Considering the financal performance of the Almarai company for the past 3 years(2018-2019-2020), discuss the following six performance measures and interpret the results. Important note: please mention the data extracted.
i. Liquidity
- current ratio
- Net working capital to assets
ii. Profitability
- return on assets
- Return on equity
iii. Solvency
- debt-equity ratio
- Total debt ratio/ equity ratio
iv. Efficiency
- asset turnover ratio
- Profit margin
- Inventory turnover
v. Overall Performance
- market value added
- Market to book ratio
vi. Cash flow positions
- Operating cash flow ratio
- Cash flow coverage ratio
$140,656 16.1 17.0% 25.3% 50.7% $4,435 TABLE 4.6 Summary of Home Depot's performance measures Performance Measures Market value added (5 millions) market value of equity - book value of equity Market-to-book ratio market value of equity - book value of equity Profitability Measures Return on assets (ROA) after-tax operating income/total assets Return on capital (ROC) after-tax operating income/long-term debt + equity) Return on equity (ROE) net income/equity EVA (5 millions) after-tax operating income - cost of capital x capital Efficiency Measures Asset turnover sales/total assets at start of year Receivables turnover sales/receivables at start of year Average collection period (days) receivables at start of year/daily sales Inventory turnover cost of goods sold/inventory at start of year Days in inventory Inventories at start of year/daily cost of goods sold Profit margin net income/sales Operating profit margin after-tax operating income/sales Leverage Measures Long-term debt ratio long-term debt/long-term debt + equity) Long-term debt-equity ratio long-term debt/equity Total debt ratio total liabilities/total assets Times interest earned EBIT/interest payments Cash coverage ratio (EBIT + depreciation interest payments Liquidity Measures Networking capital to assets net working capital/total assets Current ratio current assets/current liabilities Quick ratio (cash + marketable securities + receivables/current liabilities Cash ratio (cash + marketable securities current liabilities 2.05 59.5 6.1 4.9 74 7.6% 8.3% 64% 181% 77% 13.0 15.2 0.10 1.36 0.28 0.15 Five Year Financial Highlights 2020 2019 2018 2017" 2016 15,357 5,536 2.522 1.984 14,351 5,367 2,473 1812 13558 5327 2521 2012 13,936 5,584 2583 2,182 14339 5.522 2518 2148 3,623 21.113 1318 21.145 10.749 1429 22402 10,910 14 881 10883 SAR million Operational Performance Revenue Gross Profit Operating Profit Profit Attributable to Shareholders Balance Sheet Net Working Capital Property Plant and Equipment Net Debt Total Equity Total Assets Total Liabilities Cash Flow Cash Flow Generated from Operating Activities Addition to Property Plant and Equipment Free Cash Flows Key Indicators EBIT to Sales Return on Net Operating Assets Net Debt to Equity Ratio EPS-Basic Dividend Per Share 3,048 21.951 11.955 15,259 33148 17 889 2,988 21978 12,743 14,463 32783 18 320 16,234 32,344 16,111 31896 17.015 13,478 29.194 15,716 4,203 4732 4,614 (2.797 (824) 2,830 3,669 (1919) 1332 (1517) 2,602 4.473 (4515) (509) 1304 16.4% 9.1% 66.2% 2.02 17.2% 896 78.3% 18.6% 9.4% 881 198 18.5% 10.546 73.3% 213 0.75 17.6% 11.1% 80.7% 210 072 183 0.85 1.0 085 *Net of Investments ** The amounts presented for the year 2016 and 2017 are from the audited Consolidated Financial Statements of respective years
