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Financial Statement Analysis - Research Paper Example
Emirates integrated telecommunication is a company which was formed in the year 2007.The company started operation under telecommunication industry where there already existed Etisalat government Telecommunication Company. …
Being a government financed company, it was able to compete very strongly with du, since the telecom company used infrastructure which had been installed for a more than a decade .DU, however, under a powerful management has been able to overcome its competitor such that by the year 2011 du no longer felt the effect of the competitor due to its overwhelming growth. By the year 2011 the company was able to control more than 46% of the mobile industry. The following paper examines changes in the company performance through a financial analysis. The paper will analyze by a trend analysis from the year 2010 to the year 2011.From the analysis there are some major findings that have been gathered such as the company was able to increase its revenue by 25%- one of the largest growth in the MENA region. There was also very high market share of more than 46% by year 2011 (du, 2012). The liquidity and solvency ratios had gone up from the year 2010 to 2011; this showed that the companies’ potential to pay short term debts had increased hence was able to run the business more smoothly. Other important findings shows an increase in companies net profit margin, gearing ratios and furthermore the company had been ranked the best in the social corporate responsibility, which is an evidence of companies improved performance. ...