Digi Telecommunications Sdn Bhd Case Study

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1. INTRODUCTION OF THE SELECTED COMPANY Established in 1995, Digi Telecommunications Sdn. Bhd. was one of various mobile communication services providers in Malaysia and became the first telco to launch a fully digital cellular network. In 1997, Digi Telecommunications Sdn. Bhd. listed on the Bursa Malaysia Securities Berhad under the infrastructure category act, which known as DiGi.Com Berhad. Today, DiGi.Com Berhad listed on the Main Market of Bursa Malaysia Securities Berhad and is part of the global telecommunications service provider. The company services included are mobile voice plans, international roaming, data plans, Internet plans and digital services. Indeed, DiGi.Com Berhad has provide mobile voice, Internet and digital services…show more content…
The probability ratios are classified gross profit margin ratio, net profit margin ratio, return on asset ratio, return on owner’s equity ratio and many more. Refer to figure 2.3, DiGi.Com Berhad shows average gross profit margin ratio from 2010 to 2014, which is more than 25 per cent. This higher ratio resulted the company proceed efficient purchasing management with low purchasing cost. Besides, based on figure 2.3, net profit margin ratio shows the positive margin from 2010 to 2014, which is each year more than 18 per cent. A high net profit margin ratio means DiGi.Com Berhad obtaining lower expenditures or costs involved in executing sales activities. Moreover, refer to figure 2.3, return on asset ratio on 2010 to 2014 shows positive value, except 2012 was slightly lower value with 79.66 per cent. Normally, a higher return on asset ratio means effective management’s decision to generate profit regardless of resources. Besides, return on owner’s equity is show positive value, which means the success of business in generating profit, especially in 2014 with 301.54 per cent. In overall, DiGi.Com Berhad was in stable position of probability ratios and the company was able to generate profits within a specified

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