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BFIN 2301 – Financial Management I
Instructor: Ms. Syeda Asra
Bayan AbdulRab
Bayan Baabbad
Wafa
Samaher Baattiah
Tasneem Al-Atassi

“You're dead if you aim only for kids. Adults are only kids grown up, anyway.”
Walt Disney

Table of Content
Section 1:
* Introduction to Ratio Analysis ……………………………………………………5 * The Need and Importance of the Study……………………………………...……8 * Objective of the Study………………………………………………….…………9 * Research Methodology…………………………………………………….……10 * Primary Data

* Advantages
* Disadvantages
* Secondary Data:
* Advantages
* Disadvantages
Section 2:
* Literature Review and Literature Survey………………………………………..13 * Liquidity Ratio
* Current Ratio
* Acid Test Ratio
* Profitability Ratio
* Profit Margin
* Asset Turnover
* Return on Asset
* Return on Common Stockholder’s equity
* Earnings Per Share
* Payout Ratio
* Asset Management Ratio
* Inventory Turnover Ratio
* The Days Sales Outstanding
* Fixed Asset Turnover Ratio
* Total Asset Turnover Ratio
* Debt Management Ratio
* Total Debt to Total Assets
* Times Interest Earned Ratio
* Market Value Ratio
* Price/Earnings Ratio
* Market/Book Ratio

Section 3:
* Company Details……………………………………………………………21 * Company History
* Mission Statement
* Vision
* Company Segments
* Board Of Directors Chart
* Management Team

Section 4:
* Data Analysis and Interpretation……………………………………………28

Section 5:
* Conclusion and Suggestions…………………………………………………34 Section 6:
* References …………………………………………………………………...35

Ratio Analysis
Ratio analysis is a tool used by individuals or institutions to provide financial analysis to evaluate and investigate different pieces of financial information. The income statements and the balance sheet are the financial statements used in the analysis. A ratio reveals relationships between different ratios in words, time, rate or percentage. Ratio Analysis is a form of Financial Statement Analysis that is used to simplify financial statements to make quick decisions for investing and analyzing by just looking at few numbers instead of the massive amount of numbers in the financial statements. It helps in getting a quick sign of a firm's financial performance whether improved or deteriorated, comparing firms that are different in size and comparing a firm's performance within the industry. Ratio analysis can be calculated for a single year or it can be for several years. When comparing the ratios with ratios of other similar companies few things must be taken into consideration. The same years must be compared over a period of time. Several individuals and groups use them. Managers can identify, analyze and develop better activities and operations for the company. Credit analysts can evaluate a company’s ability to pay its debts when they mature. Third, stock analysts can indicate the company’s risk, efficiency and growth prediction. They are also helpful for employees to make sure the company they are working in is able to pay them their salaries and provide better benefits to develop. Suppliers can identify whether the firm is willing to pay its debt. Customers also can decide whether they will or will not invest in the company. Environmental groups use ratio analysis to make sure companies are operating in a way that saves the environment. The governments and their agencies assess to what extent the firm is abiding with laws and regulations. Researchers use the ration in writing academic and professional researches. . The ratios are divided into five categories that give different views of the company’s performance: * Liquidity ratio: Ratio analysis reveals the liquidity and gearing of the company by indicating the cash amount of cash in the business, ability to pay short-term debt and riskiness of the financial structure. * Asset Management ratio: It can also indicate...
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