Question
Please Please Please use the below link when answering the case : https://companiesmarketcap.com/almarai/earnings/ https://www.fastjop.com/almarai/www.almarai.com/en/corporate/investors/annual-report-financial-statement/index.html Almarai Company The latest complete financial report for Almarai Company was
Please Please Please use the below link when answering the case :
https://companiesmarketcap.com/almarai/earnings/
https://www.fastjop.com/almarai/www.almarai.com/en/corporate/investors/annual-report-financial-statement/index.html
Almarai Company
The latest complete financial report for Almarai Company was discussed in the course; students went over all financial statements of the company. The discussion provided a detailed reading and explanation of all items in the financial statements. Use the latest financial reports of the company available on the company website or any other source and reproduce the financial statements for the period 2017-2021in horizontal excel spreadsheet format to answer all of the following questions:
- What does the overall trend of main financial indicators over the period tell you?
- Are there any inconsistencies among the overall trends of the different indicators selected in question 1? (Explanations should be provided)
- How the COVID-19 pandemic affected the performance of the company as reflected in the financial statements?
- Evaluate the operational and financial leverage of the company?
- Calculate the following indicators for the company over the whole period under analysis and comment on the results (some information is provided to guide the calculation):
- Return on assets (ROA): This shows how profitable the business is compared to total assets. This is a critical indicator to any potential investors because it shows them how efficiently the management is using assets to generate earnings.
- Return on equity (ROE): the indicator calculates the profit the company generates for its shareholders. It is used to compare profitability amongst businesses in the same industry. This is measured by dividing business's net income by shareholder's equity.
- Net profit margin: Measures business's net profit relative to business total revenues. The higher the margin, the higher the efficiency of the company.
- Economic value added (EVA): Referred to as the economic profit of a company, EVA shows the surplus profit over the WACC (weighted average cost of capital) demanded by the capital providers.
- Market Value Added (MVA): refers to the difference between the market value of the company and the book value of the company. Positive value added indicates that the management has added value to the shareholders, the higher the MVA the higher the market valuation of the company relative to its book Value.
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