This document contains consolidated balance sheets and income statements for Asyad Holding Company from 2007 to 2010. Key points:
- Total assets increased from SAR 203 million in 2007 to SAR 501 million in 2010, with current assets growing faster than non-current assets.
- Total liabilities increased from SAR 120 million in 2007 to SAR 216 million in 2010, with both current and non-current liabilities growing.
- Total equity increased from SAR 79 million in 2007 to SAR 279 million in 2010, indicating growing ownership stakes over time.
- Net profit increased from SAR 37 million in 2007 to SAR 128 million in 2010, with operating revenue and costs also increasing substantially over the period.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online from Scribd
This document contains consolidated balance sheets and income statements for Asyad Holding Company from 2007 to 2010. Key points:
- Total assets increased from SAR 203 million in 2007 to SAR 501 million in 2010, with current assets growing faster than non-current assets.
- Total liabilities increased from SAR 120 million in 2007 to SAR 216 million in 2010, with both current and non-current liabilities growing.
- Total equity increased from SAR 79 million in 2007 to SAR 279 million in 2010, indicating growing ownership stakes over time.
- Net profit increased from SAR 37 million in 2007 to SAR 128 million in 2010, with operating revenue and costs also increasing substantially over the period.
This document contains consolidated balance sheets and income statements for Asyad Holding Company from 2007 to 2010. Key points:
- Total assets increased from SAR 203 million in 2007 to SAR 501 million in 2010, with current assets growing faster than non-current assets.
- Total liabilities increased from SAR 120 million in 2007 to SAR 216 million in 2010, with both current and non-current liabilities growing.
- Total equity increased from SAR 79 million in 2007 to SAR 279 million in 2010, indicating growing ownership stakes over time.
- Net profit increased from SAR 37 million in 2007 to SAR 128 million in 2010, with operating revenue and costs also increasing substantially over the period.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
This document contains consolidated balance sheets and income statements for Asyad Holding Company from 2007 to 2010. Key points:
- Total assets increased from SAR 203 million in 2007 to SAR 501 million in 2010, with current assets growing faster than non-current assets.
- Total liabilities increased from SAR 120 million in 2007 to SAR 216 million in 2010, with both current and non-current liabilities growing.
- Total equity increased from SAR 79 million in 2007 to SAR 279 million in 2010, indicating growing ownership stakes over time.
- Net profit increased from SAR 37 million in 2007 to SAR 128 million in 2010, with operating revenue and costs also increasing substantially over the period.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
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ASYAD HOLDING COMPANY CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER, 2007 - 2010 DESCRIPTION Current Assets Total Current Assets
Non Current Assets Total Non Current Assets 118,844,701 63,049,140 42,124,297 37,101,097 382,084,629 290,149,102 181,633,970 166,003,504 2010 2009 2008 2007
TOTAL ASSETS
500,929,330
353,198,242
223,758,267
203,104,601
Current Liabilities Total Current Liabiliites Non Current Liabilities Total Non Current Liabiliites TOTAL LIABILITIES Equity 5,506,043 221,600,395 4,545,256 170,059,335 4,145,689 128,403,714 3,780,256 124,404,897 216,094,352 165,514,079 124,258,025 120,624,641
Total Owners' Equity
279,328,935
183,138,907
95,354,553
78,699,704
TOTAL LIABILITIES & EQUITY
500,929,330
353,198,242
223,758,267
203,104,601
ASYAD HOLDING COMPANY CONSOLIDATED INCOME STATEMENT - AMOUNTS IN SAR FOR THE YEAR ENDED 31 DECEMBER 2007 - 2010
DESCRIPTION Operating Revenue Direct Operating Cost Gross Operating Profit General and Admin Exp. Other Income Net Operating Profit Zakat Provided Net Profit for the year
Ratio analysis is a very valuable tool to quantitatively value a business's performance. The most important information should be available in order to calculate the ratio is found in the income statement, balance sheet and cash flow statement. Ratio analysis can be used to determine: Business profitability. Assets efficiency. Financial strength. If there enough assets to cash due bills.
Liquidity Ratios Current Ratio Year Current Assets Current Ratio= Current liabilities 1.74 1.75 1.46 1.37 2010 2009 2008 2007
Working Capital Year Net Working Capital to Total Assets = Current Assets-Current Liabilities Total Assets 2010 2009 2008 2007
33.1%
35.2%
25.6%
22.3%
Current ratio shows the measures a company's ability to pay short-term obligations. The group in four years is willing to cover its short term liabilities. Year 2010 has high liquidity rate compared to previous years indicating that over time the group is becoming more liquid and cash rich.
The Working Capital to Total Assets ratio measures a group's ability to cover its short term financial obligations by comparing its current assets to its Total Assets. This ratio can provide some insight as to the liquidity of the group, since this ratio can uncover the percentage of remaining liquid assets compared to the group's Total Assets. This ratio started gradually from 2007 up till 2010 indicating the Group is becoming more able to pay out its short creditors and especially in the year 2010. 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2010 2009 2008 2007
Current Ratio NWC
Long term solvency measures
Total Debt Ratio Year Total Debt Ratio = Total Assets-Total Equity Total Assets 2010 0.44 times 2009 0.48 times 2008 0.57 times 2007 0.61 times
Debt-Equity Ratio Year Debt-Equity Ratio = Total Debt Total Equity 2010 0.79 times 2009 0.92 times 2008 1.34 times 2007 1.58 times
Equity Multiplier Year Equity Multiplier = Total Assets Total Equity 2010 1.79 times 2009 1.92 times 2008 2.34 times 2007 2.58 times
There is a significant change in Total debt ratio, Debt-Equity ratio, and Equity Multiplier shows that ASYAD's solvency position has improved from the Year 2007 to the Year 2010, as the Group rely less (mainly) on short term debt Islamic financing and replace with equity financing.
3 2.5 2 1.5 1 0.5 0 2010 2009 2008 2007 Total Debt Ratio Debt-Equity Ratio
Profitability measures Profit Margin Year Net Income Profit Margin= Sales 13% 12% 15% 18% 2010 2009 2008 2007
Return on Assets Year Return on Assets= Net Income 26% Total Assets 23% 16% 18% 2010 2009 2008 2007
Return on Equity Year Return on Equity= Net Income 46% Total Equity 44% 39% 47% 2010 2009 2008 2007
ASYAD'S profit margin is decreasing from the Year 2007 at 18% to reach 13% in 2010 indicating that as the group is expanding and this process some extra costs are being made to gain more investments, or maybe due to the huge amounts of new investments the group might be not efficient in generating enough profits at the same rate of their expansion.
Return on Assets gives an idea of how efficient management is at using its assets to generate earnings. This rate is increasing from the end of year 2008 all the way through till the year 2010. It showed an improvement in the management ability to efficiently utilize assets.
Return on Equity return measures the company's profitability provided for the owners as a reward for their investment in the Group. This can be revealed by the amount of profit the company generates with the money that owners have invested. ROE has been increasing since 2009 and onwards as it slightly decreased in 2008 after being relatively high in 2007, which is a good indicator for the owners.
50% 40% 30% 20% 10% 0% 2010 2009 2008 2007
Profit Margin ROA
Overall Evaluation of EBGH financial performance
In my opinion EBGH over performance is strong and the hospital financial performance is so far good, but some stress should be made to control the costs which will increase the profitability.
Pro forma financial statements
BALANCE SHEET: 2010 E
Assets Current assets Non-current assets 20,971,435 52,416152
Liabilities and Owners equity Current liability Non-current liability Shareholders equity 10,500,505 29,071,955 49,892,189 69,964,144
Total assets
73,387,587
Total L & SHE
ASSUMPTIONS
Current assets and current liabilities will increase proportionally with sales 8% Non-current liability and equity are constant Equity will be added by 2,012,674
INCOME STATEMENT: 2010E Year Net Revenues Total Operating Expenses Operating Income Other Income (Losses) Net Income 2010E 86,032,535 (83,738,388) 2,294,146 1,368,770 5,031,686
ASSUMPTIONS
Net revenues increase from 2008 to 2009 =7.8% Let us assume the sales growth rate from 2009 to 2010 is also 8% Mentioned in the EBGH agreement among owners that 60% is taken by owners out of any yearly Net income and 40% are reinvested in the Business Money to be paid to Owners = 5,031,686 x 0.60 =3,019,012 Retained earnings = 5,031,686 x 0.40=2,012,674
External financing needed = 73,387,587 69,964,144= 3,423,443 SR
ACHIEVABLE SOURCES FOR EXTERNAL FINANCING
EBGH can go for the option of borrowing or owners can invest more money. Borrowing is a better choice in my opinion since EBGH has low debt financing percentage and also because it gains the financing resources in respect of major investment programs from government financial institutions in Saudi Arabia that support Health care institutions. This financing cost is cheap considering a normal Business that does not deal with health care. The effective cost of borrowings from institutions affiliated by the Saudi Government is typically lower than borrowings from commercial banks and is not subject to commission rate risk.
