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The 3 Numbers That Connect Total Access

TotalAccessWe probably all know that Singapore’s largest quoted telecom company is SingTel (SGX: Z74). But which company do you reckon is the second largest?

It’s not StarHub (SGX: CC3), which is worth around S$7.5b. But instead it is Total Access (SGX: B2W), which is valued at around S$11b. The less well-known Total Access provides wireless telecom services and sells handsets in Thailand. The company, which is based in Bangkok, serves around 25 million customers.

Total Access is just one example of the many foreign companies that we can find on our doorstep. It boasts an enviable Return on Equity, which is almost three times higher than the average for the 30 companies that make up the Straits Times Index (SGX: ^STI). At 31%, its RoE is also twice that of SingTel’s

Interestingly, Total Access’ Net Income Margin is not especially high. At around 12% it is lower than the Singapore’s blue-chip average. It is also around half that of SingTel’s Net Income Margin.

However, Total Access is very good at sweating its assets. It generates $87 olf sales for every $100 of assets employed in the business. By comparison, Straits Times Index constituents generate $50 for every $100 of assets.

Total Access has also taken on a fair amount of debt, which means that shareholders are benefitting from other people’s money. Its Leverage Ratio of 2.9 is higher than SingTel’s level of borrowing.

Total Access’ exceptional Return on Equity of 32% is the result of three meaty ratios. It is the product of a decent Net Income Margin of 12.6%; an attractive Asset Turnover of 0.9 and a generous 2.9 helping of leverage.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.