Comparative Financial Performance of Malaysian Semiconductor Companies

Abstract

Financial performance analysis plays a crucial role in evaluating the sustainability and competitiveness of companies within the manufacturing industry. This study examines the comparative financial performance of two Malaysian semiconductor companies, namely Inari Amertron Berhad and JHM Consolidation Berhad. The study employs ratio analysis as the primary analytical tool to assess liquidity, efficiency, gearing, profitability, and marketability performance based on the companies’ annual reports for the financial year 2021. Financial ratios, including the current ratio, acid-test ratio, debt-to-equity ratio, gross profit margin, net profit margin, return on capital employed, and earnings per share, were analysed and compared. The findings indicate that Inari Amertron Berhad demonstrated stronger financial performance across most ratio categories compared to JHM Consolidation Berhad. Inari showed superior liquidity, operational efficiency, profitability margins, and market valuation indicators, suggesting stronger financial stability and greater investment attractiveness. Meanwhile, JHM Consolidation Berhad recorded moderate performance with relatively higher gearing and lower profitability ratios. The study highlights the importance of financial ratio analysis in assisting investors, managers, and stakeholders in making strategic investment and acquisition decisions. The findings also contribute to understanding financial performance evaluation in the Malaysian semiconductor industry.