INTRODUCTION

Financial Ratios are ratios that are computed to evaluate the performance, progress and
achievements of the company with other companies in the same industry. Financial ratios also
help the investors, creditors, lenders, analyst and managers in critically analysing an
investment opportunity and credit decisions. The ratios compare the risk and return of a firm
with that of other firms, thus ratio analysis support inter firm comparison. A lot of research
done in the past has shown that the performance of enterprises especially small and medium
sized enterprises can be evaluated through the use of financial ratios. In addition to this, there
are a number of different types of financial ratios for a company which are aimed to show
different aspects of financial performance of the organization.

This assignment report conducted is to analyse the financial performances of two selected
companies listed in Bursa Malaysia under the Consumer Product Sector within 2015 until 2016
financial years. Based on the DuPont Analysis and Market Value measures, we compare and
evaluate the performances of two companies which are Media Prima Bhd and Astro Malaysia
Holdings Bhd. Both performances of these companies are primarily measured by using ratio
analysis. Those financial ratio that we applied have categorised as liquidity ratio, inventory
turnover, efficiency ratio, profitability ratio, financial risk and analysis of growth potential.
MEDIA PRIMA BHD

Media Prima was established and launched in 2003 and since then has grown to be a leading
media corporation in Malaysia. Their vision is a content powerhouse offering multiple media
platform. Their mission is to produce "best-in-class" content, products and services. Content
that is accessible via multi-platforms and is unique, relevant and contemporary.

With a complete repertoire of media-related businesses including in Television, Print, Radio,

Out-of-Home, as well as Content and Digital Media, Media Prima, which is listed on the Main
Board of Bursa Malaysia, is also one of Malaysias Top 100 largest listed companies by
revenue. In addition to having equity interests in Malaysias leading free-to-air television
stations namely TV3, 8TV, ntv7 and TV9, the Group also owns more than 98 percent of The
New Straits Times Press (Malaysia) Berhad (NSTP), Malaysias largest publisher with three
national newspapers; New Straits Times, BH and Harian Metro.

Through its digital media subsidiary, Media Prima Digital embraces technical innovation,
digital solutions and creative strategies. It offers a holistic digital consultancy which
encompasses creative solutions, diversified platform services and e-commerce expertise.
Media Prima Labs meanwhile, is a unit under Media Prima Digital to further extend the Groups
unique intellectual properties into the expanse of tech innovation and games. Tonton is
Malaysias number 1 video streaming portal offering FREE, advertising-supported content
(AVOD) with over 5.6 million registered users and a growth of 22,000 registrants on a weekly
basis. Its vision is to be the number 1 SVOD and home of best content for Malaysians whereas
its mission is to be the no. 1 online video site, a must have service for every Malaysian and
Malaysian home, to be available everywhere and to prevent piracy.

Meanwhile, Media Prima CJ O Shopping Sdn. Bhd. is a media commerce company, which
operates home shopping business in Malaysia called CJ WOW SHOP through various
platforms such as television, electronic-commerce and mobile commerce. In Radio, the Group
is represented by four very popular radio stations namely Fly FM, Hot FM, one FM and Kool
FM. Media Prima is also a market leader in Out-of-Home Advertising, represented by Big Tree
Outdoor Sdn. Bhd., The Right Channel Sdn. Bhd., Kurnia Outdoor Sdn. Bhd., Gotcha and
UPD Sdn. Bhd. The Group also owns a content creation subsidiary, Primeworks Studios Sdn
Bhd. It is today Malaysias largest production company, producing TV content and feature
films since 1984 and 1994 respectively.
CONCLUSION

On the basis of the analysis of discussion made in the report, it can be concluded that financial
performance of an organization is one of the major factor on the basis of which an investor
can evaluate the potential of a company before making investment in that company. In context
to this fact, the paper has reviewed the financial performance of two prominent companies
namely Media Prima Berhad and Astro Malaysia Holdings Berhad for last two year (2015 and
2016). The ratio analysis is showing that in comparison to Media Prima Berhad, the
performance of Astro Malaysia Holdings Berhad is quite better in terms of profitability,
financial stability, and efficiency of business operations. This denotes that investment made
within Astro Malaysia Holdings Berhad will be feasible for investors. However analysis of
financial reports of both the company is favouring the existing position of Media Prima
Berhad, which showed the impact of external environment over performance of an
organization.

*TUKAR YANG BOLD TU. KALAU BETUL, IGNORE JA