Profitability Ratios to Measure the Performance of Jordan Cement Company

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Al-Balqa' Applied University
Amman College
MBA Department

Profitability Ratios to Measure The Performance of JORDAN CEMENT COMPANY

FINANCIAL MANAGEMENT
Doctor: Ahmad Al-Mazari

Prepared by:

علاء محمود عبدالله سليمان

فادي نجم سعيد نجم

INDEX

Objective3

Hypotheses4

Importance5

Introduction6
Financial Ratios10

Liquidity Ratios 11

Return on Investment13
Return on Shareholders' Equity14
Data Analyses15

Current Ratio15

Quick Ratio16

Return on Investment17

Return on Equity 17

Result18

Recommends1

Profitability Ratios to Measure The Performance of JORDAN CEMENT COMPANY

M
ost companies have problem in financial management in this age, that problem coming from losing control assets and liabilities or lead the profit as it should be. Cause that we will try to find strength point in JORDAN CEMENT and protect them as we will find the weakness point too and try to fix them too, to make JORDAN CEMENT Leader Company in Jordan market specially and more effectively treading with world in generally.

Objective:

1. Improve strategic financial management.

2. Know which elements in financial management can affect in profit Company.

3. Find which strategy or tactic is useful with returns on investment, stockholders’ equity.

4. Increase knowledge about relations between returns and operation.

Literature Reviews:

- قام بالدراسة الباحث عبد الحافظ فضل أحمد طه ابو زريق وباشراف الدكتور عدنان فضل ابو الهيجاء ( الجامعة الاردنية) Factors Determining Companies Profitability An Applied Study to Jordanian Public Share _Holding Industrial \ Companies Over The period 97-2002.

- قام بالدراسة الباحث أيمن احمد ادريس الرشدان وباشراف الدكتور هيل الجنابي (جامعة آل البيت)Determinates of the profitability of the Jordanian \ Commercial Banks \ Comparative study 85-99 .

Hypotheses:

1. H0: There is no Statistical Relationship between the changes in profitability ratios of JORDAN CEMENT company and performancegross profit and sales

2. H0: There is no Statistical Relationship between JORDAN CEMENT company net profit margin and performancegross profit and sales

3. There is no Relationship between Earnings available for common stockholders and sales.

4. H0: There is no Relationship between Earnings available for common stockholders and Number of shares of common stock outstanding.

5. H0: There is no Relationship between Earnings available for common stockholders and total assets.

6. H0:There is no Relationship between Earnings available for common stockholder and stockholder equity

7. H0: There is no Relationship between Operating profit and sales.

Importance Of Study:

The importance in this study coming from knows specific relations between income statement and balance sheet items that help Company in:

1. Help to control money with high quality efforts.

2. Help to see where the weakness financial and help to remove them.

3. Help to learn how can increase the profit faster with low risks.

4. Remove problems between the managers when reasons financial problems know.

5. Decrease bottleneck in profitability in this company.

Company Brief

CEMENT JORDAN is one of the largest and oldest industrial companies in Jordan, founded in 1951 as a public shareholding company, with concession. The company has two plants in Fuhais and Rashadiyeh, and an export terminal in Aqaba, which was established in 1992. Production Capacity of the company is (4,8) million tons. In 1998. Jordan government sold 33% of its share to Lafarge Group, that presently owns (50,2%) of the company. Lafarge Group was founded in 1833, and is now the world leader in building materials; active in more than...
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