Debt Capital Structure Equity D/E Ratio 2018 2019 0.2451 2020 0.2459 2,977,841,000 3,017,298,000 1,249,363,000 1,664,398,000 2,087,505,000 12,150,257,000 12,271,956,000 11,392,490,000 12,083,214,000 11,972,195,000 2021 0.1097 2022 0.1377 0.1744
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
The image attached below shows the Capital Structure of Petronas Sdn Bhd (Oil & Gas Company) from 2018 to 2022.
Answer the question :
Based on the image attached, analyze the trend of the Capital Structure (debt-equity ratio) of Petronas Sdn Bhd from Year 2018 to 2022. Then, explain / comment whether the analysis of Petronas' Capital Structure is relevant / relates to the concept of MM Propositions. (you can explain it based on the MM Proposition theory or apply the formula using Petronas' Capital Structure data).
(Please provide and cite reliable sources based on your research for the questions).
Step by step
Solved in 3 steps
