Financial Analysis

Question : Talk about the Fanancial Analysis ? Answer : Presentation Al Anwar Ceramic Tiles Company is a producer of Ceramic Tiles in the Sultanate of Oman. Established in 1998 and having its central station in Muscat, it has seen a quick development and has had the option to set up itself well. In the year 2015, the business confronted a difficult errand and subsequently the gross income was on the lower side that is 27.4 million and an income decay of 4.6% when contrasted with the year 2015 was watched. Different earnings declined and the net benefit remains at 6.54 million (Bloomberg, 2015). The organization is exceptionally occupied with ordinary upgrade programs, worldwide sourcing in a compelling way, work of methodologies that are suitable to nature, and so on all the components has helped the organization to diminish the vacation and improve the yield. Dhofar Cattle Feed Company was established in 1984 with the mission of creating the best quality creature feed. Over years, it has today developed to have an introduced creation limit of 400,000 MT/Annum. Experienced experts in quality gauges and astounding deals and promoting capacities make it truly outstanding in this field. The presentation of the fragment of the poultry is gravely affected because of import that is low regarding cost and the nearby producers can't coordinate the imported expense (Bloomberg, 2015). Regardless of the difficulties, the organization put a palatable presentation and this can be refered to because of the administration of the organization and inside control. Vertical Horizontal Analysis A vertical investigation of the asset reports of both the organizations for the years 2015 and 2014 is led and the outcomes are arranged beneath: Al Anwar Ceramic Tiles DhofarCattle Feed organization Current Assets 2015 2014 2015 2014 Money Cash Equivalents 0.45 2% 1.92 10% 0.52 3% 0.44 3% Momentary Investments 8.59 39% 5.00 25% - 0% - 0% Receivables 8.81 40% 8.34 41% 7.77 41% 8.10 47% Inventories 3.95 18% 4.80 24% 10.81 57% 8.66 half Prepaid Expenses - 0% 0.11 1% - - All out 21.80 100% 20.17 100% 19.10 100% 17.20 100% Non Current Assets Plant Equipment 20.5 82% 21.77 77% 23.9 48% 24.79 48% Long haul Investments 4.65 18% 6.44 23% 25.74 51% 26.92 52% Intangibles 0 0% 0 0% 0.34 1% 0 0% Other Long Term Assets 0 0% 0 0% 0.28 1% 0.22 0% All out 25.15 100% 28.21 100% 50.26 100% 51.93 100% Less: Current Liabilities Exchange Payables 3.53 81% 2.18 43% 5.49 24% 7.88 34% Momentary Debt 0 0% 0 0% 15.75 69% 14.21 62% Capital Leases 0 0% 0 0% 1.66 7% 1.16 5% Collected Expenses 0 0% 1.61 32% 0 0% 0 0% Other Current Liabilities 0.85 19% 1.31 26% 0.05 0% 0.05 0% Complete 4.38 100% 5.1 100% 22.95 100% 23.3 100% Non-Current Liabilities Conceded Income Tax 0.41 36% 0.38 26% 0 0% 0 0% Other Long Term Liabilities 0.72 64% 1.08 74% 5.77 100% 5.13 100% Complete 1.13 100% 1.46 100% 5.77 100% 5.13 100% It tends to be seen that Receivables comprise a greater part parcel in Al Anwar though stock establishes a significant segment of current resources in Dhofar Cattle Feed Company. The Plant Equipment is the significant bit in Al Anwar while Long Term Investments are major in the Current Assets division for Dhofar. Exchange Payables involves a significant bit in Current Liabilities area in Al Anwar though Short Term Debt possesses a significant situation in Dhofar. A level examination of the Income Statement and Balance Sheet figures uncovers the underneath results: DhofarCattle Feed Company Points of interest 2013 2014 2015 Income 29.52 100% 31.87 8% 43.87 49% Cost of Revenue 25.55 100% 27.2 6% 34.56 35% Net Profit 3.97 100% 4.67 18% 9.31 135% Absolute Operating Expenses 32.73 100% 34.87 7% 43.02 31% Working Income - 3.21 100% - 3 - 7% 0.85 126% Salary before Taxes - 2.88 100% - 2.88 0% 1.24 143% Net gain - 3 100% - 2.67 - 11% 1.33 144% Current Assets 13.24 100% 17.20 30% 19.10 44% Non Current Assets 49.76 100% 51.93 4% 50.26 1% Absolute Assets 63.00 100% 69.13 10% 69.36 10% Current Liabilities 16.83 100% 23.3 38% 22.95 36% Non Current Liabilities 2.48 100% 5.13 107% 5.77 133% Absolute Liabilities 19.31 100% 28.43 47% 28.72 49% Investors Equity 43.69 100% 40.7 - 7% 40.63 - 7% It would thus be able to be seen that the underlying misfortune making organization has turned gainful in the year 2015. As the complete resources have expanded by 10%, the all out liabilities have expanded by 49% and there is additionally a drop in the investor's value by 7%. Al Anwar Ceramic Tiles Points of interest 2013 2014 2015 Income 26.41 100% 28.78 9% 27.44 4% Cost of Revenue 13.19 100% 13.90 5% 14.43 9% Net Profit 13.22 100% 14.88 13% 13.01 - 2% All out Operating Expenses 18.29 100% 19.83 8% 20.45 12% Working Income 8.12 100% 8.95 10% 6.99 - 14% Pay before Taxes 8.95 100% 11.05 23% 7.42 - 17% Net gain 7.89 100% 9.77 24% 6.54 - 17% Current Assets 15.92 100% 20.17 27% 21.80 37% Non-Current Assets 28.26 100% 28.21 0% 25.15 - 11% All out Assets 44.18 100% 48.38 10% 46.95 6% Current Liabilities 5.98 100% 5.10 - 15% 4.38 - 27% Non-Current Liabilities 1.14 100% 1.46 28% 1.13 - 1% Complete Liabilities 7.12 100% 6.56 - 8% 5.51 - 23% Investors Equity 37.05 100% 41.46 12% 41.44 12% As indicated by the figures, there is a 24% expansion in the net gain for the year 2014 yet 17% drops in the equivalent for the year 2015. Current Assets have seen a decent increment while current liabilities have dropped and the investors value has likewise expanded by 12% which is a decent sign. Cost-volume-benefit investigation A cost-volume-benefit investigation of both the organizations uncovers the accompanying: On account of Al-Anwar, as the deals have expanded, the expense of income has succumbed to the year 2014 prompting a decent gross net revenue. However, for the year 2015, the deals has fallen still the expenses of income which contain direct expenses has risen strongly suggesting the expanded costs of direct materials, work and overheads. The outcome is a negative gross benefit (Deegan, 2011). On account of Dhofar, the expansion in expenses of income is lower than the increment in income for the year 2014 and it keeps on continuing as before for the following year moreover. This demonstrates the pattern of cost rise is legitimately corresponding to the expansion in income (Melville, 2013). On correlation, it very well may be said that Al Anwar is by all accounts hit severely by the expanding costs though Dhofar has had the option to oversee and hold its cost-volume-benefit proportions. Venture Appraisal Techniques Analysis On account of Al-Anwar, it tends to be said that 1OMR put resources into 2013 has deteriorated by over half as on date. Along these lines the NPV and Pay Back period is as of now negative and long haul financial specialists have certainly lost cash on this stock (Parrino et. al, 2012). On account of Dhofar, let us accept 1OMR put resources into 2013 has stayed at nearly a similar rate, which encourages us induce that the stock has seen some good and bad times however has not prompted any enormous benefits or misfortunes. The NPV and compensation periods can change from a year to more (Williams, 2012). Investigation of Profitability and monetary execution Al Anwar is a misfortune making the organization and even the current years quarterly money related figures are not exceptionally noteworthy. Dhofar has additionally not had the option to deliver incredible outcomes for the seventy five percent of the current yea