A study on performance of Second Board KLSE listed companies using financial ratio analysis / Zurina Abdul Kadir

This study was carried out to identify the financial ratio characteristics and performance of the companies, which are listed on the Second Board. Since there are 297 companies that, were listed on the Second Board, this study only focus and analyze the sample of 24 companies, which has been listed for more than 5 years. This study covers the company's ratio, which was obtained from 5 years period that is from year 1996 to year 2000. Data were obtained from companies' annual financial report, annual companies handbook published by KLSE and websites http// www.klse.com.my and http// www.klse-ris.com.my. Methodology used was financial ratio analysis. The result obtained shows the characteristics of financial ratio of the companies listed on Second Board and their performance as well. From this study, it was found out that the companies listed on Second Board are less liquid with most of the companies used their shareholders financing rather than creditors financing. In terms of generating sales from the total assets, the companies are quite fair. Since most of the companies listed on Second Board are new companies, their profitability ratio was not that excellent. These companies used most of their fund to generate more projects and support their operations.