From diagrame, Aeon achieved a new revenue record of RM3.256 billion for the Year which is 9.1% higher than the RM2.985 billion for the previous financial year. Correspondingly, AEON registered a strong profit before tax of RM299.5 million and profit after tax of RM212.8million representing 8.0% and 8.9% growth respectively over the previous year’s performance.
The Year’s results were most commendable if we take into consideration that the results for the preceding year had included both the RM12.7 million gain on disposal of its amusement business and the RM11.3 million net proceeds from insurance claim though they were offset by an impairment loss of RM14.1 million in one of the ...view middle of the document...
While from 2008 to 2012, the current ratio is not getting over to 1. The general rule is that the current ratio for a business should be 1 or higher.
From the annual report of Aeon, the reason of current ration unattainable to 1 is due to the huge amount of payables and accruals Aeon is holding currently. Current liabilities of Aeon is RM 1.2 billion in 2012, while the largest portion was trade payables which is consist of 59 percent of current liabilities.
By the way, Aeon is increasing its current ration in order to attain 1 with collective more cash. Since Aeon currently operating 31 stores in Malaysia and their growth rate is decline and start focus on refurbishment with annually 2 of stores. Therefore, their cash is collective more than 2011 which is RM 341.052 million increases to RM 454.527 million.
Therefore, we expect cash reserve of Aeon will be increasing substantially on 2014 and lead current ratio will increase substantially in the futures.
EPS growth rate
Earning per Share is widely used ratios in stock value and securities analysis. To be technical, the net profit of Aeon in which year should divide by the weighted average number of shares outstanding during the year which is 352 million ordinary shares. From the 2008 to 2012, Aeon is not taking any action in private placement and new share issuing. Therefore, EPS of Aeon is not dilute anyway.
Besides that, we realize that Earning per Share (EPS) growth rate of Aeon retail is average 5 percent per annum. From the EPS growth of Aeon, we can define it company as a slow and stable growth company in retail industry.
Price Earning Ratio
Price earning ratio is an important ration to check whether a share price is reasonable. If a share has high P/E, investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Usually investors will compare the P/E ratio of one company...