Finance Assignment Sample (Doc)
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Added on 2021-02-21
Finance Assignment Sample (Doc)
Added on 2021-02-21
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FINANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Overview of company..................................................................................................................3Investment summary....................................................................................................................3Key catalysts................................................................................................................................3Investment rationale.....................................................................................................................4Ratio analysis...............................................................................................................................4CONCLUSION .............................................................................................................................11REFERENCES .............................................................................................................................12
INTRODUCTIONFinance is term that refers to a process of implementing proper management of monitoryresources of the company. The major motive of implementing finance is to maintain sufficientamount of financial resources within the company and formulate effective strategies in such away so that company's financial position could be improved. Al Anwar ceramic is a companythat manufactures ceramic tiles in the Oman. The present stud includes a brief description ofoverall business of Al Anwar ceramic company. Further it also includes a detailed analysis offinancial performance of the company. Overview of companyAl Anwar ceramic is company which is specialised in manufacturing and distribution offinest ceramic tiles. It was establish in the year 1998. The company uses different raw materials,galzes, pigments, frits, etc. available in the local market. Currently its production capacity is 3.5million square meter per annum. It is formulating its new plans and procedures in order toincrease its capacity to 17 million square meter per annum.Investment summaryAl Anwar ceramic is an Oman based company. Thus, majority of its business dependsupon the demand of ceramic tiles and other products produced by it in the market of Oman(Alian, Shinen and Ali, 2018). With the help of growing demand of ceramic tiles in Oman, thecompany has become able to become one among the top three companies of the ceramic tilesindustry.Further, with the help of effective cost management, the company's profitability has alsobeen improved.In addition, with the help of strong balance sheet and lower value of leverage, thecompany is maintaining consistency in payment of dividend and develop more effective futureinvestment plans as well. By analysing financial statements of last few years, it can be states thatAl Anwar ceramic’s capability of paying dividend. Key catalystsRecently the company has become able to increase its capacity of production upto 3.5million square meter per annum .Al Anwar ceramic is one the most leading tiles manufacturercompany of Oman.The latest objective of the company is to expand its business in Nizwa and
expand its capacity to 17 million square meter per annum. The managers of company also haveformulated their plans and policies through which it would be able to minimise its cost andimprove the profitability as well. Investment rationaleIncrease in demand of Oman's building and construction sector results in driving thedemand of ceramic tiles of Al Anwar ceramic (Millan Cárdenas and et.al., 2017). As per annualreports of Al Anwar ceramic, net income of the company rose to 69%. to OMR623K. Growth inthe ceramic tiles industry is more faster than the growth of GDP. Cement.Further, the study also shows that the overall operating cash flow of the companyincreased by 22.04 % recently. Thus, it can be analysed that Al Anwar ceramic is currentlyperforming efficiently in context to its financial performance. Ratio analysisProfitability ratiosProfitability ratio is one of the category of financial metrics which are applied for thepurpose of assessing the ability of company of generating earnings in relation to operating costs,revenue, assets and equity by using a particular time period. In other words, it displays howeffectively the company has used its resources for generating its profits. It includes gross profit,net profit ratios. The gross profit ratio entails the relationship between sales and gross profit of abusiness. The GP ratio of Al Anwar ceramic company for the la32st few years have declined as itwas 51.70% in 2014 which has declined to 32.44% in the year 2019(1). While net profit ratio isalso depicting a declining trend over the last years. This means that company's effciciny hasdecreased significantly.
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