COMMON SIZE ANALYSIS

ASSETS
Property, plant and
equipment
Investment properties
Land held for
development 5
Prepaid lease payments
6
Investments in
associates
Investments in joint
ventures
Intangible assets
Long term receivables
Fund and other
investments
Deferred tax assets
Cash and cash
equivalents
TOTAL NON-CURRENT
ASSETS

Common-Size Common-Size Common-Size

Analysis 2014, Analysis 2013, Analysis 2012,
%
%
%
48.61
1.96

46.07
2.02

45.90
2.20

0.33

0.36

0.32

0.19

0.19

0.20

0.60

0.71

0.71

1.72
5.61
2.36

1.57
6.50
2.02

1.59
6.82
0.74

1.44
1.46

1.75
1.25

1.68
1.32

0.03

64.27

62.44

61.50

EQUITY
Share capital
Reserves
Total equity attributable to
shareholders of the Company
Non-controlling interests
TOTAL EQUITY

LIABILITIES
Borrowings
Deferred tax liabilities
Other long term liabilities and
provisions
TOTAL NON-CURRENT LIABILITIES

Trade and other payables

Borrowings
Taxation
Dividend payable
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES

0.02
65.97

0.02
63.50

0.02
62.74

65.99
6.93
72.92

5.59
2.41

63.52
6.90
70.42

5.49
2.17

62.76
6.54
69.30

6.29
2.93

5.83

5.39

5.41

13.83

11.19
1.26
0.80
13.25
27.08
100

13.05

12.26
2.43
0.89
0.95
16.53
29.58
100

14.63

11.93
2.04
1.99
0.11
16.07
30.70
100


Revenue
Cost of revenue
Gross profit

Less: Selling and distribution

expenses
Administration expenses
Other expenses
Other income
Operating profit

Financing costs
Share of profit after tax and
non-controlling interests of
equity accounted associates
and joint ventures
Profit before taxation

Tax expense
Profit for the year

COMMON SIZE
COMMON SIZE COMMON SIZE
ANALYSIS 2014,% ANALYSIS 2013,%
ANALYSIS
2012,%
100.00
65.75
34.25

100.00
64.54
35.46

100.00
62.96
37.04

1.56
9.82
1.48
5.82
15.56

0.81

1.55
5.01
0.91
5.12
22.87

0.87

1.53
6.57
1.39
8.65
18.90

1.00

0.80
13.95

9.14
4.81

0.68
21.32

9.04
12.28

0.86
17.04

10.38
6.66

DUPONT ANALYSIS
Financial ratio based on the return on
equity ratio
WHY ??
To analyze a companys ability to
increase its return on equity
Equation :
ROE = Profit Margin x Assets Turnover x Equity
Multiplier

ROE = Profit Margin x Assets Turnover x Equity Multiplier

DuPont analysis tells us that ROE is

affected by three things
1. Operating efficiency, which is measured
by profit margin
2. Ability of your assets to be turned into profits,
which is measured by total asset turnover
3. The amount of financial leverage used by the
company, which is measured by the equity
multiplier

DUPONT ANALYSIS :
PETRONAS
ITEMS (RM Mill) / YEAR
Net Income
Total Assests
Total Liabilities
Shareholder Equity
Revenue
Earnings before Taxes
Earnings before Interest and
Taxes
Profit Margin
Total Assets Turnover
ROA
Total Equity
Equity Multiplier
ROE

2014
54,033.00
301,720.00
66,542.00
235,178.00
136,015.00
67,807.00

2013
45,578.00
284,351.00
79,259.00
205,092.00
128,665.00
60,309.00

2012
46,307.00
295,391.00
103,975.00
191,416.00
125,340.00
60,639.00

69,596.00

62,045.00

62,317.00

40%
0.45
0.18
235,178.00
1.28
23%

35%
0.45
0.16
205,092.00
1.39
22%

37%
0.42
0.16
191,416.00
1.54
24%

2014

2013

2012

PROFIT MARGIN

40%

35%

37%

TOTAL ASSETS
TURNOVER

0.45

0.45

0.42

EQUITY MULTIPLIER

1.28

1.39

1.54

ROE

23%

22%

24%

ROE
ROE of the company is
decreasing from 24% in
2012 to 22% in 2013.
It shows that the
company is not growing
and less effective in
generate earning.
In 2014, ROE increase by
1% from 22% to 23%.

ROE

2014

2013

2012

23%

22%

24%

PROFIT MARGIN
The profit margin in 2014
has increase by 5% from
35% in 2013.
Net income has increased
and sales increased over
the period but still low.

PROFIT MARGIN
ITEMS (RM Mill) / YEAR
Net Income

2014

2013

40%

35%
2014
54,033.00

Profit margins increased

which means the increase
in ROE was partially due to
the increasing of profit
margin.
2012
37%
2013
45,578.00

ASSETS TURNOVER
The total asset turnover
increase from 0.42 in 2012
to 0.45 in 2013 and remain
the same in 2014.
Total assets increased at a
lower clip from 2013 to
2014.

TOTAL ASSETS
TURNOVER
ITEMS (RM Mill) / YEAR
Total Assests

2014

2013

0.45

0.45

The ROE increase was not

really related to Petronas
ability to make more money
on their assets because the
assets
2012 turnover is negligible.
0.42

2014

2013

301,720.00

284,351.00

FINANCIAL LEVERAGE
The financial leverage has
been decrease drastically in
2014.
Financial leverage decrease
when a firm decides to not
taking any loan to finance their
assets. finance a majority of its
assets by taking on debt.
The management has adopted
a very good approach towards
the debt capital.

Equity Multiplier

2014

2013

2012

1.28

1.39

1.54

CONCLUSION
&
Conclusion
RECOMMENDATION
Petronass return on equity is increasing from last year and it is
primarily increasing because of the increasing in profit margins.
The company is generating sales while maintaining a lower cost of
goods as evidenced by its higher profit margin and leverage their
operating activities.
Petronas should improve their assets turnover efficiency due to
unchanged in TATO ratio in 2014 to 2015. They should examine the
ways all of the fixed assets are being used and improve the output they
get from those assets.
Eg :
1.Make sure machine output and determine to increase the output without
increasing labor cost.
2.For delivery vehicles, check whether its leave the plant full or need to
make several trips with smaller loads.

THANK YOU