FINANCE
Financial Management BFIN2302
Ms. Najwa Aldardeer
Student Name:
ID:
Section: A,B,C,D,E&F
Total: 15 points
Learning Outcomes:
Upon completion of this project, the students should be able to:
Explain the environment within which the financial manager operates as well as the role of financial markets and institutions.
Evaluate financial performance using financial ratios.
Define, quantify, and interpret risk measures.
Identify components of working capital and how to manage them.
Describe ethical issues of financial management.
The project is following the Bloom’s Taxonomy
Evaluating : Critiquing, rating , grading, examining, assessing , inferring, drawing conclusion , and forming opinion
Synthesis: linking new information with previous information
Analysis: Examining, breaking down
Application: using knowledge and comprehension; solving problems
Comprehension: Understanding, paraphrasing, and interpreting
Knowledge: naming ,recognizing , identifying , recognizing , and reciting
Content
Chapter 1&2------------------------------------------------------------------------------- Section A
Chapter 4-----------------------------------------------------------------------------------Section B
Chapter 8-----------------------------------------------------------------------------------Section C
Chapter 15---------------------------------------------------------------------------------Section D
Select a company from Tadawul.com
Use the following video to help you to find a company in Tadawul .
https://www.youtube.com/watch?v=tirZooaTRhs
Use the university lab to get the full information about a company that listed in Tadawul.
The university lab has access to Thomson Reuter’s database.
Fill up the following
Chapter 1 and 2
Name of the company: Savola Group Company.
Sector: Egypt, Algeria, the Levant, Iran, Morocco, Turkey, Sudan, and Kazakhstan.
CEO/ Name: Eng. Rayan Mohammed Fayez.
- CFO/ Name: Mr. Nouman Farrukh Abdulsalam.
Major shareholders:
Aseela Investment (11.23%).
General Organization for Social Insurance (10.23%).
AbdulKadir Al-Muhaidib & Sons Company (8.21%).
Abdullah M. A. Al Rabiah (8.21%).
Al-Muhaidib Holding Co. (6.36%).
Definition of Tadawul market:
Tadawul is the sole entity authorized in the Kingdom of Saudi Arabia to act as the Securities Exchange (the Exchange). It mainly carries out listing and trading in securities, as well as deposit, transfer, clearing, settlement, and registry of ownership of securities traded on the Exchange. The capital of Tadawul is SAR 1,200,000,000 divided into (120,000,000) shares of equal value of SAR 10; all of which are cash shares subscribed by the Public Investment Fund. Tadawul is an affiliate member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE), and the Arab Federation of Exchanges (AFE).
Market data
| Last trade | 42.70 | Day’sRange | |
| Trade time | 13.13 | 52wk Range | 44.90 - 27.80 |
| Change | -0.38 (-0.88%) | Volume | 83,315 |
| Prev Close | 43.20 | No of shares outstanding | 533.90M |
| Open | 42.90 | Authorized capital | |
| Bid | 42.60 | P/E(ttm) | N/A |
| Ask | 42.70 | EPS(ttm) | |
| Beta | 0.93 | Div& Yield | 2.89% |
Source: Tadawul.com,
Customized chart:
3 month graph / show the volume changes and price changes. Explanation of the chart
Financial ratios
TO WRITE A PROPER ANALYSIS
Describe what is happening in the two years (high, low)
Write what the ratio tells you
Reason why the second year went up or down
*Your grades will be on your analysis
USE THESE STEPS TO ANALYZE
Provide an analysis of 6 financial indicators of the chosen company and compare them with the previous year performance. Conclude your analysis with an overall analysis of the company financial situation.
Analysis of 6 financial indicators below
| Name | 2015 | 2016 | analysis |
| Current ratio | 0.94x | 0.18x | |
| Quick ratio | 0.45x | 0.49x | |
| Inventory turnover | 4.3x | 5.2x | |
| DSO | |||
| Fixed assets turnover | 3.44x | 3.44x | |
| Total assets turnover | 0.94x | 0.99x | |
| Debt ratio | |||
| Times-interest-earned | 3.0x | 0.1x | |
| Operating margin | 17.1x | 1.0x | |
| Profit margin | 7.6x | 1.8x | |
| Return on total assets | |||
| Basic Earning power | |||
| Return on common equity | |||
| Price/ Earning | |||
| Book value per share | |||
| Market/ Book |
Conclusion of analysis:
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grading Criteria
FOLLOWING THE STRACTURE AND FILLING UP THE REQUIRMENTS
| Section | Maximum points | Points earned |
| Section one table / Filling more than half of the requirement | 3 | |
| Graph along with explanation | ||
| Section two/ providing 6 financial ratios and analysis | ||
| Overall conclusion of company analysis | ||
| Using Thomson Reuter’s database | ||
| On time submission and professional presentation | ||
| Total | 15 |
Comment
Najwa Aldardeer, spring 2016-2017, financial Management/ BFIN2302
