SP Setia chief operating officer Datuk Zaini Yusoff (second left) receiving the trophy from Housing and Local Government Minister Nga Kor Ming as FIABCI
Malaysia president Yu Kee Su (left) and SMG group chief executive officer Chan Seng Fatt looks on.

A solid foundation needs a sensible and reasonable approach

Financial stability, in technical terms, refers to a system's ability to absorb and withstand significant economic disruptions or market fluctuations. On an individual level, it can be as simple as having enough savings to comfortably manage expenses. However, for companies, the concept is far more complex. Poor financial management can lead to instability and for businesses, financial turbulence can have lasting repercussions. A successful company must skillfully manage its resources to ensure resilience, making financial stability a crucial quantitative attribute in the Top-of-the-Chart (TOTC) Awards.

TOTC Quantitative rankings - Stability

The Stability attribute is designed to measure how effectively a company grows its total assets over time. For the 2024 assessment, the focus was on growth from 2021 to 2023, with a benchmark set in 2024. Companies that demonstrated steady positive growth across this period were prioritized. Additionally, the evaluation considered the debt-to-total-asset ratio, with preference given to firms maintaining a lower ratio, as this reflects healthier financial management.

A high debt-to-total-asset ratio can indicate over-leverage, while an excessively low ratio may suggest underutilization of resources. Both extremes can hinder a company’s operational capacity. Striking the right balance is key to sustainable growth.

In the RM1 billion and above category, SP Setia Bhd emerged as a leader by achieving significant total asset growth while maintaining a debt-to-total-asset ratio of 39%. Although this ratio might seem higher than average, SP Setia’s ample cash reserves provide a buffer against any potential financial liabilities, securing its top position in this attribute.

Other notable performers in this category include Matrix Concepts Holdings Bhd and Sime Darby Property Bhd, which secured second and third places, respectively, demonstrating consistent asset growth and sound financial management.

In the RM1 billion and below category, Sunsuria Bhd claimed the top spot by posting three consecutive years of positive asset growth. With a manageable debt-to-total-asset ratio of 26.27%, Sunsuria not only maintained financial health but also stood out as a company demonstrating resilience and sustained growth over a challenging period.

Many companies also strategically leveraged their cash reserves in response to the economic aftermath of the Covid-19 pandemic. While this may have caused a temporary dip in asset growth for some, it reflects an adaptive financial approach rather than a decline in stability. This strategic maneuvering highlights the importance of flexibility and preparedness in times of crisis.

Building financial resilience for long-term sustainability

In today’s volatile market, nurturing financial resilience is vital for businesses. Financial stability is the bedrock of operational success, enabling companies to navigate unforeseen challenges and ensure long-term sustainability. Companies that effectively manage their debt levels, asset growth and resources are better equipped to endure economic uncertainties and continue creating value for stakeholders. For this reason, stability remains a cornerstone of the TOTC Awards, rewarding companies that have demonstrated solid financial foundations and the capacity for enduring success.

Ranking by Stability

Sunsuria business development manager in the executive chairman's office Ter Chen Loong (left) eft) and group branding and project marketing director Ter Shin Ann posing with their trophy.

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