Analysis of Ioi Corporation Berhad Performance Based on 5 Years Financial Report

4727 Words Aug 18th, 2009 19 Pages
Background Information of IOI Corporation Berhad The group’s principal activity is manufacturing of oleo chemicals, palm oil refinery and palm kernel crushing. However, IOI divide their group activities into 5 segments; Plantation, Property Development, Property Investment, Resource-based Manufacturing, and Other operations segment. Plantation segments focus in cultivation of oil palm and rubber and processing of palm oil. Property Development is engaged in the development of residential and commercial properties. Investment in shopping mall, office complex, and others are part of Property Investment. Resource-based manufacturing segment is engaged in manufacturing of oleo chemicals, specialty oils and fats, palm oil refinery and palm …show more content…
Some of the liquidity ratios are; current ratio and quick ratio respectively. Liquidity is characterized by a high level of trading activity. The current ratio method is a liquidity ratio that measures a company's ability to pay short-term obligations. The more liquid the current assets are, the smaller the current ratio will be, without cause for concern. For business healthy, a standard current ratio is close to two. This means the company has twice as many assets and liabilities. IOI corporation Bhd current ratio has decreased from 2007 to 2008. They reached 3.1 in 2008 compare to 5.7 in 2007. The ration shows that the current assets can comfortably exceed the current liabilities, which means that IOI Corporation is solvent and liable to pay their current liabilities. However even though they have decreasing in ratio, it is one of good sign. Ratio that is too high may indicate that assets are not being utilized efficiently. This is not as concerning as a low ratio, but may affect future long term growth. It means that IOI has current assets resources that not being used efficiently; such as Trade and other receivable (1,693,204) and Short term funds (1,592,545). The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. The quick ratio focuses on the more-liquid assets of a company because they excluding the inventories. They also have decreasing quick

Related Documents