RAK Properties will also maximize shareholders’ value through its development projects in the coastal and inland areas of Ras Al Khaimah. RAK Properties has a sound capital of AED 2 billion. The Initial Public Offering (IPO) of RAK Properties in early 2005 was over-subscribed by almost 57 times. RAK Properties is a company which was listed in the Abu Dhabi Stock Exchange from 2005 onwards. Just like many of the property companies, the company also has faced a difficult time due to the past recession. However, the markets are turning around with UAE growth resuming and it is very much likely that the company also is in the process of bouncing back with the recovery of the markets. The company was almost bankrupt during the recession period and now is gradually emerging out of the recession and working towards developing properties aggressively. Comparing with the high ranked competitors in the region, the company is more of a smaller player in the market. However, the company has the opportunity to build a totally new portfolio and compete effectively with the other very large holder of the property and continue to offer high value products in the market. RAK, unlike many other high end large scale companies is thriving to strike a balance between offering high end product portfolios and maintaining medium end offerings as well. Thus, the company actually has a better mix of products on offer. Abu Dhabi real estate markets are growing very fast. Currently, there are 193,000 residential units in place and this is likely to increase to 246,000 units by 2013 according to estimates by Estatesdubai (2011). This indicates that the residential properties are expected to grow fast. Most of the residential properties were purchased by Indians at a cost of AED 3.3billion for 2010. This indicates that the confidence in the property markets is increasing and as a result of the total exercise, it is very much likely that the property companies will face increased demand over 2012 - 2015 periods. On the Abu Dhabi growth front, office space has grown by 55,000 square meters just in Q3-2011 reaching a total office space of 2.4 million square meters and this indicates the fact that the business growth is also faster in the region. This is likely to result in sustainable growth in the property market in the future. Thus, the company is one placed in a growth oriented industry and it is likely that they need to place themselves appropriately in the market for growth. While the company holds smaller properties compared with the competitors, the company will be able to expand portfolio with the current investments and will be able to aggressively grow in the markets. 2.0 Financial Analysis When analyzing the financial statements, there are few key observations that are noteworthy. Just like many of the companies who went through troubled times during the economic recession, the company also had faced difficult times and thus, they do not have revenue numbers for 2009 financial year due to the temporary halt in the operations. This is common with the industry as the whole industry was impacted negatively and most of the smaller players had to face this scenario. Another important aspect to note is that the company has changed the year end date from June to December. These aspects have to be noted prior to analyzing of
RAK Properties Financial Statement Analysis Table of Contents 2.0 Financial Analysis 4 2.1 Common Size Analysis 4 2.2 Ratio Analysis 10 Operating Efficiencies 10 Liquidity 11 Capital Structure and Solvency 12 Returns and Market Ratios 14 3.0 Stakeholder point of view 16 4.0 Conclusion 19 References 20 1.0 Introduction RAK Properties is a Public Joint Stock Company (PJSC) formed in 2005 with the support of the Government of Ras Al Khaimah (RAK)…
The purpose of this research is to investigate the following: profitability ratios, liquidity ratios, asset management ratios, capital structure and gearing ratios, current scenario, pro-forma income statement, pro-forma balance sheet, assumption: external financing need (EFN), sustainable growth rate and internal growth rate
John, Bliss, and Calderoni. The company has expanded itself into the overseas market by opening international subsidiaries in United States, Japan, Switzerland and few other Asian countries. The Group has 78 points of sale throughout the world and many brands placed on Italian and international fashion streets.
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In the third quarter results, the company posted an increased growth in sales volume as the sales grew by 2 percent (Ziobro, 2012). This was better than the previous year third quarter growth, which recorded a paltry 1 percent in same segment. The Coca cola also reported a net revenue growth by 5 percent to reach $5.67 billion in the North American segment in the third quarter an aspect that is attributed to a number of reasons.
Benetton, the Gap, and H&M have shown 0%, 2%, and 8% sales increase, respectively. Comparing to its direct competitors, Inditex has illustrated very high level of sales demonstrating not just viability and feasibility of its business strategy but also effectiveness of its flexibility and capability to adapt to market trends.
In the course of our analysis, we discover that the two companies are quite profitable though their activities for the year 2008 have been affected by the global financial crisis. The first part of the report provide an overview of each of the two companies under review, section two of each section analyses each of the companies by focusing on the profitability, liquidity and solvency ratios.
The author of the text examines the financial situation of the so-called "Company D". So it is mentioned that the minimal increases in the company’s total operating expenses (9.48%) and the significant increase (94.12%) in the net interest income earned during Year 8 have generated a net increase of 21.19% in Company D’s net earnings.