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Introduction of company of Savola group
company in Kingdom of Saudi Arabia
Savola
group company was established in 1979 in Kingdom of Saudi Arabia. The company
was selected from food and beverages type of the list. The Savola group company
is a large-scale company that import and refine the vegetable oil for sale and
the services are provided in the local market of Saudi Arabia. The headquarter
of company is in Jeddah. The services of Savola include delivery of edible oil,
fresh dairy products, sugar, and fast food. The group owns the largest grocery
retailed chains in the middle east. The company is registered in oils and fats
division of the Saudi stock market
Internal year to year comparison of Savola
group company in Kingdom of Saudi Arabia
The
internal year to year comparison is conducted for two years. In the two year
periods the financial information of the organization is presented in the table
below:
|
Ratios |
2017 |
2016 |
|
Liquidity Ratios |
||
|
Current Assets |
6653387 |
8449057 |
|
Current Liabilities |
8513858 |
10406259 |
|
Profitability Ratios |
||
|
Net Income |
1120119 |
415258 |
|
Revenue |
23830475 |
26330802 |
|
Asset Management |
||
|
Total assets |
23208820 |
25287396 |
|
Financial Leverage |
||
|
Debt |
3529434 |
4455956 |
|
Equity |
9707980 |
9249834 |
Liquidity ratio of Savola group company in Kingdom of Saudi Arabia
|
Ratios |
2017 |
2016 |
|
Liquidity Ratios |
||
|
Current Assets |
6653387 |
8449057 |
|
Current Liabilities |
8513858 |
10406259 |
|
Current Ratio |
0.781477 |
0.811921 |
|
Profitability Ratios |
||
|
Net Income |
1120119 |
415258 |
|
Revenue |
23830475 |
26330802 |
|
Net Profit |
4.700364 |
1.577081 |
|
Asset Management |
||
|
Total assets |
23208820 |
25287396 |
|
Total asset turnover |
1.026785 |
1.041262 |
|
Financial Leverage |
||
|
Debt |
3529434 |
4455956 |
|
Equity |
9707980 |
9249834 |
|
Debt to equity |
0.36356 |
0.481734 |
Investment Decision of Savola group company in Kingdom of Saudi
Arabia
After
computing the financial ratios it can be said that the organization needs to
improve its financial condition. The organization does not generate enough cash
to pay its short terms loan. The current ratio is indicating that the company
has not enough cash for pay paying its short term loans. The revenue of the
organization has decline from previous year which should be a matter of concern
for the organization. Although net income has shown sign of improvement but
still the profitability of the corporation is quite low and the organization
needs to improve its profitability. The decline in revenue might occur due to
decline in the efficiency of the organization. The organization is not
utilizing its assets efficiently for generating sales
References
of Savola group company in Kingdom of Saudi Arabia
Fridson, M. S., & Alvarez, F. (2011). Financial
Statement Analysis: A Practitioner's Guide. John Wiley & Sons.
Savola. com. (2019). History
. Retrieved from www.savola.com:
https://www.savola.com/en/about-us/savola/history
SINHA, G. (2012). FINANCIAL STATEMENT ANALYSIS. PHI Learning Pvt. Ltd.
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