Download any Public Listed Company’s statement of cash flow from Bursa Saham Malaysia critically review the cash management practices of the company and suggest way to improve the company’s cash flow position.
Proton Holding Berhad
Proton was largely a manufacturer of badge-engineered vehicles from Mitsubishi Motors between 1985 and the early 2000s. The company has since produced several indigenously designed models and operates in at least 26 countries today, the majority of which are in Asia. Proton was formerly owned by Khazanah Nasional, the investment holding arm of the government of Malaysia. In January 2012, it was taken over by DRB-HICOM, a Malaysian conglomerate in a transaction amounting RM1.2 billion.
Proton, predominantly reliant on its domestic market is currently undergoing structural and internal changes, as evident in the appointment of a new owner, partner, Chairman and the launch of various new and upcoming models in an effort to gain an international presence and increase profitability.
Proton Holdings Bhd, needs some focus on GP Margin as well as Admin Expenses that takes up all the profit away. The rest still maintain at the positive level, such as Fast Cash Flow, Current Ratio, 3 types of Turnover, while finished vehicle remain almost 50% from total inventories and Revenue from Sales does increase.
Factors which contributed to the rise of Proton were well-designed cars which catered to the needs of the domestic market (i.e. the Proton Persona, second generation Saga and Exora) in addition to better management of the company under the then managing director, Syed Zainal Abidin. However, despite the improvements made between 2007 and 2012 in addition to improved overall sales, Proton's Malaysian market share continued to decrease. In 2011, the company had a 26.4% (158,657 units) share which plummeted further to 22.5% (141,121 units) in 2012.[49] In comparison,...