It is often assumed by unsophisticated readers of financial statements that the data included isprepared on a purely objective basis. This, however, is not the case as much of the information presented in financial statements involves elements of judgment. You have to choose a company which is listed in UAE stock markets. Using the latest available 4 year Annual Reports of the companies and by reference to the financial statements and accompanying
- Introduce your company, the industry, and the environment under which it operates;
- Calculate all ratios. By means of Ratio analysis:
o Measure and comment upon profitability, asset utilization, liquidity, and debt utilization;
o Make two tables in which you calculate the DOL and DFL over 4 years, and comment on the numbers;
- Apply what you learnt in the following topics at your selected companies (capital structure, stock valuation, dividend policy…)
- As conclusions and recommendations, provide a short overall analysis for different stakeholders and particularly for shareholders on whether they should maintain, increase or reduce investment.
The question belongs to Finance and it discusses about analyzing a listed company’s financial information and interpreting the data.
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