Bang College of Business (BCB)
FN5201: Managerial Finance
Financial Ratio Analyses of JSC KMK Munai and ZhaiykMunai LLC
Students: Kaisar Zharokov
Instructor: Mujibul Haque, Ph.D.
Date of submission: November 14, 2012
This report analyzes the balance sheets and income statements of ZhaiykMunai LLC and KMK Munai JSC, comparing 2009, 2010 and 2011. The data in this report represent two companies’ financial performance. Common size income statements and balance sheets are used to compare two companies’ sizes and types. Trends for major balance sheet and income statement items and ratio analysis are used to compare and contrast companies by size and type. This report studied the financial statements of both companies, comparing 2009, 2010, and 2011, the last three years. Trends of major balance sheet and income statement items as well as financial ratios are presented for two companies’. We would like to thank the companies for the published financial statements for the last three years on the web-site of Kazakhstan Stock Exchange and made this report possible.
Table of Contents
II. Brief description of companies
III. DuPont Analyses
IV. Evaluation Working Capital Policies
V. Assessment of Capital Structure Policies
VI. Assessment of Dividend Policies
VII. Break-even and leverage analyses
VIII. P/E ratios analyses
IX. Summary and Recommendations
X. Appendix A – Financial statements from 2009 to 2011 XI. Appendix B - DuPont Analysis & Working Capital Ratios tables
The objective is to reveal the financial analysis techniques used to evaluate the financial performance of Zhaikmunai LLC and JSC KMK Munai, and evaluate the companies worthiness as an investment.
Using financial statements from 2009, 2010, and 2011, along with standard financial ratio analysis, we have been able to develop what we believe is a clear picture of companies’ financial performance. Note that the financial analysis was done using the financial report data from publicly available financial statements for the years 2009, 2010 and 2011 from KASE. We have included these statements for your review in Appendix A. Appendix B contains other measures of Zhaikmunai and KMK Munai Companies’ financial performance, as expressed in standard financial ratio analysis techniques using figures from the financial reports in Appendix A. Methodology
Our research methodology requires gathering relevant data from the specified documents in order to analyze the material and arrive at a more complete understanding and historical changes of the selected companies. We hope to shed light on the following questions through our research: 1) A brief description and comparison of two chosen companies from the same industry, listed on KASE. 2) To perform the extended Du Pont analysis of both companies, analyze the results and make the comparison. 3) Working capital policies evaluation, classification and conclusion. 4) Capital structure policy evaluation and comparison between two companies. 5) Assessing dividend policy of both companies and comparison. 6) Undertake break-even and leverage analyses, evaluation and comparison of it. 7) P/E ratios analysis and comparison.
Although this research was carefully prepared, we are still aware of its limitations and shortcomings. First of all, the research was conducted based on financial statements from KASE for the last three years. Some information from financial statements might not be sufficient for a full company analysis. Secondly, in Zhaikmunai LLC company there were no dividend payments for the last three years and fifth paragraph from methodology – Assessing dividend policy...