Bankruptcy Prediction by Using the Altman Z-score Model in Oman: A Case Study of Raysut Cement Company SAOG and its subsidiaries

This study assesses the financial health of Raysut Cement Company SAOG and its subsidiaries in Oman using the Altman Z-score model. The findings can be useful for managers, stockholders, and others interested in the cement manufacturers of the country.

Australasian Accounting, Business and
Journal
Volume 10| Issue 4 Article 6
Bankruptcy Prediction by Using the Altm
score Model in Oman: A Case Study of R
Cement Company SAOG and its subsidia
Shariq Mohammed
Dhofar University, Oman, [e-mail]
Follow this and additional works at: http://ro.uow.edu.au/aabfj
Copyright ©2017 Australasian Accounting Business and Finance Journal and Authors.
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Recommended Citation
Mohammed, Shariq, Bankruptcy Prediction by Using the Altman Z-score Model in Oma
Study of Raysut Cement Company SAOG and its subsidiaries, Australasian Accounting
Finance Journal, 10(4), 2016, 70-80. doi:10.14453/aabfj.v10i4.6

Bankruptcy Prediction by Using the Altman Z-score Mode
Case Study of Raysut Cement Company SAOG and its sub
Abstract
Financial health is of great concern for a business firm. For measuring the financial health of
there are lots of techniques available. But Altman’s Z-score has been proven to be a reliable
envisages to predict the possibilities of bankruptcy of manufacturing organization. Multiple di
analyses (MDA) are useful tools in such situations. The use of MDA helps to consolidate the eff
ratios. Keeping the above view in mind, the “Z score” analysis has been adopted to monitor t
health of the company. The current study has been conducted to assess the financial health o
Raysut Cement Company SAOG and its subsidiaries in Oman. This study was based on the se
which was obtained from the published sources i.e. Annual report for the period of 8 years (2
The study revealed that the Company Raysut Cement Company SAOG and its subsidiaries are
sound as they have higher Z score than the benchmark (2.99) except in some years of study.
the study may be useful for the managers to take financial decision, the stockholders to choo
options and others to look after their interest in the concerned cement manufacturers of the
Keywords
Financial health, Altman’s Z-score, Raysut cement company
This article is available in Australasian Accounting, Business and Finance Journal: http://ro.uow.edu.au/aa

Bankruptcy Prediction Using the
Altman Z-score Model in Oman: A Case
Study of Raysut Cement Company SAOG
and its subsidiaries
Shariq Mohammed1
Abstract:
Financial health is of great concern for a business firm. For measuring the financial health of a business firm, there
are lots of techniques available. However, Altman’s Z-score has been proven to be a reliable tool. This model
envisages predicting the possibilities of bankruptcy of manufacturing organization. Multiple discriminate analyses
(MDA) are useful tools in such situations. The use of MDA helps to consolidate the effect of all ratios. Keeping the
above view in mind, the “Z score” analysis has been adopted to monitor the financial health of the company. The
current study has been conducted to assess the financial health of a firm namely Raysut Cement Company SAOG
and its subsidiaries in Oman. This study was based on the secondary data which was obtained from the published
sources i.e. Annual report for the period of 8 years (2007 to 2014). The study revealed that the Company Raysut
Cement Company SAOG and its subsidiaries are financially sound as they have higher Z score than the benchmark
(2.99) except in some years of study. The findings of the study may be useful for the managers to take financial
decision, the stockholders to choose investment options and others to look after their interest in the concerned
cement manufacturers of the country.
Keywords:Financial health, Altman’s Z-score, Raysut cement company
JEL Classification: C39, M41
1 College of Commerce and Business Administration, Dhofar University, Salalah 211, P.O.Box:2509, Sultanate of
Oman. Email: [e-mail], [e-mail].

Shariq Mohammed | Bankruptcy Prediction by Using the Altman Z-score Model
71
1. Introduction
Financial health is a great concern for a business firm. The profit and loss account provides data about the operating
activities whereas balance sheet tells about the assets and liabilities of the business at a particular point of time.
There are basically two concerned parties in knowing the financial health of any firm. They are classified into
internal and external users of accounting information. The parties which are interested in the performance of an
organization are shareholders, officers, managers, employees and internal auditors. There are external parties namely
Banks, Customers, Creditors and suppliers.
Shareholders /Investors (owners) use accounting information to make, buy, sell or keep decisions related to shares,
bonds, etc. They are concerned whether the firm can pay off their required rate of return or not. Creditors (suppliers,
banks) utilize accounting information to make lending decisions and are interested to know the payment capacity of
the firm for pricing and collection of credits. So, judging the financial capacity of businesses carries enormous
information for the institutions and people around it. The measurement of financial soundness shapes their decisions.
For measuring the financial health of a business firm, there are lots of techniques available. But the Altman’s Z-
score has been proven to be a reliable tool across the globe. This model devotes to predict possibilities of bankruptcy
of manufacturing concerns. There is evidence that it has 76.9% accuracy in predicting the bankruptcy of the
underlying sample (Begley et al. 1996). Altman (1968) defines five predicted factors that can be used to test the
validity of Multivariate model. The model is based on financial ratios. Using financial ratios to predict bankruptcy
can be accurate up to 90% (Chen & Shemerda, 1981).
Problem Under Study:
Financial health depends on the solvency of the firm which must be managed in the most efficient manner as to
guaranty the systematic growth and continued existence of the organization. The firm’s liquidity is the most
important factor in an organization for the financial health of an organization. There is a need of a proactive tools
rather than a reactive tool in the general approach towards the detection and remediation of the potential problem.
The Financial health can change into financial distress when the companies operating cash flows are insufficient to
meet the current obligation. A firm in financial distress may also face bankruptcy or liquidation to meet its
obligation. In this paper we are going to look at the model i.e. Z score with a view to assess the financial health of
the firm. This paper is divided into five parts; following the introduction is the review of relevant literature. The
third part presents the methodology that is used in gathering data and how the data were analyzed. Part 4 presents
the data and discusses the result of the analysis while last part contains the conclusion and recommendation.
2. Literature review:
Sanesh (2016) tried to assess the Altman Z-score of NIFTY 50 companies excluding banks and financial companies.
The score tries to predict probability of default by the companies due to the financial distress based on the current
financial statistics of the company. Kumari’s (2013) paper tried to predict bankruptcy for MMTC based on
Altman’s model of the Z score. She concluded that the overall financial health of MMTC is good, and it can be
quoted as an investor friendly company. Ramana Reddy and Hari Prasad Reddy (2013) is also relevant. In this
article, the Z score analysis shows the poor financial performance leading to bankruptcy of Chittoor co-operative
sugars Ltd. Comparatively the financial performance of Sri Venkateswara Sugars Factory Ltd. was good.
Vikas Tyagi (2014) in his paper investigated the financial health of logistic industry in India based on Z score
analysis. It reveals that Indian logistic industry was healthy industry .It is good that average Z score value increases
from 2006 to 2010 (2.54 to 3.01) when Indian economy was hit by global recession. This indicates the overall
performance of Indian logistic industry was good. Al-Rawi, Kiani and Vedd (2008) used the Altman z-score
analysis to predict a firm’s insolvency. They have remarked that the firm has increased its debt and will be facing
bankruptcy in the near future.
Gerantonis Vergos and Christopoulos (2009) investigated whether Z-score models can predict bankruptcies for a
period up to three years earlier. Results showed that Altman model performed well in predicting failures. They
concluded that the results can be used by company management for financing decisions, by regulatory authorities
and by portfolio managers in stock selection.

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72
Chowdhury and Barua (2009) applied Z score model to the Z category shares traded in DSE to judge financial
distress risk of each share. They used 53 companies’ data of the years 2000-2005 to calculate Z-score. They argued
that the Altman’s Z score model, though may not be fully applicable for companies in Bangladesh, yet proves its
strong validity and correctness in predicting distressful status of the Z category companies. Ramaratnam and
Jayaraman (2010) measured financial soundness of Indian steel industry by using Z score model. The study was
based on five years’ data (2006-2010) of five firms of the steel industry. Their study revealed that all the selected
companies are financially sound during the study period.
Alkhatib and Al Bzour (2011) conducted a study to report the effect of financial ratios in bankruptcy prediction in
Jordanian listed companies through the use of Altman and Kida models. They suggested that the Jordanian listed
companies should at least apply one of these models with high credibility for predicting corporate bankruptcy.
Among others, corporate bankruptcy prediction model developed by Altman in 1968 is the most accepted and
widely used tool (Mizan, Amin and Rahman 2011).The Altman Z score model is used in different countries for
predicting bankruptcy.
Mizan, Amin, and Rahman (2011) conducted a study for the prediction of bankruptcy of the pharmaceutical industry
in Bangladesh. They used the Altman Z-score Model for this purpose where sample size was six leading companies
of this industry. Their study reveals some valuable findings like, two firms are found financially sound having no
bankruptcy possibility in the near future and other companies are found to be unsatisfactory and they have a
significant likelihood of facing financial crisis in the near future. They also stated that market value of equity of
most of the firms is not reflecting the fundamentals of the respective companies. Altman and Beaver showed that a
financial statement as sufficient information for a highly discriminate function of large businesses (Kim-Soon et al.,
2013)
Mizan and Hossain’s (2014) study has been conducted to assess the financial health of cement industry of
Bangladesh. The study revealed that among the five firms, two firms are financially sound as they have higher Z
score than the benchmark (2.99). Another firm is in the grey area that is the firm is financially sound, but the
management requires special attention to improve the financial health of the organization. The other two firms are at
serious risk of financial crisis.
3. Research methodology:
This study is Case study of Raysut cement company SAOG and its subsidiaries. A brief overview of the company is
given as follows. The Raysut Cement Company SAOG ("the Parent Company" or “Company”) was formed in Mar
15, 1981 by Ministerial Decision No. 7/81 and is registered in the Sultanate of Oman as a joint stock company. The
parent Company is engaged in the production and sale of ordinary portland cement, sulphur resistant cement, oil
well class 'G' cement and pozzolana well cement. All the financial statements are presented in Omani Rial (“RO”)
since that is the currency of the country in which the majority of the Company’s transactions are denominated. In the
Annexure the main points of the financial statement are presented. The principal activities of the subsidiary
companies are set out below:
Subsidiary companies Country of
incorporation
Shareholding
percentage
(2014)
Shareholding
percentage
(2013)
Principal activities
Pioneer Cement Industries LLC
United Arab
Emirates 100% 100% Production and sale
of cement
Raysea Navigation SA Panama 100% 100% Shipping transport
company
Raybulk Navigation SA Marshall
Islands
100% 100% Shipping transport
company
Pioneer Cement Industries Georgia
Limited*
Georgia 100% 100% Production and sale
of cement

Shariq Mohammed | Bankruptcy Prediction by Using the Altman Z-score Model
73
(*Pioneer Cement Industries Georgia Limited is a subsidiary of Pioneer Cement Industries LLC)
Source: Annual reports of Raysut cement company SAOG and its subsidiaries Year 2014-2015)
This case study was based on the secondary data which was obtained from the published sources i.e. Annual report
for the period of 8 years (2007 to 2014). The absolute figures reported in the financial statements do not serve the
purpose of measuring the financial health of the companies. Hence, the financial analyst has to analyse the financial
data in order to ascertain the strengths and weaknesses of the companies. Despite the financial analyst had many
analytical tools, ratio analysis is most powerful tool to ascertain the financial health of the companies. Alone a single
ratio does not serve the purpose.
The collected data was analysed with the help of ratio analysis. The accounting ratios used to predict the financial
performance of the company, gives a warning only when it is too late to take corrective action. Therefore, it is
necessary to combine the different ratios into a single measure of the probability of sickness or failure. Multiple
discriminate analysis is a useful tool in such situations. The use of MDA helps to consolidate the effect of all ratios.
Keeping the above view in mind, the “Z score” analysis has been adopted to monitor the financial health of the
company.
Objectives:
The objectives of this study are as follows:
1) To assess the overall financial performance of the company
2) To know the efficiency in financial operations
3) To predict the financial health and viability of the company
Z score Analysis:
Altman’s Bankruptcy Prediction Model: This Model was initially developed in 1968 by Edward I. Altman where he
utilized data drawn from large US companies. He developed a model for predicting the likelihood that a company
would go bankrupt. This model uses five financial ratios that combine in a specific way to produce a single number.
This number is called the Z score. It is a general measure of corporate financial health. This value is to represent
overall index of corporate financial health.
n
Zi=1.2 x1i + 1.4 x2i + 3.3 x3i + 0.6 x4i + 1 x5i Eq. (1.1)
i=1
where i = year 1 to n
x1i = Networking capital to total assets ratio
x2i = Retained Earnings to total assets ratio
x3i = Profit Before interest & Tax (PBIT) to total assets ratio
x4i = Capital funds to total liabilities ratio
x5i = net sales to total assets ratio
x1i = Networking capital to total assets ratio. The net Working capital is the difference between current assets and
current liabilities and the Total assets is the total of current assets and fixed assets.
x2i = Retained Earnings to total assets ratio : It indicates the amount reinvested, the earnings or losses, which
reflects the extents of company’s leverage. In other words, the extent to which assets have been paid for by company
profits. Those firms with high RE relative to TA have financed their assets through retention of profits and have not
utilized as much debt. It also highlights either the use of internally generated funds for growth (low risk capital) Vs
OPM (other people’s money) – high risk capital. This is measure of cumulative profitability overtime and leverage
as well.
x3i = Profit Before interest & Tax (PBIT) to total assets ratio: It is the measure of the company’s operating
performance and also it indicates the earning power of the company. In addition, this is a measure of the
productivity of the firm’s assets, independent of any tax or leverage factors. Since a firm’s ultimate existence is
based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with
credit risk.

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x4i = Capital funds to total liabilities ratio: It is the measure of the long-term solvency of a company. It is reciprocal
of the familiar debt-equity ratio. Equity is measured by the combined market value of all shares. While debt includes
both current and long term liabilities. This measure shows how much assets of an enterprise can decline in value
before the liabilities exceed the assets and the concern becomes insolvent.
x5i = net sales to total assets ratio: This is a standard turnover measure. Unfortunately, it varies greatly from one
industry to another. In addition to this, it will reveal the sales generating capacity of the company’s assets and also
measure of management’s capacity to deal with competitive conditions.
Test Results
If the Z score is less than 1.21 then it indicates bad financial performance which may lead to bankruptcy. It indicates
a poor financial performance if the Z Score is ≥1.21 and Z ≤2.9.
Lastly If the Z score value is greater than 2.9 then it indicates good financial performance.
4. Analysis and results.
Table 1: Showing Net Working Capital to Total Assets Ratio for Raysut cement company SAOG and its
subsidiaries (all Figures in Omani Rial)
YEARS 2007 2008 2009 2010 2011 2012 2013 2014
NWV 24004961 28275340 33970938 17747689 3538168 33395085 45466732 43964430
TA 113029502 117644321 123337156 191572303 189074376 195292881 205106210 204174931
X1 0.2124 0.2403 0.2754 0.0926 0.0187 0.1710 0.2217 0.2153
Source: X1 computed by researcher’s based on values extracted from audited financial statements 2007- 2014
NWV =Net Working Capital, TA= Total Assets, X1=Net Working Capital/ Total Assets
Inferences:
It may be observed from the table I that the working capital to total assets ratio of Raysut cement had been around
0.0187 to 0.27. This ratio of company is very fluctuating. The total assets increased year by year except in the year
2010 & 2011 which shows the company had more concentration on the investments in fixed assets. The efficiency
of this company in the matter of management of working capital helps the company to maintain the good financial
health. The working capital is showing an increasing trend which is satisfactory. This analysis will help Raysut
cement in maintaining the appropriate working capital i.e. neither low nor high level of investments in current assets
without disturbing the basic liquidity position of the companies.
Table 2: Showing Retained Earnings to Total Assets Ratio for Raysut cement company SAOG and its
subsidiaries (all Figures in Omani Rial)
YEAR
S 2007 2008 2009 2010 2011 2012 2013 2014
RE 40822882 47930345 56612832 57335204 52284187 66987600 79513513 91939680
TA 113029502 117644321 123337156 191572303 189074376 195292881 205106210 204174931
X2
0.361170
15
0.407417
41
0.459008
74
0.299287
54
0.276527
09
0.343010
97
0.387669
94
0.450298
57
Source: X2 computed by researcher’s based on values extracted from audited financial statements 2007- 2014
RE = Retained Earnings, TA= Total Assets, X2=Net Working Capital/ Total Assets

Shariq Mohammed | Bankruptcy Prediction by Using the Altman Z-score Model
75
Inferences: In Table 2 we can see the trends of retained earnings to total assets of the Raysut cement company. The
ratio of retained earnings to total assets indicates that how much portion of total assets has been financed by retained
earnings. Higher the ratio greater the financial stability of the company at times of low profitability periods. And
also it depicts that the company is utilizing its own earnings as cheaper source of finance rather than debt finance.
It is observed that Raysut cement has good retained earnings in year 2007 to 2014. It shows the profitability of
company. This study shows that Raysut cement have been utilizing retained earnings for financing its operations
then debt. The increasing trends of retained earnings during the study period indicate that there is a growth of the
Raysut cement.
Table 3: Showing EBIT (earnings before interest & taxes) to Total Assets Ratio for Raysut cement company
SAOG and its subsidiaries (all Figures in Omani Rial)
YEARS 2007 2008 2009 2010 2011 2012 2013 2014
EBIT 33305006 30968463 32029487 23533372 17041743 26996815 30621367 30388253
TA 113029502 117644321 123337156 191572303 189074376 195292881 205106210 204174931
X3 0.2947 0.2632 0.2597 0.1228 0.0901 0.1382 0.1493 0.1488
Source: X3 computed by researcher’s based on values extracted from audited financial statements 2007- 2014
EBIT = earnings before interest & taxes, TA= Total Assets, X3= EBIT / Total Assets
Inferences: The operational performance and earning power could be accessed through EBIT to Total assets which
lead the business success or failure (Table 3). The profitability of the company has an increasing trend. From year
2007 to 2014 company’s profit was increasing except in the year 2010 and 2011 but compared to profit there was
more increase in total assets. In short, this ratio indicates that the overall profitability of the company was increasing
but few instances where it has decreased.
Table 4: Showing Market Value of Equity to Total Liabilities Ratio for Raysut cement company SAOG and
its subsidiaries (all Figures in Omani Rial)
YEARS 2007 2008 2009 2010 2011 2012 2013 2014
MVE 90946422 98053885 106736372 107458744 102407727 117111140 129637053 142063220
TL 22083080 19589827 16600784 84113559 86666649 78181741 75469157 62111711
X4 4.1184 5.0053 6.4296 1.2775 1.1816 1.4979 1.7177 2.2872
Source: X4 computed by researcher’s based on values extracted from audited financial statements 2007- 2014
MVE = Market Value of Equity, TL= Total Liabilities, X3= MVE / TL
Inferences: table 4 shows that, the market value of equity and total liabilities increased every year but not in the
same proportion. There has been a decrease in the year 2011 & 2012 in the market value of equity. Equity to debt
ratio indicates the proportion of owner’s fund to the long term debt. Where debt is more, the company has an
obligation to pay interest to the creditors and thereby the shareholders risk may be increased. This ratio has a
decreasing trend which is not good for Raysut cement.

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76
Table 5: Showing Sales to Total assets Ratio for Raysut cement company SAOG and its subsidiaries (all
Figures in Omani Rial)
YEARS 2007 2008 2009 2010 2011 2012 2013 2014
Sales 63013288 89080899 89346036 64978403 83813141 92802705 93290315 94292989
TA 113029502 117644321 123337156 191572303 189074376 195292881 205106210 204174931
X5 0.55749 0.75721 0.72440 0.33918 0.44328 0.47520 0.45484 0.46182
Source: X5 computed by researcher’s based on values extracted from audited financial statements 2007- 2014)
Sales = Sales, TA= Total Assets, X5= Sales / TA
Inferences: In table 5, we have sales to the total assets. The Sales revenue plays a pivotal role in overall
performance of the companies because all the operations are more or less depending on the sales revenue. Sales to
total assets ratio measure the power of the asset in generating the sales. Higher ratio indicates the better performance
and while poor ratio indicates the poor financial management of the companies in the optimum utilization of its
assets in generating the sales revenue. We can observe from the trend that the sales revenue is showing an increasing
trend except in the year 2010 where there was a drop. This has a positive impact on the performance.
Table 6: Showing the “Z Scores” of Raysut cement company SAOG and its subsidiaries from 2007-2014
YEAR
S 2007 2008 2009 2010 2011 2012 2013 2014
X1 NWV/
TA 0.21238 0.24035 0.27543 0.09264 0.01871 0.17100 0.22167 0.21533
X2 RE/TA 0.36117 0.40742 0.45901 0.29929 0.27653 0.34301 0.38767 0.45030
X3 EBIT/
TA 0.29466 0.26324 0.25969 0.12284 0.09013 0.13824 0.14930 0.14883
X4 MVeq.
/TL 6.45508 5.00535 6.42960 1.27754 1.18163 1.49793 1.71775 2.28722
X5 Sales/
TA 0.55749 0.75721 0.72440 0.33918 0.44328 0.47520 0.45484 0.46182
Z
score 4.761 5.488 6.412 2.041 1.859 2.516 2.787 3.214
Source: Researcher’s Computation based on values extracted from audited financial statements 2007- 2014
Inferences: For determining the financial health of this company, this study used Z score model, which provides the
financial soundness of a business. The table VI shows the Z score values of the company. The Z score value
throughout has remained above 2.9 in all years except in the year 2010,2011& 2012 which was 2.041 ,1.859 &
2.516 respectively which showed a poor financial performance but it was above 2.9 in all the other years which
showed a good performance of the company. As per the Altman’s guidelines, the company financial position is
healthy if the Z score value is greater than 2.9. In the year 2014 the Z score increased to 3.214 which shows that the
health of the firm is good. Ramana Reddy and Hari Prasad Reddy (2013) concluded that the financial performance
may lead to bankruptcy of Chittoor co-operative sugars Ltd. whereas the financial performance of Sri Venkateswara
Sugars Factory Ltd. was good. Nilanjana Kumari (2013) concluded that the overall financial health of MMTC is
good, and it can be quoted as an investor friendly company. Vikas Tyagi (2014) investigated the financial health of
logistic industry in India based on Z score which revealed that Indian logistic industry was healthy industry. The Z
score value increases from 2006 to 2010 (2.54 to 3.01) when the Indian economy was hit by a global recession.

Shariq Mohammed | Bankruptcy Prediction by Using the Altman Z-score Model
77
Al-Rawi, Kiani and Vedd (2008) used the Altman z-score analysis to predict a firm’s insolvency. They have made a
comment that the firm has increased its debt and will be facing bankruptcy in the near future. In the same way we
can say that the financial health of Raysut cement is good.
5. Conclusion
It is clear from the above case study that the financial position of the subject company is good. It
never fell to less than 1.8 according to the Z score analysis it has a small probability of the firm
facing financial distress in the near future. Investment in current assets are appropriate neither
they are too high for they are too less. They have an optimum level of investment in the current
assets as this is a cement manufacturing company.
The subject company has been utilizing its retained earnings for its investments therefore there
would be less burden of interest on the company. EBIT to Total Assets ratio indicates that the
overall profitability of the company has an increasing trend. The market value of equity and total
liabilities increased every year but not in the same proportion. There has been a decrease in the
year 2011 & 2012 in the market value of equity. This ratio has a decreasing trend which is not
good for Raysut Cement. The Company has a good opportunity to improve its sales capacity but
had been totally failure to utilize their assets optimally in generating the sales revenue. This has a
positive impact on the performance
The fundamental financial health of a business firm is the main concern for the stakeholders. On
the basis of the financial soundness, they take a decision regarding their possible involvement
with a particular firm. The Altman Z score is the best measurement that can shape the decision of
the stakeholders. The current study has been conducted to assess the financial health of a firms
namely Raysut Cement Company SAOG and its subsidiaries in Oman. The study revealed that
Raysut Cement Company SAOG and its subsidiaries is financially sound as they have higher Z
score than the benchmark (2.99) except in some years of study So, the findings of the study can
be useful for the managers to take financial decision, the stockholders to choose investment
options and others to look after their interest in the concern cement manufacturers of the country.
6. Limitations of the Study and Suggestions for Future Research
This study is based on a case study of a single company of the cement industry of Oman. It is to
be mentioned that only two cement companies are operating in Oman. This study covers a period
of 2007-2014. The collected data for the present study is secondary data which is based on the
published data of financial statements of the company.This study was based on a case study of a
single company operating in Oman. We have a scope of further study on this topic by studying
all companies which operate in Oman.
The cement industry is the backbone of industrial development; therefore it has further scope of
study on the Gulf Cooperation Council (GCC countries). We can study for the member countries
of GCC for wider results on Z scores.

AABFJ | Volume 10, no. 4, 2016
78
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Appendix:
Financial data of Raysut cement company SAOG and its subsidiaries (all Figures in Omani Rial)
YEARS 2007 2008 2009 2010 2011 2012 2013 2014 Average
TOTAL
CURRENT
ASSETS 38094093 42234960 45779049 44403702 39854104 50386280 63647889 61985045 48298140.25
TOTAL
CURRENT
LIABILITIES 14089132 13959620 11808111 26656013 36315936 16991195 18181157 18020615 19502722.38
NET WORKING
CAPITAL 24004961 28275340 33970938 17747689 3538168 33395085 45466732 43964430 28795417.88
TOTAL NON
CURRENT
ASSETS 74935409 75409361 77558107 147168601 149220272 144906601 141458321 142189886 119105819.8
TOTAL ASSETS 113029502 117644321 123337156 191572303 189074376 195292881 205106210 204174931 167403960
Retained
Earnings 40822882 47930345 56612832 57335204 52284187 66987600 79513513 91939680 61678280.38
TOTAL
LIABILITIES=
total current
liabliities+total
non current
liablities 22083080 19589827 16600784 84113559 86666649 78181741 75469157 62111711 55602063.5
Revenue
(sales) 63013288 89080899 89346036 64978403 83813141 92802705 93290315 94292989 83827222
Profit Before
interest & Tax 33305006 30968463 32029487 23533372 17041743 26996815 30621367 30388253 28110563.25
Market value
of Equity 90946422 98053885 106736372 107458744 102407727 117111140 129637053 142063220 111801820.4
TOTAL NON
CURRENT
LIABILITIES 7993948 5630207 4792673 57457546 50350713 61190546 57288000 44091096 36099341.13
TOTAL
CURRENT
LIABILITIES 14089132 13959620 11808111 26656013 36315936 16991195 18181157 18020615 19502722.38
total liabilities
= total current
liabilities +
total
noncurrent
liabilities 22083080 19589827 16600784 84113559 86666649 78181741 75469157 62111711 55602063.5
(Source: Annual reports of Raysut cement company SAOG and its subsidiaries Year 2007 -2014)