Analysis Of Gamuda Land

Recommendation & Suggestions
Before we start to invest in a company, we need to analyze the financial ratio for each company. This is because it helps us to know whether the companies status are worth to invest or not. Without analyzing the financial ratios of companies, it would be risky to invest and causing making loss on investment.
Based on the three companies that we choose, which are Eco World, Gamuda Land and IOI properties. For analysis which company is the best to invest, we will use five categories of financial analysis to differentiate. There are profitability, efficiency, shareholder ratio, liquidity and the capital structure.
Profitability Ratio ECO GAMUDA IOI
Profitability Net Profit Margin 5.08% 31.52% 5.51% Return on Assets 1.46% 4.72% 3.68%
I would like to recommend and suggest my client to invest in Gamuda Land because it has the highest profitability ratio compare with other two companies which is Eco World and IOI properties. Net Profit Margin of Gamuda Land is 31.52 % which is higher than Eco World (5.08 %) and IOI properties (5.51 %). In addition, Gamuda Land has a higher percentage of return on assets which is 4.72 % compare to Eco World (1.46 %) and IOI properties (3.68 %). The return on assets ratio illustrates how well management is employing the company's total assets to make a profit. The higher the return, the more efficient management is in utilizing its asset base. This shows Gamuda Land is a best choice since it has the highest ratio for return on