Financial Statement Analysis PDF

Added on - 21 Apr 2020

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Running Head: Financial Statement analysis1Project Report:Financial Statement analysis
Financial Statement analysis2ContentsIntroduction.......................................................................................................................3Company overview...........................................................................................................3Financial analysis..............................................................................................................3Ratio analysis................................................................................................................3DU Pont analysis..........................................................................................................4Trend analysis...............................................................................................................5Industry analysis...........................................................................................................5Conclusion........................................................................................................................5References.........................................................................................................................7Appendix...........................................................................................................................8
Financial Statement analysis3Introduction:This report has been prepared to analyze the financial position of NATIONALTAKAFUL COMPANY. In this report, various financial tactics and methods have been usedto evaluate the position of the company in the market.Company overview:NATIONAL TAKAFUL COMPANY is operating its business into ABU DHABI,UAE. This company has come into existence in 2011. It has been founded by Nationalinsurance company and National Islamic finance. Currently, 6 branches are operated by thiscompany in the UAE market. The main operations of this company are to offer the HealthTakaful to its employees (Home, 2017).Further, the economical condition of UAE is quite string right now. The country isperforming well and the companies in this country are also achieving the high growth into themarket. The growth of the company is continuously increasing (ADX, 2017).Financial analysis:A financial analysis study has been performed over the company to analyze andinvestigate the position of the company. Ratio analysis, DU Pont analysis and trend analysisstudy has been done over the NATIONAL TAKAFUL COMPANY (Ansari, 2004).Ratio analysis:Ratio analysis study has been conducted over NATIONAL TAKAFUL COMPANYto analyze the profitability, liquidity and solvency position of the company. Through theprofitability analysis, it has been found that the current net margin and ROE of the companyis -14.97% and -17.37% which has been way better from last 2 years (Girling 2013). More,the liquidity position of the company has been analyzed. Through this study, it has beenfound that the company has managed the position of current assets and liabilities to managethe liquidity position. It has become better than last year.
Financial Statement analysis4(Morningstar, 207)Lastly, the study has been done over the solvency position of the company. Throughthe analysis over the company, it has been found that the debt and equity position of thecompany has been lowered than last year. Company has reduced the level of the debt tomanage the risk factor and a better position into the market (Heisinger, 2009).Through this study, it has been found that the market position of NATIONALTAKAFUL COMPANY is becoming better year by year. The calculations have been giveninto the appendix.DU Pont analysis:Further, the study has been done over the DU Pont analysis of the company. Thisstudy depict about the return on equity of the company. For conducting this study, net profitmargin and the total asset turnover of the company has been analyzed and through thesevalues, the return on equity of the company has been found.Return on equity is the value which is expected by the investors to get as a dividendfrom the company. The current net profit margin of the company has been analyzed throughdividing the net profit margin of the company by total sales of the company. Through thisanalysis, it has been found that the net profit margin of the company is 0.42% whereas the
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