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Compute the following (show your work) and Analyze the companys performance in 2017, related to the following profitability ratios and explain what does it mean

Compute the following (show your work) and Analyze the companys performance in 2017, related to the following profitability ratios and explain what does it mean for the firm:

-Return on Operating Asset

-Operating Income margin

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Assets Non-current assets Goodwill and intangible assets Property, plant and equipment Investment in associates Investment properties Available for sale investments Accounts receivable and other assets Total non-current assets 15 16 17 18 19 21 14,121 72,314 336,045 66,121 411,366 3,755 903,722 Current assets Inventories Available for sale investments Accounts receivable and other assets Murabaha, wakala and sukuk investments Investments at fair value through profit or loss Short-term deposits Bank balances and cash Total current assets Total assets 20 19 21 22 23 32 32 33,194 113,836 92,152 1,153 74,780 8,020 38,436 361,571 1,265,293 Equity and liabilities Equity attributable to owners of the parent Share capital Treasury shares Share premium Cumulative changes in fair value Other components of equity Retained earnings/(accumulated losses) Equity attributable to owners of the parent Non-controlling interests Total equity 24 25 24 26 26 135,985 (30,375) 122,962 103,959 30,457 13,000 27 375,988 130,127 506,115 Non-current liabilities Long-term borrowings & bonds Provisions Other non-current liabilities Total non-current liabilities 28 29 30 207,973 15,157 27 223, 157 Current liabilities Accounts payable and other liabilities Short-term borrowings Due to banks Total current liabilities Total llabilities 30 31 32 48,364 465,342 22,315 536,021 759,178 1,265,293 Total equity and liabilities Note KD '000 110,510 (90,441) 20,069 34,570 19,035 17,447 8 17 17 Sales Cost of sales Gross profit Income from investments Share of results of associates Profit on disposal of associates Loss on disposal of investment properties Changes in fair value of investment properties Rental income Interest and other income Distribution costs General, administrative and other expenses Gain/(loss) on foreign currency exchange 18 9 11 19 21 (3,455) 1,859 4,760 (7,384) (23,664) 1,540 64,777 (31,412) (5,247) (246) 27,872 (488) 27,384 (717) (480) 26,187 Finance costs Impairment in value of available for sale investments Impairment in value of receivables and other assets (net of reversal) Profit(loss) before foreign taxation Foreign taxation Profit(loss) before KFAS, NLST, Zakat and Directors' remuneration KFAS, NLST and Zakat Directors' remuneration Profit(loss) for the year 12a 12b 13 Attributable to: Owners of the Parent Non-controlling interests 24,160 2,027 7 26,187 Basic and diluted earnings/(loss) per share attributable to the owners of the Parent 14 18.2 Fils 31 Dec. 2017 KD '000 27,872 6,727 3,455 37 (17,447) OPERATING ACTIVITIES Profit(loss) before foreign taxation Adjustments: Depreciation and amortisation Changes in fair value of investment properties Loss/(gain) on disposal of property, plant and equipment Profit on disposal of associates Loss on disposal of investment properties Share of results of associates Dividend income from available for sale investments Profit on sale of available for sale investments Impairment in value of receivable and other assets (net of reversal) Impairment in value of available for sale investments Discount on settlement of loan Other non-cash adjustments Provision for cost of gas usage for previous years Net provision (reversal)/charged for obsolete and slow moving inventories Net provisions released Finance costs Interest/profit on bank balances, short-term deposits, wakala and murabaha investments (19,035) (6,572) (18,124) 246 5,247 (2,063) (157) (74) 512 31,412 (617) 11,419 Changes in operating assets and liabilities: Inventories Accounts receivable and other assets Investments at fair value through profit or loss Accounts payable and other liabilities Cash from operations KFAS and Zakat contribution paid NLST paid Taxation paid Net cash from operating activities (834) 6,930 2,002 1,054 20,571 (76) (36) (488) 19,971

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