Case 1 Completed 
Case 4. “Living by Number – Value Creation or Profit?”
1. Determine the economic earnings of MarineCorp Sdn Bhd (MarineCorp), Green Port Sdn Bhd (Green Port) and Sungai Emas Sdn Bhd (Sungai Emas Port)
Economic Earnings = NOPAT – (WACC x Average Invested Capital) = NOPAT – Capital Charged
(a) MarineCorp Sdn Bhd
Economic Earnings = RM 15,128,917 – RM 854,306 = RM14,274,611
(b) Green Port Sdn Bhd
Economic Earnings = RM 31,381,168 – RM 45,969,400 = (RM 14,588,232)
(c) Sungai Emas Port Sdn Bhd
Economic Earnings = RM 5,218,364 – RM 187,801 = RM 5,030,563
As shown above, MarineCorp Sdn Bhd and Sungai Emas Port Sdn Bhd have positive economic earnings; MarineCorp Sdn Bhd with economic earnings of RM14,274,611 while Sungai Emas Port Sdn Bhd with economic earning of RM 5,030,563. A positive economic earning means that both of the companies are creating value or benefit to the shareholders. However, one of the subsidiaries of Marine Port Sdn Bhd, Green Port Sdn Bhd shows a negative value in its economic earnings. It means that the value of Green Port Sdn Bhd is destroying where the profit earned by Green Port Sdn Bhd does not excess of the investors’ expected returns.
2. Rank the companies in terms of their financial performance.
Return on assets (ROA), return on equity (ROE) and net profit margin are used to assess their financial performance. Based on the three ratios used, MarineCorp Sdn. Bhd has a better financial performance compared to its two subsidiaries. This is followed by Sungai Emas Port Sdn Bhd and finally, by Green Port Sdn Bhd.
(Please refer to Appendix, Table 1)
3. Rank the companies in terms of their operational performance.
i. Green Port Sdn Bhd ii. MarineCorp Sdn Bhd iii. Sungai Emas Port Sdn Bhd Green Port Sdn Bhd has a better operational performance as they have higher net profit after taxation. They also showed an increase in their operations where the number of ships are increasing every year. Also,
1. Determine the economic earnings of MarineCorp Sdn Bhd (MarineCorp), Green Port Sdn Bhd (Green Port) and Sungai Emas Sdn Bhd (Sungai Emas Port)
Economic Earnings = NOPAT – (WACC x Average Invested Capital) = NOPAT – Capital Charged
(a) MarineCorp Sdn Bhd
Economic Earnings = RM 15,128,917 – RM 854,306 = RM14,274,611
(b) Green Port Sdn Bhd
Economic Earnings = RM 31,381,168 – RM 45,969,400 = (RM 14,588,232)
(c) Sungai Emas Port Sdn Bhd
Economic Earnings = RM 5,218,364 – RM 187,801 = RM 5,030,563
As shown above, MarineCorp Sdn Bhd and Sungai Emas Port Sdn Bhd have positive economic earnings; MarineCorp Sdn Bhd with economic earnings of RM14,274,611 while Sungai Emas Port Sdn Bhd with economic earning of RM 5,030,563. A positive economic earning means that both of the companies are creating value or benefit to the shareholders. However, one of the subsidiaries of Marine Port Sdn Bhd, Green Port Sdn Bhd shows a negative value in its economic earnings. It means that the value of Green Port Sdn Bhd is destroying where the profit earned by Green Port Sdn Bhd does not excess of the investors’ expected returns.
2. Rank the companies in terms of their financial performance.
Return on assets (ROA), return on equity (ROE) and net profit margin are used to assess their financial performance. Based on the three ratios used, MarineCorp Sdn. Bhd has a better financial performance compared to its two subsidiaries. This is followed by Sungai Emas Port Sdn Bhd and finally, by Green Port Sdn Bhd.
(Please refer to Appendix, Table 1)
3. Rank the companies in terms of their operational performance.
i. Green Port Sdn Bhd ii. MarineCorp Sdn Bhd iii. Sungai Emas Port Sdn Bhd Green Port Sdn Bhd has a better operational performance as they have higher net profit after taxation. They also showed an increase in their operations where the number of ships are increasing every year. Also,