Financial Ratios. Jardine Cycle and Carriage Research Paper

Financial Ratios. Jardine Cycle and Carriage - Research Paper Example SWOT Analysis from Financial Perspective 13 5. Conclusion and Recommendation 14 6. References 16 16 7. Appendices 21 7.1 Appendix 1: Profit and Loss Account of Jardine Cycle & Carriage Ltd. (2010, 2009, 2008, 2007) 21 7.2 Appendix 2: Balance Sheet of Jardine Cycle & Carriage Ltd. (2010, 2009, 2008, 2007) 24 7.3 Summary/Workings for Financial Ratios 27 1. Introduction 1.1 Financial Health of the Company Jardine Cycle and Carriage Limited is an investment bearing company. The company is engaged in the processes of manufacturing, assembling, distributing and selling through retail chains various motorcycles and motor parts. The company operates in various parts of the world: Singapore, Vietnam, Indonesia and Malaysia (Bloomberg Business Week, 2011). The paper has been designed with the aim of assessing the financial position of the company. Although Jardine Cycle and Carriage is a company dealing with diversifying businesses, the focus of the company is upon the market of Southeast Asia . In the list of Singapore’s top companies, Jardine Cycle and Carriage is raked within the top 20 positions. The company is holding a stake of 50.1% in Astra and has strong strategic interest upon it. However, the company undertakes its business within the automotive segment of the market. In the recent times, the financial health of the company is much influenced by its record performance due to its stake in Astra. Though the conditions of trading in Singapore and Vietnam stock markets are challenging, the company has depicted satisfactory performance for its stakeholders. The satisfaction was provided through announcement of proposed 69% enhancement in the full year dividend of the company. The financial health of the company can be summarised through the fact that the chief businesses of the company had achieved a tremendous growth during the year 2010. The financial health even strengthened through the firmness of Rupiah in Indonesia (Jardine Cycle & Carriage, 2010). 1.2 Investment (Investors’) Objective of the Company The investment objective of Jardine Cycle and Carriage from the perspective of enhancing investors’ stake in the company is to attain a wider foundation of earning for the investors. The company aims at continuously striving for investment opportunities with sustenance of its investment position in its various business segments, i.e., financial services, automotive, agribusiness, infrastructure and logistics, heavy equipment and mining and information technology (Jardine Cycle & Carriage Ltd., 2011). The group Managing Director (MD) is confident about the future outlook of the company in the coming days and hopes that the company would definitely succeed in sustaining its strong position within the region’s automotive market. The investment decision that the company wants to sustain for maintaining its strong position within the market is with regards to extension of its assortment of dealerships all around the wo rld (Jardine Cycle & Carriage Ltd., 2011). 2. Company Financial Background The financial background of the company is much dependent upon the business activities that it performs. The following figure depicts the groups of business activities performed by Jardine Cycle and Carriage: Source: ((Jardine Cycle & Carriage, 2010). Astra, where the company holds its major stake, had depicted great performance during the year 2010 with record profit earnings. Astra performed excellently in each segments of its businesses apart from contract mining. The functions of Astra with respect to its consumer finance segment were able to generate enormous profits with the improvement in the debt position, constant margin of interest rates and proficient liquidity