Slide 4: Ratio Analysis Findings - Present the findings from the ratio analysis. - Display the calculated ratios for both years and highlight any significant trends or changes. Slide 5: Discussion

of Financial Performance - Analyze the company's financial performance based on the ratio analysis findings. Copyright ©American College of the Middle East, 2023 - Discuss the strengths and weaknesses identified through the ratios. - Provide insights into the company's liquidity, leverage, profitability, and asset management efficiency. Slide 6: Conclusion and Recommendations - Summarize the key findings from the ratio analysis. - Offer recommendations for the company based on the analysis conducted./n Semester Course Title Course Code Instructor(s) (Includes names of all instructors teaching this course) Submission Date Exam Date Student Name Student ID Major Integrity Statement ACM American College of the Middle East Deliverable 2 (4.5%) - Group Fall Year Handwritten Integrity Statement Signature Question Earned Points 1 2 3 4 5 Total Earned Points : : Managerial Finance ; FIN200 : SA To be completed by the student : : : Department Section "I affirm that I will complete my assessment on my own. I will not receive any help or use any unlawful resources. "/ Grading Scheme Question 5 7 8 9 10 Max. Points 15 35 40 10 Total Available Points 100 : : 2023 Earned Points Max. Points Instructor Name Important Notes: Any attempt at plagiarism or cheating will be reported. All ACM handbook academic misconduct rules will be applied. It is the responsibility of the student to submit this online assessment paper to the instructed online platform (Moodle, Turnitin) if applicable. Copyrights ©American College of the Middle East, 2023 a. Introduction to the company and its industry In 1976 Mr. Jamil Sultan founded PSC Supply, a division of The Petroleum Services Company, which eventually grew to be a major provider of supplies to the oil industry. It was here that the retail business began and evolved into the retail grocery business as we know it today. The Sultan Center Shuwaikh was the first self-service retail store in Kuwait when it opened in 1981. Several other stores followed shortly after, and Sultan soon established itself as 'the' place to shop in Kuwait. To this day, many in the community talk warmly about how they grew up with Sultan as the first provider of quality products, imported goods and fresh food from around the world. Surrounded in an environment of exemplary customer service, it's from this foundation that Sultan grew its operations in four countries. Since the establishment of its Kuwaiti flagship store in 1981, the Sultan legacy has grown to be a source of pride over 41 years. Known for being Your Neighborhood Grocer, its offerings provide a unique lifestyle experience for customers with a range of concepts. Sultan is a well-known member of the community and is highly desired by both residents and foreign visitors to the area. Sultan is known for guaranteeing the best caliber of work. Sultan is a global retailer catering to millions of customers, offering highly sought-after products and forming inventive collaborations in line with market trends. With a network of more than 70 stores in the Middle East, the company runs supermarkets in Kuwait, Bahrain, Oman, and Jordan, with a focus on customer service as the core of its brand value proposition. b. Income Statement: Evaluate revenues, expenses, and profits over the two years. Ratio analysis is used to evaluate various aspects of a company's operating and financial performance. The importance of ratio analysis is examines line-item data from the financial statements of an organization to provide information about solvency, profitability, liquidity, and operational effectiveness Copyrights ©American College of the Middle East, 2023 c. A short explanation of what is ratio analysis and its importance. For the income statement in 2022 the total revenues were 160.18 meanwhile in 2021 it was 170.01.as for the gross profit in 2022 it was 32.98 and for 2021 was higher 37.92. finally for the total expenses in 2022 was 186.43 and in 2021 was higher 205.37. The difference between the two years that in 2022 the numbers has decreased than the last year"2021". Copyrights ©American College of the Middle East, 2023 1.Liquidity Ratios: Current Ratio The current ratio assesses a company's ability to cover its short- term liabilities using its short-term assets effectively. Therefore, a good current ratio which is taken to be above 1 indicates that the company is safe and can use its resources to cover short-term needs. Using the calculations above, there is an evident decrease of the ratio between 2021 and 2022, an indicator that the company's ability to meet its short term needs reduced slightly 2021 = 2022= CA: 0.3960901 CA: 2. Debt Ratios The debt-to-total assets ratio indicates the 220.04151 0.3791671 proportion of a company's assets financed by debt. A higher ratio suggests a higher degree of financial leverage. In this case, the ratio increased between 2021 and 2022 which means that the company increased in debt reliance. 1 Shareholders' Equity 37.28 CL: 35.6 CL: CR 94.12 93.89 Debt-to-Equity Ratio: Calculation for 2022: Totalpabigletesmarican College of the Middle East, 2023 2022 0.379 2021 0.396 d. Discussion of the company's financial performance based on the ratio analysis The company's performance was better in 2021 than in 2022. All three ratios show a massive decline in the company's productivity and profitability. According to the total asset turnover ratio, the company recorded a decrease in revenue generation which shows there could be inefficiency in the company. The second ratio, the ROA shows that there is a decline in the company's rate of profitability in relation to its assets. There is also a massive decline in shareholder return value which suggests a possible decrease in the net income. f. Conclusion and recommendations for the company based on the analysis In general, the company's performance has massively declined as indicated by the reduced efficiency, profitability and returns for shareholders. To increase efficiency, the company may need to explore other ways that will enhance asset productivity. The second issue that needs to be addressed is factors that affect profitability to improve its ROA. In this case, more analysis will be required to help identify the specific areas which are affecting the company's performance. Copyrights ©American College of the Middle East, 2023