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1、U1248613 U1247228 U12472241.0 IntroductionAccounting has existed from time people carried on some form of business transactions even during the age of barter trade. The accounting system may have been rudimentary in the distant past but has evolved over time to meet the needs of society and organisa
2、tions (Jane, 2012). As the result, it is possible for us to take a historical view on the annual report of KLCC Property Holding s Berhad.KLCC that Kuala Lumpur City Centre, Petronas Twin Towers, the 88-floor high KLCC in Kuala Lumpur City Centre, KLCC has a diversified property portfolio in the KLC
3、C development, including office buildings, shopping malls and luxury hotels near thelayers of the ground for a large-scale shopping malls, supermarkets and department stores, world famous stores, food center, entertainment center business body, the upper offices. KLCC Suria also called to KLCC in 20
4、047 May, KLCC Property Holdings Limited (KLCCP) was incorporated as a public limited liability company.In the case of the economic downturn and uncertainties, KLCC continue to support the business environment. Annual performance and profitability of the Group are constantly continued to rise, the co
5、mmercial status in Malaysia and South Asia are constantly strengthened. Therefore, KLCC Group will continue to pursue the best environment of the operating costs, and efforts to expand revenue.2.0 Financial ratio analysis about KLCC Property Holdings BerhadNow, we have a group account the nature and
6、 content, we can explain these accounts.One method is the financial ratio analysis.A ratio may be from the percentage (%) or (x, y). Therefore, it is necessary to consider the advantages and disadvantages of this relationship in different companies to compare (Groppelli, 2006). Each enterprise the m
7、ost concern is its profitability. One of the most commonly used tools of financial ratio analysis is profitability ratios are used to determine the companys bottom line. Profitability ratios measure a company USES its assets and to control its cost, to produce an acceptable rate of return (Groppelli
8、, 2006).Profitability ratios review firms ability to make earnings as against their expenditure incurred during a given time (Owen, 2003). The ratios calculated on profitability are: net profit, operating profit and others.A table showing KLCCPs profitability ratiosYear20072008200920102011Gross oper
9、ating margin87%89%90%90%67%Net profit margin269%107%120%147%121%Return on capital employed25%11%12%13%10%2.1 Interpretation of the financial ratios for 2007-2011 Gross operating marginGross profit margin shows the profit margin after cost of goods sold, which have been taken out of the sales. The am
10、ount of gross profit, on average, earned from every RM of sales (Owen, 2003). The gross profit % of KLCCP from 2007 to 2011 is 87%, 89%, 90%, 90& and 67% remarkably, then on average, the company earned 87cent, 89cent, 90cent, and 67cent worth of the gross profit in every RM1 worth of sales. While th
11、e sales of KLCCP increase or decrease, the gross profit fluctuates. At the result, both the year 2009 and 2010 record the highest gross profit margin, a consistently high margin always means efficient management and improved economy, while the year 2011 records the lowest gross profit ratio. Net pro
12、fit marginNet profit margin measures how much of every RM earned by the company is exchanged into profits. The net profit % of KLCCP from 2007 to 2011 is 269%, 107%, 120%, 147% and 121% respectively. Consequently the figure shows that, on average, KLCCP earned 269cent, 107cent, 120cent, 147cent and
13、121cent from every RM1 value of sales. The trend of the figure discloses that year 2007 recorded the highest net profit; this might be due to more expenses incurred in the years that record low net profit ration (Haron, 2006). Return on capital employedThis ratio express profit as a percentage of th
14、e amount of capital invested within the firm. This provides a rate of return based on the size of the financial investment within the terms of capital employed (Horner, 2013). The return on capital employed % of KLCCP from 2007 to 2011 is 26%, 11%, 12%, 13% and 10%. At last the data shows that, on a
15、verage, KLCCP earned 25cent, 11cent, 12cent, 13cent and 10cent from every RM1 value of investments. The higher value of return capital employed is showing that KLCCP generated more earnings per RM of capital employed.3.0 Analysis of the cash flow activities of KLCCP for 2010-2011Table showing the cash flow activitiesYear2010 (RM ,000)2011 (RM ,000)Operating activities578,246620,821Increase42,575Investing activities(155,140)(393,229)Decrease(238,089)Financing activities(398,671)(193,835)Increase244,844
