$BWYS (0313.MY)$ but per Chatgpt this IPO company key indica...
$BWYS(0313.MY$ but per Chatgpt this IPO company key indicators for past few years r no so good, dun know why contradict to their company balance sheet ===>To analyze the performance of BWYS Group Berhad (0313.MY) based on the provided financial indicators, we need to look at several key metrics across various financial ratios, profitability, and financial health aspects.
### Financial Ratios
**Efficiency Ratios:**
- **Cash Conversion Cycle:** It has decreased from 226.2847 days in 2020 to 213.328 days in 2023, showing improvement in efficiency.
- **Receivable Turnover:** The ratio decreased from 6.691 in 2022 to 5.0179 in 2023, indicating slower collection of receivables.
- **Inventory Turnover:** Increased from 1.984 in 2022 to 2.2598 in 2023, suggesting better inventory management.
- **Account Payable Turnover:** Improved from 10.3097 in 2022 to 17.4383 in 2023, indicating quicker payment to suppliers.
- **Fixed Assets Turnover:** Slightly declined from 1.6337 in 2022 to 1.6018 in 2023, suggesting slight inefficiency in using fixed assets to generate sales.
- **Total Asset Rate:** Decreased from 0.7557 in 2022 to 0.7191 in 2023, indicating reduced efficiency in using total assets.
**Profitability Ratios:**
- **ROE (Return on Equity):** Dropped significantly from 20.9% in 2022 to 10.82% in 2023, indicating reduced profitability for shareholders.
- **ROA (Return on Assets):** Declined from 7.52% in 2022 to 5.16% in 2023, showing reduced efficiency in using assets to generate profit.
- **ROIC (Return on Invested Capital):** Decreased from 10.64% in 2022 to 7.55% in 2023, reflecting lower returns on investments.
- **Gross Margin:** Dropped from 23.9% in 2022 to 20.59% in 2023, indicating reduced profitability from core operations.
- **EBIT Margin:** Decreased from 16.48% in 2022 to 12.62% in 2023, showing lower operating profitability.
- **Net Margin:** Fell from 9.95% in 2022 to 7.17% in 2023, indicating reduced overall profitability.
- **EBITDA Margin:** Declined from 20.11% in 2022 to 16.85% in 2023, suggesting lower operating cash flow profitability.
- **Tax Rate:** Decreased from 29.72% in 2022 to 27.46% in 2023, showing a slight reduction in tax burden.
- **Interest Coverage:** Dropped from 7.1068 in 2022 to 4.6139 in 2023, indicating reduced ability to cover interest expenses.
**Financial Health Ratios:**
- **Long-Term Debt to Equity Ratio:** Improved from 57.24% in 2022 to 28.65% in 2023, indicating better financial leverage.
- **Total Assets to Common Equity Ratio:** Decreased from 251.73% in 2022 to 185.79% in 2023, showing reduced leverage.
- **Interest-Bearing Liabilities to Asset Ratio:** Improved from 45.6% in 2022 to 34.91% in 2023, indicating lower debt levels relative to assets.
- **Current Ratio:** Increased from 1.4016 in 2022 to 1.9916 in 2023, showing improved short-term liquidity.
- **Quick Ratio:** Improved significantly from 0.5413 in 2022 to 1.1922 in 2023, indicating better ability to meet short-term liabilities without relying on inventory sales.
### Conclusion
The performance of BWYS Group Berhad shows mixed results:
**Positive Indicators:**
- Improvement in the cash conversion cycle and inventory turnover.
- Better management of accounts payable.
- Significant improvements in long-term debt to equity ratio and quick ratio, indicating better financial health.
- Enhanced liquidity as reflected in the current ratio and quick ratio.
**Negative Indicators:**
- Decline in profitability ratios such as ROE, ROA, ROIC, gross margin, EBIT margin, net margin, and EBITDA margin.
- Decrease in receivable turnover and total asset rate, indicating inefficiencies.
- Lower interest coverage ratio, suggesting reduced capacity to meet interest obligations.
Overall, BWYS Group Berhad has shown improvement in its financial health and efficiency in some areas, but its profitability has significantly declined. This indicates potential underlying issues affecting its ability to generate profits, which could be a concern for investors.
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