Nurturing a solid company foundation needs a sensible and reasonable approach
In technical parlance, financial stability embodies a characteristic of a financial system that mitigates the impacts of substantial adverse events or inherent market fluctuations. For individuals, it could be as simple as being free from the worry of bill payments due to accessible savings.
However, for companies, the concept is more intricate, as mishandling of funds could lead to financial turbulence. A thriving enterprise effectively manages its financial resources, making financial stability one of the vital quantitative attributes in the realm of the Top-of-the-Chart (TOTC) Award.
TOTC quantitative rankings - Stability
The stability attribute is rooted in how a company efficiently grows its total assets across three years, encompassing 2020 to 2022, with 2019 as the reference year. Companies that consistently exhibit positive growth during this period are given precedence. Additionally, the assessment delves into the debt-to-total-asset ratio, favouring companies with a lower percentage.
It's crucial to acknowledge that maintaining an exceedingly high debt-to-total-asset ratio is as undesirable as a low ratio, as it indicates that the company is underutilising its accessible resources.
In the RM1bil and above category, IOI Properties Group Bhd stands out by achieving robust total assets growth, with a debt-to-total-asset ratio of 43.63%. Although this percentage might appear relatively high, the company's ample reserves are poised to offset any impending debts, positioning IOI Properties Group as the leader in this attribute.
Among the top 10 contenders in the RM1bil and above category, two other companies that were worth praising were HCK Capital Bhd and Matrix Concepts Holdings Bhd which were also in the tier 1 category for their total assets growth.
Similarly, within the TOTC category below RM1bil, Glomac Bhd took the spotlight by recording three consecutive years of positive total assets growth and maintaining a doable debt-to-total-asset ratio of 25%. This achievement places Glomac at the helm of this attribute, a feat exemplified by its unique distinction of achieving sustained total assets growth over three consecutive years.
Meanwhile, it is worth noting that numerous companies strategically utilised their cash reserves to mitigate the adverse effects of the Covid-19 pandemic. This strategic manoeuvre doesn't necessarily imply diminished financial stability, rather, it highlights their adaptive financial management.
In essence, nurturing financial resilience emerges as a pivotal pursuit for businesses. As a cornerstone of operational stability, it underscores the capacity to weather unforeseen challenges and fuels overall enterprise sustainability.
Ranking by stability
|RM1bil and above tier|
|1||IOI Properties Group Bhd|
|2||HCK Capital Group Bhd|
|3||Matrix Concepts Holding Bhd|
|4||OSK Holdings Bhd|
|5||UEM Sunrise Bhd|
|6||Tropicana Corporation Bhd|
|7||Mah Sing Group Bhd|
|9||IJM Corporation Bhd|
Ranking by stability
|Below RM1bil tier|
|2||NCT Alliance Bhd|
|3||Paramount Corporation Bhd|
|4||JKG Land Bhd|
|5||LBS Bina Group Bhd|