEVERAGED FROM 2008 ONWARDS HIGHLY COST OF DEBT IS VERY YEOS LEVERAGED HIGH
  12. 12. Dividends are payments made by the company to its shareholders.It is the portion of corporate profits paid out to stockholders. Whena corporation earns a profit or surplus, that money can be put totwo uses: it can either be re-invested in the business (calledretained earnings), or it can be paid to the shareholders as adividend. Many corporations retain a portion of their earnings andpay the remainder as a dividend. Thus, the formulation is asfollows: Dividend Payout Ratio = Dividend Per Share (DPS) Earning Per Share (EPS)
  13. 13. 5-YEARS DPS AND EPS COMPARISONS18 50 47 16.6 1616 45 42.44 41.66 4114 40 37.2636.4 35.74 35 32.812 30.1 30.2 3010 7.8 258 6.7 206 5.7 15 44 3 3 3 10 2.52 50 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 DPS EPS DPS EPS
  14. 14. 5-YEARS DPS AND EPS COMPARISONS70 18 63 16.6 16 1660 1450 46.8 42.9 12 40.1 40.1 41.840 37 10 32.7 34.2 30 7.830 8 6.7 6 5.720 4 4 3 3 3 2.510 20 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 DPS EPS DPS EPS
  15. 15. 5-YEARS DIVIDEND PAYOUT RATIO COMPARISONS 100.00% 90.00% 80.00% 70.00% 60.00% SPRITZ 50.00% GAB 40.00% F&N 30.00% YEOS 20.00% 10.00% 0.00% 2005 2006 2007 2008 2009
  16. 16. Working capital actually shows the companys current position. It tells uswhat would be left if a company raised all of its short term resources, andused them to pay off its short term liabilities. Thus, the formulation is asfollowing: Net Working Capital = Current Asset – Current Liabilities The operating cycle is the number of days from cash to inventory to accounts receivable to cash. It reveals how long cash is tied up in receivables and inventory. Thus, the formulation is as following: Operating Cycle = Inventory Period + Receivable Period The cash cycle is the length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product. It is also called cash conversion cycle. Thus, the formulation is as following: Cash Cycle = Operating Cycle – Payable Period
  17. 17. 5-YEARS NET WORKING CAPITAL COMPARISONS 700,000 600,000 500,000 400,000Millions 300,000 200,000 100,000 0 2005 2006 2007 2008 2009 SPRITZ 31,300 36,361 30,793 35,597 38,067 GAB 130,104 164,820 188,742 209,806 237,201 F&N 383,354 406,792 443,088 621,172 465,958 YEOS 157,012 174,068 121,777 123,414 141,237
  18. 18. 5-YEARS OPERATING CYCLE COMPARISONS 350 300 250 200DAYS 150 100 50 0 2005 2006 2007 2008 2009 SPRTZ 293.02 297.93 288.74 228.07 201.25 GAB 58.97 61.07 63.22 69.38 75.05 F&N 149.73 155.66 165 127.83 119.8 YEOS 161.63 184.41 168.38 159.24 156.39
  19. 19. 5-YEARS CASH CYCLE COMPARISONS 300 250 200DAYS 150 100 50 0 2005 2006 2007 2008 2009 SPRTZ 270.09 265.96 258.71 206.8 183.77 GAB 14.29 26.43 30.09 31.2 34.55 F&N 53.94 61.6 55.15 26.52 27.81 YEOS 54.74 63.5 10.72 41.16 42.13
  20. 20. PART 1 SUMMARY : AVERAGE WACC COMPANIES 5 YEARS AVERAGE WACC SPRITZ 4.59% GAB 2.62% F&N 4.21% YEOS 11.73%Therefore, based on the average WACC comparisons, we would highlyrecommend investors to invest in GAB since the company has the lowestWACC.
  21. 21. PART 2 SUMMARY : DEBT TO EQUITY RATIOTherefore, based on the comparisons, we would highly recommendinvestors to invest in GAB since the company is debt free.PART 3 SUMMARY : TOTAL DIVIDEND DISTRIBUTION AVERAGE SPRITZ GAB F&N YEOS TOTAL 7,594,040 484,625,000 596,027,000 73,627,000 DIVIDEND (RM)Therefore, we can conclude that based on the dividend distribution, F&Nwould be the best company to invest as it has the highest dividenddistribution and also the highest dividend per share compared to other 3companies.
  22. 22. PART 4 SUMMARY : AVERAGE NET WC & AVERAGE OC, PP & CC AV SPRTZ GAB F&N YEOS CA 60,593 338,378 1,242,075 262,907 CL 26,169 152,244 662,381 119,405 NET WC 34,424 186,135 579,695 143,502Based on the analysis, we can conclude that the best company to investwould be F&N due to its large capital base.COMPANIES OPERATING CYCLE PAYABLE PERIOD CASH CYCLE SPRITZ 261.80 24.74 237.07 GAB 65.54 38.23 27.31 F&N 143.60 98.59 45.01 YEOS 166.01 123.56 42.45Therefore, GAB is highly recommended to investors as the company has thelowest operating cycle.
  23. 23. CONCLUSIONS NET DIVIDEND OPERATINGCOMPANIES WACC WORKING RANK POLICY CYCLE CAPITAL SPRTZ 3 4 4 4 3 GAB 1 2 2 1 1 F&N 2 1 1 2 1 YEOS 4 3 3 3 2

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