Agthia Group financial statement analysis Report 2022

Agthia Group financial statement analysis

Introduction
In this report, the discussion is made on the financial statement analysis. The financial analysis
will be done on Agthia Group which is registered under the Abu Dhabi Stock Exchange or Dubai
Financial Market (adx.ae, 2020). In this regards, financial statement analysis will be done by
evaluating ratios. `
a) Conduct a comparative, wide range and comprehensive ratios analyses, trend
analysis to address the following key points about your chosen company. Support
your answers with necessary computation and with alternative measures.
1. Debt obligations in the future
Ratio 2017 2018 2019
Debt / Equity ratio 19 13 7
Debt-to-Equity ratio states that over the time period of three years the ratio has been decreases
from 2017 to 2019. It depicts that the Agthia Group has the ability to pay its liabilities and also
able to generate the satisfactory cash flow from its operational activities. Its liability amount is
reduces and profit amount has been increases due to which it can pay its liability in future
effectively (Agthia Group, 2018).
Short term assets into cash
Ratio 2017 2018 2019
Days to sales outstanding 107.87 148.96 153.23
It states that the group collects the amount in large days according to its number of collecting
days those are increases. It means it takes more days to covert the cash and pay the short term
expenses for operations.

2. Operational efficiency
Ratio 2017 2018 2019
Net profit margin =
(revenue / net income)
75% 68% 69%
NPM represents the ability to generate the profit. Net profit margin is decreases from last three
years from 75% to 69% the company face the challenges in handling expenses and generating
the profit (Agthia Group, 2018).
3. Current and fixed assets
Ratio 2017 2018 2019
Current ratio = (Current
assets / current liabilities)
1.95 1.96 1.61
Fixed assets = (total sales
/ net fixed assets)
1.49 1.41 1.39
Current asset: The current ratio of the company has been a decrease in 2019 which means its
ability to pay the current liability is increases. The amount of current assets has been increases
with the decreasing amount of current liabilities.
Fixed asset: This ratio has been decreases from 1.49 to 1.39 from 2017 to 2019. It means the
company has the ability to increases the net sales by using the fixed assets is increases as the
total assets has been increases (Agthia Group, 2019).
b) Conduct financial planning analyses to assess whether the company needs any
external finance in the future?
Ratio 2017 2018 2019