Based on Victors video explanation for inter-segment it’s recommended to be removed and focus only on external customer figures. What if the company has majority of it’s business from inter-segment? ie investment holding revenue mainly from life insurance company which both are part of the group?
Should we include the total figure instead of removing inter-segment? Also because of higher depended on inter-segment revenue and if we do not include those figures; the profit margin are off the chart!
Looking forward to your advice.
You may want to let me know the company name so I can look through it to understand your context.
According the 2019 annual report, under note 36, their segment is as follow:
The investment holding have an inter-segment of RM202m, yes this figure should not be taken account. I don;t think that is the life insurance business as they have a life insurance segment there already.
Do note also, investment quadrant method cannot be use to analyse banks and insurance business as it require different sets of understanding of the business model and financial ratio to analyse them.
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