Reference no: EM133092299

Question - Crafty Berhad is a furniture manufacturer for local and overseas wholesalers and retailers. In 2018, it launched a master plan to improve its financial performances and positions. Below were the results for the last three (3) years:

	2018	2019	2020
	RM'000	RM'000	RM'000
Revenue	166,000	147,000	155,000
Profit before tax (PBT)	25,000	28,000	30,000
Profit after tax (PAT)	21,000	22,000	25,000
Profit attributable to owners of parent company	18,900	19,800	22,500
Equity attributable to owners of parent company	143,000	155,000	176,000
Deposits, bank and cash balances	64,000	81,000	77,000
Number of ordinary shares in issue ('000)	280,000	320,000	320,000
Net assets per share (NAT) in RM	0.48	0.52	0.59

Required -

(a) Compute the following financial ratios using the above financial information:

(i) Profit before tax margin (PBT)

(ii) Profit after tax margin (PAT)

(iii) Profit margin attributable to owners of parent company (iv) Equity margin attributable to owners of parent company (v) Earnings Per Share (EPS)

(b) Evaluate the effects on the financial ratios calculated in (a) above for 2018 and 2020, and comments on these effects.

(c) Discuss whether a potential investor looking for long-term investment, would consider buying shares in this company.