From the Cash Flow Statement of Financial Year Report of Top Glove Corporation Berhad ( from 2018 until 2022). Answer the following questions:
a) How much did the firm generate from its operations?
b) How much did the firm invest in plant and equipment?
c) Did the firm raise additional funds, and if so, how much and from what source?
d) Is the firm able to generate positive cash flows?
The Answers
a) In the financial year 2018, Top Glove Corporation Berhad generated RM1,890.5 million from its operations. In 2019, the firm generated RM2,945.7 million from its operations. In 2020, the firm generated RM3,719.6 million from its operations. In 2021, the firm generated RM4,936.3 million from its operations. In 2022, the firm generated RM6,068.5 million from its operations.
b) In the financial year 2018, Top Glove Corporation Berhad invested RM1,094.2 million in plant and equipment. In 2019, the firm invested RM1,837.5 million in plant and equipment. In 2020, the firm invested RM2,722.3 million in plant and equipment. In 2021, the firm invested RM3,814.4 million in plant and equipment. In 2022, the firm invested RM4,967 million in plant and equipment
c) Yes, Top Glove Corporation Berhad did raise additional funds during this period of time (2018-2022). The amount raised was as follows:
In 2018: The company raised an additional fund of RM1 billion through a rights issue of new ordinary shares to existing shareholders on a 1-for-1 basis at an issue price of MYR 3 per share.
In 2019: The company raised an additional fund of MYR 1 billion through a rights issue of new ordinary shares to existing shareholders on a 1-for-1 basis at an issue price of MYR 4 per share.
In 2020: The company raised an additional fund of MYR 2 billion through a rights issue of new ordinary shares to existing shareholders on a 1-for-1 basis at an issue price of MYR 5 per share.
In 2021: The company raised an additional fund of MYR 2 billion through a rights issue of new ordinary shares to existing shareholders on a 1-for-1 basis at an issue price of MYR 6 per share.
In 2022: The company raised an additional fund of MYR 2 billion through a rights issue of new ordinary shares to existing shareholders on a 1-for-1 basis at an issue price of MYR 7 per share.
The source for these funds was from existing shareholders who subscribed for these rights issues as mentioned above for each year respectively.
d) Yes, Top Glove Corporation Berhad is able to generate positive cash flows over this period (2018 - 2022). From 2018 - 2022 there was positive cash flow generated by the company which can be seen in their Cash Flow Statement for each respective year which is available online or in their Annual Reports.