Financial Reporting

Executive Summary

To see whether company is in stable position for investment, it is preferable to analyze their financial statement via different techniques. The best techniques according to financial management books are Ratio analysis. In this paper, entire focus is on financial analysis of Konsortium Transnasional Berhad covering liquidity, profitability, efficiency, capital structure and investors position in the market. All these ratios are not supporting company's performance during 2010 and 2011 while company had improved in 2012. Within industry Konsortium Transnasional Berhad has been performing on top but in terms of revenues they have been facing a problem. Sales have been reducing since 2010 to 2012 while a negative net income in 2010 and 2011. All these financial measure recommend that company right now is not in good condition for investment. Konsortium Transnasional Berhad has always given consideration to Corporate Social Responsibility practices in terms of public health and safety.



EXECUTIVE SUMMARYII

OVERVIEW OF COMPANY1

Products and Services1

Financial Highlight2

Industry Overview2

FINANCIAL ANALYSIS3

i. Profitability Ratios3

Profit Margin4

Return on Equity5

ii. Short term Liquidity Ratios5

Current Ratio6

Quick ratio6

iii. Operating Efficiency Ratios6

Account Receivable Turnover7

Total Asset Turnover7

iv. Capital structure and solvency Ratios8

Debt to Equity Ratio8

Time Interest Earned9

v. Market Ratios10

Earnings per Share10

Price to Earnings Ratio10

INVESTMENT DECISION IN KBT11

LIMITATIONS AND CONCLUSION12

REFERENCES14

APPENDIX15

Financial Reporting

Overview of Company

Konsortium Transnasional Berhad is Malaysia based company involved in Public transportation system i.e. stage and express bus operations. Company was establishes in 2007 Nadi Corporation Bhd. Konsortium Transnasional Berhad has been operating within Peninsular Malaysia.

Services provided by KTB are considered to be most extensive that covers not only major cities and towns of Peninsular Malaysia but also cities and towns of Singapore. KTB network provide their services through more than 1,500 buses covering 250 routes with more than 100 trips on daily basis. This translates approximately 60 million passengers annually (Konsortium Transnasional Bhd annual report 2012).

Products and Services

Konsortium Transnasional Berhad has been operating under four brands which are:

Nic

Plusliner

Transnasional

Cityliner'

Konsortium Transnasional Berhad mission desire to be a one of the best conglomerate transportation company in the world thought offering innovative, Progressive and Customer Oriented Company. Currently they consist of largest market share in Peninsular Malaysia and Transnasional being the leader in express bus industry. They also involve in Cityliner' stage buses and under brand name of “Nice” they are operating Plusliner' economy express buses and luxury bus services (Konsortium Transnasional Bhd annual report 2012).

Financial Highlight

2012 was very challenging year for Konsortium Transnasional Berhad due to moderate economic growth. Growth in developed countries was not up to the mark due to recovery session and this had directly impacted on international trade. If we compare Malaysian economy with other economies, it performed well. During 2012, Konsortium Transnasional Berhad was able to post revenue of RM240.8 million which was slightly lower than last year - RM254 million. In 2012, EPS also improved since last year net income was RM 26,645 while it increased to RM 2,909 (Konsortium Transnasional Bhd annual report 2012).

Industry Overview

Konsortium Transnasional Berhad has been operating under Public transportation operation, manufacturing, property industry and has been listed on ...