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the company for oman oil markteing For the selected company in Task 1, using DuPont Analysis, prepare a report on the major determinant of profitability.
the company for oman oil markteing
For the selected company in Task 1, using DuPont Analysis, prepare a report on the major determinant of profitability. The report should include the calculations (DuPont Analysis) for four years and show the factors that contribute to the ROE of the company. According to the table above the liquidity ration for the years 2018-2019 current ratio of 2018 stated as 1.45 then it got declined at 1.36 for 2019 , as for the quick ratio started with 1.38 and decreased 10% which is 1.28 in 2019 . For the cash ratio between the 2 years period, it decreased by 10% where it indicates the in 2018 it was 0.50 and 2019 was 0.40 . During the pandemic period in 2020 until 2021 the current ratio decreased from 1.25 in 2020 till 1.21 in 2021 . For the quick ratio during the two years the company performance was the same at 1.17. and finally, cash ratio for 2020 was 0.39 but unfortunately in 2021 it decreased within 26% which is 0.13 . - Financial leverage ratio: The corporation's financial leverage performance for 2018-2019 was not disclosed for the income statement and balance sheet annual report. It was reported that debt equity ratio was 1.16 where it subsequently falls under 17% in 2019 with 0.99 . And earnings per share of 2018 was 0.16 but due to improve the quantity and performance of year 2019 it increased to 0.49 , in addition, equity multiplier has increase where the company role is to identify how much their assets are financed by equity rather than debt because in general it is preferable to have a low equity multiplier so the company cannot be incurred through excessive debt to finance its assets. How ever it reported in 2018 reached 1.90 and jumped higher within 1.99 in 2019. The second aspect that was not predicted within the pandemic in 2020-2021 when the earning per shares declined in 2020 with 0.49 but it continued to operate until it reached 0.5 lin 2021. As for the equity multiplier, which was 1.99 in 2020 and the year after it increased to 2.05 . Finally, the debt-to-equity ratio in 2020 was 0.99 and it decreased approximately to 0.16 in 2021 . The profit margin whether for product, service or trade is defined as the profit that been obtained through company performance. Because it is one of the variables used to determine whether the any site or field is profitable while comparing it with a specialized company. How ever during the annual report for the year 2018-2019 it started as fresh beginning with 0.016 and increased significantly to 1.03 . but it slightly decreased with 81% during covid with 0.22 and decreased more in 2021 within 0.083%. Return on assets is computed by using the net income from the total assets of the company. As the table indicates, the ROA was 0.017% in 2018 but it rises significantly to 3.67% in 2019 . During 2020 it was 1.35% and grew to 2.70% which we believe it shows a positive sign for Oman oil company. The rate of return on equity provides a brief indication of the corporation's investment performance of its assets on investors. The higher the rate of return on equity, the more efficient the organization in managing and investing its assets, the ROE for 2018 was 13.69% however it fell to 7.344% in 2019 as a slight decrease 6.35%. where the going for next year where COVID 19 affected the performance it falls again with (2.70%) but rises to 5.85% in 2021 . The market value ratio of the company which is described in the table above indicates that the price per share decreased significantly for three years from 2019-2021. Price earnings in 2018 were stated at 9.04 then hugely decreased by 1.0156 in 2019 , where 2020 minimally raised to 2.883 with an upper increase to 12.68 in 2021 . Price to sales ratio was unfortunately have a large decreasing based on the company performance for 4 years straight. Then reaching the market book value where in 2018-2019 have a significant impact starting from 0.926 and after the covid period it reported it's been decreased for 0.73 . as the company performance in the market, it stated in the enterprise value of Oman oil it got a lot of improvement for the 4 years where it was 27, 204,317 OMR and increased after three years to 130,633,200 in 2021.finally the EBITDA which is (earnings before interest taxes depreciation and amortization) it was reported in 2018-2019 it reached from 1.84 to 4.35. and in covid period was 0.1029 but returned to increase in the year 2021 for 7.49 Step by Step Solution
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