1- Introduction………………………………………………..

…………… 2
2- Types of Ratios……………………………………………………..… 2
3- Ratio Analysis ………………………………………………………… 3-9
4- Juhayna Co. …………………………………………………..….……. 10
5- Juhayna consolidated income statement……. 11
6- Juhayna consolidated Balance sheet …………… 12
7- Horizontal Analysis of Juhayna Co………….…….. 13-14
8- Vertical Analysis of Juhayna Co ….………...….…… 15-16
9- Ratio Analysis of Juhayna Co …………..…………….. 17-19
10- Domty Co. ……………………………..…………………….……..…… 20
11- Domty consolidated income statement……….. 21
12- Domty consolidated Balance sheet ………………. 22
13- Horizontal Analysis of Domty Co …….…….………. 23-24
14- Vertical Analysis of Domty Co …………………………. 25-26
15- Ratio Analysis of Domty Co ……………………………… 27-29
16- Juhayna to Domty Comparison………………………… 30-32
17- Final Conclusion ………………………………………….……….. 32
18- References ……………………………………………………………… 33

1|Page
Introduction
Financial Analysis is the process of selecting, evaluating, and identifying the financial
strength and weaknesses of the firm by properly establishing relationship between
items of financial statements. Firms, bank, loan officers and business owners all use
financial analysis to learn more about a company’s current financial health as well as its
potential.

Types of Ratios

One of the most useful ways for the owner of a small business to look at the
company’s financial statements healthy. Common size ratios can be developed from
both balance sheet and income statement items.

Is expressed as a percentage, focuses on the relations among financial statement

items at a given point in time.
Balance sheet: Aggregate amount is total assets.
Income statement: Aggregate amount is revenues or sales.

Examines the change in a financial statement item over time.

This can involve nothing more complicated than showing year-to-year changes
in each financial statement item in both dollar and percentage terms.

♣ Liquidity Ratios ♣ Solvency Ratios

♣ Activity Ratios ♣ Profitability Ratios

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Working Capital From this calculation, you already know you have positive net
working capital with which to pay short-term debt obligations
before you even calculate the current ratio

Net Working Capital = Current Assets - Current Liabilities

Current Ratio This ratio reflects the number of times short-term assets cover
short-term liabilities and is a fairly accurate indication of a
company's ability to service its current obligations. A higher number is
preferred because it indicates a strong ability to service short-term obligations.
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕𝒔
Current Ratio = 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔

A ratio less than 1 is considered risky by creditors and investors because it shows the
company isn’t running efficiently and can’t cover its current debt properly. A ratio less
than 1 is always a bad thing and is often referred to as negative working capital. On the
other hand, a ratio above 1 shows outsiders that the company can pay all of its current
liabilities and still have current assets left over or positive working capital.

Quick Ratio This ratio, also known as the acid test ratio, measures immediate liquidity the
number of times cash, accounts receivable, and marketable securities cover
short-term obligations, this ratio is a more reliable variation of the Current ratio
because inventory, prepaid expenses, and other less liquid current assets are removed from
the calculation.
𝐶𝑎𝑠ℎ 𝐸𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡𝑠+𝑀𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑆𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠+ 𝑁𝑒𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
Quick ratio =
Current Liabilities

A higher number is preferred because it suggests a company has a strong ability to

service short-term obligations. This ratio is a more reliable variation of the Current ratio
because inventory, prepaid expenses, and other less liquid current assets are removed
from the calculation.

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Cash Ratio The best indicator of the company’s short-run liquidity. A higher
number is preferred because it suggests a company has a strong
ability to service short-term obligations.

𝐜𝐚𝐬𝐡 𝐞𝐪𝐮𝐢𝐯𝐢𝐥𝐚𝐧𝐭𝐬+𝐦𝐚𝐫𝐤𝐞𝐭𝐚𝐛𝐥𝐞 𝐬𝐞𝐜𝐮𝐢𝐫𝐢𝐭𝐢𝐞𝐬

Cash ratio=
𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

Debt Ratio (Also known as debt to assets ratio) This ratio measures debt
level of a business as a percentage of its total assets. If the
percentage is too high, it might indicate that it is too difficult
for the business to pay off its debts. The higher the debt ratio, implying
greater financial risk.

Debt Ratio = Total Liabilities / Total Assets

Debt to – Equity It is a leverage ratio and it measures the degree to which the assets of
Ratio the business are financed by the debts and the shareholders' equity of
a business. An increasing trend in debt-to-equity ratio is alarming
because it means that the percentage of assets of a business that are financed by the debts is
increasing . A debt-to-equity ratio of 1 means that half of the assets of the business are
financed by debts and half by shareholders' equity.

Times interest
(Also known as interest coverage Ratio) It calculates
earned ratio how many times a company’s operating income (earnings
before interest and taxes) can cover the company’s interest
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 expense in the future. A higher times interest earned ratio indicates that the company’s
interest expense is low relative to its earnings before interest and taxes (EBIT) which
indicates better long-term financial strength, and vice versa.
Obviously the larger ratios are considered more favorable than smaller ratios.

Times Interest Earned = EBIT / Interest Expense

Cash Coverage It is useful for determining the amount of cash available to pay
Ratio the interest expense and to ensure that there is enough cash to
pay for its new interest burden. EBITDA = (EBIT +
depreciation + amortization) It is expressed as a ratio of the cash available to the
amount of interest to be paid. To show a sufficient ability to pay.
the ratio should be substantially greater than 1.

Cash Coverage Ratio = EBITDA / Interest Expense

Account receivable is the number of times per year that a business collects its
average accounts receivable. The ratio is intended to evaluate
turnover ratio
the ability of a company to efficiently issue credit to its
customers and collect funds from them in a timely manner. a
Higher number is preferred

𝐬𝐚𝐥𝐞𝐬
Receivable Turnover =
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞

Days sales in Days sales outstanding (DSO) is a measure of the average

receivable ratio number of days that it takes a company to collect payment
after a sale has been made. DSO is often determined on a
monthly

𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐯𝐢𝐚𝐛𝐥𝐞
Days sales in receivable ratio=
𝐓𝐨𝐭𝐚𝐥 𝐜𝐫𝐞𝐝𝐢𝐭 𝐬𝐚𝐥𝐞𝐬/𝟑𝟔𝟓 5 | P a g e
 Inventory Inventory turnover is a ratio showing how many times a
turnover ratio company's inventory is sold and replaced over a period of time

𝐒𝐚𝐥𝐞𝐬
Fixed assets to equity Ratio=
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚

Days sales of
The days sales of inventory value (DSI) is a financial measure of a
inventory ratio company's performance that gives investors an idea of how long it
takes a company to turn its inventory (including goods that are a work
in progress, if applicable) into sales. Generally, a lower (or shorter) DSI is preferred, but
it is important to note that the average DSI varies from one industry to another. The DSI
is calculated as:

𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲
Fixed assets to equity Ratio= 𝒙 𝟑𝟔𝟓
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬

Accounts payable Is ratio is a short-term liquidity measure used to quantify

turnover the rate at which a company pays off its suppliers

𝐂𝐨𝐬𝐭 𝐨𝐟 𝐆𝐨𝐨𝐝 𝐬𝐨𝐥𝐝

Fixed assets to equity Ratio=
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑨𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝒑𝒂𝒚𝒂𝒃𝒍𝒆

(DPO) is a company's average payable period that measures how

Days cost of sales long it takes a company to pay its invoices from trade creditors,
in payables such as suppliers. a Higher number is preferred

𝟑𝟔𝟓
DPO =
𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐩𝐚𝐲𝐚𝐛𝐥𝐞

Total Asset ASSET TURNOVER RATIO MEASURES THE VALUE OF A COMPANY’S SALES
Turnover OR REVENUES GENERATED RELATIVE TO THE VALUE OF ITS ASSETS .ALSO
CAN OFTEN BE USED AS AN INDICATOR OF THE EFFICIENCY WITH WHICH A
COMPANY IS DEPLOYING ITS ASSETS IN GENERATING REVENUE.

𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
Total Assets Turnover =
𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐓𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭𝐬

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 Operating cycle Is the time period between the acquisition of goods and final
cash realization resulting from sales and subsequent.

Operating Cycle (Days) = DIO + DSO – DPO

♠ DIO = Days Inventory Outstanding ♠ DSO = Days Sales Outstanding ♠ DPO = Days Payable Outstanding

Fixed Assets Also know as (sales to fixed assets ratio ) measure the
efficiency with which accompany uses it's fixed assets to
turnover
generate it's sales revenue

𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬
Fixed assets turnover =
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐅𝐢𝐱𝐞𝐝 𝐀𝐬𝐬𝐞𝐭𝐬

Working Capital
turnover This ratio measures a company's ability to finance current operations.
Working capital (current assets - current liabilities) is another measure of
liquidity and the ability to cover short-term obligations. This ratio relates the ability of a company
to generate sales using its working capital to determine how efficiently working capital is being
used. In general, a Higher number is preferred because it indicates a company has a satisfactory
level of working capital.

𝐬𝐚𝐥𝐞𝐬
Working Capital turnover =
𝐰𝐨𝐫𝐤𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥

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 This is the ratio which is used to understand how much cost incurred to
Gross Profit manufacture a product. It also helps in understanding the efficiency of
Margin the company and how is it using its resources to produce the product.

𝐆𝐫𝐨𝐬𝐬 𝐏𝐫𝐨𝐟𝐢𝐭
Gross Profit Margin =
𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬

Net Profit It is the most common profitability ratio which is used to

measure the profit after deducting all the expenses, losses,
Margin
provisions for bad debt.

𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭
Gross Profit Margin = 𝒙 𝟏𝟎𝟎
𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬

Operating Profit
(Also known as return on sales ratio) It is profitability ratio showing operating
Margin income as a percentage of revenue. So it is used to evaluate the operating
efficiency of the company.

𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐏𝐫𝐨𝐟𝐢𝐭
Operating Profit Margin = 𝒙 𝟏𝟎𝟎
𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬

Earnings per
It is a profitability indicator which shows the amount of
common share
income earned on a share of common stock during an
accounting period.

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 EPS is a very important profitability ratio, particularly for shareholders of
a company, because it is a direct measure of dollars earned per share.

𝐧𝐞𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 −𝐩𝐫𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐝𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬

Earnings per common share =
𝐰𝐞𝐢𝐠𝐡𝐭𝐞𝐝 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐜𝐨𝐦𝐦𝐨𝐧 𝐬𝐡𝐚𝐫𝐞𝐬 𝐨𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠

Return on Assets It is the profitability ratio which is used to evaluate the

(ROA) company’s level of efficiency in employing its assets to
generate profit. The assets of the company if not used optimally
will not be able to make the desired amount of profit and the return will also be
lower.

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞
Return on Asset = 𝒙𝟏𝟎𝟎
𝐀𝐬𝐬𝐞𝐭𝐬

Return on Equity Every equity investor looks for this ratio before investing in any
company as it gives the insight into the company’s profit-
(ROE)
generating ability to the investors. The potential, as well as
existing investors, keep a check on this ratio as it measures the
return on the investment made in shares of the company.

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞
Return on Asset =
𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 ′ 𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭

Sales to Fixed This ratio measures the firm's ability to make productive use
Assets of its property, plant and equipment by generating sales
dollars.

𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
Sales to Fixed Assets=
𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐧𝐞𝐭 𝐟𝐢𝐱𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬

9|Page
Juhayna Food Industries is a leading Egypt-based manufacturer specialized
in the production, processing and packaging of dairy, juice, and cooking
products. Since its founding in 1983, it has secured a frontrunner position
in the dairy and juice industries in Egypt and has expanded its presence in
the Middle East, a feat made possible through its firm commitment to
delivering a wide range of high-quality, healthy, and safe products that have
become trusted household names.
Founded by Safwan Thabet, Juhayna Food Industries was built on a vision
to introduce the market to a new business model for food production that
holds innovation at its core. Today, with seven fully operational facilities, a
vast network of distribution centers serving more than 65,000 retail outlets
nationwide, and a 550-feddan, fully-owned dairy farm that has the capacity
to house 8,000 milking cows covering a sizeable portion of the company’s
raw milk needs, Juhayna continues to raise the benchmark for premium
quality Egyptian manufactured products.
In its 30 years of operations, Juhayna’s dairy segment has cultivated an
ever-increasing number of customers loyal to its brands, affording it a
comfortable lead above all its dairy competitors with consistently strong
market shares. It is also the sole supplier of dairy for McDonalds Egypt
alongside many other leading fast-food restaurants, hotels, airlines, and
educational institutions.

10 | P a g e
 Juhayna Food Industries
Consolidated income statements
2016 2015 2014

Net sales 4,992,857,769 4,231,161,876 368,406,043

cost of sales (3,538,392,068) (2,749,358,490) (2,693,047,871)
gross profit 1,454,465,671 1,481,803,386 991,012,172

other income (5) 62,488,905 18,029,288 24,099,241

Operating Expense:
sales & distribution expenses (838,838,598) (655,110,355) (469,306,956)
General & admin. exp. (6) (174,957,155) (145,936,135) (141,116,792)
Other expense (7) (38,074,000) (51,975,491) (23,435,397)
board of director’s remuneration (12,020,000) (11,180,000) (10,375,040)
results from operating activity 453,064,823 635,630,693 370,877,228

the holding company’s share in the losses (3,062,375) - -

revenue of investment held for sale 5,570,557 - 3,743,537
scots of the end of service (8) (4,819,059) (10,670,309) (19,996,076)
finance income and finance cost (302,005,092) (174,561,177) (126,771,520)
profit income and income tax 148,748,854 450,399,207 227,853,349
tax differences from previous years 6,272,636 230,726 601,345
income tax expenses (36,799,512) (72,339,921) (50,480,863)
investment tax (12,495,860) (18,595,535) -
deferred tax (26) (52,074,373) (79,761,486) (7,884,151)

net profit of the year distributed as 53,651,745 279,932,991 170,089,680

parent company share in profit 53,516,967 279,829,317 169,963,652

non controlling interest 134,778 103,674 126,028
53,651,745 279,932,991 170,089,680

11 | P a g e
 Juhayna Food industries
consolidated Balance sheet
Assets 2016 2015 2014
non-current assets
property, plant and Equipment (net ) (11) 3,066,250,784 2,761,272,193 2,094,365,402
projects under construction (12) 383,210,481 430,869,824 1,067,146,333
plant wealth (13-1) 13,469,421 - 26,421,716
plant wealth- under preparation (13-2) 3,955,808 14,304,029 -
Biological wealth (14) 87,892,482 40,066,067 -
long-tern investment (10) 7,087,625 10,150,000 50,929,445
other-long term assets (29) 10,580,999 773,504 781,776
Goodwill (33) 97,092,890 97,092,890 97,092,890
non-current assets 3,669,540,490 3,354,528,507 3,336,737,562

current assets
investment held for sale 50,929,445 -
Biological assets-existing agriculture 17,279,535 33,021,211 32,588,675
inventories (16) 1,325,879,207 573,855,519 524,935,526
Account receivable (net) (17) 353,019,114 188,010,060 200,626,169
cash and cash equivalents (18) 129,591,229 794,917,810 420,113,682
current assets 1,825,769,085 1,640,734,045 1,178,264,052
Total Assets 5,495,309,575 4,995,262,552 4,515,001,614

Equity
Issued and paid up capital (19) 941,405,082 941,405,082 941,405,082
legal reserve 497,245,972 467,347,006 435,553,732
General reserve -issuance premium (19-1) 330,920,428 330,920,428 330,920,428
retained earnings 478,308,360 418,147,094 414,262,886
Total comprehensive income for year after periodic 43,524,181 264,306,933 161,550,850
dividends
total equity attributable to the shareholders 2,291,404,023 2,422,126,543 2,283,692,978
non-controlling interest 756,990 818,776 761,931
total equity 2,292,161,013 2,422,945,319 2,284,454,909

non-current liabilities
long term loans (20) 803,788,665 1,013,338,245 705,695,751
other long term liabilities (24) 47,701,407 69,840,935 85,003,065
Differed revenues (25) 108,442,056 15,559,653 3,477,116
Differed tax liabilities (26) 206,673,187 154,598,814 74,837,328
non-current liabilities 1,166,605,315 1,253,337,647 869,013,260

current liabilities
provisions for claims (22) 9,428,008 11,959,876 8,571,220
Banks-over draft (18) 25,031,480 32,443,129 17,197,765
Banks-credit facilities (21) 1,049,803,834 637,074,206 742,348,289
short term loans 16,000,000
Account payable (23) 627,047,375 317,813,113 272,772,151
income tax 34,483,198 72,339,921 50,480,863
Long -term loans-current portion (20) 290,749,352 247,349,341 254,163,157
current liabilities 2,036,543,247 1,318,979,586 1,361,533,445
total liabilities 3,203,148,562 2,572,317,233 2,230,546,705
total equity and total liabilities 5,495,309,575 4,995,262,552 4,515,001,614

12 | P a g e
 Horizontal Analysis
Income statements
2016 2015
Net sales 4,992,857,769 118% 4,231,161,876
cost of sales (3,538,392,068) 129% (2,749,358,490)
gross profit 1,454,465,671 98% 1,481,803,386

other income (5) 62,488,905 347% 18,029,288

Operating Expense:
sales & distribution expenses (838,838,598) 128% (655,110,355)
General & admin. exp. (6) (174,957,155) 120% (145,936,135)
Other expense (7) (38,074,000) 73% (51,975,491)
board of directors remuneration (12,020,000) 108% (11,180,000)
net operating activity 453,064,823 71% 635,630,693
the holding company’s share in the losses (3,062,375) -
revenue of investment held for sale 5,570,557 -
scost of the end of service (8) (4,819,059) 45% (10,670,309)
finance income and finance cost (302,005,092) 173% (174,561,177)
profit income 148,748,854 33% 450,399,207
tax differences from previous years 6,272,636 2719% 230,726
income tax expenses (36,799,512) 51% (72,339,921)
investment tax (12,495,860) 67% (18,595,535)
deferred tax (26) (52,074,373) 65% (79,761,486)
net profit of the year distributed 53,651,745 19% 279,932,991
parent company share in profit 53,516,967 19% 279,829,317
non-controlling interest 134,778 130% 103,674

98%
71%
100%
80%
60%
19%
40%
20%
0%
gross profit operating activity net profit of the year
2015 2016
distributed

Interpretation:
1- Gross Profit decreased 2% at 2016 because of the increasing in cost of revenue.
2- Operating Income decreased by 29% at 2016 because sales & distribution expenses
…….and other administrative expenses.
3- Net income decreased by 81% at 2016, that is a reflect of increasing in tax differences
……from previous years.

13 | P a g e
 Horizontal Analysis
Financial position statements
Assets 2016 2015
property, plant and Equipment (net ) (11) 3,066,250,784 111% 2,761,272,193
projects under construction (12) 383,210,481 89% 430,869,824
plant wealth (13-1) 13,469,421 -
plant wealth- under preparation (13-2) 3,955,808 28% 14,304,029
Biological wealth (14) 87,892,482 219% 40,066,067
long-tern investment (10) 7,087,625 70% 10,150,000
other-long term assets (29) 10,580,999 1368% 773,504
Goodwill (33) 97,092,890 100% 97,092,890
non-current assets 3,669,540,490 109% 3,354,528,507
investment held for sale 0% 50,929,445
Biological assets-existing agriculture 17,279,535 52% 33,021,211
inventories (16) 1,325,879,207 231% 573,855,519
Account receivable (net) (17) 353,019,114 188% 188,010,060
cash and cash equivalents (18) 129,591,229 16% 794,917,810
current assets 1,825,769,085 111% 1,640,734,045
Total Assets 5,495,309,575 110% 4,995,262,552
Equity
Issued and paid up capital (19) 941,405,082 100% 941,405,082
legal reserve 497,245,972 106% 467,347,006
General reserve -issuance premium (19-1) 330,920,428 100% 330,920,428
retained earnings 478,308,360 114% 418,147,094
Total comprehensive income 43,524,181 16% 264,306,933
total equity attributable 2,291,404,023 95% 2,422,126,543
non-controlling interest 756,990 92% 818,776
total equity 2,292,161,013 95% 2,422,945,319
long term loans (20) 803,788,665 79% 1,013,338,245
other long term liabilities (24) 47,701,407 68% 69,840,935
Differed revenues (25) 108,442,056 697% 15,559,653
Differed tax liabilities (26) 206,673,187 134% 154,598,814
non-current liabilities 1,166,605,315 93% 1,253,337,647
provisions for claims (22) 9,428,008 79% 11,959,876
Banks-over draft (18) 25,031,480 77% 32,443,129
Banks-credit facilities (21) 1,049,803,834 165% 637,074,206
short term loans
Account payable (23) 627,047,375 197% 317,813,113
income tax 34,483,198 48% 72,339,921
Long -term loans-current portion (20) 290,749,352 118% 247,349,341
current liabilities 2,036,543,247 154% 1,318,979,586
total liabilities 3,203,148,562 125% 2,572,317,233
total equity and total liabilities 5,495,309,575 110% 4,995,262,552

200% 154%
109% 111% 95% 93% 110%
150%
100%
50%
0%
non-current current assets total equity non-current current total equity
assets liabilities liabilities and total
2016 2015
Interpretation: liabilities

➢ Current assets increased by 11% at 2016 because of the increasing in inventories and account
receivable but cash highly decreased.
➢ Non-current assets increased by 9% because of sold land lease contract footnote 29.
➢ Total liability increased by 25% Because of deferred tax liability from fixed assets and deferred
revenue from sold land lease contract.
➢ Total Equity is slightly decreasing by 5% at 2016.

14 | P a g e
 Vertical Analysis
Income Statements
2016 2015
Net sales 4,992,857,769 100% 4,231,161,876 100.00%
cost of sales (3,538,392,068) 70.87% (2,749,358,490) 64.98%
gross profit 1,454,465,671 29.13% 1,481,803,386 35.02%
other income (5) 62,488,905 1.25% 18,029,288 0.43%
Operating Expense:
sales & distribution expenses (838,838,598) 16.80% (655,110,355) 15.48%
General & admin. exp. (6) (174,957,155) 3.50% (145,936,135) 3.45%
Other expense (7) (38,074,000) 76.00% (51,975,491) 1.23%
board of director’s remuneration (12,020,000) 24.00% (11,180,000) 0.26%
results from operating activity 453,064,823 9.07% 635,630,693 15.02%
the holding company’s share in the losses (3,062,375) 0.06% - 0.00%
revenue of investment held for sale 5,570,557 0.11% - 0.00%
scots of the end of service (8) (4,819,059) 0.10% (10,670,309) 0.25%
finance income and finance cost (302,005,092) 6.05% (174,561,177) 4.13%
profit income and income tax 148,748,854 2.98% 450,399,207 10.64%
tax differences from previous years 6,272,636 0.13% 230,726 0.01%
income tax expenses (36,799,512) 0.74% (72,339,921) 1.71%
investment tax (12,495,860) 0.25% (18,595,535) 0.44%
deferred tax (26) (52,074,373) 1.04% (79,761,486) 1.89%
net profit of the year distributed as follows 53,651,745 1.07% 279,932,991 6.62%
parent company share in profit 53,516,967 1.1% 279,829,317 6.61%
non-controlling interest 134,778 0.0027% 103,674 0.0025%

100%
100% 29.13% 9.07% 1.07%
2.98%
0%
2016

100%
35.02%
100.00% 15.02% 10.64% 6.62%
0% 2015
Net sales gross profit results from profit income net profit of the
operating and income tax year distributed
activity as follows

Interpretation:
1) Gross profit decreases at 2016 reflection of the cost of revenues.
2) Operating Income decreases at 2016 because the sales & distribution expenses increased.
3) Net income decrease because increasing the interest expenses and foreign exchange from
….footnote 8.

15 | P a g e
 Vertical Analysis
Financial position statements
Assets 2016 2015
property, plant and Equipment (net ) (11) 3,066,250,784 56% 2,761,272,193 55%
projects under construction (12) 383,210,481 7% 430,869,824 9%
plant wealth (13-1) 13,469,421 0% -
plant wealth- under preparation (13-2) 3,955,808 0% 14,304,029 0%
Biological wealth (14) 87,892,482 2% 40,066,067 1%
long-tern investment (10) 7,087,625 0% 10,150,000 0%
other-long term assets (29) 10,580,999 0% 773,504 0%
Goodwill (33) 97,092,890 2% 97,092,890 2%
non-current assets 3,669,540,490 67% 3,354,528,507 67%
investment held for sale 50,929,445
Biological assets-existing agriculture 17,279,535 0% 33,021,211 1%
inventories (16) 1,325,879,207 24% 573,855,519 11%
Account receivable (net) (17) 353,019,114 6% 188,010,060 4%
cash and cash equivalents (18) 129,591,229 2% 794,917,810 16%
current assets 1,825,769,085 33% 1,640,734,045 33%
Total Assets 5,495,309,575 100% 4,995,262,552 100%
Equity
Issued and paid up capital (19) 941,405,082 17% 941,405,082 19%
legal reserve 497,245,972 9% 467,347,006 9%
General reserve -issuance premium (19-1) 330,920,428 6% 330,920,428 7%
retained earnings 478,308,360 9% 418,147,094 8%
Total comprehensive income 43,524,181 5% 264,306,933 28%
total equity attributable 2,291,404,023 42% 2,422,126,543 48%
non-controlling interest 756,990 0% 818,776 0%
total equity 2,292,161,013 42% 2,422,945,319 49%
long term loans (20) 803,788,665 15% 1,013,338,245 20%
other long term liabilities (24) 47,701,407 1% 69,840,935 1%
Differed revenues (25) 108,442,056 2% 15,559,653 0%
Differed tax liabilities (26) 206,673,187 4% 154,598,814 3%
non-current liabilities 1,166,605,315 21% 1,253,337,647 25%
provisions for claims (22) 9,428,008 0% 11,959,876 0%
Banks-over draft (18) 25,031,480 0% 32,443,129 1%
Banks-credit facilities (21) 1,049,803,834 19% 637,074,206 13%
short term loans
Account payable (23) 627,047,375 11% 317,813,113 6%
income tax 34,483,198 1% 72,339,921 1%
Long -term loans-current portion (20) 290,749,352 5% 247,349,341 5%
current liabilities 2,036,543,247 37% 1,318,979,586 26%
total liabilities 3,203,148,562 58% 2,572,317,233 51%
total equity and total liabilities 5,495,309,575 100% 4,995,262,552 100%

1 0.33
0.67 0.63 0.79 0.58
0.5 0.67
0.33 0.37 0.21 0.42
2016
0

100% 0.33 0.51

0.67 0.74 0.75
0.67 0.49
0.33 0.26 0.25
0% 2015
current assets non-current current liabilities non-current total equity
assets liabilities
Interpretation:
➢ Cash decrease by 14% because time deposit maturing with 3 months footnote 18.
➢ Inventory at 2016 is increasing by 13% which indicate a good percentage of sales.
➢ Current Assets and Noncurrent Assets stable not change.
➢ Total Liability was increase by 7% because of loans footnote 20 ,21.
➢ Total Equity decreased percentage by 7%.

16 | P a g e
 Juhayna Food Industries
Ratio Analysis – Year– To-Year Change

Liquidity Ratios 2016 2015

Current Ratio 0.9 1.25
Quick " Acid test " Ratio 0.25 0.81
Cash Ratio 0.06 0.64
Activity ratios
Receivable Turnover 48.43 46.32
Receivable Turnover in Days 7.54 7.88
Payable Turnover 11.80 15.99
Payable Turnover in Days 30.93 22.83
Inventory Turnover 3.73 5.00
Inventory Turnover in days 97.98 72.94
Operating cycle 74.59 57.99
Working capital turnover -23.69 13.15
Fixed Assets turnover 1.71 1.74
Total Assets Turnover 0.95 0.89
Solvency Ratios
Debt Ratio 58% 51%
Debt / Equity Ratio 140% 106%
Times Interest Earned 178% 349%
Cash coverage Ratio 272% 462%
Profitability Ratios
Gross profit margin 29% 35%
Operating profit margin 9% 15%
Net profit margin 1% 7%
Return on Assets 1% 6%
Return on Equity 2% 12%
Earnings per common share 6% 30%

17 | P a g e
 Liquidity ratios

1.25
1.5
0.9
0.81
1 0.64 20162

0.25 2015
0.5 0.06

0
Current ratio Quick Ratio cash Ratio

Overall ; as a trend analysis ,we see that Liquidity Ratios for Juhayna
2016 is clearly worth than Its baseline 2015 , because current ratio ,
Quick ratio and Cash ratio which compared to the baseline “2015” are
decreased by 34% , 56% , 54% . this may imply that the company’s
ability to service short -time obligations is un favorable and the
resources are not being fully utilized because time deposit maturing with 3
months footnote 18.

Activity ratios
We can interpret that the company has an
2016 2015
indicator of high performance and effective
74.59
management in 2016 comparing to baseline
80 57.99
2015 , as the company’s ability to issue 48.43
46.32
60
credit to its customer and collect funds 40
increased by 2 times and days take to collect 20
its receivables slightly decreased , and the 0
ability to pays off suppliers decreased by 4 Receviable
turnover
operating cycle

times but the days takes to pay off suppliers 15.9

9
decreased by 8 days which indicates good 20 0.9
11.8 5
performance , the ability to generate sales 15 0.96
0.94 0.8
using total assets slightly increased and 10
0.92 9
Operating cycle increased by 15 times which 5 0.9
0.88
represent a high performance comparing to 0 0.86
payable total assets
turnover turnover

18 | P a g e
 Solvency Ratios
400% 364%
2016 2015

Solvency Conclusion can interpret that in the 300%

228%
year 2016, the risk of the firm is getting higher
200%
as the Debt Ratio (low is better) goes up by 7%
69% 78%
. And the Debt-to-Equity Ratio (Low is better) 100%
also goes up which meaning the Percentage of
0%
Assets that are financed by the debts increases Debt Ratio Debt / Equity

by 34% at 2016. And Interest Coverage Ratio

(High is better) And Cash Coverage Ratio (High 700%
656%
591%
is better) indicates worse long-term financial 600%
strength as the company's operating income 500%
ability to meet interest payments decreased by 400%
261%
175% and the cash available to Pay interest 300%
182%
200%
expense decreased by 190% at 2016.
100%
0%
time interest cash
earned coverage
ratio

Profitability Ratios
79%
80%
70%
60% 51%
50%
40%
26%
30% 20% 18% 15%
20% 8% 9% 9%
2% 2% 5%
10%
0%
gross profit ROE EPS Net profit RoA operating proft
margin margin 2% margin

2016 2015

the company shows an decreased trend in all Profitability ratios as

compared to past year 2015. as the company is generating less profits
from all of its resources at high cost that leads to decrease net revenue
which affecting the company ability to bay its obligation. And decreases
share profit.as Gross profit margin, Operating profit margin, Net profit
margin, Return on Assets, Return on Equity and Earnings per common
share all goes down. All these things indicate bad sign for investors
about the company
19 | P a g e
Established in 1990, the Arabian Food Industries Company had a humble
beginning offering a modicum of products with only two types of white
and mozzarella cheeses, respectively. Since then its flagship cheese brand,
Domty, has grown to hold an unparalleled position amongst market
competitors. This has been made possible through a combination of
strategic endeavors, most notably those that have helped secure market
trust and consumer loyalty owed to the company’s continuous
commitment to quality. Domty now offers a wide range of products and
flavors , with a family of nearly 200 SKUs— that have helped expand its
market reach and made it available on all supermarket shelves.
Today, Domty boasts a distribution fleet of over 600 trucks operating
from 27 sub strategically located distribution hubs across the country,
ensuring a streamlined delivery system directly to all kinds of retail; a feat
made possible by a dedicated workforce of over 2600 employees. At the
core of our success lie the values of innovation, quality ingredients, taste,
and value for money.
Our Mission to Provide our valuable Consumers with a diversified range
of quality, nutritious and affordable products in the food and beverages
industry.
Our Vision Domty strives to be and maintain its frontrunner status in the
food and dairy industry and to be viewed as a trusted entity by all of its
stakeholder, including its consumers, employees and shareholders.

20 | P a g e
 Arabian Food Industries ( Domty.CA )
Consolidated Income statements

2016 2015 2014

sales 1,702,407,794 1,400,098,083 1,129,111,714
Cost of sales (1,366,921,337) (1,033,706,238) (888,568,710)
Gross profit 335,486,457 366,391,845 240,543,004

Operating expenses
selling and marketing expenses 21 (238,063,613) (151,747,994) (159,567,959)
General and administrative expenses 22 (37,650,864) (20,848,494) (16,565,011)
net other operating income/expenses 23 20,725,055 15,518,101 11,006,647
provisions 11 (165,250) (1,861,513) (2,011,165)
Reversal of provisions 4,984,867
Operating income 80,331,785 207,451,945 78,390,383

financial income 17,835,555 263,469 47,430

financial expenses 24 (63,474,812) (42,289,460) (31,103,422)
profit before income taxes 34,692,528 165,425,954 47,334,391

income tax expenses 20 (9,110,455) (36,698,056) (19,067,768)

profit for the year 25,582,073 128,727,898 28,266,623

attributed to :
equity holders of the patent 25,581,832 128,727,565 28,266,359
minority interest 241 333 264
25,582,073 128,727,898 28,266,623
basic & dilutes earnings per share
attributed to equity holders of the parent 27 0.079 0.420 11.710

21 | P a g e
 Arabian Food Industries ( Domty.CA )
Consolidated Balance Sheets
2016 2015 2014
Assets
property, plant and equipment 5 353,482,012 188,537,569 177,217,849
projects under construction 6 175,059,876 20,175,099 23,122,956
Total non-current assets 528,541,888 208,712,668 200,340,805
inventories 7 273,974,888 164,879,475 119,114,154
accounts and notes receivable 8 371,179,731 243,348,832 196,913,309
prepayment and other receivables 9 171,592,326 89,994,714 163,623,621
cash on hand and at banks 10 288,266,798 28,069,474 24,333,213
Total current assets 1,105,013,743 526,292,495 503,984,297
Total assets 1,633,555,631 735,005,163 704,325,102

Equity
issued and paid up capital 16 56,521,739 50,000,000 50,000,000
share premium 292,789,166 - -
legal reserve 18,894,127 14,445,807 11,001,561
other reserve 170,196 170,196 170,196
retained earnings 17 26,470,677 6,681,462 83,894,541
revaluation surplus 82,711,039 - -
profit for the year 25,581,832 91,594,898 28,266,359
merger reserve 26 (4,503,358) (4,503,358) (4,503,358)
Equity attributable to equity holders 498,635,418 158,389,005 168,829,299
minority interest 1,771 1,527 1,194
Total equity 498,637,189 158,390,532 168,830,493

non-current liabilities
term loans-non current portion 15 14,910,000 26,828,800 38,035,182
machines installments-non current portion 18 76,775,637 17,604,205 15,068,463
sales tax payable on plant & equipment 19 4,541,615 5,459,432 6,424,699
long term notes payable 332,071 380,850 507,800
deferred tax liabilities 20 20,940,087 17,980,989 19,254,836
Total non-current liabilities 117,499,410 68,254,276 79,290,980

Current liabilities
short term credit facilities 12 798,586,749 316,137,812 264,105,265
term loans- current portion 15 11,921,824 11,525,000 18,325,000
trade and notes payable 13 97,310,168 78,828,392 83,137,703
machines installments- current portion 18 50,052,252 22,607,687 41,376,940
provisions 11 12,598,664 12,028,104 10,289,966
accrued expenses and other payable 14 40,798,018 29,261,457 23,669,802
income tax payable 6,151,357 37,971,903 15,298,953
Total current liabilities 1,017,419,032 508,360,355 456,203,629
total liabilities 1,134,918,442 576,614,631 535,494,609
Total equity and liabilities 1,633,555,631 735,005,163 704,325,102

22 | P a g e
 Horizontal Analysis
Income statements
2016 2015
sales 1,702,407,794 122% 1,400,098,083
Cost of sales (1,366,921,337) 132% (1,033,706,238)
Gross profit 335,486,457 92% 366,391,845

Operating expenses
selling and marketing expenses (238,063,613) 157% (151,747,994)
General and administrative expenses (37,650,864) 181% (20,848,494)
net other operating income/expenses 20,725,055 134% 15,518,101
provisions (165,250) 9% (1,861,513)
Reversal of provisions
Operating income 80,331,785 39% 207,451,945

financial income 17,835,555 6770% 263,469

financial expenses (63,474,812) 150% (42,289,460)
profit before income taxes 34,692,528 21% 165,425,954

income tax expenses (9,110,455) 25% (36,698,056)

profit for the year 25,582,073 20% 128,727,898

attributed to :
equity holders of the patent 25,581,832 20% 128,727,565
minority interest 241 72% 333
25,582,073 20% 128,727,898
basic & dilutes earnings per share
attributed to equity holders of the parent 0.079 19% 0.420

200% 122%
92%
39% 20%
100% 21%

0%
sales Gross profit Operating profit before profit for the
income income taxes year

Interpretation:
1) Gross Profit decreased 8% at 2016 because of the increasing in cost of revenue.
2) Operating Income decreased by 61% at 2016 because sales & distribution expenses
and other administrative expenses.
3) Net income decreased by 80% at 2016, that is a reflect of increasing in financial
expenses.

23 | P a g e
 Horizontal Analysis
Financial position statements
2016 2015
Assets
inventories 7 273,974,888 166% 164,879,475
accounts and notes receivable 8 371,179,731 153% 243,348,832
prepayment and other receivables 9 171,592,326 191% 89,994,714
cash on hand and at banks 10 288,266,798 1027% 28,069,474
Total current assets 1,105,013,743 210% 526,292,495
property, plant and equipment 5 353,482,012 187% 188,537,569
projects under construction 6 175,059,876 868% 20,175,099
Total non-current assets 528,541,888 253% 208,712,668
Total Assets 1,633,555,631 222% 735,005,163

Current liabilities
short term credit facilities 12 798,586,749 253% 316,137,812
term loans- current portion 15 11,921,824 103% 11,525,000
trade and note payable 13 97,310,168 123% 78,828,392
machines installments- current portion 18 50,052,252 221% 22,607,687
provisions 11 12,598,664 105% 12,028,104
accrued expenses and other payable 14 40,798,018 139% 29,261,457
income tax payable 6,151,357 16% 37,971,903
Total current liabilities 1,017,419,032 200% 508,360,355

term loans-non current portion 15 14,910,000 56% 26,828,800

machines installments-non current portion 18 76,775,637 436% 17,604,205
sales tax payable on plant & equipment 19 4,541,615 83% 5,459,432
long term notes payable 332,071 87% 380,850
deferred tax liabilities 20 20,940,087 116% 17,980,989
Total non-current liabilities 117,499,410 172% 68,254,276
Total liabilities 1,134,918,442 197% 576,614,631

Equity
issued and paid up capital 16 56,521,739 113% 50,000,000
share premium 292,789,166 -
legal reserve 18,894,127 131% 14,445,807
other reserve 170,196 100% 170,196
retained earnings 17 26,470,677 396% 6,681,462
revaluation surplus 82,711,039 -
profit for the year 25,581,832 28% 91,594,898
merger reserve 26 -4,503,358 100% -4,503,358
equity attributable to equity holders 498,635,418 315% 158,389,005
minority interest 1,771 116% 1,527
total equity 498,637,189 315% 158,390,532
total equity and total liabilities 1,633,555,631 222% 735,005,163

315%
400% 253%
210% 200% 172%
300%
200%
100%
0%
current non-current current non-current total equity
assets assets liabilities liabilities

Interpretation:
1) Current assets increased by 110% at 2016 because of the cash too high increased
2) Non-current assets increased by 9% because of buildings and equipment of projects
under construction.
3) Total liability increased by 100% Because of foreign currency footnote 12 and
deferred tax liabilities
4) Total Equity is increasing by 122% at 2016 because of retained earnings.

24 | P a g e
 Vertical Analysis
Income Statements
2016 2015
sales 1,702,407,794 100% 1,400,098,083 100%
Cost of sales (1,366,921,337) 80% (1,033,706,238) 74%
Gross profit 335,486,457 20% 366,391,845 26%

Operating expenses
selling and marketing expenses (238,063,613) 14% (151,747,994) 11%
General and administrative expenses (37,650,864) 2% (20,848,494) 1%
net other operating income/expenses 20,725,055 1% 15,518,101 1%
provisions (165,250) 0.01% (1,861,513) 0.13%
Reversal of provisions
Operating income 80,331,785 5% 207,451,945 15%

financial income 17,835,555 1.1% 263,469 0.02%

financial expenses (63,474,812) 4% (42,289,460) 3%
profit before income taxes 34,692,528 2% 165,425,954 12%

income tax expenses (9,110,455) 1% (36,698,056) 3%

profit for the year 25,582,073 2% 128,727,898 9%

attributed to :
equity holders of the patent 25,581,832 0.02% 128,727,565 9%
minority interest 241 0% 333 0%

100%
100
50% 20 2 2
5
2016
0%

100%
100 26 15 12 9
50%
2015
0%
sales Gross profit Operating profit before profit for the
income income taxes year

Interpretation:
1. Gross profit decreases at 2016 reflection of the cost of revenues
2. Operating Income decreases at 2016 because the sales
& distribution expenses increased.
3. Net income decrease because increasing the interest
expenses and foreign currency footnote 12.

25 | P a g e
 Vertical Analysis
Financial position statements
2016 2015
Assets
inventories 7 273,974,888 17% 164,879,475 22%
accounts and notes receivable 8 371,179,731 23% 243,348,832 33%
prepayment and other receivables 9 171,592,326 11% 89,994,714 12%
cash on hand and at banks 10 288,266,798 18% 28,069,474 4%
Total current assets 1,105,013,743 68% 526,292,495 72%
property, plant and equipment 5 353,482,012 22% 188,537,569 26%
projects under construction 6 175,059,876 11% 20,175,099 3%
Total non-current assets 528,541,888 32% 208,712,668 28%
Total Assets 1,633,555,631 100% 735,005,163 100%

Current liabilities
short term credit facilities 12 798,586,749 49% 316,137,812 43%
term loans- current portion 15 11,921,824 1% 11,525,000 2%
trade and note payable 13 97,310,168 6% 78,828,392 11%
machines installments- current portion 18 50,052,252 3% 22,607,687 3%
provisions 11 12,598,664 1% 12,028,104 2%
accrued expenses and other payable 14 40,798,018 2% 29,261,457 4%
income tax payable 6,151,357 0% 37,971,903 5%
Total current liabilities 1,017,419,032 62% 508,360,355 69%

term loans-non current portion 15 14,910,000 1% 26,828,800 4%

machines installments-non current portion 18 76,775,637 5% 17,604,205 2%
sales tax payable on plant & equipment 19 4,541,615 0% 5,459,432 1%
long term notes payable 332,071 0% 380,850 0%
deferred tax liabilities 20 20,940,087 1% 17,980,989 2%
Total non-current liabilities 117,499,410 7% 68,254,276 9%
Total liabilities 1,134,918,442 69% 576,614,631 78%

Equity
issued and paid up capital 16 56,521,739 3% 50,000,000 7%
share premium 292,789,166 18% 0 0%
legal reserve 18,894,127 1% 14,445,807 2%
other reserve 170,196 0% 170,196 0%
retained earnings 17 26,470,677 2% 6,681,462 1%
revaluation surplus 82,711,039 5% 0 0%
profit for the year 25,581,832 2% 91,594,898 12%
merger reserve 26 -4,503,358 0% -4,503,358 -1%
equity attributable to equity holders 498,635,418 31% 158,389,005 22%
minority interest 1,771 0% 1,527 0%
total equity 498,637,189 31% 158,390,532 22%
total equity and total liabilities 1,633,555,631 100% 735,005,163 100%

100% 68% 32% 62%

50% 7% 31%
2016
0%
100% 72% 69%
28%
50% 9% 22%
2015
0%
current non-current current non-current total equity
assets assets liabilities liabilities
Interpretation:
1) Cash increased at 2016 by 14% .(good sign)
2) Inventory at 2016 is decreasing by 5% which indicate a good percentage of sales.(good sign)
3) Current Assets and Noncurrent Assets slightly change.
4) Total Liability was decrease by 9%. (good sign)
5) Total Equity increased percentage by 9%. (good sign)

26 | P a g e
 Arabian Food Industries ( Domty.CA )
Ratio Analysis – Year– To-Year Change

Liquidity Ratios 2016 2015

Activity ratios

Solvency Ratios

Profitability Ratios

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 Liquidity Ratios
1.09 1.04
1.2
1
0.8 0.65 0.6
0.53 Series 1
0.6
0.28 Series 2
0.4
0.2
0
current ratio Quick ratio cash ratio

Overall ; as a trend analysis ,ratios indicate that Liquidity Ratios for

Domty .Co 2016 is clearly better than Its baseline 2015 , because current
ratio , Quick ratio and Cash ratio which compared to the baseline “2015”
are increased by 5% , 12% , 22% respectively , which may imply that
the company’s ability to service short -time obligations is favorable
with high trend of cash ratio means wealthy of cash and cash equivalent.

Activity ratios Activity Conclusion indicates that the inefficient

2016 2015 performance by an ineffective management
7.28 depending on our ratios trending payable
8 6.23
5.54 6.36
turnover ratio increase in 2016 and day take to
6
pay off its suppliers decreased by 5 days , but
4 1.95
1.44
on the other hand there’s a decreasing in
2
Receivables turnover and inventory turnover in
0
Receviable Inventory Total assets
2016 comparing to the baseline 2015 which
100.95
120 turnover turnover Turnover estimate the inability to meet customer needs !
100 78.93 78.08 operating cycle trend bad performance as the
80
time period between the acquisition of goods and
60
final cash realization increased . also working
40 19.49 capital and total assets which used in 2016 lead
20
to disability to generate sales decreased
0
operating cycle W.C turnover
comparing to 2015

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 Solvency Ratios
We can interpret that in the year 2016, the
2016 2015 364%
risk of the firm is getting lower as the Debt 400%

Ratio (low is better) goes down by 9%. And 300%

228%
the Debt-to-Equity Ratio (Low is better) also
goes down which meaning the Percentage of 200%

Assets that are financed by the debts 69% 78%

100%
decreases by 136% at 2016. But Interest
Coverage Ratio (High is better) And Cash 0%
Debt Ratio Debt /
Coverage Ratio (High is better) indicates Equity
worse long-term financial strength as the 656%
700% 591%
company's operating income ability to meet 600%
interest payments decreased by 409% and the 500%
cash available to Pay interest expense 400%
261%
decreased by 395% at 2016. 300%
182%
200%
100%
0%
Profitability Ratios time interest cash
earned coverage
79% ratio
80%
70%
60% 51%
50%
40%
26%
30% 20% 18% 15%
20% 8% 9% 9%
2% 2% 5%
10%
0%
gross profit ROE EPS Net profit RoA operating proft
margin margin 2% margin

2016 2015

The company shows an decreased trend in all Profitability ratios as

compared to past year 2015. as the company is generating less
profits from all of its resources at high cost that leads to decrease
net revenue which affecting the company ability to bay its obligation.
And decreases share profit.as Gross profit margin, Operating profit
margin, Net profit margin, Return on Assets, Return on Equity and
Earnings per common share all goes down. All these things indicate
bad sign for investors about the company.

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 Juhayna to Domty Comparison
Detailed Ratio Analysis

Liquidity Ratios Juhayna Domty

Current Ratio 0.9 1.09
Quick " Acid test " Ratio 0.25 0.65
Cash Ratio 0.06 0.28
Activity ratios
Receivable Turnover 48.43 5.54
Receivable Turnover in Days 7.54 65.88
Payable Turnover 11.80 15.52
Payable Turnover in Days 30.93 23.52
Inventory Turnover 3.73 6.23
Inventory Turnover in days 97.98 58.59
Operating cycle 74.59 100.95
Working capital turnover -23.69 19.44
Fixed Assets turnover 1.71 6.28
Total Assets Turnover 0.95 1.44
Solvency Ratios
Debt Ratio 58% 69%
Debt / Equity Ratio 140% 228%
Times Interest Earned 178% 182%
Cash coverage Ratio 272% 261%
Profitability Ratios
Gross profit margin 29% 20%
Operating profit margin 9% 5%
Net profit margin 1% 2%
Return on Assets 1% 2%
Return on Equity 2% 8%
Earnings per common share 6% 9%

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 Juhayna to Domty Comparison
Detailed Ratio Analysis

Overall , Liquidity Ratios for Domty .Co is clearly 1.2 1.09

0.9
better than Juhayna’s because current , quick and 1

cash ratios are higher for Domty , this may imply that 0.8 0.65
the resources are not being fully utilized. The 0.6

company is keeping more than the required ‘Margin 0.4 0.25

0.06
0.28
of Safety’ and, in turn, blocking its growth. This 0.2
implies that the resources may be tied up in the 0
working capital (higher for Domty) and are not put to Current Quick " Cash Ratio
Ratio Acid test "
use in profitable ways. In this case, the company Ratio
needs to stop playing safe and reduce the current Juhayna Domty
ratio, so as to have optimum liquidity position.

Activity Ratios of Domty.co in 2016 Comparing

120
to Juhayna .Co indicate that the frim goes on the 100.95
100
way to achieve its goals as the trends of Account 80
74.59

payable turnover and inventory turnover are 60 48.43

higher than Juhayna trend. And Higher working 40 15.52 19.44
capital turnover and lower days take to pay off 20 11.8
5.54 3.73
6.23

its suppliers & lower days take to turn its 0

-23.69
inventory into sales. Although Juhayna almost -20

having lower activity ratios but still having a -40

higher trend in receivable turnover and less

operating cycle “ Days “ which indicate that the
Juhayna Domty
company

Solvency Conclusion
300% 272%261%
Juhanya has maintained a healthy debt Ratio and 250%
228% 178%
182%
debt- to- Equity ratio. rather than Domty. but the 200% 140%
150%
Two companies' amount of cash available to pay 69%
58%
100%
the interest expense and its possible new interest 50%
burden deteriorated at 2016. And hardly meeting their 0%
Debt Debt / Times Cash
interest obligations at 2016 compared with 2015 Ratio Equity Interest coverage
Ratio Earned Ratio
because of the fluctuating of the market interest ratio.
Juhayna Domty

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 29%
30%
Profitability Conclusion 25% 20%
20%
through out the analysis of two years, we
15%
9%
found that two companies Gross profit 10%
8%
6%
margin, Operating profit margin, Net profit 5% 1%2% 2%

margin, Return on Assets, Return on Equity 0%

Gross Net ROE EPS
and Earnings per common share all goes profit profit
down at 2016. because of the fluctuating of margin margin

the market. Juhayna Domty

Conclusion Overall Analysis, After applying all the ratios we

got an idea that the two Companies are profitable firm. But
Juhayna is performing much better than Domty. Juhayna net
profit ratio and debt equity ratio is better than Domty.

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 References

Financial_Reporting_and_Analys, [Charles_H._Gibson]_Jill Andresky Fraser, © 2004 Gruner 1 Jahr USA

Publishing. First published in Inc. Magazine. Reprinted with permission.

• www.juhayna.com
• www.Domty.org
• http://www.accountingverse.com/managerial-accounting/fs-analysis/financial-ratios.html
• https://www.myaccountingcourse.com/financial-ratios/liquidity-ratios
• https://strategiccfo.com/inventory-to-working-capital-analysis/
• https://www.investopedia.com/terms/s/solvencyratio.asp
•

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