FACULTY OF BUSINESS MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS.)

ISLAMIC BANKING

BUSINESS ANALYTICS AND FINANCIAL MODELLING (FIN534)

OCTOBER 2024 - FEBRUARY 2025

INDIVIDUAL ASSIGNMENT 1: DESCRIPTIVE STATISTICS

PREPARED FOR:

DR. BALKIS BINTI HARIS

PREPARED BY:

NAME STUDENT ID CLASS

NURAIN BINTI MOHAMED YUSOF 2023135991 BA2494A

DATE OF SUBMISSION:

14th NOVEMBER 2024

0
TABLE OF CONTENTS

NO CONTENTS PAGES

1 Introduction 2

2 Data Collection 3

3 Question 1 7

4 Question 2 13

5 Question 3 19

6 Question 4 20

7 Question 5 21

8 Conclusions 22

9 References 23

1
INTRODUCTION
The objective of this assignment is to investigate the behaviour of stock prices whether the six
variables namely sales, net profit, fixed assets, total liabilities, total equities and closing stock price
influence the stock prices. I have collected data from different companies in food and beverages
industries using Bursa Malaysia and Eikon Database. The data are collected from four companies
namely Spritzer Berhad, Apollo Food Berhad, Fraser & Neave Holdings Berhad and Kawan Food
Berhad.

Spritzer Berhad is a manufactures, markets, distributes and sells natural mineral water, and
sparkling natural mineral water. It also produces distilled drinking water, carbonated and non-
carbonated fruit flavoured drinks, functional water, PET bottles, dispensers toothbrushes and caps.
Spritzer markets its products under Spritzer Tinge, Spritzer Sparkling, Spritzer Distilled, Spritzer
Natural, Desa, Spritzer So Tinge, Cactus Sparkling, Acilis, Cactus, and Summer brand names. The
company owns and operates plastic packaging manufacturing plant in Ipoh, Malaysia and bottled
mineral water plants in Taiping, Yong Peng and Shah Alam, Malaysia. Spritzer is headquartered in
Taiping, Perak, Malaysia.

Apollo Food Holdings Berhad, an investment holding company, manufactures, trades in,
markets, and distributes compound chocolates, chocolate confectionery products, and layer cakes in
Malaysia. Its products include chocolate wafer products, chocolate layer cakes, and Swiss roll products.
It distributes its products in Singapore, Indonesia, Thailand, the Philippines, Vietnam, China, Hong
Kong, Taiwan, Japan, India, the Middle East, Mauritius, and Maldives. The company was founded in
1966 and is based in Johor Bahru, Malaysia. Apollo Food Holdings Berhad is a subsidiary of Scoop
Capital Sdn Bhd.

Fraser & Neave Holdings Bhd. (F&N) is a Malaysia-based investment holding company. The
Company’s subsidiaries are engaged in the manufacture and sale of soft drinks, dairy products, glass
container, property development activities and the provision of management services. Its soft drinks
division offers carbonated soft drinks, isotonic, Asian drinks, teas, juices and energy drinks. F&N was
founded in 1961 and based in Kuala Lumpur, Malaysia.

Kawan Food Berhad, located in Shah Alam, is a leading exporter and the largest manufacturer
of frozen Asian food delicacies in Malaysia. The company has a history of over 40 years, starting as a
family-run business that made and sold traditional pastries locally. In the mid-1980s, they expanded
their business beyond Malaysia by exporting their products, with Australia being their first export
market. Kawan Food Berhad is committed to providing authentic, safe, and high-quality products at an
affordable price.

2
DATA COLLECTION BASED ON 6 VARIABLES FROUM FOUR COMPANIES

NET FIXED TOTAL TOTAL CLOSING

COMPANY YEAR QUARTER SALES
PROFIT ASSETS LIABILITIES EQUITY STOCK PRICE
RM RM RM RM RM RM
2,019 1 95,099,000 7,717,000 260,928,000 84,599,000 396,887,000 1.460
2 94,790,000 7,856,000 290,749,000 84,700,000 397,382,000 1.507
3 97,467,000 9,166,000 295,022,000 91,771,000 406,611,000 1.533
4 87,021,000 6,510,000 309,057,000 83,620,000 415,280,000 1.500
2,020 1 92,802,000 8,785,000 309,916,000 84,238,000 425,214,000 1.267
2 54,420,000 2,018,000 308,255,000 64,730,000 427,523,000 1.367
3 88,600,000 10,417,000 326,020,000 88,079,000 429,090,000 1.260
4 72,628,000 14,440,000 325,325,000 72,546,000 444,003,000 1.313
2,021 1 76,052,000 6,060,000 322,445,000 73,448,000 450,732,000 1.333
SPRITZER 2 75,032,000 4,084,000 321,606,000 80,643,000 447,054,000 1.393
BERHAD 3 79,329,000 5,988,000 322,300,000 81,045,000 453,853,000 1.353
4 100,613,000 5,988,000 323,027,000 95,197,000 462,750,000 1.400
2,022 1 98,817,000 6,649,000 323,406,000 91,977,000 470,113,000 1.393
2 106,195,000 7,622,000 408,028,000 112,416,000 470,500,000 1.273
3 119,588,000 11,427,000 412,635,000 120,154,000 482,871,000 1.313
4 108,700,000 11,267,000 421,236,000 107,474,000 104,691,000 1.480
2,023 1 109,424,000 7,158,000 421,116,000 104,691,000 500,916,000 1.587
2 123,687,000 12,150,000 424,236,000 104,691,000 500,485,000 1.500
3 132,558,000 16,965,000 437,747,000 143,774,000 516,324,000 1.580
4 125,006,000 13,213,000 486,055,000 160,879,000 527,031,000 1.830

3
 2,019 1 51,411,000 4,541,000 115,524,000 22,747,000 241,253,000 3.920
2 47,568,000 3,667,000 113,588,000 21,246,000 245,041,000 3.950
3 40,183,000 3,217,000 111,170,000 19,647,000 248,258,000 3.850
4 42,423,000 3,145,000 110,211,000 22,092,000 251,403,000 3.600
2,020 1 48,934,000 3,987,000 108,073,000 19,576,000 239,390,000 2.980
2 43,395,000 3,895,000 106,970,000 20,265,000 243,285,000 3.300
3 45,140,000 4,684,000 104,132,000 20,786,000 247,969,000 3.880
4 48,145,000 3,267,000 101,947,000 23,149,000 251,236,000 3.780
APOLLO 2,021 1 43,012,000 3,513,000 100,212,000 22,842,000 230,749,000 3.750
FOOD 2 54,090,000 5,876,000 106,925,000 23,986,000 236,625,000 3.870
HOLDINGS 3 39,009,000 172,000 104,520,000 21,668,000 236,797,000 4.070
BERHAD 4 37,638,000 888,000 104,365,000 19,277,000 237,685,000 3.620
2,022 1 54,277,000 5,083,000 102,119,000 18,926,000 222,768,000 3.740
2 57,342,000 3,829,000 100,600,000 17,143,000 226,861,000 3.710
3 55,461,000 4,561,000 98,837,000 18,963,000 231,422,000 3.740
4 70,302,000 9,464,000 97,134,000 21,887,000 240,886,000 3.860
2,023 1 71,078,000 10,819,000 95,707,000 19,978,000 231,705,000 4.050
2 60,160,000 6,804,000 80,731,000 17,455,000 238,510,000 4.070
3 58,282,000 7,640,000 80,154,000 22,478,000 246,149,000 5.320
4 65,987,000 9,951,000 78,398,000 30,969,000 256,100,000 5.760

4
 2,019 1 79,603,000 4,957,000 81,682,000 113,343,000 218,812,000 1.213
2 94,228,000 12,178,000 85,274,000 112,962,000 231,938,000 1.461
3 100,095,000 13,440,000 84,344,000 116,147,000 243,512,000 2.015
4 101,373,000 13,084,000 85,195,000 116,148,000 270,464,000 2.301
2,020 1 90,403,000 12,753,000 84,274,000 123,312,000 253,261,000 1.836
2 83,917,000 10,732,000 84,164,000 127,498,000 261,516,000 2.193
3 79,676,000 8,453,000 98,119,000 90,825,000 269,088,000 2.062
4 80,604,000 7,048,000 111,133,000 95,212,000 268,699,000 1.925
2,021 1 65,022,000 2,171,000 112,283,000 83,196,000 265,529,000 1.681
FRASER & 2 74,679,000 2,008,000 112,117,000 90,679,000 265,992,000 1.290
NEAVE
3 80,832,000 5,598,000 111,439,000 87,996,000 268,347,000 1.309
HOLDINGS
4 95,546,000 6,027,000 112,632,000 126,940,000 261,624,000 1.300
2,022 1 96,853,000 12,567,000 114,325,000 119,765,000 266,618,000 1.329
2 112,082,000 15,264,000 116,277,000 143,896,000 261,533,000 1.637
3 128,789,000 15,622,000 121,216,000 167,749,000 268,730,000 1.861
4 105,193,000 11,279,000 126,473,000 158,769,000 276,546,000 2.058
2,023 1 108,217,000 16,593,000 133,410,000 148,550,000 289,603,000 2.100
2 112,413,000 15,286,000 134,198,000 147,793,000 336,993,000 2.065
3 99,701,000 10,347,000 136,502,000 134,399,000 346,098,000 1.980
4 92,905,000 7,003,000 164,770,000 149,315,000 342,464,000 1.740

5
 2,019 1 50,324,000 1,575,000 249,504,000 60,044,000 314,165,000 1.680
2 57,212,000 2,747,000 248,546,000 61,500,000 316,852,000 1.340
3 50,148,000 2,688,000 249,026,000 55,410,000 318,997,000 1.220
4 56,403,000 5,180,000 252,650,000 59,166,000 323,916,000 1.390
2,020 1 53,641,000 6,615,000 251,721,000 64,273,000 323,508,000 1.040
2 79,334,000 8,847,000 248,676,000 72,662,000 332,057,000 1.770
3 61,139,000 6,158,000 245,345,000 68,189,000 337,880,000 2.570
4 60,589,000 6,398,000 254,671,000 71,638,000 345,009,000 2.080
2,021 1 65,324,000 8,199,000 255,966,000 66,340,000 343,941,000 1.860
KAWAN 2 55,031,000 6,280,000 252,910,000 60,556,000 347,643,000 1.960
FOOD
BERHAD 3 64,039,000 7,742,000 249,439,000 65,277,000 360,168,000 1.850
4 67,376,000 9,564,000 246,511,000 66,613,000 368,344,000 1.640
2,022 1 68,676,000 8,604,000 242,798,000 70,611,000 364,363,000 1.640

6
QUESTION 1

Using the data collected above, compute and interpret the descriptive statistics for all the variables.
Discuss your results.

i. Descriptive Statistics for Sales

SALES

Mean 76,636,562.50
Standard Error 2,685,811.57735692
Median 74,187,000.00
Mode #N/A
Standard Deviation 24,022,629.0469041
Sample Variance 577,086,706,325,159.00
Kurtosis -0.728365783034944
Skewness 0.387833774833913
Range 94,920,000.00
Minimum 37,638,000.00
Maximum 132,558,000.00
Sum 6,130,925,000.00
Count 80.00

TABLE 1.1

As shown in Table 1.1 above, the mean of sales is RM76,636,562.50, while the median is
RM74,187,000.00. This indicates that half of the samples have a value less than RM74,187,000.00. The
mode cannot be detected due to the enormous quantity of data points. As illustrated above, the
distribution exhibits a negative kurtosis of -0.728365783034944, indicating lighter tails and a flatter
peak than the normal distribution. The skewness is 0.387833774833913, which is greater than zero. The
table also includes the maximum; RM132,558,000.00, and the minimum; RM37,638,000.00, indicating
that the data range is RM94,920,000.00. The amount represents the total value of these companies' sales
every quarter, which equals RM6,130,925,000.00.

7
ii) Descriptive Statistic for Net Profit

NET PROFIT

Mean 7,718,925.00
Standard Error 435,749.059991215
Median 7,390,000.00
Mode 5,988,000.00
Standard Deviation 3,897,458.07708797
Sample Variance 15,190,179,462,658.20
Kurtosis -0.389953857045483
Skewness 0.390631691196593
Range 16,793,000.00
Minimum 172,000.00
Maximum 16,965,000.00
Sum 617,514,000.00
Count 80.00

TABLE 1.2

Table 1.2 above demonstrates that the net profit mean is RM7,718,925.00 and the median is
RM7,390,000.00. This indicates that a value lower than RM7,390,000.00 is present in half of the
sample. The mode of data in net profit is RM5,988,000.00. As illustrated above, the distribution exhibits
a negative kurtosis of -0.389953857045483, indicating lighter tails and a flatter peak than the normal
distribution. The skewness is greater than zero, at 0.390631691196593. Additionally, the maximum
value of net profit is 16,965,000.00 and the minimum value of RM172,000.00, resulting in a data range
of RM16,793,000.00. The total indicates the value of these companies' quarterly net profit, which adds
up to RM617,514,000.00.

8
iii) Descriptive Statistic for Fixed Assets

FIXED ASSETS

Mean 201,882,887.50
Standard Error 12,230,327.7207894
Median 194,211,000.00
Mode #N/A
Standard Deviation 109,391,376.68314
Sample Variance 11,966,473,292,632,700.00
Kurtosis -0.57374471217124
Skewness 0.664583894199866
Range 407,657,000.00
Minimum 78,398,000.00
Maximum 486,055,000.00
Sum 16,150,631,000.00
Count 80.00

TABLE 1.3

According to Table 1.3 above, the mean of fixed assets is RM201,882,887.50, while the median
is RM194,211,000.00. This indicates that 50% of the samples have a value less than RM194,211,000.00.
The mode cannot be identified because the data contains large numbers. As illustrated above, the
distribution exhibits a negative kurtosis of -0.57374471217124, indicating lighter tails and a flatter peak
than the normal distribution. The skewness is 0.664583894199866, which is greater than 0. The table
also includes the maximum; RM486,055,000.00, and the minimum; RM78,398,000.00, indicating that
the data range is RM407,657,000.00. The amount represents the total worth of these companies' fixed
assets calculated quarterly, which equals RM16,150,631,000.00.

9
iv) Descriptive Statistic for Total Liabilities

TOTAL LIABILITIES

Mean 76,445,025.00
Standard Error 4,665,739.12734332
Median 72,604,000.00
Mode 104,691,000.00
Standard Deviation 41,731,639.4160809
Sample Variance 1,741,529,728,353,790.00
Kurtosis -0.742637979757763
Skewness 0.236574120476328
Range 150,606,000.00
Minimum 17,143,000.00
Maximum 167,749,000.00
Sum 6,115,602,000.00
Count 80.00

TABLE 1.4

Table 1.4 above indicates that the total liabilities has a mean of RM76,445,025.00 and a median
of RM72,604,000.00. This indicates that a value of less than RM72,604,000.00 is present in half of the
sample. The mode of the data is RM104,691,000.00. The distribution has lighter tails and a flatter peak
than the normal distribution, as indicated by the above negative kurtosis of -0.742637979757763. The
skewness is greater than zero, at 0.236574120476328. The range of the data is RM150,606,000.00, as
indicated by the table, which also displays the maximum, which is RM167,749,000.00, and the
minimum, which is RM17,143,000.00. The total indicates the value of these companies' total liabilities
on a quarterly basis, totalling RM6,115,602,000.00.

10
v) Descriptive Statistic for Total Equity

TOTAL EQUITY

Mean 326,823,450.00
Standard Error 10,142,271.3370807
Median 317,924,500.00
Mode 396,868,000.00
Standard Deviation 90,715,232.6238402
Sample Variance 8,229,253,429,997,440.00
Kurtosis -0.679803800356786
Skewness 0.382590405921204
Range 422,340,000.00
Minimum 104,691,000.00
Maximum 527,031,000.00
Sum 26,145,876,000.00
Count 80.00

TABLE 1.5

The total equity mean is RM326,823,450.00 and the median is RM317,924,500.00, as shown
in Table 1.5 above. This indicates that a value lower than RM317,924,500.00 is present in half of the
sample. RM396,868,000.00 is the mode of the data. As illustrated above, the distribution exhibits a
negative kurtosis of -0.679803800356786, indicating lighter tails and a flatter peak than the normal
distribution. 0.382590405921204 is the skewness, which is more than zero. The table additionally
displays the max, which is RM527,031,000.00, and the minimum, which is RM104,691,000.00,
resulting in a data range of RM422,340,000.00. The total indicates the worth of these companies' total
equity on a quarterly basis, totalling RM26,145,876,000.00.

11
vi) Descriptive Statistic for Closing Stock Price

CLOSING STOCK PRICE

Mean 2.231475
Standard Error 0.120426842353261
Median 1.833
Mode 1.5
Standard Deviation 1.07713042327017
Sample Variance 1.16020994873418
Kurtosis 0.729144010342987
Skewness 1.26512534227669
Range 4.72
Minimum 1.04
Maximum 5.76
Sum 178.518
Count 80

TABLE 1.6

According to Table 1.6 above, the mean of closing stock price is RM2.231475 and the median
is RM1.833. This indicates that 50% of the samples had values less than RM1.833. The mode is RM1.5,
which is the most frequently repeated value. With a value of 0.729144010342987, the above-mentioned
positive kurtosis suggests that the distribution is better than the normal distribution. The skewness is
1.26512534227669, which is more than 0. The table also shows the maximum, RM5.76, and minimum,
RM1.04, resulting in a data range of RM4.72. The amount represents the sum value of these companies'
closing prices quarterly, which equals to RM178.518.

12
QUESTION 2

Draw a histogram for all the variables (6 variables) and discuss your results.

i) Histogram for Sales

SALES
20 18 17
13 14
Frequency

15
10 8
6
4
5
0
0 Frequency

BIN

HISTOGRAM 1.1

As we can see from the Histogram 1.1 above, the data of sales that I have gathered in the
histogram shows that the highest frequency is 18 which is at bin RM60,000,000 following with the
closest one in terms of frequency which 17 at the bin RM75,000,000. This indicates that these
companies’ sales most likely ended up at the price in the range RM60,000,000 and RM75,000,000.
Next, for the bins RM90,000,000 and RM105,000,000 have almost similar frequencies which are 13
and 14. Other than that, for the bin RM120,000,000 the frequency is 8. The second lowest frequency is
6 which the bin RM45,000,000. Lastly, the lowest one is at the bin RM135,000,000, which only has 4
frequencies shows that the sales barely ended at RM135,000,000. Overall, these companies’ sales are
good in the year 2019 to 2023.

13
ii) Histogram for Net Profit

NET PROFIT
20 19
18 17
16
16
14 12
Frequency

12
10
8
6 5 5 5
Frequency
4
2 1
0
0

BIN

HISTOGRAM 1.2

In Histogram 1.2, the highest frequencies which is 19 at the bin RM7,624,429, indicating that
the highest net profit they got was at the range RM7,624,429. Following with the bin RM5,140,286 and
RM10,108,571 which has 16 and 17 frequencies. Next, for the bin RM12,592,714, it has 12 frequencies.
For the bin RM2,656,143 and RM15,076,857 and RM16,965,000 it has similar frequency namely 5
frequencies, and the lowest bins is 1 frequency. This clearly shows that these companies, most of time
have total of net profit that is quite good.

14
iii) Histogram for Fixed Assets

FIXED ASSETS
40 38
35
30
Frequency

25
19
20
15
10 8 7 6
5 1 1 Frequency
0
0

BIN

HISTOGRAM 1.3

Most of the fixed assets of these four companies are located in the second bin, RM160,000,000,
which has the highest frequency out of the six bins there, according to the histogram that is displayed
above, there are 38 frequencies. Keeping up with the average frequency, which at the bin
RM320,000,000 is just 19. Along with other bins which are RM240,000,000; RM400,000,000 and
RM480,000,000 have frequencies 8, 7 and 6 respectively. Lastly, bins RM80,000,000 and
RM560,000,000 have the same frequencies which is one.

15
iv) Histogram for Total Liabilities

TOTAL LIABILITIES
25 22
19
20
16
Frequency

15
11
10 8

5 3
1 Frequency
0
0

BIN

HISTOGRAM 1.4

From the Histogram 1.4, we can see that all of these company have a comparatively high level
of total liabilities. Starting with the highest one, bin RM75,000,000, which consists of 22 frequencies,
shows that the companies still have a significant amount of the total liabilities. The histogram's second-
highest bin, RM25,000,000, which has 19 frequencies in total liabilities, is followed by the last bin. For
bin RM100,000,000 and RM125,000,000, the frequencies are 16 and 11, which are comparable. The
other bins, RM150,000,000 and RM175,000,000, have 8 and 3 frequencies respectively. Apart from
that, the lowest one can be found in the second bin, RM50,000,000, which only displays one frequency.
This demonstrates that the companies' total liabilities is between bin RM75,000,000 and 22 frequencies.

16
v) Histogram for Total Equity

TOTAL EQUITY
35
30
30
25
Frequency

20
14 13
15 12
10
10
Frequency
5 1 0
0

BIN

HISTOGRAM 1.5

In the Histogram 1.5, it shows the frequencies of the total equity gained by the four companies
that chosen during 2019-2023 period of their businesses. As we can see at the first bin which is
RM104,691,000, it has the lowest frequencies out of all the other bins which is 1. The highest frequency
is 30 at bin RM267,815,143. This indicates that these four companies have gained total revenue at
RM267,815,143 throughout 5 years. Following with the second highest is at the bin RM376,564,571
which has 14 frequencies. Next, at the bin RM322,189,857; RM430,939,286 and RM527,031,000 have
frequency 10, 13 and 12 respectively.

17
vi) Histogram for Closing Stock Price

CLOSING STOCK PRICE

25.00
22.00

20.00
Frequency

15.00 14.00
12.00
11.00
10.00
10.00 Frequency

5.00 3.00 3.00 3.00

2.00
-
-
1.25 1.50 1.75 2.00 2.25 3.00 4.00 5.00 6.00 More
BIN

HISTOGRAM 1.6

In Histogram 1.6, the highest frequency of closing stock price that gathered from 4
companies is 22 at bin RM1.50. The second highest frequency is 14 at bin RM4.00. For the following
bins at RM1.75, RM2.00 and RM2.25 have 11, 12 and 10 frequency respectively. There are three same
frequency which is 3 at bins RM1.25, RM3.00 and RM5.00. Lastly, the lowest frequency is 2 at bin
RM6.00. All in all, this four companies of closing stock price is quite good as the highest price the
frequency is 22 at bin RM1.50.

18
QUESTION 3

Construct and examine the correlation matrix for all the variables. Discuss your results.

SALES NET PROFIT FIXED ASSETS TOTAL TOTAL EQUITY CLOSING STOCK
LIABILITIES PRICE
SALES 1
NET PROFIT 0.764866319 1
FIXED ASSETS 0.415346596 0.172266662 1
TOTAL LIABILITIES 0.878209715 0.669678053 0.296215655 1
TOTAL EQUITY 0.41865809 0.209890344 0.830306075 0.334674916 1
CLOSING STOCK PRICE -0.535216236 -0.258387938 -0.580154711 -0.678218211 -0.549777926 1

TABLE 2.1

Table 2.1 shows the correlation matrix which highlights some interesting relationships among the variables and their strength. Sales are strongly
linked to net profit (0.764866319) and total liabilities (0.878209715), suggesting that as sales increase, the company sees higher profits and takes on more debt,
possibly to support this growth. There’s also a moderate connection between sales and both fixed assets (0.415346596) and total equity (0.41865809), indicating
that higher sales may lead to some growth in these areas, though not as directly. Net profit has a weaker link to most other variables, with a moderate positive
correlation to liabilities (0.669678053), implying that leveraging debt might sometimes contribute to profitability. Fixed assets and total equity are highly
correlated (0.830306075), showing that investments in assets are often backed by equity financing. Meanwhile, closing stock price has moderate to strong
negative correlations with sales (-0.535216236), liabilities (-0.678218211), fixed assets (-0.580154711), and equity (-0.549777926), meaning that as these
financial figures grow, the stock price tends to decrease possibly because investors may view increased debt or asset growth with caution. This matrix reflects
the company’s financial dynamics, showing that growth in balance sheet items doesn’t always align positively with stock performance.

19
QUESTION 4

From your result in Question 3, is multicollinearity a potential problem?

Based on the correlation matrix, multicollinearity appears to be a potential problem due

to the high correlations between certain independent variables. Specifically, sales and total liabilities
show a strong correlation of 0.878209715, suggesting that as sales increase, the company’s liabilities
also tend to increase, possibly indicating that debt is used to support growth. Similarly, fixed assets and
total equity are highly correlated at 0.830306075, which may imply that investments in assets are
closely tied to equity financing. Another notable correlation is between net profit and total liabilities
(0.669678053), showing that net profit tends to increase with liabilities, possibly due to leveraging debt
for profitability.

20
 QUESTION 5

Construct and examine the covariance matrix for all the variables. Discuss your results.

CLOSING
SALES NET PROFIT FIXED ASSETS TOTAL LIABILITIES TOTAL EQUITY STOCK
PRICE
SALES 569,873,122,496,095.00
NET PROFIT 70,717,130,367,187.30 15,000,302,219,375.00
FIXED ASSETS 1,077,832,767,900,780.00 72,527,529,241,562.90 11,816,892,376,474,800.00
TOTAL LIABILITIES 869,403,376,623,437.00 107,559,820,514,375.00 1,335,345,494,052,810.00 1,719,760,606,749,370.00
TOTAL EQUITY 900,943,062,509,376.00 73,280,974,308,750.00 8,136,518,689,875,620.00 1,251,140,065,788,750.00 8,126,387,762,122,460.00
CLOSING STOCK -13,675,877.79 -1,071,171.69 -67,504,435.20 -30,105,114.96 -53,048,476.25 1.15
PRICE

TABLE 2.2

The covariance matrix shows strong positive connections between several financial metrics, meaning they tend to move together. For
example, sales and net profit have a high positive covariance of 70,717,130,367,187.30, indicating that when sales go up, net profit usually increases too.
Similarly, sales and fixed assets have a large covariance of 1,077,832,767,900,780.00, suggesting that higher sales are associated with more investment in fixed
assets. Sales is also positively linked to total liabilities (869,403,376,623,437.00) and total equity (900,943,062,509,376.00), which could mean that as sales
grow, the company may take on more debt for expansion and see an increase in equity. Net profit has similar positive relationships with fixed
assets (72,527,529,241,562.90), total liabilities (107,559,820,514,375.00), and total equity (73,280,974,308,750.00), reinforcing these trends. However, closing
stock price has weaker or even negative relationships with other metrics, like −13,675,877.79 with sales and −67,504,435.20 with fixed assets, suggesting that
stock price doesn’t necessarily follow the same patterns. This could mean that stock price is driven by other factors, potentially external ones, beyond just the
company’s internal financials.

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CONCLUSIONS

In conclusion, Ali has done the investigation to identify the descriptive analysis, histograms,
correlation and covariance assessments of the four companies. Histograms of financial indicators such
as sales, net profit, fixed assets, total liabilities, total equities and closing stock price showed diverse
distributions, highlighting visible financial structures and strategies. Correlation coefficients further
interpreted the relationships, with some companies showing strong positive correlations between
variables like sales and net profit, while others displayed weaker or even negative correlations.
Covariance analysis indicated varying degrees of financial mutuality among these variables, suggesting
how changes in one metric might influence another within each company. Overall, this comprehensive
financial analysis underscores the diverse nature of the companies' financial profiles, which can advise
future investment decisions and strategic financial planning.

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REFERENCES

Refinitiv EIKON | https://eikon.refinitiv.com/

Bursa Malaysia | https://www.bursamalaysia.com/

Apollo Food Holdings Berhad (KLSE: APOLLO) Company Profile & Overview - Stock analysis. (n.d.).

Stock Analysis. https://stockanalysis.com/quote/klse/APOLLO/company/

Fraser & Neave Holdings BhD Company Profile - Malaysia | Financials & Key Executives | EMIS.

(n.d.).https://www.emis.com/php/company-

profile/MY/Fraser___Neave_Holdings_Bhd_en_1661216.html

Kawan Food Berhad Company Profile - Malaysia | Financials & Key Executives | EMIS. (n.d.).

https://www.emis.com/php/company-profile/MY/Kawan_Food_Berhad_en_2053443.html

Spritzer BHD Company Profile - Overview. (n.d.). GlobalData. https://www.globaldata.com/company-

profile/spritzer-bhd/

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