Comprehensive Financial Analysis Report: Al Anwar Ceramic Company

This report provides a comprehensive financial analysis of Al Anwar Ceramic, a company specializing in manufacturing and distributing ceramic tiles in Oman. It begins with an overview of the company, including its establishment in 1998 and its current production capacity. The report then presents an investment summary, highlighting the company's strong position in the Omani market, effective cost management, and consistent dividend payments. Key catalysts for the company's growth, such as increased production capacity and expansion plans, are discussed. The investment rationale section explains the drivers behind the demand for Al Anwar Ceramic's products. The report includes a detailed ratio analysis, covering profitability, liquidity, efficiency, and valuation ratios, along with sales and cash flow analysis. The analysis reveals the company's strong financial performance. The report concludes that Al Anwar Ceramic is performing well and is planning to expand its business. References to relevant books and journals are also provided.

FINANCE

Table of content
Introduction
Overview of company
Investment summary
Key catalysts
Investment rationale
Ratio analysis
Conclusion
References

Introduction
• Finance is term that refers to a process of implementing proper management of
monitory resources of the company.
• The major motive of implementing finance is to maintain sufficient amount of financial
resources within the company and formulate effective strategies in such a way so that
company's financial position could be improved.
• Al Anwar ceramic is a company that manufactures ceramic tiles in the Oman. The
present stud includes a brief description of overall business of Al Anwar ceramic
company.
• Further it also includes a detailed analysis of financial performance of the company.

Overview of company
• Al Anwar ceramic is company which is specialised in manufacturing and distribution of
finest 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 3.5 million square meter per annum. It is formulating its new
plans and procedures in order to increase its capacity to 17 million square meter per annum.

Investment summary
• Al Anwar ceramic is an Oman based company. Thus, majority of its business
depends upon the demand of ceramic tiles and other products produced by it in
the market of Oman.
• With the help of growing demand of ceramic tiles in Oman, the company has become able to become
one among the top three companies of the ceramic tiles industry.
• Further, with the help of effective cost management, the company's profitability has also been improved.
• In addition, with the help of strong balance sheet and lower value of leverage, the company is
maintaining consistency in payment of dividend and develop more effective future investment plans as
well. By analysing financial statements of last few years, it can be states that Al Anwar ceramic’s
capability of paying dividend.

Key catalysts
• Recently the company has become able to increase its capacity of production upto 3.5 million square
meter per annum .
• Al Anwar ceramic is one the most leading tiles manufacturer company 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 have formulated their plans and policies through which it would be
able to minimise its cost and improve the profitability as well.

Investment rationale
• Increase in demand of Oman's building and construction sector results in driving the demand of
ceramic tiles of Al Anwar ceramic
• As per annual reports of Al Anwar ceramic, net income of the company rose to
69%. to OMR623K.
• Growth in the 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 company increased by
22.04 % recently.
• Thus, it can be analysed that Al Anwar ceramic is currently performing efficiently in
context to its financial performance.

Ratio analysis
Profitability ratios
2014 2015 2016 2017 2018 2019(1)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
51.70%
47.43%
38.82%
33.54%
27.58%
32.44%33.94%
23.82%
8.43% 8.68%
3.91%
11.44%
Profi tability ratios
GP ratio NP ratio

Liquidity ratios:
2014 2015 2016 2017 2018 2019(1)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Liquidity ratios
Current ratio Quick ratio

Efficiency ratio:
2014 2015 2016 2017 2018 2019(1)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
0.60 0.58 0.50 0.49 0.47
0.14
2.89
3.66
3.08
2.68 2.58
0.74
Eff iciency ratios
Assets turnover ratio Inventory turnover ratio

Valuation ratios
2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 ( 1 )
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
0.04
0.045
0.04
0.022
0.006 0.006
0.003 0.002
Valuation ratio: EPS

Sales analysis
2014 2015 2016 2017 2018 2019(1)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Sales