Complete Financial Analysis of Almarai Company

Running head: FINANCIAL ANALYSIS
Financial Analysis
Name of the Student
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Author Note

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FINANCIAL ANALYSIS
Executive Summary:
This report aims to show a complete analysis of Almarai company. A comprehensive analysis is
conducted by using PESTEL and Porter for external opportunities and threats, and internal
analysis is done by assessing the strength and weaknesses of the company. The quantitative
analysis is done by computing the ratios to assess its capabilities to pay off the debt, to assess the
financial position and to evaluate the return and profit margins of the company. The trend
analysis is also done to evaluate the past and present trends of the company. A comparison is
also conducted with the rival competitor company, which is Nestle.

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FINANCIAL ANALYSIS
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................4
Internal analysis – Strength and Weaknesses..............................................................................4
External Analysis.........................................................................................................................6
(i) PESTEL:.............................................................................................................................6
(ii) Porter:.................................................................................................................................7
Financial Analysis:......................................................................................................................8
I: Profitability analysis:............................................................................................................9
II: Decisions for investment:...................................................................................................9
III: Financial Decision analysis:...........................................................................................10
IV: Return analysis:...............................................................................................................11
Recommendations:........................................................................................................................14
Conclusion:....................................................................................................................................14
Appendix:......................................................................................................................................16

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FINANCIAL ANALYSIS
Introduction:
The listed company selected for conducting financial analysis is Almarai. This report
aims to determine how Almarai can create value for the shareholders and to assess if solvency
exists from creditor’s perspective. Almarai is a food and beverage manufacturing company based
in Saudi Arabia and listed on “Tadawul Stock Exchange.” The five essential products which the
company offers in ‘Middle East’ and ‘North Africa’ are - dairy products, infant formula
products, poultry, juices, and bakery products. This report will focus on a complete analysis of
the company by conducting ana analysis of the company’s SWOT Analysis, a market analysis of
the industry in which the company exists by PESTEL, Porter and finally a financial analysis.