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FINANCIAL RATIO ANALYSIS
BASIC ACCOUNTING ( FNBE 0145 )
ASSIGNMENT1
TEE SIN YI (0315689)
LEONG CHEEMUN (0316256 )

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Report Content
Brief History of YTL 3-4
Profitability of YTL
(Year 2012-2013)
5-7
P/E Ratio 8
Investment Recommendation 9
Appendix 10-13
References 14

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BriefHistory ofYTL
YTL CorporationBerhad isone of the largestcompanieslistedonthe Bursa Malaysia,and
togetherwithitsfourlistedentitieshasa combinedMarketCapitalisationof aboutRM30.4
billionasat30 April 2014, andhas total assetsof over RM53.6 billion.The companywas
listedin1985 and has alsohad a secondarylistingonthe TokyoStockExchange since 1996.
YTL wasthe firstAsiannon-Japanese companytobe listedonthe TokyoStockExchange.
The YTL Group'score businessesare ownershipandmanagementof regulatedutilitiesand
otherinfrastructural assets,serving12 millioncustomersinthree continents.
Year 1955
The YTL Corporation(YTL Corp) was founded byTanSri Dato' Seri YeohTiongLay aka Dr.
YeohTiongLay in1955.
Year 1988
His oldestson,TanSri Dato' Seri FrancisYeohSock Ping aka Dr. FrancisYeohSock Ping,
became the ManagingDirectorof YTL Corpin 1988. Underthe stewardship of Dr.Francis,
the YTL Group grewfroma single listedentityin1985 to a group of five listedcompanies.
Until now…
YTL Corporation'sstrategyof providing"WorldClassProductsandservicesatvery
competitiveprices"alongwithitshistoryof Innovation,hasleddirectlytoitrecordinga
compoundedannual growthrate inPre-tax profitsof 55% over the last15 years,and an
enviable trackrecordof creatingshareholdervalue.Ithasbeenpayingdividendseveryyear
since itwas listedonKLSE.YTL Corporation'sstrategyhasalsoresultedinitandits
subsidiariesaccumulatingnumerousInternationalAwardsinthe process.

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YTL CorporationBhd emergedinthe covetedpositionof beingthe largestnon-government
linkedcompanyinthe 2010 MB100 surveyof Malaysia'sLargest ListedCompanies.YTLCorp
movedupto numberfive fromnumber20 previously,anditssubsidiaryYTLPower
International Bhd securedthe eighthspot.
YTL Logo

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ProfitabilityofYTL
Financial Ratio
Profitability
Ratios
2012
RM’000
2013
RM’000
Interpretation
Return on
Equity (ROE)
1,835,920
13,458,095
× 100
= 13.64%
1,845,782
14,968,500
× 100
= 12.33%
During the 2012 to 2013
period, the ROE has
increased from 13.64% to
12.33%. This means the
owner is getting less return
from her/his investment.
Net Profit
Margin (NPM)
1,835,920
20,195,789
× 100
= 9.09%
1,845,782
19,972,948
× 100
= 9.24%
During the 2012 to 2013
period, the NPM has
increased from 9.09% to
9.24%. This means the
business is getting better at
controlling its overall
expenses.
Gross Profit
Margin (GPM)
4,230,374
20,195,789
× 100
= 20.95%
4,156,379
19,972,948
× 100
= 20.81%
During the 2012 to 2013
period, the GPM has
decreased from 20.95% to
20.81%. This means getting
work at controlling its
COGS.
Selling Exp.
Ratio (SER)
318,146
20,195,789
× 100
= 1.57%
318,667
19,972,948
× 100
= 1.6%
During the 2012 to 2013
period, the SER has
increased from 1.57% to
1.6%. This means the
business getting worse at
controlling its selling
expenses.
General Exp.
Ratio (GER)
1,052,069
20,195,789
× 100
= 5.2%
1,075,820
19,972,948
× 100
= 5.39%
During the 2012 to 2013
period, the GER has
increased from 5.2% to
5.39%. This means the
business getting worse at
controlling its general
expenses.
Financial Exp.
1,009,220
20,195,789
× 100
1,001,293
19,972,948
× 100 During the 2012 to 2013

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Ratio (FER) = 4.99% = 5.01% period, the FER has increase
from 4.99% to 5.01%. This
means the business getting
better at controlling financial
expenses.
Stability
Ratios
2012
RM’000
2013
RM’000
Interpretation
Working
Capital (WCR)
51,623,313
15,932,809
= 3.24:1
20,719,379
8,109,706
= 2.55:1
During the 2012 to 2013
period, the WCR decrease
from 3.24:1 to 2.55:1. This
means that the business
ability to pay current
liabilities with current asset
getting worst. In addition, the
business satisfy minimum
requirement of 2:1.
Total Debt
(DR)
37,244,057
51,623,313
× 100
= 72.15%
38,061,749
53,619,494
× 100
= 70.98%
During the 2012 to 2013
period, the DR decrease from
72.15% to 70.98%. This
means that the business total
debt has reduced. However,
it is still over the maximum
limit of 50%.
Stock Turnover
(STR)
365 ÷ [
15,965,415
882,228
]
= 20.17 days
365 ÷ [
15,816,569
910,611
]
= 21.01 days
During the 2012 to 2013
period, the STR has
increased from 20.17days to
21.01days. This means the
business is selling
inventories slower.
Debtor
Turnover
(DTR)
365 ÷ [
10,097,894
3,547,580
]
= 128 days
365 ÷ [
9,986,474
3,607,394
]
= 132 days
During the 2012 to 2013
period, the DTR has increase
from 128 days to 132 days.
This is means the business is
collecting debts slower.
Interest
Coverage
(ICR)
2,847,075
1,001,293
= 2.84 times
2,983,310
1,009,220
= 2.96 times
During 2012 to 2013 period,
the ICR has increase from
2.84 times to 2.96 times. This
means the business ability to
pay its interest is stronger. In

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addition, it does not satisfy
the minimum requirement of
5 times.

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P/E Ratio
P/E Ratio
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑆ℎ𝑎𝑟𝑒 𝑃𝑟𝑖𝑐𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑆ℎ𝑎𝑟𝑒 𝑃𝑟𝑖𝑐𝑒
=
1.74
0.12
= 14.5
The P/E Ratio for YTL Corporation Berhad is 14.5. This is means investor need to
wait for 14.5 years to recoup this investment.

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Investment Recommendation
A) Profitability
During the 2012 to 2013 period, YTL Corporation Berhad had experienced a
bad profitability since Return on Equity was decreased from 13.64% to
12.33%. This means the owner was getting less from her/his investment.
Although YTL Corporation Berhad had experienced bad profitability during
the year, but Net Profit Margin was increased from 9.09% to 9.24% while
Gross Profit Margin was decreased 0.14% which means they were getting
work at controlling overall expenses and Cost of Goods Sold. Conversely,
Selling Expenses, General Expenses and Financial Expenses Ratio increased
0.03%, 0.19% and 0.02% in the year. This means the business is getting better
at controlling Financial Expenses.
B) Stability
YTL Corporation Berhad has strong Financial Stability. This is because they
satisfied the minimum requirement of 2:1 for Working Capital. Besides, for
Interest Coverage they increased 0.12 times this year which means it satisfied
the minimum requirement. However, they were actually in an unsafe level for
Total Debt since they were decrease by 1.17% and above 50%. In addition,
they sold its inventory and collecting debts are slower and inefficient.
C) Price
The price of YTL Corporation Berhad’s share is still considered cheap as it
P/E Ratio does not over 15, which is 14.5.
In conclusion, we do not recommend investor invest this corporation due to
the reason that it does not have good profitability, even though has strong
financial stability and cheap share price right now.

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Appendix

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References
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.ytlcommunity.com%2Fannualrep
ort%2Fpdf%2FYTL%2520Corporation%2520Berhad_Annual%2520Report%25202013.pdf&h=
jAQFRf0QR
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.ytlcommunity.com%2Fannualrep
ort%2Fpdf%2FYTL%2520Corporation%2520Berhad_Annual%2520Report%25202012.pdf&h=
jAQFRf0QR
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.thestar.com.my%2FBusiness%2F
Marketwatch%2F%3Fquote%3DYTL&h=jAQFRf0QR