Every form of business including sole proprietorships, partnerships and corporations undergoes a business cycle whereby they face loss and profit rotationally. By studying the financial performance of a business, we recognize their stand and their potential in the market. The financial performance of a business could be found and calculated with reference of the business’s financial statement, annual reports, balance sheet, income statement, statement of cash flows, statement of retained earning and etc. With such information we are able to produce the financial ratios that portray the business’s position at a point in time and its operations over some past period as well as, at the same time used to predict their future earnings and dividends.
With that being said, this assignment is aimed to focus on understanding and analyzing the financial performance of a business. The business we chose for the purpose of this assignment is Guinness Anchor Berhad (GAB). As this is a Malaysian based company, we will study and carry out our analysis with regards to the alcoholic beverage industry in Malaysia and competitors as well as industry-related issues and standards within Malaysia only.
We are to describe the financial condition of GAB, the efficiency of its activities, its comparable profitability, and the perception of investors as expresses by their behavior in financial markets. The analysis would revolve around where GAB has come from, its current condition and its possible future. To recognize all these, we will identify the trends in financial statements and carry out the financial ratio analysis to analyze the performance of the company by calculating the liquidity ratios, profitability ratios, debt management ratios, and asset management ratios. Apart from that, we will evaluate off-balance sheet information by studying GAB statement of cash flows to analyze their operating activities, financing activities and investing activities. In...