Student Name

I.D

Hasan Al Ahbabi

1040538

Naeema Al Ghaithi

1004877

Mariam Al Shamsi

1010763

Bakhit Al Ketbi

1053374

Naama Al Shamsi

1005024

Mohammed Al Ketbi

1003120
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Current ratio

Short Term Solvency

and Liquidity Ratio

Current Asset/ Current Liabilities

Standard ratio is 2:1 depending on business natu

Aldar liquidity ratio is acceptable due to its business

Most liquid asset (Cash+AR+MS)/ Current Liabilities

Most liquid because it is easily convertible to cash
Asset realization is almost the same as book value

Solvency ratio which measure total liabilities as percentage of total Asset

Measures ratio of asset finance by external lenders
Aldar has high percentage on this ratio and considered risky

measures the degree of which the asset is finance either by external

funding or by its owner or a combination of both.
Debt financing is more in Aldar company than shareholders contribution
which indicates high financial leveraging.

This leverage ratio is used to measure the proportion of companys asset

that is finance by its shareholders.
High ratio indicates more financing by external lenders
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The ratio above shows that the income is more than enough to cover
the cost of external financing.

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This show how the fast inventory is converted to Sales

Aldar shows low turnover because of its nature of operation (Real
Estate)
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This show how many days inventory has been converted to sales
Aldar shows high holding days of inventory because its a real estate
developer which means slow moving inventory
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This ratio is an efficiency ratio that determines how fast the company can
convert its accounts receivable to cash.
Receivable turnover is high which means an efficient management of
receivables
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The trend shows that from 2011 the company have been efficient in
collecting its receivables because days sales in receivable went down
to 31 days which is an efficient credit period.
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This ratio is used to evaluate how the company is using its short term
asset in supporting its sales.
During 2012 the company is efficient in managing its net working
capital and suddenly in 2013 it went down again.
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This ratio provides a way of evaluating if the asset is being use with
efficiency.
During 2012 the company has high turnover ratio which means they
are utilizing the asset will but again it went down. This attributable to
nature of business.
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The trend is going normal until the company have losses in 2010
which is attributable to the global financial crisis.

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The trend is going normal until the company have losses in 2010
which is attributable to the global financial crisis.

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The trend is going normal until the company have losses in 2010
which is attributable to the global financial crisis. The company has
been efficient in utilizing its asset.
Return on assets measures the company result on the usage of its assets
and its success in using financing to generate profits.
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This shows how much the owners of the company received in consonance
to their contribution.
The company has maintain a good return on in equity except the
losses in 2010
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Earnings per share measures the amount of income that each share of
common stock would have earned if the profit of the company had been
paid to all common shares outstanding.
.34 earnings per share is high in EPS which the company have
returned back normally from losses in 2010

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 The companys financial ratio shows a healthy and wealthy trend of

the company. From the liquidity ratio of 1.15 which is acceptable on
this type of business to the solvency ratio of 1.63 in 2013 is a good
indication that the company can withstand bankruptcy issue.
With a profit margin of .41 which is almost half of its sales and an
earnings per share of .34 in the last year is financially a healthy ratio
on profitability.
This financial ratios is only one of the factor but also we need to
observed that the construction and investment in UAE have started to
move forward, with stable political atmosphere and an expo 2020 will
keep the company move to increasing figure.
And to consider that the major shareholder is Abu Dhabi government
which have one of the highest petrol reserved in UAE and Gulf region
which means there is a back up on its solvency.
This reasons are good back up to invest in the company
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http://www.aldar.com/en/article/investorrelations/financial-data/annual-reports.html
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