Analyzing the financial performance for Malaysian plantation industry: the case of TDM Berhad / Zailiamri Deraman @ Ramli, Nor Lelawati Mat Soh and Ab Halim Yusoff

This study was undertaken as a matter of trying to evaluate the current financial performance of Malaysian Plantation Industry and substantially compared to the performance of our focused company, TDM Berhad. This study also looking at whether there are any relationships involves between the independent variables and the dependent variables. The Earning per Share has been taken to be the dependent variable as an indicator to set the company’s wealth. While eight variables was chosen to be as the independent variables that are; Current Ratio, Quick Ratio, Net Profit Margin, Return on Asset, Return on Equity, Debt Asset Ratio, Debt Equity Ratio, and Size of company. This paper reports the results of a study of 13 plantation companies that listed in the KLSE. The annual reports for 5 years periods of 2006 until 2010 were analyzed by using the above ratios and then come out with outcomes that show their performance of industry. After that, the 5 years performance of TDM Berhad was taken out to compare whether their performance are good or not toward the industry. The results of this study indicate that TDM perform well in the industry according to the mean of industry and the mean summary for TDM Berhad. The correlation result shows that all the variables show relationship between dependent and independent variables but there were some independent variables shows there were inverse relationships with dependent variables. For the regression analysis there might still some more factors that can be further studies in the future research that might provide even better results. The implications for the company and the industries as a whole is that there should stress more on the improving their EPS and further generated the profits for the firm therefore provide a better financial results.