Analyse the profitablity of nawal ltd

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Reference no: EM132319147

ASSIGNMENT OVERVIEW

Part A of the Assignment aims to test sour ability to record accounting transactions using journals, adjust expense accounts for accruals and prepayments and prepare financial statements.

Part B tests your ability to carry out financial ratio analysis and provide recommendations of actions that the company can take to improve its performance. Your analysis should not exceed 1,000 words and should include appropriate explanation of the meaning of the ratios used and a trend analysis. Your recommendations should address profitability, liquidity and efficiency.

PART B

Nawal Ltd is a medical equipment manufacturing company last five ars are available for Nawal Ltd: operating in Muscat.

The following ratios for the


2018 2017 2016 2015 2014
Profitablity ratios  60 61 62 64 65
Gross Profit Margin 17 14 13 16 14
ROCE 9 7 6 8 6.5
Sale growth  11 9 6.5 9

Liquidity Ratios 2018 2017 2016 2015 2014
Current Ratio 1.98 3.6 3.4 3.68 3.26
Quick Ratio/Acid Test Ratio 1.35 2.87 2.7 2.75 2.45

Efficiency Ratios

2018

2017

2016

2015

2014

Asset Turnover

0.48

        0.46

0.44

0.44

0.41

Inventory Turnover

3.3

3.1

2.8

2.2

2.3

Debtors Collection Period

60

63

68

70

73

Creditors Collection Period

78

88

102

105

111

Required:

Using the information provided above and any other data that you find appropriate.

The following ratios for the last five years are available for Nawal Ltd.

a) Analyse the profitablity of Nawal Ltd.

b) Analyse the liquidity of Nawal Ltd.

c) Analyse the Efficiency of Nawal Ltd.

d) Provide six recommendations to Nawal Ltd on how it Gill improve its performance.

Verified Expert

The paper is in relation to the analysis of the performance of the company as reflected by its ratio. The ratio analysed are profitability, liquidity and efficiency ratios. The recommendations have also been outlined for the enhancement of the position of the company.

Reference no: EM132319147

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inf2319147

7/29/2019 3:31:41 AM

Accurately done the assignment, It requires a lot of basics of physics and mathematics. Although it is very complex questions to solve but the experts of Experts Mind did it well. All the steps are solved and explained in details.

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