Jarir Marketing Company Annual Report The Jarir marketing Co. is a publically traded company in the Saudi Stock Exchange (TADAWUL).
We have to obtain a copy of its most recent annual report (check Online, preferably for the years of 2017 and 2016).
Jarir Marketing Company Annual Report Essay
Using the annual report, answer the following questions related to different financial statements and as a whole:
1. Balance Sheet:
1.1. Prepare a common-size balance sheet.
1.2. Describe the types of assets a company owns. Which assets are the most significant to the company? Using notes to financial statements, discuss the accounting methods used to value assets. Have there been any significant changes to the asset structure for the last years.
1.3. Describe the types of liabilities the company has incurred. Which liabilities are the most significant to the company? What equity accounts are included on the balance sheet? Have there been any significant changes to the liability and equity structure for the last years?
2. Income Statement:
2.1. Prepare a common-size income statement.
2.2. Calculate growth rates of sales and total operating costs.
2.3. Analyze the profitability of the company using a common-size income statement and growth rates. (1-2 pages)
3. Statement of Cash Flows:
3.1. Using the Statement of Cash flows, prepare a summary analysis (percentages out of total inflows and outflows) for two years;
3.2. Write an analysis and interpretation of the cash flows for two years (1-2 pages). Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm.
4. Ratios Analysis:
4.1. Using the Annual Report, calculate key financial ratios for all years presented.
4.2. Write a report (2-5 pages) to the management of your company. Your report should include an evaluation of short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, market measures, and a discussion of any quality of financial reporting issues. Give your opinion of the investment potential and the creditworthiness of the firm should be conveyed to management.
Suggested Content of the Project
• Title Page
• Company Overview
• Balance Sheet Analysis
• Income Statement Analysis
• Cash Flows Summary Analysis
• Analysis of cash flow from operating activities
• Analysis of cash inflow and outflows
• Key Financial Ratios:
Liquidity Ratios
Activity Ratios
Leverage Ratios
Profitability Ratios
Market Ratios
• Analysis of short-term liquidity and operating efficiency,
• Analysis of capital structure and long-term solvency
• Analysis of profitability and market measures
• Conclusion
