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
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
 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
2 75,032,000 4,084,000 321,606,000 80,643,000 447,054,000 1.393
3 79,329,000 5,988,000 322,300,000 81,045,000 453,853,000 1.353
4 100,613,00 5,988,000 323,027,000 95,197,000 462,750,000 1.400
SPRITZER 0
BERHAD 2,022 1 98,817,000 6,649,000 323,406,000 91,977,000 470,113,000 1.393
2 106,195,00 7,622,000 408,028,000 112,416,000 470,500,000 1.273
0
3 119,588,000 11,427,000 412,635,000 120,154,000 482,871,000 1.313
4 108,700,00 11,267,000 421,236,000 107,474,000 104,691,000 1.480
0
2,023 1 109,424,00 7,158,000 421,116,000 104,691,000 500,916,000 1.587
0
2 123,687,00 12,150,000 424,236,000 104,691,000 500,485,000 1.500
0
3 132,558,00 16,965,000 437,747,000 143,774,000 516,324,000 1.580
0
4 125,006,00 13,213,000 486,055,000 160,879,000 527,031,000 1.830
0
DATA COLLECTION BASED ON 6 VARIABLES FROUM FOUR COMPANIES

3
4
 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
HOLDING 3 39,009,000 172,000 104,520,000 21,668,000 236,797,000 4.070
S 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

5
 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
3 100,095,00 13,440,000 84,344,000 116,147,000 243,512,000 2.015
0
4 101,373,00 13,084,000 85,195,000 116,148,000 270,464,000 2.301
0
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
HOLDING 3 80,832,000 5,598,000 111,439,000 87,996,000 268,347,000 1.309
S 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
3 128,789,00 15,622,000 121,216,000 167,749,000 268,730,000 1.861
0
4 105,193,00 11,279,000 126,473,000 158,769,000 276,546,000 2.058
0
2,023 1 108,217,00 16,593,000 133,410,000 148,550,000 289,603,000 2.100
0
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

6
 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
3 64,039,000 7,742,000 249,439,000 65,277,000 360,168,000 1.850
BERHAD
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
2 80,368,000 10,841,000 238,467,000 76,574,000 375,574,000 1.670
3 71,831,000 10,400,000 235,757,000 68,785,000 389,161,000 2.150
4 53,887,000 8,654,000 237,471,000 63,943,000 396,868,000 2.220
2,023 1 73,695,000 7,878,000 233,283,000 63,217,000 392,083,000 2.120
2 67,453,000 5,704,000 228,837,000 63,102,000 396,868,000 1.900
3 79,217,000 7,689,000 225,148,000 59,865,000 404,544,000 1.800
4 61,442,000 8,858,000 223,652,000 67,591,000 393,166,000 1.800

7
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 76,636,562.50, while the median is
74,187,000.00. This indicates that half of the samples have a value less than 74,187,000.00. The mode
cannot be detected due to the enormous quantity of data points. As illustrated above, the distribution

8
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; 132,558,000.00, and the minimum; 37,638,000.00, indicating that the data
range is 94,920,000.00. The amount represents the total value of these companies' sales every quarter,
which equals 6,130,925,000.00.

9
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 7,718,925.00 and the median is
7,390,000.00. This indicates that a value lower than 7,390,000.00 is present in half of the sample. The
mode of data in net profit is 5,988,000.00. 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 172,000.00, resulting in a data range of
16,793,000.00. The total indicates the value of these companies' quarterly net profit, which adds up to
617,514,000.00.

10
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 201,882,887.50, while the median is
194,211,000.00. This indicates that 50% of the samples have a value less than 194,211,000.00. 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; 486,055,000.00, and the minimum; 78,398,000.00, indicating that
the data range is 407,657,000.00. The amount represents the total worth of these companies' fixed
assets calculated quarterly, which equals 16,150,631,000.00.

11
12
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 76,445,025.00 and a median
of 72,604,000.00. This indicates that a value of less than 72,604,000.00 is present in half of the
sample. The mode of the data is 104,691,000.00. 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 150,606,000.00, as
indicated by the table, which also displays the maximum, which is 167,749,000.00, and the minimum,
which is 17,143,000.00. The total indicates the value of these companies' total liabilities on a quarterly
basis, totalling 6,115,602,000.00.

13
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 326,823,450.00 and the median is 317,924,500.00, as shown in Table
1.5 above. This indicates that a value lower than 317,924,500.00 is present in half of the sample.
396,868,000.00 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 527,031,000.00, and the minimum, which is 104,691,000.00, resulting in a
data range of 422,340,000.00. The total indicates the worth of these companies' total equity on a
quarterly basis, totalling 26,145,876,000.00.

14
15
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 2.231475 and the median is
1.833. This indicates that 50% of the samples had values less than 1.833. The mode is 1.5, 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, 5.76, and minimum,
1.04, resulting in a data range of 4.72. The amount represents the sum value of these companies'
closing prices quarterly, which equals to 178.518.

16
QUESTION 2

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

i) Histogram for Sales

SALES
20 18 17
16 13 14
12
8
8 6
Frequency

4 Frequency
4
0 0
0
e
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 or
0 ,0 0 ,0 0 ,0 0 ,0 0 ,0 0 ,0 0 ,0 0 ,0 M
, 00 , 00 , 00 , 00 , 00 , 00 , 00 , 00
30 45 60 75 90 1 05 1 20 1 35

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 60,000,000 following with the closest
one in terms of frequency which 17 at the bin 75,000,000. This indicates that these companies’ sales
most likely ended up at the price in the range 60,000,000 and 75,000,000. Next, for the bins
90,000,000 and 105,000,000 have almost similar frequencies which are 13 and 14. Other than that, for
the bin 120,000,000 the frequency is 8. The second lowest frequency is 6 which the bin 45,000,000.
Lastly, the lowest one is at the bin 135,000,000, which only has 4 frequencies shows that the sales
barely ended at 135,000,000. Overall, these companies’ sales are good in the year 2019 to 2023.

17
ii) Histogram for Net Profit

NET PROFIT
20 19
17
16
16
12
12
Frequency

8
5 5 5 Frequency
4
1
0
0
e
0 00 1 43 2 86 4 29 5 71 7 14 8 57 0 00 or
2, 6, 0, 4, 8, 2, 6, 5, M
17 65 14 62 ,1
0
,5
9
,0
7
,9
6
2, 5, 7, 10 12 15 16

BIN

HISTOGRAM 1.2

In Histogram 1.2, the highest frequencies which is 19 at the bin 7,624,429, indicating that the
highest net profit they got was at the range 7,624,429. Following with the bin 5,140,286 and
10,108,571 which has 16 and 17 frequencies. Next, for the bin 12,592,714, it has 12 frequencies. For
the bin 2,656,143 and 15,076,857 and 16,965,000 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.

18
iii) Histogram for Fixed Assets

FIXED ASSETS
40 38

30
19
20
Frequency

10 8 7 6 Frequency
1 1 0
0
e
0 00 0 00 0 00 0 00 0 00 0 00 0 00 or
0, 0, 0, 0, 0, 0, 0, M
, 00 , 00 , 00 , 00 , 00 , 00 , 00
80 1 60 2 40 3 20 4 00 4 80 5 60

BIN

HISTOGRAM 1.3

Most of the fixed assets of these four companies are located in the second bin, 160,000,000,
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 320,000,000
is just 19. Along with other bins which are 240,000,000; 400,000,000 and 480,000,000 have
frequencies 8, 7 and 6 respectively. Lastly, bins 80,000,000 and 560,000,000 have the same
frequencies which is one.

19
iv) Histogram for Total Liabilities

TOTAL LIABILITIES
25 22
20 19
16
15
11
8
Frequency

10
Frequency
5 3
1 0
0
e
0 00 0 00 0 00 0 00 0 00 0 00 0 00 or
0 0, 0 0, 0 0, 0 0, 0 0, 0 0, 0 0, M
,0 ,0 ,0 ,0 ,0 ,0 ,0
25 50 75 10
0
12
5
15
0
17
5

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 75,000,000, which consists of 22
frequencies, shows that the companies still have a significant amount of the total liabilities. The
histogram's second-highest bin, 25,000,000, which has 19 frequencies in total liabilities, is followed
by the last bin. For bin 100,000,000 and 125,000,000, the frequencies are 16 and 11, which are
comparable. The other bins, 150,000,000 and 175,000,000, have 8 and 3 frequencies respectively.
Apart from that, the lowest one can be found in the second bin, 50,000,000, which only displays one
frequency. This demonstrates that the companies' total liabilities is between bin 75,000,000 and 22
frequencies.

20
v) Histogram for Total Equity

TOTAL EQUITY
35
30
30
25
20
14 13
15 12
Frequency

10
10 Frequency
5 1 0
0
e
0 0 4 3 5 7 7 1 8 6 0 0 or
1 ,0 5 ,1 9 ,8 4 ,5 9 ,2 1 ,0 M
, 69 , 81 , 18 , 56 , 93 , 03
1 04 2 67 3 22 3 76 4 30 5 27

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 104,691,000, it has the lowest frequencies out of all the other bins which is 1. The highest
frequency is 30 at bin 267,815,143. This indicates that these four companies have gained total revenue
at 267,815,143 throughout 5 years. Following with the second highest is at the bin 376,564,571 which
has 14 frequencies. Next, at the bin 322,189,857; 430,939,286 and 527,031,000 have frequency 10, 13
and 12 respectively.

21
vi) Histogram for Closing Stock Price

CLOSING STOCK PRICE

25.00
22.00
20.00

15.00 14.00
Frequency

12.00
11.00 Frequency
10.00
10.00

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 1.50. The second highest frequency is 14 at bin 4.00. For the following bins at
1.75, 2.00 and 2.25 have 11, 12 and 10 frequency respectively. There are three same frequency which
is 3 at bins 1.25, 3.00 and 5.00. Lastly, the lowest frequency is 2.00 at bin 6.00. All in all, this four
companies of closing stock price is quite good as the highest price the frequency is 22 at RM1.50.

22
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

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caution. This matrix reflects the company’s financial dynamics, showing that growth in balance sheet items doesn’t always align positively with stock
performance.

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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. These strong correlations indicate that these pairs of variables may
contribute similar information, which could lead to redundancy in statistical models and affect the
reliability of estimates if all are included as independent variables in a regression analysis.

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QUESTION 5

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

TOTAL CLOSIN
SALES NET PROFIT FIXED ASSETS TOTAL EQUITY G STOCK
LIABILITIES
PRICE
569,873,122,496,095.
SALES
00
70,717,130,367,187.3 15,000,302,219,375.
NET PROFIT
0 00
1,077,832,767,900,78 72,527,529,241,562. 11,816,892,376,474,80
FIXED ASSETS
0.00 90 0.00
TOTAL 869,403,376,623,437. 107,559,820,514,37 1,335,345,494,052,810 1,719,760,606,749,37
LIABILITIES 00 5.00 .00 0.00
900,943,062,509,376. 73,280,974,308,750. 8,136,518,689,875,620 1,251,140,065,788,75 8,126,387,762,122,46
TOTAL EQUITY
00 00 .00 0.00 0.00
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

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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 apparent 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 heterogeneous nature of the companies' financial
profiles, which can inform 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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