- MK Land Holdings Bhd is an investment company operating in property development, leisure, education, and investment holdings. It will be launching two new projects in 2015 worth RM600 million. - An analysis of MK Land's financial ratios from 2012-2013 shows improvements in profitability but worsening costs. Its stock performance from 2014-2015 was unstable and investing was not recommended. - A comparison of MK Land's P/E ratios in 2012 and 2013 found it became less expensive in 2013, falling from 15 to 10.61, meaning returns would take less time for investors.

1. Basic Accounting
Assignment: Financial Ratio Analysis
Lecturer: Ms. Tay Shir Men
Group Members: Chloe Sim Tiing Ern (0322932)
Ee Hui Teng (0322548)
Lew Quo Ming (0322884)
Fong Kah Yan (0322815)

2. Contents Page
Background Study 1
Recent Development 2
Profitability 3
Liquidity 4
Stability 4
Report 5-7
References 8

3. Background Study
MK Land Holdings Berhad is an investment company, which engages in investment holding
and provides management services. The company was founded by Mustapha Kamal bin Abu
Bakar and Kasi A/L K.L. Palaniappan on March 1, 1983 and is headquartered in Petaling
Jaya Malaysia. MK Land’s activities include residential and commercial development, hotels,
resorts, water theme park, education, and property investment. MK Land operates in multiple
segments, namely the Property Development and Related Activities, Leisure, Educational,
and Investment Holdings. Property Development and Related Activities segment involves in
the development of mixed properties and related activities; The Leisure segment operates
resorts, hotels, golf courses, and theme parks; The Educational segment provides educational
services; The Investment Holding segment invests in subsidiaries and property investment.

4. Recent Developments
In 2015, MK Land Holdings BHD. will be launching 2 projects this year with a combined
Gross Development Value of RM 600 mil and the estimation of launching this project will be
in between April and June. The projects comprise serviced-apartments costing RM 450,000
onwards in Damansara Damai and apartments in Damansara Perdana, priced above RM
600,000 per unit. The product sales of the company had experienced a slowdown due to the
switching of consumer’s interest from high-end properties to affordable properties. The
company would balance its product mix in order to survive in the market where 70-80% of
sales came from the Klang Valley and plan other affordable housing projects located at Meru
Perdana, Klebang Putra and Lembah Beriah in Perak.

5. Profitability
Profitability Ratios 2012 2013 Interpretation
Return On Equity (ROE)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑂/𝐸
× 100%
24,205,000
1,067,759,500
× 100%
= 2.27%
40,345,000
1,091,000,500
× 100%
= 3.70%
During the period of
2012-2013, ROE has
increased from 2.27% to
3.70%. This means that
MK Land is getting
more return from the
capital in 2013
compared to 2012.
Net Profit Margin Ratio
(NPM)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
24,205,000
428,530,000
× 100%
= 5.65%
40,345,000
468,239,000
× 100%
= 8.62%
During the period of
2012-2013, NPM has
increased from 5.65% to
8.62%. This means that
MK Land is better at
handling their expenses
in 2013 compared to
2012.
Gross Profit Margin Ratio
(GPM)
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
153,596,000
428,530,000
× 100%
= 35.84%
176,579,000
468,239,000
× 100%
= 37.71%
During the period of
2012-2013, GPM has
increased from 35.84%
to 37.71%. This means
that MK Land is getting
better at controlling their
cost of goods sold
(COGS).
Selling Expenses Ratio
(SER)
𝑇𝑜𝑡𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
10,040,000
428,530,000
× 100%
= 2.34%
11,766,000
468,239,000
× 100%
= 2.51%
During the period of
2012-2013, SER has
increased from 2.34% to
2.51%. This means that
MK is not getting better
at controlling their
selling expenses.
General Expenses Ratio
(GER)
𝑇𝑜𝑡𝑎𝑙 𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
66,052,000
428,530,000
× 100%
= 15.41%
72,394,000
468,239,000
× 100%
= 15.46%
During the period of
2012-2013, GER has
increased slightly from
15.41% to 15.46%. This
means that MK Land is
not getting better at
controlling their general
expenses.
Financial Expenses Ratio
(FER)
𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
20,502,000
428,530,000
× 100%
= 4.78%
20,269,000
468,239,000
× 100%
= 4.33%
During the period of
2012-2013, FER has
decreased from 4.78% to
4.33%. This means that
MK Land is getting
better in managing the
financial expense.

6. Liquidity
Liquidity Ratio 2012 2013 Interpretation
Working Capital Ratio
(WCR)
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡 𝑖𝑒𝑠
1,013,852,000
719,017,000
= 1.41:1
951,446,000
639,694,000
= 1.49: 1
During the 2012-2013
period, the WCR has
increased from 1.41:1 to
1.49:1. This means that
the business’ ability to
pay current liabilities
with current assets is
getting better. However,
it will experience
difficulty in repaying its
current liabilities
because it does not have
minimum of WCR 2:1.
Stability
Stability Ratios 2012 2013 Interpretation
Total Debt Ratio (TDR)
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
× 100%
896,383,000
1,976,245,000
× 100%
= 45.36%
845,978,000
1,948,117,000
× 100%
= 43.43%
During the 2012-2013
period, the TDR has
decreased from 45.36%
to 43.43%. This means
that the business’ total
debts has reduced. Since
it does not exceed 50%,
it is considered low risk
of going bankrupt.
Inventory Turnover Ratio
(ITR)
365 ÷
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
365÷
263,260,000
119,493,500
= 165.7 𝐷𝑎𝑦𝑠
365÷
291,660,000
118,794,000
= 148.7 𝐷𝑎𝑦𝑠
During the 2012-2013
period, the ITR has
decreased from 165.7
days to 148.7 days. This
means that the business
is selling their goods at a
faster rate.
Interest Coverage Ratio
(ICR)
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 + 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
20,502,000 + 24,205,000
20,502,000
= 2.18 𝑇𝑖𝑚𝑒𝑠
20,269,000 + 40,345,000
20,269,000
= 2.99 𝑇𝑖𝑚𝑒𝑠
During the year 2012-
2013 period, the ICR has
increased from 2.18
times to 2.99 times. The
business’ ICR is below 5
times, which can result
in bankruptcy. In 2013,
the business has enough
profits to pay its interest
expenses 2.99 times.

7. Report
Based on the graph above is the stock graph of MK Land Bhd and KLCI on 30 July 2014 to 30 July
2015 from Yahoo Finance.
The share price of MK Land on 30th
Jul 2014 is RM 0.51, it increased to RM 0.54, increased
by
0.54−0.51
0.51
= 0.059%. After that, it dropped to RM 0.52, which results in a
0.52−0.54
0.54
= −0.037%
change. At the same time, the index from 1878.34 dropped to 1871.36(
1871.36−1878.34
1878.34
=
−0.0037%), and then it increased to 1876.69(
1878.34−1876.69
1876.69
= 0.0088%).
The share price for Mk Land on 2nd
Sept 2014 is RM 0.46 and then it dropped to RM 0.41, and the
index dropped from 1830 to 1760. The changes in percentage of the share price is
0.41−0.46
0.46
=
−0.109% and the changes of the index is
1830−1760
1760
= 0.00398%. However,at 8th
Sept, the share

8. price increased from RM 0.41 to RM 0.47(
0.47−0.41
0.41
= 0.146%), and the index increased from 1760 to
1855(
1855−1760
1760
= 0.054%). After experiencing a drop in the graph, the graph rises again to a point
higher than before.
From both of the points stated above, both MK Land and KLCI experience a drop simultaneously.
Therefore,this is considered a normal occurrence.
The share price of MK Land on 5th
Feb 2015 is RM 0.43, it increased to RM 0.47, and then it dropped
to RM 0.45. This shows an increase of 0.093% (
0.47−0.43
0.43
) and then a decrease of -0.0426% (
0.45−0.47
0.47
).
At the same time, the index 1803.09 increased to 1811.58(
1811.58−1803.09
1803.09
= 0.0047%), and then it
dropped to 1789.07(
1789.07−1811.58
1811.58
= −0.0124). Based on the increased and decreased points of the
both graph, the share price and KLCI fluctuate frequently.
The share price for MK Land on 15th
Dec 2014 is RM 0.30, and the index is 1650. On 22nd
Dec 2015,
the share price increased to RM0.45 and the index increased to 1850. The increase of share price is
0.45−0.30
0.30
= 0.5%, whereas the index changes is
1850−1650
1650
= 0.1212%. This shows that the
performance of the company is better than the index because the increase in share price is greater than
the increase in index.
In conclusion, the investment in MK Land for the year 2014-2015 is not recommended due to the
fluctuation in graph. Even though the share price is higher in this period compared to the year 2012-
2013, the graph is unstable and the decrease of share price is greater than the increase of it. Therefore,
by looking at the graph, it is not recommended to invest in MK Land.
P/E Ratio of MK Land in Year 2012 and 2013
𝑃 𝐸⁄ 𝑅𝑎𝑡𝑖𝑜 =
𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
MK Land`s share price in 2012 is RM 0.30 per share. It`s earning per share based on the year 2012 is
RM 0.02. This means the company`s price or earnings ratio is equal to RM 0.30 divided by RM 0.02,
which is 15.
𝑃 𝐸⁄ 𝑅𝑎𝑡𝑖𝑜 =
0.30
0.02
= 15.00
In 2013, the price per share is RM0.35, Its earnings per share in that year is RM 0.033. This means the
company`s price or earnings ratio is equal to RM0.35 over RM 0.033, which is 10.61.
𝑃 𝐸⁄ 𝑅𝑎𝑡𝑖𝑜 =
0.35
0.033
= 10.61
By interpreting the above share price, those ratio measures how expensive a share is. The higher the
P/E ratio, the more expensive a share is. In the example above, a P/E of 15 means that the investor is
required to wait for 15 years to recoup their investment. A lower P/E,10.61, means the investor will
have to wait less than 10 and half years to claim back their original principal. A conservative investor
will normally pay no more than P/E of 15 for a share that they prefer. From the calculation above, we
can see that the return of MK Land is getting shorter year by year. Therefore,MK Land have
demonstrated good profitability, strong financial stability and it`s shares are available at a cheap price
of P/E of 15 and even lower to warrant an investment. Therefore,MK Land Company is a high

9. potential company to be invested in. The investment in MK Land for the year 2012 and 2013 is
recommended.

10. References
MK Land Holdings Bhd MKLAND (Malaysia). (2015). Retrieved November 16, 2015, from
http://quotes.wsj.com/MY/MKLAND/company-people
EMIS - Mk Land Holdings Berhad Company Profile - Emerging markets. (2015). Retrieved
November 16, 2015, from http://www.securities.com/php/company-
profile/MY/Mk_Land_Holdings_Berhad_en_1662342.html
MK Land to launch 2 projects this year - Business News | The Star Online. (2015, March 5).
Retrieved November 16, 2015, from http://www.thestar.com.my/Business/Business-
News/2015/03/05/MK-Land-to-launch-2-projects-this-year/?style=biz