Analysis of EXTRA
Working capital and Current ratio and Acid – test ratio for balance sheet :
Horizontal Analysis
The low Working capital means that the situation not good at the company
Vertical analysis for income statement
*Total Revenue represent increases by % 1.07 .
*Total Expenses represent increases by %10.24 .
*Net income after Zakat represent decrease by %95.72
Inventory turnover , Account payables turnover and Account receivable turnover ..For income statement and balance sheet :
Measuring ability to pay debts
-Net income for Extra company in 2015 represent 8.5 % it’s way better then 2016.
-2016 represent 0.46 % it’s huge decrease in net income and that not good for Extra company.
Rate of return on sales
Typical revenue changes during the business cycle
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Debt ratio increased in the last two years (2015, 2016), income is good but less than the last two years (2015,2016).
Company revenue flourished in 2014, then a little dropped in 2015 and returned to grow again in 2016
Gross income curves at various stages of the business cycle..
Times-Interest-Earned:
Debt Ratio:
Total liabilities / Total assets
718,754,205 / 1,250,997,093 = 0.57
The times-interest-earned ratio is high, so the firm has the ability to pay the interest very easily.
Gross income was in 2013 growth , then flourished in 2014, then dropped 2015 and back to the growth of the new 2016
Company inventory chart
Rate of return on total asset
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The company inventory in it’s worst case 2014,
it’s best case 2016.
- Areej saeed
- Halah Kilani
- Kholoud Althagafi
- Afnan Ismail
- Amaal Almalki
- Malak bahttab
- Maram Alqarni
- Najwa Maedi
- Bashayr Aljohani
- Roaa shaban
- Lujain alrefaie
United Electronics Company was established as EXTRA in Saudi Arabia in 2003 to provide customers with a complete shopping experience for consumer electronics and home appliances. EXTRA offers world-leading brands and provides a comprehensive product portfolio including TVs, audio systems, computers, mobile phones, IT connections, cameras, home appliances and personal care products
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