Two Firms which are in the same Sector and have similar size.
Write Report which contains:
• History, small brief about each company
• Why performance Analysis
• Historical Background of both companies
• Industry/Economic Background
• Five dimmisions ROA (Explain the trend)
• Director Report
• Comparism between two companies and which better and you recommend to invest in.
• Conclusion; why the company better than the other
One of the important element of understanding accounting and finance related issue is the ability of reading financial statement of the company and make sense of numbers provided in the balance sheet and income statement. These numbers would provide an indication of company performance in the last year in terms of profitability, efficiency, solvency, liquidity, dividend, share price and a number of other indicators. Considering the importance of the valuable information one could get from the financial report of a company, you are asked to perform a number of tasks. Use two companies from the same sector as a case study. These companies should be registered on Saudi stock exchange.
1. Write one paragraph explaining why financial and operational performance analysis is important and why you are doing this.
2. Write one paragraph providing history of both companies you have selected.
3. Explain the general performance of the industry where these companies belongs to and overall economic environment for the time period covered in your analysis (max. two paragraphs).
4. Now calculate financial ratios which were discussed during the lectures and given in power point slides and explain the trend. Make sure that you provide explanation of the results adequately.
5. Perform a comparison of the both firms. Overall which firm did better and why? Why part is important in this regard
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.Why financial and operational performance analysis is important
Financial and operational performance analysis is important because it enables one to gain insight into how a company performed compared to other companies in its industry. It enables one to better understand a company’s business model and strategy, the environment in which the company operates and to make informed decisions based on the information provided about a company’s operations and financials from its financial report(s). Financial reports contain useful information that can be applied by different stakeholders including creditors, investors, and vendors but this information only becomes useful once a financial and operational performance analysis is performed. This project will enable me to perform a financial and operational performance analysis on real-world companies, thus giving me an opportunity to apply the knowledge I’ve obtained in this course.
History of City Cement Co. and Northern Region Cement Co.
Northern Region Cement Co. (“Northern Cement”) is a Riyadh-based joint stock company incorporated in March 2006. The company has an authorized share capital of SAR1,800,000,000 and was listed on Tadawul in February 2013. Northern Cement produces all kinds of cement through its network of Portland cement plants. City Cement Co. (“City Cement”) is a Saudi joint stock company, formed by Ministerial decree 804 in June 2005. The company has an authorized share capital of SAR 1,892,000,000 and was listed on Tadawul in October 2012. City Cement’s factory is located 150 km away from the city of Riyadh and has a capacity of 10,500 tons per day. Northern Cement and City Cement are two of the major players in the growing Saudi cement sector of the materials industry...
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