Internet Ratio Analysis for Dlala and Qatar Telecomm - Research Paper Example

Internet ratio analysis for Dlala and Qatar Telecomm Introduction Financial ratios are used in measuring the financial position andthe performance of a given company. They are also to ascertain business growth of a given company over the time frame. This report will however analyze the performance of two Qatari Companies prevailed in the years ending 2008. Through the comparison of their performance both nationwide and internationally, we will be able to access the conclusive assesses on their marketing trends. Dlala and Qatar telecom is the companies of our interests in the analysis of financial ratios.The financial years to be analyzed in the report are for year 2007 and 2008. The most commonly used ratios are the liquidity, profitability, efficiency and financial stability ratios. . These ratios are critical to the success of the bank in terms of profitability. The main source of information will be the Annual reports for the respective companies which are available from the internet. Internet is highly reliable and reduces time and costs that could have been used in accessing libraries or buying books for reference purposes. It can be accessed at anytime and anywhere so long as there is a computer and internet connectivity. In addition, internet has highly contributed to e-learning a mode that is common today. Ratio analysis This is a finding given by different companies, trying to analyze the business transaction prior to profit posted for a given annual report. This helps the investors within these companies to lay down proper strategies in regards to the company’s growth. However, an analysis help various companies in line to business to provide enough money for its bills, to establish if whether the wages paid to employees are high or low, whether the company is paying its tax to revenue authority, whether the company assets are being used efficiently and finally whether the prevailing problem issues are geared by the stake holders (Carr, 2011). In any company analysis, profitability ratios, liquidity ratios, Solvency Ratios and Valuation Ratios are the main concept that triggers the results posted annual for the prevailing financial report. Internet ratio analysis for Qatar Telecomm The qualitative analysis of Qatar telecom in the year ending 2008 December is a follows; CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2008 2008 2007 ASSETS QR000 QR000 NON-CURRENT ASSETS Property, plant and equipment 23,480,143 9,010,865 Intangible assets 33,819,101 27,009,365 Investment in associates 1,873,892 2,523,960 Available-for-sale investments 1,916,947 2,333,384 Other non-current assets 792,167 143,848 Differed tax asset 435,664 380,602 62,317,94 41,402,04 CURRENT ASSETS Inventories 272,257 127,616 Accounts receivable and prepayments 3,862,268 2,105,184 Amounts due from liquidator - 389,640 Bank balance and cash 7,845,307 3,250,092 11,979,832 5,872,532 TOTAL ASSETS 74,297,76 47,274,56 From the above observation we found that the performance trend of the Qatar telecom has been growing tremendously. Considering the minority interests of the company, profit and losses have been diminishing ever within the year 2008 as compared to the financial year 2007. The number of property, plant and equipment has increased with a margin of 144, 692, 278, for the financial years of 2007 and 2008. Meanwhile, the intangible assets, and the differed tax asset have increased from the one in the year 2007 to the one in the year 2008. This is however, showing that the financial analysis of the Qatar Company has been increasing due to the prevailing financial report and the effectiveness within the company (Ittelson, 2009). The entire performance grid has been on the evaluation period hence posing an increase to the services and demand the company is providing. There is effectiveness in the management as well as the financial department hence the grid line graph have been increasing as it is evident from the annually report. The performance grid of this company however, has been triggered by the number of investors and stakeholder registered. They have a clear mind on all the operation within the company and also the openness prevailed through the articulated report hence feeling free to generate concoctive help to trigger business at large. Total assets ascertained in the year 2008was high compared to the previous year. The difference however, provided a larger margin of more than thirty million profits hence encouraging business growth and the life of the Qatar Telkom in the coming years. The qualitative analysis of Dlala in the year ending 2008 December is a follows; DLALA BROKERAGE AND INVESTMENTS HOLDING COMPANY (QSC) CONSOLIDATED BALANCE SHEET As at December 31, 2008 ASSETS 2008 2007 QR QR Current assets Cash and bank balances 48,249,388 114,498,062 Bank balances – customers’ funds 441,323,691 357,738,889 Due from customers 6,187,470 273,906,575 Due from Doha Security Market 75,137,536 - Other assets 3,595,329 3,041,552 74,493,414 749,185,078 Non-current assets Available-for-sale investments 28,535,520 47,858,669 Investment in associates 10,455,888 11,993,832 Properties and equipment 64,738,230 18,580,943 103,729,638 78,433,444 Total assets 878,223,052 827,618,522 From the above observation we found that the performance trend of the Dlala Company has been growing at a higher pace. Considering the minority interests of the company, profit and losses have been diminishing ever within the year 2008 as compared to the financial year 2007. The number of property, plant and equipment has increased with a margin with a high margin, for the financial years of 2007 and 2008. Meanwhile, the intangible assets, and the differed tax asset have increased from the one in the year 2007 to the one in the year 2008. This is however, showing that the financial analysis of the Dlala Company has been increasing due to the prevailing financial report and the effectiveness within the company. The entire performance grid has been on the evaluation period hence posing an increase to the services and demand the company is providing. There is effectiveness in the management as well as the financial department hence the grid line graph have been increasing as it is evident from the annually report. The performance grid of this company however, has been triggered by the number of investors and stakeholder registered. They have a clear mind on all the operation within the company and also the openness prevailed through the articulated report hence feeling free to generate concoctive help to trigger business at large. Total assets ascertained in the year 2008 were high compared to the previous year. The difference however, provided a larger margin of more than thirty million profits hence encouraging business growth and the life of the Dlala in the coming years. Profitability ratios Profitability can be measured using a variety of ratios depending on the aim of the study. In carrying out profit comparisons, Return on equity (ROE) is a popular ratio which is given by the profits for the year (after tax) divided by the shareholders’ equity. The shareholder equity includes the share capital and reserves. ROE is used to determine the return on investments. Therefore, we can say that higher the ROE results to better returns to investors. However, ROE is not an indicator of returns on investments which would rather depend on the declared dividends and capital appreciation. Therefore; ROE= Profits after Tax/ shareholders equity In the year 2008, the number of property, plant and equipment has increased with a margin of 144, 692, 278, for the financial years of 2007 and 2008. Meanwhile, the intangible assets, and the differed tax asset have increased from the one in the year 2007 to the one in the year 2008. This is however, showing that the financial analysis of the Qatar Company has been increasing due to the prevailing financial report and the effectiveness within the company ROA = Net operating income/ Total assets However, the ROA for the both two company varies due to the prevailing strategies the companies have availed. The profit margin and its net operating income for the year 2007 and 2008 for both companies varies at large hence affecting the entire profit maximization initiates within the financial years of these two companies. These however, show that the net profit margin for the two companies due to the different taxation of these two companies and the level of business transaction each company is providing. Risk ratios The net interest margin is given by the net interest income divided by the total interest earning assets. In 2008, the net interest margin for both banks differs. This means that Qatar had a better spread of its net interests compared with Dlala, since company acquires many stakeholders due to its prevailing financial data out put increasing upwardly each and every year. In addition, Qatar Telecom managed to improve its NIM during fluctuating periods of interest rates. Capital ratios Year 2011 shows that both companies had the same leverage. In 2008, the leverage of Dlala and Qatar Telecom remained the same as it was in 2007 posing an index of 0.12 This is an indicator that Qatar Telecom was in a position of solving its capital constraint in 2008. Conclusion In conclusion, marketing trends within the two companies have been increasing at a faster pace in regards to the prevailing report. Performance trend of the Qatar telecom has been growing tremendously. Considering the minority interests of the company, profit and losses have been diminishing ever within the year 2008 as compared to the financial year 2007. The number of property, plant and equipment has increased with a margin of 144, 692, 278, for the financial years of 2007 and 2008. Meanwhile, the intangible assets, and the differed tax asset have increased from the one in the year 2007 to the one in the year 2008. This is however, showing that the financial analysis of the Qatar Company has been increasing due to the prevailing financial report and the effectiveness within the company. Total assets ascertained in the year 2008 were high compared to the previous year. The difference however, provided a larger margin of more than thirty million profits hence encouraging business growth and the life of these companies. All this marketing trends are therefore triggered by the effectiveness in the management of this company, quality services and goods provided to its customers and the entire pricing policies these companies have prevailed to meet the market trends. However, the use of information technology has played a big role in efficiency that trigger high volumes of customers, stakeholder and shareholder who propels and gear up the motivational aspect to the employees. References Carr, N. (2011).The Shallows: What the Internet Is Doing to Our Brains [Paperback]. USA: W. W. Norton & Company Ittelson, T. (2009).Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports [Paperback]. United Kingdom: Career Pr Inc. Read More