ORWE Financial Forecasting and Analysis.pdf

Managerial
Finance
Financial Analysis &
Forecasting
Lamees El-Ghazoly

COMPANY PROFILE
Company Name Oriental Weavers Carpet
(ORWE)
Company Purpose Oriental Weavers Carpet
(known as Oriental Weavers) is a public company
listed on Egyptian Exchange (EGX) since
December 1994. Oriental Weavers operates within
the Consumer Durables and Apparel sector,
focusing on Home Furnishings. Oriental Weavers
is based in Cairo, Egypt and was established in
November 1981.
Company Establish Date 16 November 1981
Financial Year Start First Quarter
Auditor Baker Tilly - Wahid Abdel Ghaffar and Co
Ownership
Mohamed Mohamed Farid Fouad Khamis (23.537%)
Farida Mohammed Farid Fouad Khamis (12.31%)
Yasmine Mohamed Farid Fouad Khamis (12.282%)
Sodouq International Investment Holding Co Ltd (11.443%)
Milo Slava Khamis (5.562%)
Misr Insurance Co (1.8556%)
Misr Life Insurance (1.4328%)
Amr Mahmoud Fawzi Mohamed Fouad Khamis (1.284%)
Mohamed Mahmoud Fawzy Mohamed Fouad Khamis (1.247%)
Ahmed Hassan Ahmed Fitaihi (0.451%)
Omar Raji Al Mahdi (0.155%)
Malik Raji Al Mahdi (0.15%)
Osama Bassil El Baz (0.098%)
Mahmoud Fawzy Mohamed Fouad Khamis (0.043%)
Mahmoud Amin Mahmoud Saad (0.003%)
Mohamed Mohamed Mohamed Ali Amer (0.003%)
Hani Amin Mahmoud Saad (0.0023%)
Medhat Hussein Abdel Halim Hassan (0.0009%)
Mohamed Katary Abdualah Katary (0.0003%)
1

ORWE Standalone Statement of Financial Position
2018- 2019- 2020-2021
*All amounts are in Egyptian Pounds
2018 2019 2020 2021
Non-Current Assets
Fixed Assets 686,095,212 693,283,973 735,455,417 939,060,495
Project in Progress 25,968,458 91,399,047 57,323,812 42,023,253
Right-of-use asset 219,688,948
Invest in subsidiaries 1,575,417,877 1,525,417,877 1,348,416,086 1,348,416,086
Financial Assets Available for Sale 12,639,818 12,639,818 12,639,822 12,639,822
Total Fixed Assets 2,300,121,365 2,322,740,715 2,153,835,137 2,561,828,604
Current Assets
Inventor 563,518,057 624,579,062 542,621,261 711,677,428
Trades and notes receivable 440,003,926 494,953,422 553,002,005 831,094,023
Debtors and other debit accounts 54,392,342 53,541,383 47,181,588 131,708,575
Treasury bills 628,675,996 672,039,406 994,751,847 692,430,651
Cash at banks and hand 56,823,437 99,441,401 87,150,954 124,622,188
Total Current Assets 1,743,413,758 1,944,554,674 2,224,707,655 2,491,532,865
Totatl Assets 4,043,535,123 4,267,295,389 4,378,542,792 5,053,361,469
Equity
Issued and paid up capital 443,404,845 443,404,845 665,107,268 665,107,268
Reserves 1,297,467,438 1,302,660,745 1,094,381,256 1,099,185,826
Retained earninings 129,151,222 162,729,625 378,298,677 201,491,786
Net profit for the year 745,878,978 708,611,710 549,339,917 865,076,860
Total Equity 2,615,902,483 2,617,406,925 2,687,127,118 2,830,861,740
Non-current Liabilities
Long term Loans 76,015,367 46,060,228 40,248,127 137,547,008
Deferred tax liabilities 35,761,237 42,963,316 51,296,748 73,059,230
Rent contracts liability 181,863,594
Total Non-current Liabilities 111,776,604 89,023,544 91,544,875 392,469,832
Current Liabilities
Provisions 39,563,657 28,636,514 28,636,514 44,598,205
Banks-Credit accounts 91,130,089 128,542,201 406,948,137 515,691,546
Rent liabilities-Current portions 55,141,423
Suppliers and notes payable 861,981,482 1,047,164,542 795,840,258 937,334,265
Long -term liabilities-Current portions 31,064,418 18,424,091 20,124,063 44,701,329
Creditors and other credit accounts 221,877,566 273,806,476 283,733,998 162,128,112
Income- Tax Payable 63,191,579 64,291,096 64,587,829 70,435,017
Dividends payable 7,047,245
Total current Liabilities 1,315,856,036 1,560,864,920 1,599,870,799 1,830,029,897
Total Liabilities 1,427,632,640 1,649,888,464 1,691,415,674 2,222,499,729
Total Equity and Liabilities 4,043,535,123 4,267,295,389 4,378,542,792 5,053,361,469
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Less
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Gross Profit 423,025,406 416,720,281 413,970,039 605,461,645
Add/ (less)
Financial investments revenues 588,741,393 550,833,938 499,129,052 618,829,484
Capital Gain 8,390,598 13,422,934 4,804,570 13,274,782
Other Revenues 5,193,307 23,661,129 46,750,886 3,940,738
Treasury bills returns 20,188,311 38,460,461 81,234,746 67,687,372
Credit Interest 28,911,916 16,024,713 9,974,610 6,445,220
Reverse of expected credit loss 10,725,735 3,959,205
Distribution expenses (69,036,723) (87,597,406) (102,809,920) (112,197,203)
General & administrative expenses (104,370,419) (104,898,154) (108,887,344) (128,958,066)
Formed provisions & impairment (65,473,180) (50,000,000) (177,001,791) (30,000,000)
Financing expenses (14,785,656) (17,942,327) (23,868,920) (74,194,459)
Foreign exchange differences 4,105,933 (4,902,843) (5,370,445) 8,900,191
Net profit for the year before
income tax
835,586,621 793,782,726 637,925,483 983,148,909
(Less)
Income tax for the year (76,368,111) (77,968,937) (80,252,134) (96,309,567)
Deferred tax (13,339,532) (7,202,079) (8,333,432) (21,762,482)
Net profit for the year after
income tax
745,878,978 708,611,710 549,339,917 865,076,860
*All amounts are in Egyptian Pounds
ORWE Standalone Statement of Income Statement
2018- 2019- 2020-2021
Financial Analysis:
In 2021 the company expanded its Fixed Assets and invested in
inventory which reflected an increase in net sales and the net
profit for the year, as illustrated in the chart (1-1). This explains
the significant increase in long-term debt. Also, short-term loans
had a share of that increase, as the chart (1-2) shows.
Chart (1-1) Chart (1-2)
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31/12/2018 31/12/2019 Sources Uses
Non- Current Assets
Fixed Assets 686,095,212 693,283,973 7,188,761
Project in Progress 25,968,458 91,399,047 65,430,589
Invest in subsidiaries 1,575,417,877 1,525,417,877 50,000,000
Financial Assets Available for Sale 12,639,818 12,639,818
Total Fixed Assets 2,300,121,365 2,322,740,715
Current Assets
Inventor 563,518,057 624,579,062 61,061,005
Trades and notes receivable 440,003,926 494,953,422 54,949,496
Debtors and other debit accounts 54,392,342 53,541,383 850,959
Treasury bills 628,675,996 672,039,406 43,363,410
Cash at banks and hand 56,823,437 99,441,401 42,617,964
Total Current Assets 1,743,413,758 1,944,554,674
Totatl Assets 4,043,535,123 4,267,295,389
Equity
Issued and paid up capital 443,404,845 443,404,845
Reserves 1,297,467,438 1,302,660,745 5,193,307
Retained earninings 129,151,222 162,729,625 33,578,403
Net profit for the year 745,878,978 708,611,710 37,267,268
Total Equity 2,615,902,483 2,617,406,925
Long term Loans 76,015,367 46,060,228 29,955,139
Deferred tax liabilities 35,761,237 42,963,316 7,202,079
Total Non-current Liabilities 111,776,604 89,023,544
Current Liabilities
Provisions 39,563,657 28,636,514 10,927,143
Banks-Credit accounts 91,130,089 128,542,201 37,412,112
Long term liabilities-Current portions31,064,418 18,424,091 12,640,327
Suppliers and notes payable 861,981,482 1,047,164,542 185,183,060
Dividends payable 7,047,245 7,047,245
Creditors and other credit accounts 221,877,566 273,806,476 51,928,910
Tax payable 63,191,579 64,291,096 1,099,517
Total current Liabilities 1,315,856,036 1,560,864,920 372,448,347 372,448,34
Total Liabilities 1,427,632,640 1,649,888,464
Total Equity and Liabilities 4,043,535,123 4,267,295,389
Sources & Uses Analysis for 2018 / 2019
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Uses Value %
Expansion in Projects under progress 65,430,589 17.6%
Invest in Inventory 61,061,005 16.4%
Increase in Trades and NR 54,949,496 14.8%
Increase / Invest in Treasury bills 43,363,410 11.6%
Increase in Cash in bank and hand 42,617,964 11.4%
Decrease in Net profit for the year 37,267,268 10.0%
Repaying S.T Debts 29,955,139 8.0%
Repaying/Paid for L.T liabilities-Current portions 12,640,327 3.4%
Decrease of provision for claims 10,927,143 2.9%
Expansion in F. ASST. 7,188,761 1.93%
Repaying Dividends payable 7,047,245 1.89%
Total 372,448,347 100%
Sources Value %
Increase in Suppliers and N.P 185,183,060 49.72%
Increase in Creditors and other credit accounts 51,928,910 13.94%
Portion liquidation in Inve. With Subsidiarie 50,000,000 13.42%
Increase in Banks-Credit accounts 37,412,112 10.04%
Reinvest in Retained earnings 33,578,403 9.02%
Increase in Deferred tax liabilities 7,202,079 1.93%
Increase in Reserves 5,193,307 1.39%
Increase in Income- Tax Payable 1,099,517 0.30%
Deacrese in Debtors and other debit accounts 850,959 0.23%
Total 372,448,347 100%
Sources & Uses Hierarchy for 2018 / 2019
Sources Uses
185,183,060 65,430,589
51,928,910 61,061,005
50,000,000 54,949,496
37,412,112 43,363,410
33,578,403 42,617,964
7,202,079 37,267,268
5,193,307 29,955,139
1,099,517 12,640,327
850,959 10,927,143
7,188,761
7,047,245
372,448,347 372,448,347
13.42%
9.02%
1.93%
1.39%
17.60%
10.00%
1.93%
16.40%
14.80%
11.60%
11.40%
8.00%
3.40%
2.90%
1.89%
70.39%
25.76%
29.53%
49.72%
13.94%
10.04%
0.30%
0.23%
Sho
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74.23%
L
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Sources
Uses
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Sources & Uses Short - Long Terms Analysis for 2018 / 2019
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74.23% of short-term sources of Finance have been used for
70.39% of short-term Uses
25.76% of Long term Sources of Finance have been used
for 29.53% of Long-term Uses
Golden Rule is accepted.
The deviation is not risky, as
the difference in short-term
loans that financed short-term
operations is slight, which also
applies to long-term financing
sources.
Internal & External Sources Analysis for 2018 / 2019
External
Internal
49.72%
13.93%
10.04%
1.93%
0.30%
76%
13.42%
9.02%
1.39%
0.23%
24%
The company had achieved its target by relying on 75.92% of
Debts as an external Financial Resources
Finance
Sources
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ORWC has been
Expanded
its F. ASST
Production
Capacity had been
increased.
Consequently, it
reflected an increase
in inventory & credit
sales.
Sources of Finance
Ext.
Suppliers & N.P
Creditors & other
credit accounts.
Banks-Credit accounts
as a short- term loans.
& Taxes Payable.
76%
Int.
24%
liquidation in Inve.
With Subsidiarie.
Retained earnings.
Reserves & Debtors.
Golden Rule
Furthermore, it
repaid a portion of
long-term & short-
term loans during
2019.
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12/31/2019 12/31/2020 Sources Uses
Non- Current Assets
Fixed Assets 693,283,973 735,455,417 42,171,444
Invest in subsidiaries 1,525,417,877 1,348,416,086177,001,791
Current Assets
Inventory 624,579,062 542,621,261 81,957,801
Debtors and other debit accounts 53,541,383 39,787,441 13,753,942
Treasury bills 672,039,406 994,751,847 322,712,441
Totatl Assets 4,267,295,389 4,371,148,641
Equity
Issued and paid up capital 443,404,845 665,107,268 221,702,423
Reserves 1,302,660,745 1,094,381,256 208,279,489
Total Equity 2,617,406,925 2,687,127,118
Long term Loans 46,060,228 40,248,127 5,812,101
Total Non current Liabilities 89,023,544 91,544,875
Current Liabilities
Provisions 28,636,514 28,636,514
Suppliers and notes payable 1,047,164,542 795,840,258 251,324,284
Long term liabilities-Current portions18,424,091 20,124,063 1,699,972
Tax payable 64,291,096 57,193,682 7,097,414
Total current Liabilities 1,560,864,9201,592,476,648
Total Liabilities 1,649,888,464 1,684,021,523 1,054,717,5491,054,717,549
Sources & Uses Analysis for 2019/ 2020
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Uses Value %
Invest in Treasury bills 322,712,441 30.60%
Pay for Suppliers and notes payable 251,324,284 24%
Decrease in Reserves 208,279,489 19.75%
Decrease in Net profit for the year 159,271,793 15.10%
Increase in notes receivable 58,048,583 5.50%
Expanding in Fixed Assets 42,171,444 4.00%
Repaying Tax payable 7,097,414 0.67%
Repaid off L.T Loans 5,812,101 0.55%
Total 1,054,717,549 100%
Sources Value %
Increase in Ordinary shares 221,702,423 21.02%
Reinvest of Retained earnings 215,569,052 20.44%
Portion Liquidation of invest in subsidiaries 177,001,791 16.78%
Portion Liquidation in Inventory 81,957,801 7.77%
Decrease of project in progress 34,075,235 3.23%
Deacrese in Debtors and other debit
accounts
13,753,942 1.30%
Withdraw Cash in Bank and Hand 12,290,447 1.17%
Increase in Credit account 9,927,518 0.94%
Increase of current portions of L.T.L 1,699,972 0.16%
Total 1,054,717,549 100%
Sources Uses
278,405,936 322,712,441
221,702,423 251,324,284
215,569,052 208,279,489
177,001,791 159,271,793
81,957,801 58,048,583
34,075,235 42,171,444
13,753,942 7,097,414
12,290,447 5,812,101
9,927,518
8,333,432
1,699,972
1,054,717,549 1,054,717,549
26.40%
8%
1.30%
1.17%
0.94%
0.16%
Sho
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37.74%
L
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-
T
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21.02%
20.44%
16.78%
3.23%
0.79%
62.26%
19.75%
15.10%
4.00%
30.60%
24%
5.50%
0.67%
0.55%
61.15%
38.85%
Sources
Uses
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Sources & Uses Short - Long Terms Analysis for 2019/ 2020
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26.40%
1.30%
0.94%
0.79%
0.16%
External
Internal
70.57%
29.59%
21.02%
20.44%
16.78%
7.77%
3.23%
1.17%
0.16%
Finance
Sources
Internal & External Sources Analysis 2019 / 2020
The company achieved its target, relying on 70.57% of its
Internal Financial Resources. Portion liquidation of its
investment in subsidiaries, Decrease in Net profit for the
year and portion liquidation in In inventory
37.74% of short-term sources of Finance have been used
for 61.15% of short-term Uses
62.26% of Long- term Sources of Finance have been used
for 38.85% of Long-term Uses.
Golden Rule is accepted.
The deviation is not risky, as the
difference in short-term loans
that financed short-term
operations is slight, which also
applies to long-term financing
sources.
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ORWC relied on its
internal financial
sources.
Expanding Fixed
Assets
Repaied a portion of
its dabts
Sources of Finance
Ext.
Creditors & other
credit accounts.
29.59%
Int.
70.57%
Ordinary shares
Reinvest Retained
earnings
Portion Liquidation in
Inventory
Withdraw Cash in
Bank and Hand
Golden Rule
The portion
liquidation in the
inventory reflected
an increase in NR
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12/31/2020 12/31/2021 Sources Uses
Non- Current Assets
Fixed Assets 735,455,417 939,060,495 203,605,078
Right-of-use asset 219,688,948 219,688,948
Invest in subsidiaries 1,348,416,086 1,348,416,086
Current Assets
Inventory 542,621,261 711,677,428 169,056,167
Debtors and other debit accounts 47,181,588 131,708,575 84,526,987
Treasury bills 994,751,847 692,430,651 302,321,196
Totatl Assets 4,378,542,792 5,053,361,469
Equity
Reserves 1,094,381,256 1,099,185,826 4,804,570
Total Equity 2,687,127,118 2,830,861,740
L.T Loans 40,248,127 137,547,008 97,298,881
Rent contracts liability 181,863,594 181,863,594
Current Liabilities
provision 28,636,514 44,598,205 15,961,691
Rent liabilities-Current portions 55,141,423 55,141,423
Suppliers and N.P 795,840,258 937,334,265 141,494,007
L.T liabilities-Current portions 20,124,063 44,701,329 24,577,266
Income- Tax Payable 64,587,829 70,435,017 5,847,188
Total current Liabilities 1,599,870,799 1,830,029,897
Total Liabilities 1,691,415,674 2,222,499,729 1,290,853,2091,290,853,209
Sources & Uses Analysis for 2020/ 2021
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Uses Value %
Increase in trades and NR 278,092,018 21.54%
Expantion in Aseets (Right of use) 219,688,948 17.02%
Expanding in Assets 203,605,078 15.77%
Decrease in Retained earnings 176,806,891 13.70%
Invest in Inventory 169,056,167 13.10%
Decrease in Creditors and other credit accounts 121,605,886 9.42%
Increase in Debtors and other debit accounts 84,526,987 6.55%
Increase in Cash in bank and hand 37,471,234 2.90%
Total 1,290,853,209100%
Sources Value %
Increase in Net profit for the year 315,736,943 24.46%
Decrease in Treasury bills 302,321,196 23.42%
Rent contracts liability 181,863,594 14.09%
Increase in Suppliers and N.P 141,494,007 10.96%
Increase of S.T Loans 97,298,881 7.54%
Rent liabilities-Current portions 55,141,423 4.27%
Increase of L.T liabilities-Current portions 24,577,266 1.90%
Increase in Retained earnings 15,961,691 1.24%
Increase of provision for claims 15,300,559 1.19%
Increase in Income- Tax Payable 5,847,188 0.45%
Increase in Reserves 4,804,570 0.37%
Total 1,290,853,209100%
Sources Uses
315,736,943 278,092,018
302,321,196 219,688,948
181,863,594 203,605,078
141,494,007 176,806,891
108,743,409 169,056,167
97,298,881 121,605,886
55,141,423 84,526,987
24,577,266 37,471,234
21,762,482
15,961,691
15,300,559
5,847,188
4,804,570
1,290,853,209 1,290,853,209
23.42%
10.96%
8.42%
4.27%
1.90%
1.24%
0.45%
Sho
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-
T
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50.66%
L
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-
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14.09%
7.54%
1.69%
1.24%
0.37%
49.39%
17.02%
15.77%
13.70%
21.54%
13.10%
9.42%
6.55%
2.90%
53.51%
46.49%
Sources
Uses
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14.09%
10.96%
8.42%
7.54%
4.27%
1.90%
1.69%
0.45%
External
Internal
50.67%
49.33%
24.46%
23.42%
1.24%
1.19%
0.37%
Finance
Sources
Internal & External Sources Analysis for 2020 / 2021
The company had achieved its target by relying on almost
equal Internal and External Financial Sources, indicating the
stability of the company. Portion liquidation of its investment
in subsidiaries, decrease net profit for the year, and portion
liquidation in inventory.
51% of short-term sources of Finance have been
used for 53.51% of short- term Uses
49.34% of Long -term Sources of Finance have been
used for 46.49% of Long-term Uses
Golden Rule is GOOD.
The difference accepted in
short-term loans that financed
short-term operations is slight,
which also applies to long-
term financing sources.
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Investing in
inventory has
reflected increasing
in the NP
Production
Capacity had been
increased.
Consequently, it
reflected an increase
credit sales.
Sources of Finance
Ext.
Suppliers & N.P
Deferred tax liabilities
& Taxes Payable.
49.33%
Int.
50.67%
Treasury bills
Retained earnings.
Reserves & Debtors.
Golden Rule
Manging their debt
effectively.
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Financial Ratios
LIQUIDITY RATIOS
Current Ratio
Quick / Acid Ratio
Cash Ratio
Liquidity of AR (ACP)
Liquidity of Inventory
DEBT MANAGEMENT RATIOS
Debt Ratio
Debt : Equity Ratio
Capital structure ratio (CSR)
Interest Coverage Ratio
ASSETS EFFICIENCY RATIOS
Total Assets Turnover (TAT)
Current Assets Turnover (CAT)
CATO Cash
CATO AR
CATO Inven
PROFITABILITY RATIOS
Profitability of sales
GPM gross profit margin
OIM operating income margin
NIM net income margin
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Financial Ratios
MODERN TECH. OF ANALYSIS
EVA
DUPONT SYSTEM OF RATIOS
Profitability x Efficiency
Financial performances
Return on assets (investment) ROI
Return on Equity (ROE)
ROBF.
GPM gross profit margin
OIM operating income margin
NIM net income margin
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2018 2019 2020 2021
Current Ratios 1.32 1.25 1.4 1.39
Quick Ratios 0.89 0.85 1.05 0.97
Cash Ratios 0.04 0.06 0.05 0.07
Financial Ratios
Liquidity Ratios
Measure the capability of the company to repay its current debts
Interpretation for 2018, 2019, 2020, and 2021 respectively:
From the analysis mentioned above, 2020 and 2021 ratios have
illustrated the capability of the company's nominator (Current
Assets) to cover 1.40 and 1.39, respectively, the denominator or
the company's current debts, where current
liabilities exceed the current assets.
In this part, we have compared the result of the averages for
four years in a row as a tool for comparison, as it is most
appropriate because there is no accurate, updated, or weight
data for the industry averages. Also, we cannot compare the
organizations with each other. For example, the different
accounting standards applied make the comparison incorrect.
Current Ratios Current assets / Current Liabilities
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
AR & NR 440,003,926 494,953,422 553,002,005 831,094,023
(ACP) 46 days 50 days 58 days 68 days
Financial Ratios
According to removing the heaviest items to be liquid, the
inventory, 2020 and 2021 ratios have illustrated the capability
of the company's nominator (Current Assets without the
inventory) to cover 1.05 and 0.97, respectively, the denominator
or the company's cuuren liabilities.
Quick Ratios
Cash Ratios
(Current assets – Inventory) / Current Liabilities
(CA – INV. – AR – S.T. Invest) or cash in kind / CL
The 2021 ratio has illustrated that every million of the
company's denominator (Current Liabilities) is covered by 7%
of cash or cash in kin,d such as Certificates of deposit and bank
deposits older than six months.
Liquidity of AR (ACP) (Balance of AR X 360) / Credit Sales
Average Collection Period (ACP)
2018 2019 2020 2021
75 days
50 days
25 days
0 days
The company should consider its credit facility period
needed, which should be from 55 to 65 days.
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Internal
50.67%
24.46%
23.42%
1.24%
1.19%
0.37%
Financial Ratios
In 2020 the Liquidity of domestic AR hasn't affected by the
Corona pandemic, while in 2021, ACP illustrated the highest
ratio of the four comparative years.
ACP of Domestic AR (Balance of Domestic AR X 360) / Credit Sales
ACP of Export AR ACP of Domestic AR
2018 2019 2020 2021
400 days
300 days
200 days
100 days
0 days
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Export AR 110,299,980 707,107,268 143,201,111 382,509,436
Domestic AR 58,800,677 62,755,152 76,246,219 170,780,276
ACP of Export AR 12 days 7 days 360 days 31days
ACP of Domestic AR 6 days 6 days 8 days 14 days
For more informative data, accounts receivable have been
separated into domestic and export Accounts; in 2018, 2019,
2020 and 2021, ASP of Export AR ratios have been illustrated as
12, 7, 360, and 31 days respectively.
ACP of Export AR (Balance of Export AR X 360) / Credit Sales
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Inventor 563,518,057 624,579,062 542,621,261 711,677,428
Liquidity of Inventory Ratios 113 days 121 days 701 days 135 days
ACP + ASP 113❮360 121❮360 701 ❯ 360 135❮360
Recommended Liquidity Ratios
be applied.
Current Ratio Quick Ratio Current Ratio Current Ratio
24.46%
23.42%
1.24%
1.19%
0.37%
Financial Ratios
2021Since ASP and ACP can be liquidated in less than 360 days
for a good ratio. So, Accounts receivables and inventory are
considered current assets (Current Ratio)
2020 the Liquidity of AR is less than 36,0, and the Liquidity of
inventory is longer than 360, so recommended that the Quick
Ratio be used as a measurement of the liquidity ratio.
In 2020, with the advent of the Corona pandemic, which led to
port closures and quarantines, stock liquidity was the highest
in four consecutive years, consequently decreasing the net
profit this year by 12% from the 2019 net profit.
(ASP) + (ACP)
The larger the Liquidity of INV, the greater the need for cash
to finance operations
Average selling Period ASP = (Inventory X 360) / COGS
2018 2019 2020 2021
750 days
500 days
250 days
0 days
In 2021, the Liquidity of Inventory Ratios improved to 135 days.
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Brought
of Raw
Material
Stored Produced Selling Collect 135 days
‗
Financial Ratios
Liquidity of Inventory = ACP + ASP
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Inventor 563,518,057 624,579,062 542,621,261 711,677,428
Raw Material 85 days 12 days 12 days 16 days
Work in process 68 days 2 days 1 day 1 day
Finished product 111 days 42 days 52 days 47 days
Spare Parts & Material 72 days 3 days 3 days 2 days
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Financial Ratios
2018 2019 2020 2021
Totatl Assets 4,043,535,123 4,267,295,389 4,378,542,792 5,053,361,469
Debt Ratio 35% 39% 39% 44%
Debt Ratio Total Debts / Total assets
Debt Management Ratios
The 2021 debt ratio has illustrated the highest ratio at 44%,
which is less than 50% which means the company still
maintains the balance by relying on borrowing to finance its
assets. Every unit of the total assets is financed by 56% of the
equity.
This means that Each 1 Million L.E of the company's total assets
is financed by 35%, 39%, 39%, and 44% in 2018, 2019, 2020, and
2021 respectively, of total debts.
In another interpretation, every Million L.E of total assets is
financed by 65%, 61%, 61&, and 56%% in 2018, 2019, 2020, and
2021 respectively, of its equity.
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Financial Ratios
Debt Ratio S. T. Debt / Current Assets
Debt Management Ratios
2018 2019 2020 2021
S.T. Debts 75% 80% 72% 73%
L.T Debts 5% 4% 4% 15%
S . T . Debt Ratio L. T. Debt Ratio
2018 2019 2020 2021
80%
60%
40%
20%
0%
This means that Each Million of the company's total Current assets
is financed by 75%, 80%, 72%, and 73% in 2018, 2019 & 2020, and
2021 respectively, of short-term debts.
And the interpretation of Long- term Debt Ratios in 2018, 2019,
2020, and 2021 is that each Million of total fixed assets is financed
by 5%, 4%, 4%, and 15%, respectively, of the company's Long- term
Debt.
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2018 2019 2020 2021
Total Equity 2,615,902,483 2,617,406,925 2,687,127,118 2,830,861,740
Debt : Equity Ratio 55% 63% 63% 79%
Financial Ratios
Debt : Equity Ratio Total Debts / Equity
Every million invested in the company is funded by 55%, 63%,
63% and 79% of total debts in 20218, 2019, 2020, and 2021
respectively.
Consequently, the Debt: Equity Ratio in 2021 is 79%, less than
100% since the Debt Ratio was 44%, less than 50%. Thus, the
company still depends on its equity more than Debts in
financing.
Gaining the leverage of Finance, the company should
maintain the balance of relying on internal sources of
finance and external debt to finance its investments and
expansion. Keeping the Debt Ratio less than 50% and The
Debt: Equity less than 100%.
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2018 2019 2020 2021
Total Equity 2,615,902,483 2,617,406,925 2,687,127,118 2,830,861,740
CSR 33% 3% 3% 12%
2018 2019 2020 2021
40%
30%
20%
10%
0%
2018 2019 2020 2021
EBIT 774,004,166 811,725,053 661,794,403.00 1,057,343,368
Financing expenses 14,785,656 17,942,327 23,868,920 74,194,459
Interest Coverage Ratio 58 45.2 27.7 14
Financial Ratios
Capital structure ratio (CSR) LTL / (LTL + ME)
33%, 3%, 3% and 12% of the company's capital was generated
from long-term liabilities in 2018, 2019, 2020, and 2021
respectively.
In 2021, the company relied on L . T. Debt by 12%, 9% more
than the previous year, 2020.
Interest Coverage Ratio(ICR)
EBIT (Earning before Interest & Tax) / I
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Assets utilization/management
(activity /efficiency ratios)
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Totatl Assets 4,043,535,123 4,267,295,389 4,378,542,792 5,053,361,469
Total Assets Turnover 0.85 0.84 0.79 0.88
Financial Ratios
Each Million of the company's total assets yields less than a
million in sales. In 2021, total assets increased compared with
the three previous years, reflecting an increase in net sales.
Sales / Total assets
58 Million L.E of the company's EBIT covered each Million of
Interest in 2021, While the cost of goods sold and operating
income did not change considerably compared to the
significant increase in the interest value compared to the
previous three years.
In 2020, 2019, and 2018 each million of the cost of funds was
covered by 27.7, 45.2, and 58 Million, respectively of the EBIT.
Total Assets Turnover (TAT)
The changes in total assets are almost similar to the change in
Sales,
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Fixed Assets Turnover 1.49 1.54 5 5
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Current Assets Turnover 1.97 1.84 1.55 1.78
Financial Ratios
Each Million of the company's current assets generated 1.97, 1.84,
1.55, and 1.78 Million in 20218, 2019, 2020, and 2021 respectively.
The change in current assets reflected the efficiency;
consequently, the net sales changing rate is more significant.
Sales / FA
Fixed Assets Turnover (FAT)
The company's Fixed Assets have the capability to generate 1.49,
1.54, 5, and 5 Millions of sales in 2018, 2019, 2020, and 2021
respectively.
Considering that the change in Fixed Assets is less than the
change in net sales, which reflects the efficiency in managing F.A
capability to generate more sales.
Sales / CA
2018 2019 2020 2021
2
1.5
1
0.5
0
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Cash at banks and hand 56,823,437 99,441,401 87,150,954 124,622,188
Cash Turnover 60.3 36.03 39.6 36
2018 2019 2020 2021
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Inventor 563,518,057 624,579,062 542,621,261 711,677,428
Inventory Turnover 5 5.1 5.6 5.4
Financial Ratios
Each Million of Inventory generated 5.4 Million of the cost of
goods sold in 2021
Sales / Cash
Cash Turnover
Each Million of the company's either cash or cash in kind generated
60.3, 36.03, 39.6, and 36 Million of sales in 20218, 2019, 2020, and
2021 respectively. Takeing into consideration the increase in cash
by the double percentage that is not necessary to reflect the rise in
sales by the same ratio.
COGS / Inventory
Inventory Turnover (CATO)
The increase in the inventory is higher than the % increase in
COGS. The company could have needed to be more efficient in
utilizing its inventory.
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Financial Ratios
Once, the ACP decreases, the sale will increase respectively
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
AR & NR 440,003,926 494,953,422 553,002,005 831,094,023
(ACP) 46 days 50 days 58 days 68 days
Liquidity of AR (ACP) (Balance of AR X 360) / Credit Sales
Average Collection Period (ACP)
2018 2019 2020 2021
75 days
50 days
25 days
0 days
2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Cost of Sales 3,005,250,009 3,166,461,834 3,036,850,182 3,820,267,498
Inventor 563,518,057 624,579,062 542,621,261 711,677,428
Liquidity of Inventory Ratios 113 days 121 days 701 days 135 days
ACP + ASP 113❮360 121❮360 701 ❯ 360 135❮360
Recommended Liquidity Ratios
be applied.
Current Ratio Quick Ratio Current Ratio Current Ratio
(ASP) + (ACP)
2018 2019 2020 2021
750 days
500 days
250 days
0 days
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2018 2019 2020 2021
Gross Profit 423,025,406 416,720,281 413,970,039 605,461,645
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
(GPM) 0.12 0.12 0.12 0.14
Profitability Ratios
Financial Ratios
Every unit of sales generated 12% of gross Profit in 2018, 2019,
and 2020, respectively, and in 2021 increased to 14%.
Each Million of the sales generated 12 Million in gross Profit in
2018, 2019, and 2020, respectively, and in 2021 increased to 14.
Increasing GPM has reflected the profitability of the company.
Reducing the cost of goods sold over time will generate
increasing GP.
GP / sales
GPM Gross Profit Margin
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2018 2019 2020 2021
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Gross Profit (423,025,406) (416,720,281) (413,970,039) (605,461,645)
(OIM) 0.07 0.06 0.06 0.08
Financial Ratios
OIM Operating Income Margin
NI / Sales
In 2021, every unit of sales generated 8% of the Operating income
margin.
This increase compared to the three previous years has a good
indicator of achieving more profitability for the company.
NIM Net Income Margin
OI / sales = ( Sales-COGS -Others) / sales
2018 2019 2020 2021
Net Income 234,832,608 206,282,394 178,403,855 290,111,917
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
(NIM) 0.07 0.06 0.05 0.07
The net income margin was higher in 2018 than It decreased to 5%
in 2020, to return to the increase again in 2021 to 7%, reflecting an
improvement in how the company managed its debt.
Every unit of sales generated 0.10 of the Net income margin.
NIM Net Income Margin
2018 2019 2020 2021
0.075
0.05
0.025
0
The difference between OIM and NIM is the Interest since the Taxes
are a fractional value.
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2018 2019 2020 2021
EBIT 423,025,406 416,720,281 413,970,039 605,461,645
Totatl Assets 4,043,535,123 4,267,295,389 4,378,542,792 5,053,361,469
ROI 21% 19% 13% 21%
2018 2019 2020 2021
EBT 759,218,510 793,782,726 637,925,483.00 983,148,909
Total Equity 2,615,902,483 2,617,406,925 2,687,127,118 2,830,861,740
ROE 0.32 0.30 0.21 0.35
Financial Ratios
Profitability Ratio of Financial performances
EBT / Equity
Each Million of the company's total assets generated 0.21 million
of EBIT in 2021, after decreasing to 0.13 million in 2020.
This increase compared to 2020 has a good indicator of
improving its financial position by investing in its assets.
Return on Equity (ROE)
EBIT / Total Assets
Each Million of the company's total Equity generated 0.32, 0.30,
0.21, and 0.35 Million of EBT in 2018, 2019, 2020, and 2021 as the
highest ROI ratios, respectively. Reflected an increase in EBT.
Return on assets (investment) ROI or ROA
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2018 2019 2020 2021
ROI 21% 19% 13% 21%
ROBF 11% 11% 8% 14%
ROE 32% 30% 21% 35%
In 2021 ROI was generated by the return on investment that
formed the company's total assets and ROBF.
Regarding 2020 and 2021 sources and uses analysis, the
company have almost achieved the golden role of 50.66% to
53.51% (short-for-short) and 49.39% to 46.49% (Long- for-
long), which reflects the successful management of its Debts
that have the upper hand to achieve profitability.
Financial Ratios
Profitability Ratio of Financial performances
ROI + ROBF( Return of Borrowing Fund)
ROE
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2018 2019 2020 2021
Net Income 835,586,621 793,782,726 637,925,483 983,148,909
Net Sales 3,428,275,415 3,583,182,115 3,450,820,221 4,425,729,143
Total Assets Turnover 0.85 0.84 0.79 0.88
ROI 0.32 0.30 0.21 0.35
Dupont System of Ratios
Financial Ratios
(ROI= EBIT/Total assets) x sales / sales
So, ROI =EBIT/Sales x Sales/ Total assets
Each Million of the company's total assets yields less than a
million in sales. In 2021, total assets increased compared with
the three previous years, reflecting an increase in net sales.
ROI in 2021 was higher, which improved its assets capability to
generate more sales effectively
Net Profit
Margin
TATO
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Modern tech. of analysis
2018 Capital Value Its cost
Long- term Loans 76,015,367 14,785,656
Common shares 443,404,845 697,107,268
Reserves 1,297,467,438
142,661,866
Retained Earning 129,151,222
Total 1,946,038,872 854,554,790
EVA -108,675,812
Long- term Loans 46,060,228 17,942,327
Common shares 443,404,845 714,154,513
Reserves 1,302,660,745
146,539,037
Total 1,954,855,443 878,635,877
EVA -170,024,167
Long-term Loans 40,248,427 23,868,920
Common shares 665,107,268 479,619,724
Reserves 1,094,381,256
147,267,993
Total 2,178,035,628 650,756,637
EVA -101,416,720
Long term Loans 137,547,008 74,194,459
Common shares 665,107,268 717,307,266
Reserves 1,099,185,826
130,067,761
Total 2,103,331,888 921,569,486
EVA -56,492,626
Financial Ratios
NP - Total Cost of Capital
EVA Economic Value Added
Capital = L.T. Loans or Bonds + Equity
In 2021, EVA significantly improved; the capital of 2,103,331,888
generated 921,569,486 as a net profit compared with the three
previous years. Accordingly, the capital cost is higher than its
return.
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Financial Forecasting
% of sales method
Method of
forecasting
Forecasted
financial position
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Value Repaid Value Cost
L.T Loans 137,547,008 34,386,752 7,419,446
Financing expenses 74,194,459 14,000,000 14,000,000
Income- Tax Payable 70,435,017 28,133,541
TOTAL 463,288,953
Repaying funds by 165 Million
Balancing the financial position after increasing sales by 10% by
Repaying 164 Million.
Balancing the financial position after increasing sales by 10% by
Repaying 164 Million.
1- 75% from Short- term loans
75%* 515,691,546 = 386,768,660
10%* 137,547,008 = 7,419,446
Cost of S. T. Loan
8% * 74,194,459 = 5,935,557
Cost of L. T. Loan
2- 25% from Long- term loans
25%* 137,547,008 = 34,386,752
Interest = 7,419,446 +5,935,557 = 13,355,003 ≃14 M
The second Stage in the Financial Hierarchy to balance the financial
position statement is Repaying a portion of Income- Tax Payable by
the excess amount, which is 28,133,541 Million.
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Forecasted financial position
Income Statement 31-12-2021 Actual Values
% OF
INCREASE
First Stage
Returned
Info.
Second Stage
Net Sales 4,425,729,143 1.1 4,868,302,057 4,868,302,057
Less:
Cost of Sales 3,820,267,498 1.1 4,202,294,248 4,202,294,248
Gross Profit 605,461,645 cal 666,007,810 666,007,810
Add/ (less):
Financial investments revenues 618,829,484 No change 618,829,484 618,829,484
Capital Gain 13,274,782 No change 13,274,782 13,274,782
Other Revenues 3,940,738 No change 3,940,738 3,940,738
Treasury bills returns 67,687,372 No change 67,687,372 67,687,372
Credit Interest 6,445,220 No change 6,445,220 6,445,220
Reverse of expected credit loss 3,959,205 No change 3,959,205 3,959,205
Distribution expenses (112,197,203) 1.1 (123,416,923) (123,416,923)
General & administrative expenses (128,958,066) 1.1 (141,853,873) (141,853,873)
Formed provisions & impairment (30,000,000) No change (30,000,000) (30,000,000)
Financing expenses (74,194,459) No change (74,194,459) (14,000,000) (60,194,459)
Foreign exchange differences 8,900,191 No change 8,900,191 8,900,191
Net profit for the year before income tax 983,148,909 cal 1,019,579,547 1,033,579,547
(Less)
Income tax for the year (10%) (98,314,891) % (101,957,955) 1,400,000 (103,357,955)
Deferred tax (21,762,482) No change (21,762,482) (21,762,482)
Net profit for the year after income tax 865,076,860 cal 895,859,110 908,459,110
Add / Less
Lose of Assets Sold (13,274,782) No change (13,274,782) (13,274,782)
Mandatory adoption date Standard No.
(47)
(4,034,972) No change (4,034,972) (4,034,972)
Add
Retaind Earnings From 2020 205,526,756 No change 205,526,756 205,526,756
Less
Employees' share in dividends (60,000,000) 1.1 (66,000,000) (66,000,000)
BOD share in profit (12,200,000) 1.1 (13,420,000) (13,420,000)
Dividends (665,107,268) 1.1 (731,617,995) (731,617,995)
Retained Earnings 315,986,594 cal 273,038,117 12,600,000 285,638,117
Forecasted financial position in 2022 increasing sales by 10%
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Financial Position 31-12-2021
Actual FP
(1)
% of Increase
(2)
First stage
(3)
Returned
Info.
(4)
Second
Stage
(5)
Non- Current Assets
Fixed Assets 1.1 1,032,966,545
Project in Progress 42,023,253 No change 42,023,253
Right-of-use asset 219,688,948 No change 219,688,948
Invest in subsidiaries 1,348,416,086 No change 1,348,416,086
Financial Assets Available for Sale12,639,822 No change 12,639,822
Total Fixed Assets 2,561,828,604 Cal 2,655,734,654
Current Assets
Inventory 711,677,428 1.1 782,845,171
Trades and notes receivable 831,094,023 1.1 914,203,425
Debtors and other debit accounts131,708,575 1.1 144,879,433
Treasury bills 692,430,651 No change 692,430,651
Cash at banks and hand 124,622,188 1.1 137,084,407
Total Current Assets 2,491,532,865 Cal 2,671,443,086
Totatl Assets 5,053,361,469 Cal 5,327,177,740
L.T Loans 137,547,008 No change 137,547,008
Deferred tax liabilities 73,059,230 No change 73,059,230
Rent contracts liability 181,863,594 1.1 200,049,953
Total Non-current Liabilities 392,469,832 Cal 410,656,191
Current Liabilities
provision 44,598,205 No change 44,598,205
Banks-Credit accounts 515,691,546 No change 515,691,546
Rent liabilities-Current portions 55,141,423 1.1 60,655,565
Suppliers and N.P 937,334,265 1.1 1,031,067,692
L.T liabilities-Current portions 44,701,329 No change 44,701,329
Creditors and other credit
accounts
162,128,112 1.1 178,340,923
Income- Tax Payable 70,435,017 No change 70,435,017
Total current Liabilities 1,830,029,897 Cal 1,945,490,277
Total Liabilities 2,222,499,729 Cal 2,356,146,468
Equity
Issued and paid up capital 665,107,268 No change 665,107,268
Net profit for the year 865,076,860 895,859,110
Reserves 1,099,185,826 1,099,185,826
Retained earninings 201,491,786 +(273,038,117 ) 474,529,903
Total Equity 1,530,184,128 3,134,682,107
No Financial Need(163,650,836)
There is no need for a financing hierarchy as the company's
equity and liabilities exceed the total assets by 163,65 Million.
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First stage
(3)
Returned Info.
(4)
Second Stage
(5)
Last Stage
(6)
1,032,966,545 1,032,966,545 1,032,966,545
42,023,253 42,023,253 42,023,253
219,688,948 219,688,948 219,688,948
1,348,416,086 1,348,416,086 1,348,416,086
12,639,822 12,639,822 12,639,822
2,655,734,654 2,655,734,654 2,655,734,654
782,845,171 782,845,171 782,845,171
914,203,425 914,203,425 914,203,425
144,879,433 144,879,433 144,879,433
692,430,651 692,430,651 692,430,651
137,084,407 137,084,407 137,084,407
2,671,443,086 2,671,443,086 2,671,443,086
5,327,177,740 5,327,177,740 5,327,177,740
137,547,008 (34,386,752) 103,160,256 103,160,256
73,059,230 73,059,230 73,059,230
200,049,953 200,049,953 200,049,953
410,656,191 376269439.4 376269439.4
44,598,205 44,598,205 44,598,205
515,691,546 (386,768,660) 128,922,886 128,922,886
60,655,565 60,655,565 60,655,565
1,031,067,692 1,031,067,692 1,031,067,692
44,701,329 44,701,329 44,701,329
178,340,923 178,340,923 178,340,923
70,435,017 70,435,017 (28,133,541) 42,301,476
1,945,490,277 1,558,721,617 1530588076
2,356,146,468 1,934,991,056 1,906,857,516
665,107,268 665,107,268 665,107,268
895,859,110 895,859,110 895,859,110
1,099,185,826 1,099,185,826 1,099,185,826
474,529,903 285,638,117 760,168,020 760,168,020
3,134,682,107 3,420,320,224 3,420,320,224
5,490,828,575 5,355,311,281 5,327,177,740
(163,650,836) (28,133,541)
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After Increasing Sales by 10% Its value Its cost
Long term Loans 103,160,256 14,785,656
Common shares 665,107,268 717,307,266
Reserves 1,099,185,826 2,045,289,231
Total 2,627,621,370 2,777,382,153
EVA -1,912,305,293
EVA after increasing sales by 10%
Reject the proposed increase in sales by 10%. The EVA is
deteriorating, which means the company's financial position
will be more harmful.
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Income Statement
Net Sales 4,425,729,143
Less:
Cost of Sales 3,820,267,498
Gross Profit 605,461,645
Add/ (less):
Financial investments revenues 618,829,484
Capital Gain 13,274,782
Other Revenues 3,940,738
Treasury bills returns 67,687,372
Credit Interest 6,445,220
Reverse of expected credit loss 3,959,205
Distribution expenses (112,197,203)
General & administrative expenses (128,958,066)
Formed provisions & impairment (30,000,000)
Financing expenses (74,194,459)
Foreign exchange differences 8,900,191
Net profit for the year before income tax 983,148,909
(Less)
Income tax for the year (10%) (96,309,567)
Deferred tax (21,762,482)
Net profit for the year after income tax 865,076,860
Add / Less
Dividends (665,107,268)
Retained Earnings 199,969,592
Calculate the increase of R/E
The actual net sales: 4,425,729,143
Net profit: 865,076,860
Profit Margin: 19.55%
Dividends: 76.88%
R/E: 23.12%
Proposed Sales: 5,000,000,000
PM: 977,326,935
Dividends: 76.88%* 977,326,935 = 751,409,820
R/E: 23.12% * 977,326,935 = 225,917,115
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% of Sales Method
Financial Position 31-12-2021 Actual values Actual sales 4,425,729,143Proposed sales 5,000,000,000
Non- Current Assets
Fixed Assets 939,060,495 21.22% 1,060,910,490
Project in Progress 42,023,253 42,023,253
Right-of-use asset 219,688,948 219,688,948
Invest in subsidiaries 1,348,416,086 1,348,416,086
Total Fixed Assets 2,561,828,604 21.22% 2,683,678,599
Current Assets
Inventory 711,677,428 16% 804,022,801
Trades and notes receivable 831,094,023 19% 938,934,576
Debtors and other debit accounts 131,708,575 3% 148,798,730
Treasury bills 692,430,651 692,430,651
Cash at banks and hand 124,622,188 3% 140,792,832
Total Current Assets 2,491,532,865 40.65% 2,724,979,589
Totatl Assets 5,053,361,469 61.87% 5,408,658,188
L.T Loans 137,547,008 137,547,008
Deferred tax liabilities 73,059,230 73,059,230
Rent contracts liability 181,863,594 181,863,594
Current Liabilities
provision 44,598,205 44,598,205
Banks-Credit accounts 515,691,546 515,691,546
Rent liabilities-Current portions 55,141,423 55,141,423
Suppliers and N.P 937,334,265 21% 1,058,960,269
L.T liabilities-Current portions 44,701,329 44,701,329
Creditors and other credit accounts 162,128,112 4% 183,165,425
Income- Tax Payable 70,435,017 70,435,017
Total current Liabilities 1,830,029,897 25% 1,972,693,214
Total Liabilities 2,222,499,729 25% 2,365,163,046
Equity
Net profit for the year 865,076,860 865,076,860
Reserves 1,099,185,826 1,099,185,826
Retained earninings 201,491,786 427,408,901
Total Equity 1,530,184,128 3,056,778,855
NO FINANCIAL NEED -13,283,713
The proposed 5,000,000,000
FSN = A/S1 x ∆S - L/S1 x ∆S – PS2 x (1- D )
355,296,719 - 142,663,317 – 225,917,115 = -13,283,713
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thank you
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Add/ (less):
Financial investments revenues 618,829,484 499,129,052 550,833,938 588,741,393
Capital Gain 13,274,782 4,804,570 13,422,934 8,390,598
Other Revenues 3,940,738 46,750,886 23,661,129 5,193,307
Treasury bills returns 67,687,372 81,234,746 38,460,461 20,188,311
Credit Interest 6,445,220 9,974,610 16,024,713 28,911,916
Reverse of expected credit loss 3,959,205 10,725,735
Formed provisions & impairment (30,000,000) (177,001,791) (50,000,000) (65,473,180)
Financing expenses (74,194,459) (23,868,920) (17,942,327) (14,785,656)
Foreign exchange differences 8,900,191 (5,370,445) (4,902,843) 4,105,933
Net profit for the year before income tax 983,148,909 637,925,483 793,782,726 835,586,621
(Less)
Deferred tax (7,202,079) (13,339,532)
Net profit for the year after income tax 865,076,860 549,339,917 708,611,710 745878978
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ORWE Financial Forecasting and Analysis.pdf

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ORWE Financial Forecasting and Analysis.pdf