Considering the financal performance of the "Almarai company" for the past 3 years. 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
what do you mean by data is not given? i provide you with the table of the five year financal hilights and this is the exact require:
Five Year Financial Highlights 2016" 14,339 5522 2.518 2148 1318 21,145 SAR million 2020 2019 2018 2017" Operational Performance Revenue 15,357 14,351 13,558 13936 Gross Profit 5.536 5,367 5,327 5,584 Operating Profit 2.522 2473 2521 2583 Protit Attributable to Shareholders 1.984 1812 2012 2,182 Balance Sheet Net Working Capital 3,623 3,048 2988 1429 Property Plant and Equipment 21.113 21.951 21978 22402 Net Debt 10,749 11,955 12,743 10.910 Total Equity 16.234 15.259 14.463 14,881 Total Assets 32,344 33.148 32,783 31896 Total Liabilities 16,111 17889 18,320 17015 Cash Flow Cash Flow Generated from Operating Activities 4,203 4,732 3669 4614 Addition to Property Plant and Equipment (824) (1517) (1919) (2797) Free Cash Flows 2,830 2,602 1332 1304 Key Indicators EBIT to Sales 16.4% 17.2% 186 18546 Return on Net Operating Assets 9.1% 8976 94% 10546 Net Debt to Equity Ratio 66.2% 78 34 88.16 733 EPS Basic 2.02 183 198 213 Dividend Per Share 10 085 085 0.75 *Net of Investments ** The amounts presented for the year 2016 and 2017 are from the audited Consolidated Financial Statements of respective years. 10,883 13.478 29.194 15716 4473 (455) 1509) 17.6% 11.116 802% 210 0.72 3. Observations: Your observations should be discussed in the following six performance measure. i. Liquidity ii. Profitability iii. Solvency iv. Efficiency V. Overall Performance vi. Cash flow positions $140.656 16.1 17.0% 25.3% 50.7% $4,435 TABLE 4.6 Summary of Home Depot's performance measures Performance Measures Market value added ($ 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 Net working 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 2016" 14,339 5522 2.518 2148 1318 21,145 SAR million 2020 2019 2018 2017" Operational Performance Revenue 15,357 14,351 13,558 13936 Gross Profit 5.536 5,367 5,327 5,584 Operating Profit 2.522 2473 2521 2583 Protit Attributable to Shareholders 1.984 1812 2012 2,182 Balance Sheet Net Working Capital 3,623 3,048 2988 1429 Property Plant and Equipment 21.113 21.951 21978 22402 Net Debt 10,749 11,955 12,743 10.910 Total Equity 16.234 15.259 14.463 14,881 Total Assets 32,344 33.148 32,783 31896 Total Liabilities 16,111 17889 18,320 17015 Cash Flow Cash Flow Generated from Operating Activities 4,203 4,732 3669 4614 Addition to Property Plant and Equipment (824) (1517) (1919) (2797) Free Cash Flows 2,830 2,602 1332 1304 Key Indicators EBIT to Sales 16.4% 17.2% 186 18546 Return on Net Operating Assets 9.1% 8976 94% 10546 Net Debt to Equity Ratio 66.2% 78 34 88.16 733 EPS Basic 2.02 183 198 213 Dividend Per Share 10 085 085 0.75 *Net of Investments ** The amounts presented for the year 2016 and 2017 are from the audited Consolidated Financial Statements of respective years. 10,883 13.478 29.194 15716 4473 (455) 1509) 17.6% 11.116 802% 210 0.72 3. Observations: Your observations should be discussed in the following six performance measure. i. Liquidity ii. Profitability iii. Solvency iv. Efficiency V. Overall Performance vi. Cash flow positions $140.656 16.1 17.0% 25.3% 50.7% $4,435 TABLE 4.6 Summary of Home Depot's performance measures Performance Measures Market value added ($ 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 Net working 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
