Analyze Proton based on its financial performance from 2001-2005

Essay by malaysiafarmerUniversity, Master'sA-, July 2006

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Abstract

This report is prepared to analyze Proton based on its financial performance from 2001-2005, in order to determine whether the company is appealing for investors. Therefore, we have put forward constructive recommendation in order to make the company attractive for investment.

Content

1.0 INTRODUCTION...................................................... 2

2.0 PROFITBILITY RATIOS............................................. 3

3.0 ASSET UTILIZATION(efficiency) RATIOS...................... 5

4.0 LIQUIDITY RATIOS................................................... 7

5.0 GEARING RATIOS.................................................... 8

6.0 INVESTOR RATIOS................................................... 9

7.0 LIMITATION............................................................ 10

8.0 CONCLUSION......................................................... 11

9.0 RECOMMENDATION................................................ 12

REFERENCE

APPENDIX

1.0 Introduction

Perusahaan Otomobile Nasional Berhad, or PROTON, was incorporated on 7th May 1983 to manufacture, assemble and sell motor vehicles and related products including accessories, spare parts and other components.

Proton produced Malaysia's first car the Saga (MPI) that was launched in July 9th 1985 by the then Prime Minister Dato Seri Dr Mahathir Mohamad who had originally conceived the idea of a Malaysian motorcar.

The range of models by Proton now consists of Waja (Impian), Satria, Wira, Iswara (MPI), Arena (Jumbuck), Perdana, Juara, GEN-2 and Savvy.

The main plant is situated at Shah Alam near Kuala Lumpur covering 99,400 square meters. The site also houses an engine and transmission factory, a castings plant, R & D centre and a semi-high speed test track. Impian is manufactured at a medium volume factory on the same site. Currently about 240,000 units per annum is being produced in the Shah Alam factory.

A new modular assembly plant has been constructed at Tanjung Malim, 60 miles north of Kuala Lumpur. This area has been dubbed Proton City and consists of a 500-hectare site containing the new factory, plant, housing, a university and other commercial buildings. The new plant will produce three new model ranges, including GEN-2 and Savvy. PROTON's total workforce in Malaysia totals 6,100 personnel.

PROTON was originally established as part of achieving...