Cash flow : operating performance of manufacturing industry in Malaysia

The objective of this paper is to examine the operating activities perfonnance across the manufacturing industries in Malaysia using financial accounting ratios. The variables chosen in the study include Return on Net Operating Assets ratio (RNOA), Operating Cash Flow ratio (OCF), Earning before Int...

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Main Author: Ng, Hiu Chin
Format: Final Year Project Report / IMRAD
Language:English
English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/12547/
http://ir.unimas.my/id/eprint/12547/1/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%2824pgs%29.pdf
http://ir.unimas.my/id/eprint/12547/2/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%28fulltext%29.pdf
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author Ng, Hiu Chin
author_facet Ng, Hiu Chin
author_sort Ng, Hiu Chin
building UNIMAS Institutional Repository
collection Online Access
description The objective of this paper is to examine the operating activities perfonnance across the manufacturing industries in Malaysia using financial accounting ratios. The variables chosen in the study include Return on Net Operating Assets ratio (RNOA), Operating Cash Flow ratio (OCF), Earning before Interest, Tax, Depreciation and Amortization Margin ratio (EBITDA Margin), Inventory Turnover ratio (IT) and Operating Cash Flow to Sales ratio (OCF/Sales). Each variable will be analyzed using Stata for 5 year-period from 2010-2014. The results of analysis found that the EBITDA Margin, IT and OCF/Sales did not translate into significant changes in RNOA. The lack of the significance in the ratios above implied that the study of profitability, efficiency and shor.t-tenn liquidity does not well explain the operating perfonnance of manufacturing industry i·n Malaysia. In contrast, changes in the OCF were significantly positive related with the changes in RNOA, indicating that the cash position of a company effects the operating perfonnance directly.
first_indexed 2025-11-15T06:36:11Z
format Final Year Project Report / IMRAD
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institution Universiti Malaysia Sarawak
institution_category Local University
language English
English
last_indexed 2025-11-15T06:36:11Z
publishDate 2015
publisher Universiti Malaysia Sarawak, (UNIMAS)
recordtype eprints
repository_type Digital Repository
spelling unimas-125472016-06-28T07:49:35Z http://ir.unimas.my/id/eprint/12547/ Cash flow : operating performance of manufacturing industry in Malaysia Ng, Hiu Chin HC Economic History and Conditions The objective of this paper is to examine the operating activities perfonnance across the manufacturing industries in Malaysia using financial accounting ratios. The variables chosen in the study include Return on Net Operating Assets ratio (RNOA), Operating Cash Flow ratio (OCF), Earning before Interest, Tax, Depreciation and Amortization Margin ratio (EBITDA Margin), Inventory Turnover ratio (IT) and Operating Cash Flow to Sales ratio (OCF/Sales). Each variable will be analyzed using Stata for 5 year-period from 2010-2014. The results of analysis found that the EBITDA Margin, IT and OCF/Sales did not translate into significant changes in RNOA. The lack of the significance in the ratios above implied that the study of profitability, efficiency and shor.t-tenn liquidity does not well explain the operating perfonnance of manufacturing industry i·n Malaysia. In contrast, changes in the OCF were significantly positive related with the changes in RNOA, indicating that the cash position of a company effects the operating perfonnance directly. Universiti Malaysia Sarawak, (UNIMAS) 2015 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/12547/1/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%2824pgs%29.pdf text en http://ir.unimas.my/id/eprint/12547/2/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%28fulltext%29.pdf Ng, Hiu Chin (2015) Cash flow : operating performance of manufacturing industry in Malaysia. [Final Year Project Report / IMRAD] (Unpublished)
spellingShingle HC Economic History and Conditions
Ng, Hiu Chin
Cash flow : operating performance of manufacturing industry in Malaysia
title Cash flow : operating performance of manufacturing industry in Malaysia
title_full Cash flow : operating performance of manufacturing industry in Malaysia
title_fullStr Cash flow : operating performance of manufacturing industry in Malaysia
title_full_unstemmed Cash flow : operating performance of manufacturing industry in Malaysia
title_short Cash flow : operating performance of manufacturing industry in Malaysia
title_sort cash flow : operating performance of manufacturing industry in malaysia
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/12547/
http://ir.unimas.my/id/eprint/12547/1/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%2824pgs%29.pdf
http://ir.unimas.my/id/eprint/12547/2/Cash%20flow%20%3B%20operating%20performance%20of%20manufacturing%20industry%20in%20Malaysia%20%28fulltext%29.pdf