$SDG (5285.MY)$ see chatgpt analysis of this stock performan...
$SDG (5285.MY)$ see chatgpt analysis of this stock performance for past 4 years, not looking good===》To analyze SDG's (5285.MY) performance in 2023, we will look at the key financial indicators and compare them with the previous years. This will provide a comprehensive understanding of whether the company’s performance has improved or deteriorated over the period.
### Key Indicators Analysis for FY 2023
#### Efficiency Ratios
1. **Cash Conversion Cycle (CCC)**
- FY 2023: 71.43 days (-16.72% YoY)
- FY 2022: 85.77 days (-2.17% YoY)
- FY 2021: 87.67 days (-9.68% YoY)
- FY 2020: 97.07 days (-2.03% YoY)
The CCC has been decreasing over the years, which indicates improved efficiency in managing working capital.
2. **Receivable Turnover**
- FY 2023: 10.82 (1.49% YoY increase)
- FY 2022: 10.66 (-0.67% YoY decrease)
- FY 2021: 10.73 (10.80% YoY increase)
- FY 2020: 9.68 (7.81% YoY increase)
A slight improvement in FY 2023, showing stable efficiency in collecting receivables.
3. **Inventory Turnover**
- FY 2023: 3.86 (-16.06% YoY decrease)
- FY 2022: 4.60 (1.34% YoY increase)
- FY 2021: 4.54 (9.80% YoY increase)
- FY 2020: 4.14 (1.81% YoY increase)
Decrease in FY 2023, indicating slower inventory movement.
4. **Account Payable Turnover**
- FY 2023: 6.43 (-51.10% YoY decrease)
- FY 2022: 13.15 (-3.86% YoY decrease)
- FY 2021: 13.68 (8.06% YoY increase)
- FY 2020: 12.66 (8.78% YoY increase)
Significant decrease in FY 2023, indicating slower payment to suppliers.
5. **Fixed Assets Turnover**
- FY 2023: 0.90 (-16.56% YoY decrease)
- FY 2022: 1.08 (12.13% YoY increase)
- FY 2021: 0.96 (42.46% YoY increase)
- FY 2020: 0.67 (8.16% YoY increase)
Decline in FY 2023, showing reduced efficiency in using fixed assets to generate revenue.
6. **Total Asset Turnover**
- FY 2023: 0.58 (-14.53% YoY decrease)
- FY 2022: 0.68 (8.25% YoY increase)
- FY 2021: 0.63 (37.26% YoY increase)
- FY 2020: 0.46 (9.03% YoY increase)
Decrease in FY 2023, indicating lower efficiency in using total assets to generate sales.
#### Profitability Ratios
1. **Gross Margin**
- FY 2023: 39.21% (4.60% YoY increase)
- FY 2022: 37.48% (-15.34% YoY decrease)
- FY 2021: 44.28% (-1.49% YoY decrease)
- FY 2020: 44.95% (11.72% YoY increase)
Improved in FY 2023, indicating better control over production costs relative to revenue.
2. **EBIT Margin**
- FY 2023: 15.98% (-7.20% YoY decrease)
- FY 2022: 17.22% (-13.22% YoY decrease)
- FY 2021: 19.84% (39.37% YoY increase)
- FY 2020: 14.23% (321.61% YoY increase)
Decreased in FY 2023, indicating reduced operational efficiency.
3. **Net Margin**
- FY 2023: 10.09% (-14.69% YoY decrease)
- FY 2022: 11.83% (-2.75% YoY decrease)
- FY 2021: 12.17% (34.35% YoY increase)
- FY 2020: 9.06% (645.72% YoY increase)
Decrease in FY 2023, reflecting lower profitability.
#### Financial Health Ratios
1. **Long-Term Debt to Equity Ratio**
- FY 2023: 18.90% (-7.00% YoY decrease)
- FY 2022: 20.33% (-15.17% YoY decrease)
- FY 2021: 23.96% (-16.55% YoY decrease)
- FY 2020: 28.71% (-17.90% YoY decrease)
Improvement in FY 2023, indicating reduced long-term debt relative to equity.
2. **Current Ratio**
- FY 2023: 1.33 (-0.76% YoY decrease)
- FY 2022: 1.34 (1.47% YoY increase)
- FY 2021: 1.32 (22.69% YoY increase)
- FY 2020: 1.07 (-7.12% YoY decrease)
Slight decrease in FY 2023, indicating slightly reduced short-term liquidity.
#### Growth Ratios
1. **Revenue CAGR (3Y)**
- FY 2023: 12.10% (-40.55% YoY decrease)
- FY 2022: 20.36% (170.47% YoY increase)
- FY 2021: 7.53% (320.01% YoY increase)
- FY 2020: -3.42% (-1,340.77% YoY decrease)
Significant decrease in FY 2023, indicating slower revenue growth.
2. **Net Income CAGR (3Y)**
- FY 2023: 14.87% (newly available data)
- FY 2022: Not available
- FY 2021: Not available
- FY 2020: -24.51% (newly available data)
Improvement in FY 2023, showing positive net income growth over the past three years.
### Conclusion
#### Positive Indicators:
- **Gross Margin** improved in FY 2023, indicating better cost control.
- **Long-Term Debt to Equity Ratio** decreased, reflecting reduced financial leverage.
- **Receivable Turnover** remained stable, indicating efficient collection processes.
#### Negative Indicators:
- **Cash Conversion Cycle** decreased but remains relatively high, indicating longer time to convert resources into cash.
- **Inventory Turnover** and **Account Payable Turnover** decreased significantly, indicating inefficiencies in inventory management and slower payments to suppliers.
- **Fixed Assets Turnover** and **Total Asset Turnover** decreased, showing reduced efficiency in asset utilization.
- **EBIT Margin** and **Net Margin** decreased, indicating reduced profitability.
- **Revenue CAGR** and **Net Income CAGR** showed significant decreases, indicating slower growth.
Overall, while SDG has shown some improvements in certain areas like gross margin and financial leverage, the overall performance in 2023 indicates challenges in efficiency, profitability, and growth. The company needs to address these issues to improve its overall financial health and performance.
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