ORWE Financial Forecasting and Analysis.pdf

Financial Analysis sources and uses, Ratios, forecasting financial position and % of sales methods.
Liquidity ratios, Assets management Ratios, Financial sources, EVA, efficiency

1. Managerial
Finance

Financial Analysis &
Forecasting

Lamees El-Ghazoly

2. IS oral gala
RENTAL Heavens

COMPANY PROFILE

Company Name Oriental Weavers Carpet
(ORWE)

Company Purpose Oriental Weavers Carpet
(known as Oriental Weavers) Isa public company
listed on Egyptian Exchange (EGN) since
December 1994. Oriental Weavers operates within
the Consumer Durables and Apparel sector
focusing on Home Furnishings. Oriental Weavers,
Is based in Cairo, Exypt and was established in
November 1981.

Company Establish Date 16 November 1981
Financial Year Start First Quarter
Auditor Baker Tilly -Wahid Abdel Ghaffar and Co

Ownership

Mohamed Mohamed Farid Fouad Khamis (25537)

Farida Mohammed Farid Fouad Khamis (12.51%)

‘Yasmine Mohamed Farid Fouad Khamis (122829)

Sodoug International Investment Holding Co Lid (1.445%)
Milo Slava Khamis (556296)

Misr Insurance Co (1.8550%)

Misr Life Insurance (14328%)

Amr Mahmoud Fawzi Mohamed Fouad Khamis (1284%)
Mohamed Mahmoud Fawzy Mohamed Fouad Khamis (1.247%)
Ahmed Hassan Ahmed Ftaihi (04519)

Omar Raji Al Mahdi (0135%)

Malik Raji Al Mahal (015%)

Osama Bassi El Baz (0.098%)

Mahmoud Fawzy Mohamed Fouad Khamis (0.045%)
Mahmoud Amin Mahmoud Saad (0.005%)

Mohamed Mohamed Mohamed Ali Amer (0.005%)

Hani Amin Mahmoud Saad (0.0025%)

Medhat Hussein Abdel Halim Hassan (0.0009%)

Mohamed Katary Abdualah Katary (0.0005%)

3. ORWE Standalone Statement of Financial Position

2018- 2019- 202

“All amounts are in Egyptia

Pounds

Gi D [RR E
Te RS
Fred resets A ERE AT mo
Pornos E DELI
entoruseasser scene
[ranasara SGAE IAE PO)
a a E A
a Fe see 2300121358 23227075 [2359 895,97 [261,620 00)
anar ESET Bree mans
Ta and Te TOTS O0 [53002005 [10902
[Bebe ander debt accouns _ 3302383 [55030 —| 0381588 [1170888
O A A
Eee EE LEZ
eal rent Asses 31743413758 |1944 559 674 [2226707855 249159268
at Arts 083, 53512] 267295 109 | 678,542,792 |5,055 36,469]
za N
fa TO CC
a 297407495 1202007481094 30158| 000 305,625]
[emana EE
Ret ro forthe year 149,478 38 708 913720 [549299917 [ses 76 860
ra uy 615902483 2617406 925 260732708 [2850 861,700
US AS
[ener toans GE
EE [T3050 70
ee Tassen
RO EE A O a OLIS — [302460 807
ee
ren ET 7
Peer: ON E
score 51.130089 _ 12002201 [0090107 [35091350
[erase creas sis
[EE LE PL emo [93731265
RR ON LN _ [4701305
[Erectors and other crea accounts [221871560 [70606476 |283789998 623202
Fone: Tapani CORONADO CE |roA33017
[brvaenas apap Oz
al curren UE 1.16 9560361560 964,970] 1500,870,709|1830,070807
a abies 5.42763, 640,648 an 64169145 674
a uy and RBIS "043, 535123] 4267205 389 [a 378,502

4. ORWE Standalone Statement of Income Statement

Foul opal

ee |
et Sales Lasers | 350328228. 3480.20.21 | 25720303
ese ] ] | ]
ost Sls [5005250008 | 3100401834 5096 850,88| 20207408
Gros rom | azazaaos | soma | 4159700009 | 605/0103
Add ese ] ] | ]

Financial investments fevenues | 388741308 | $60,835,056 | 40020052 | simazoAas

Capital ain [sos | 33422934 | amoasro | 19210702

‘omer Revenues [5103307 | 23661320 | 6.750.886 | 3960708

‘Treasury bis returns |aoxaan | 346061 | 81230706 | 7.687572

Credit interest [ana | 10020713 | 997610 | 64520

Reverso o expected crditloss | 10725735 | [2060208
I

Distribution expenses (69,036,723) | (87597406) | (102809920) | (2,107,203)
Genera mine nperes | 10437015 | (01398254) 108387360 | 28,058,060)
Femedproviions a impaiment | (65473280) | 60000000) 77001791 | (0,000,000)
Financing expenses (04785,656) | 0794232), 135868920) | (74,106,459)
Foregnerchagecifences | «108933 | Mons (370405) | anooası

|
|

|

|

fe i
=)

i

et rote forthe year before
er wsseoens | mafteine | eossans | 900,40 200
income tu forte yar PEN) 7980857 | wozsaıne | 66208507
otra fsa | 0zoxom | toman | czas)
ince tu forte yar | esteo.se | ws:7,016) | 9505500) | 180720491
Se | mensa | sesos esoo

“All amounts are in Egg Pounds

Financial Apalyais?

In 2021 the company expanded its Fixed Assets and invested in
ventory which reflected an increase in net sales and the net
profit for the year, as illustrated in the chart (1-1). This explains
the significant increase in long-term debt. Also, short-term loans
had a share of that increase, as the chart (1-2) shows.

Ex A

5. E gast got
Sources & Uses Analysis for 2018 / 2019 e
[ sine | paros [Sources | u
on: Gurren Aaa
Fined assets De) 7388761
E 1.300067 3250329
ves Insur karen SATA [5000000
nani Asset valabe forsale 12009418 2000,18
Total reg assets 2300121365 232270078
inventor 563518087 seasra06 61061008
adesandnotssrecevable 40003,026 490953422 54040406
Doeotorsandoter debi accounts 4392.42 53541983 | 650950
easy bis 573996 672039406 0810
shat bank and and 029497 ooo #2517904
otal current assets 4.93760 3,940558,676
Tota assets La 043335123 4201288308
sv 2 te :
sued and paid up pat Hasso a6 ESS
sere 1207467435 5109307
etes earning E ‘578403
et prono he year on 970 7201208
otal uty 2015002483 2.617406 925

KE
zur abies
Lonatermuoars Spoo15307 _ kansozas sn
Deferedtariabitver > C sam —impeaaue | 7202079
came) 008 anos
events €
Provisions € O ose
ER 1130,089 128,542,201 | 3741212
ong termloils-curentportionsa064a8 9424001 | 12010327
Dlersandnotespayable 604961482 1.04.1042 18.183000
[olvides aya ¿041248 7002
editors and other eed accounts 2197506 273800476 | 51928910
axpayabe 19157 (64201,006 | 1000517
otal rent aides 13159500 1500.904920, 372440347, 37244034
otal abies LA 032040 3,649 00468
Total Equity and abs 3523 4207298309

6. Sources & Uses Hierar

yy for 2018 / 2019 D

sure | un Ju | vaue ]
ESpansonin Projects under progress 65000560 | 1.6%
a85a03060 | 65430500 mee |
invesin ovenory 6,001,005 | 1645
51920910. | 61001005 | increase in rade and NR 4910406 | 1495 |
50.000000 | 5940.06 | rerease/invesin Treasury ls aseo | 3.6% |
Increase in Cath in ankandhand Erz

mania | «9300400 1
Decrease in et pronto ne year 37207268 |100% |
caseros | 42617864 [repaying Toots 2398639 | non |
720er | 2207208. [repens for Tias Curent porns] 12640327 | 3.4% |
songe | D238 provsntor claims os | 20% |
Espansion nF ASST. 7388761 [199%
1090517 | 32640227 | pepaying Dividends payable 7.047245 | 189% |
50950 [1092305 [ro AT sr au 1000 |

aora

Sources xd vue | x
1047288 JinereaseinSupplirsandNPa RD 1185103060 28724 |
‘aasnae | araasaaey | Per0sein Creditors ana econo accounts | 51920910 104% |
Porton kaudatoninindyiwebsidarie — [30.00.00 [122% |
Increase in Bart Gea accounts same Joan,
eines in regie rings 3357403 | 902% |
Increase in Detras abies 7202079 | 195% |

Sources & Uses Sag? Long Terms Analysis for 2018 / 2019

+ Sources

+ Uses

5199307
1099517

7. Sources & Uses Hierarchy for 2018 / 2019

+ 74.25% of short-term sources of Finance have been used for
70.39% of short-term Uses

+ 25.76% of Long term Sources of Finance have been used
for 29.55% of Long-term Uses

‘that financed short-term
operations is slight, which also

applies to long-term financing,

Internal & Ex! lysis for 2018 / 2019

‘The company had ed its target by relying on 75.92% of
Debts as an exterhal Financial Resources

Finance
Sources

49.72%
15.93%
10.04%

1.95%

8. aia! gata
Stat e

Production

Capacity had been

Golden Rule

24% Nox

Int. Ext
liquidation in Inve. pliers an?
With Subsidiarie. Creditors other
Retained earnings. creditaccounts.
Reserves & Debtors. Banks-Credlit accounts

as ashort- term loans.
«Taxes Payable.

Consequently, it

+ flected an increase

long-term &short

2019,

9. Sources & Uses Analysis for 2019/ 2020

sla

Stat e

mms |sarıaoao | Sources | Uses
on Curent Ase
ed uses 00203078 esse nas
rotin Progress 1390087 57325612 34075238
ves insulares 525417877 1, 348,416088271001791
nani est valableforSale 2639618 Agnes
otal ised Assets 222700715 2203499133
‘erro ses
mentor 2470 062 522120 61957803
rades and rotesrecvablo 494955422 562002005 ses
[bebtors and ner debit accounts 59,541,363 29767442 1975302
Treasury bis 72030406 aaa | Baz
Casha ant and and 9.441401 97230954 ¡2280487
rn
oat Asa pomaiinaa a)
E) DA
Issued and pad up capital 3.404 845 68h Tov 208 221902425
Pesenes 202,660,445 908 93256 0879 ASS
fetes earning 2729525 878,200,677 215500052
Net profi forthe year 710 549,330 997 502570
ae
TT =
ang erm Loans C'isooms home 512308
tered a abies 2063210 51206748 9323432 er
ota Non curo Le 69022544 >|
‘eens
provisions Y mme BOGOR
ant cre accounts ‘25512201 406.9607 279405936
Supplies an notes payable A.047364542 PSS 940288 | 2515228 |
erm lite Current porions16424,001 20,124,063 160007
ritos and other eed accounts 273806476 283733904 9527518
payable be21ons 5705682 LUXE
otal arenales 4.300.64,9203,902.<76.048
otal abs 4.64008 41,6840213231,054 717 5491,084717540
otal Equity and Usb 267205209 437148608

10. erarchy for 2019 / 2020 E yun ota

Sources & Uses HI

a] Te vais x
ee re ESTATUT sz (soon
¿ Pay tor Supplies and otes payable (51526284 20%
oe | veceasein serves obama 925%
Zac Tzonzmass |Oseeaeinmerproftforteyenr 159271709 50%

Were nnotesreciable se010589 [550%
imooıeı [sms
u Expanding in Fined Assets 42,171,444 4.00%
onosreos | 38048503 [Repaying rare roses [ore
ones A [ROSSA LT Lane sara [os
Totat 11054717545 100%
non [roma
sesos [same [ses vue x |
a cree ant Cretaceous 878405836 [2640
incresse in ordinary hares aaa [nor
LA Reinvest of Retained earnings: (215,569,052 20.44%
999.972 Potion queno inves indias 7001701 |1678%
Porton quiso ny 1957901 177%
1,054,717,549 | 1,054,717,549 = >
Decrease of reject Apres Sao [sa
room A
nern agin Banand and E
ergo incre account seso [on
Ire deter ox abies Ya
gi ofcurentponionsof LTA |a00007
Creat ssa
$a

Sources & Uses Shoe» Long Terms Analysis for 2019/ 2020

ources

+ Uses

11. Internal & External Sources Analysis 2019 / 2020

‘oul opal
Stat wenns

+ 37-74% of short-term sources of Finance have been used
for 61.15% of short-term Uses

+ 62.26% of Long- term Sources of Finance have been used
for 38.85% of Long-term Uses.

‘The company achieved its target, relying on 70.57% of its
Internal Financial Resources. Portion liquidation of its
investment in subsidiaries, Decrease in Net profit for the
year and portion lation in In inventory

Financ
xterna
Sources External

0.79% Bae

016% se

cae 16.78%
777%

Internal
70.57%

12. soul oop lal
Stat e

'ORWG relied on its
Internal financial
sources.

Golden Rule

70.57% 2 29.50%

nr O” Ext.
Ordinary shares
Reinvest Retained Creditors & other
earnings credit accounts.
Portion Liquidation in Banks.Credit accounts
inventory? asashort- term loans.
Withdraw Cash in

Bank and Hand

‘The portieh,

ii
inventory reflected

juidatio, án the

an increase in NR

13. Sources & Uses Analysis for 2020/2021

ST]
Stat e

sal

jas aaa ET ie
= O moe er
re Bees james Jones
ee en re
Ines n mis FECT
O tase Joe
old ans) nacos
=a a es ers
ee oe ee M mean
Deere ne una boca
=D fons seas]
a ms en en
Total Current Assets. 2,224,707,655 2,491,532,065 j
on ‘masa test |
av N
Epa june sions
power Rossana AAO
ne haa raie En
ne En ne burn
otal Egy zeigen asomo
free 20
> Shazam irnos as
O EA
> oa ar
Total Non-current Liabilities (91,544,875 392,469,832.

>
en
= ce fase soccer
een Has presea faves
ne ops a bares
soar man posers jasa
A A A ba mass
‘Creditors and other credit accounts 283,733,998 162,128,112 | 121,605,886
> [sas posto kam
fl cent ados 207070 aso.
Fotis Sasa zane res 0082001200
ee Fan

14. soul opal

Sources & Uses Hierarchy for 2020 / 2021 arg
Sources | Ws Ju vaue | %
3790049 191092018 [increase invades and NR 2018 usa
Fe a [Expantion in Aseets (Right of use) ‘219,688,048 1702
o feos sor] Ppandingin assets 20360507 157%
Feet or eee ey |Desresseinneunesewnings 17680681 13
a Sosase | vest inlnventory 369055367 a
Jaus20 87 | Ovcrasein rectors and other ret accounts [12,605,866 942%
747,734 Jncease in Debtors anger deb accouns 84520807 655%
Increase in ath mbankand and anzu 290%
rota 1290,853209100%
[sources Ve | *
Egenasaaoaizoo.edaaoa| nerns ne prota ortre year Afsross Bias
Decrease in Treasury bills NET
| Rent contract iby AD hsrsssss ha
[increase in Supplersana np 1149007 1096
{increase in Bants-Greit accounts 108,743,409 842%
Increase of Tcans (5 97200801 754%
Rent Hals Cute por 55.0125 kms
{nerese ot LT PIT Curetporions 2487206 100%
{cree in Deferred bites ECTS
ren PET
[nereasg provision fr claim 15,300,559 119%
Liner income- Tax Payable 507388 ass
Fersen Reserves
¿Toral

Sources € Uses Short - Long Terms Analysis for 2019 / 2021

| - =)
+ Uses

15. Internal & External Sources Analysis for 2020 /2021 en
Ent

+ 51% of short-term sources of Finance have been
used for 53.51% of short- term Uses

+ 49.34% of Long -term Sources of Finance have been
used for 46.49% of Long-term Uses

which also applies to long-
term financing sources.

sources & Uses nat Lone Te Aa for 2020 /2021
‘The company had achieved itStarget by relying on almost

equal Internal and External Financial Sources, indicating the

stability of the company, Portion liquidation of its investment
e

in subsidiaries, ;e net profit for the year, and portion
liquidation in i

Finance External
Sources

Internal
50.67%

16. ke

Investing in
Production

Inventory ha:
Capacity had been

reflected increasing
in the NP increased.

Golden Rule

50.67% x 33%

Int. © Ext.
Treasury bills Suppliers & NP
Retained earnings. Deferred tax liabilities
Reserves & Debtors. Banks-Credit accounts

as a short-term loans.
‘Taxes Payable.

Consequently, it

17. Financial Ratios La
En

+ Current Ratio
+ Quick / Acid Ratio

+ Cash Ratio

+ Liquidity of AR (ACP)
idl

+ Debt Ratio ey

+ Debt: Equity Ratio (&)
+ capa structure rato cs) >
d

+ Interest Coverage Ratio,

of Inventor

+ Curt Turnover (CAT)
. ‘structure ratio (CSR)

A Breas
aro aR

+ Profitability of sales
+ GPM gross profit margin
+ OlMoperating income margin
+ NIMnet income margin

18. + Profitability of sales
+ GPM gross profit margin
+ OlMoperating Income margin
+ NiMnet income margin

+ Financial performances
+ Return on assets (inv
+ Return on Equity (ROI

7

19. 3 A y soul opta
Financial Ratios “OMENTAL WEAVERS

In this part, we have compared the result of the averages for
four years in a row asa tool for comparison, as itis most
appropriate because there is no accurate, updated, or weight
data for the industry averages. Also, we cannot compare the
organizations with each other. For example, the different
accounting standards applied make the comparison incorrect.

Liqu

Measure the capability of the company to repay its current debts

guy Ratios
a mm sp
oc PS

fetal Curent Assets [318413738 [1944 552074 [222 707.058 [2491532808
Total current able, 15 856,034 260 864,020 1,598,870 700 1.030.020.

Runen TI bs — bar ha
[Exa ratios pos bos os or

Interpretation for 2018, 2019, 2020, and 2021 respectively:
Current Ratios Current assets / Current Liabilities

From the analysis mentioned above, 2020 and 2021 ratios have
illustrated the capability of the company’s nominator (Current
Assets) to cover 1.40 and 1.39, respectively, the denominator or

the company’s current debts, where current
liabilities exceed the current assets.

20. ant ; Pst pal
Financial Ratios Seat Weer

jos (Current assets ~ Inventory) / Current Liabilities

oui
According to removing the heaviest items to be liquid, the
inventory, 2020 and 2021 ratios have illustrated the capability
of the company's nominator (Current Assets without the
inventory) to cover 1.05 and 0.97, respectively, the denominator
or the company's cuuren liabilities.

Cash Ratios (CA- INV.- AR—S!T. Invest) or cash in kind / CI
The 2021 ratio has illustrated that every million of the
‘company’s denominator (Current Liabilities) is covered by 7%
of cash or cash in kind such as Certificates of deposit and bank
deposits older than six months

iquidity of AR ( (Balance of AR X@80Ÿ/ Credit Sales

+ Average Collection Petlod (ACP)

75 days
50 days pS
25 days)
odays
2018 2019 2020 202

et Sale 3426275415] 3,583,182, 5 450,820,201] 4425,720,108
lama nn [220,008 926 [298,055,422 [55,002,005 [63,004,023
(nee | aodays | sodays | sedays | onday

QJ The company should consider its credit facility period
©? needed, which should be from 55 to 65 days.

21. en R yl opt
Financial Ratios im

ACPOfEXportAR (Balance of Export AR X 360) / Credit Sales
For more informative data, accounts receivable have been
separated into domestic and export Accounts: in 2018, 2019,

2020 and 2021, ASP of Export AR ratios have been illustrated as
12,7, 560, and 31 days respectively.

“ACP of Export AR + ACP of Domestic AR

400 days
300 days
200 days y
100 days
days — ade! E.
2018 2019 2020 2021
ras 2019 2020 wa
Resales adiós | 3689,162,16 |9460,0207221| 495720165
oat of Saez |3,0@8,250,008] 360,461,004] 3090,050 0213020 20749
Exportar. hadas oo [ro7xo7z08 _[149,201,11 [302509400
Domestic R_—\g800,677 [2750102 —|7o240219 1078020
(CPt ExpoRAR | 12day | days | 3000833 | sys
PofDomestieARGdays | Gams | bas | 1adays
ACP of Domestic AR (Balance of Domestic AR X 360) / Credit Sales

In 2020 the Liquidity of domestic AR hasn't affected by the
Corona pandemic, while in 2021, ACP illustrated the highest
ratio of the four comparative years.

22. soul opal

Financial Ratios “OMENTAL WEAVERS
Inventory OE)
Average selling Period ASP - (Inventory X 360) / COGS
+ Liquidity of Inventory
750 days
500 days
250 days
pe Ed | A
2018 2019 2020 2021
E73 2018 E72 za
ETS [32027045 Jesse |5460,820,23| 425,720 43
[cost ofsaiee 3,005,250, 0093166 461.834| 036,850,162 3,620 2784
Inventor 563518057° |62a570.062 [sazezızeı [en
[Liquidity ofinventory Ratios, auscays | 1zıdays | 7OLdays | 135 days
CP ASP 113800 | 121300 | 101) 360 | 1550300
commended Uquidiy Rate? ent pario | QuickRatio | Curent Ratio |Current Ratio
ea vo | Quickrate | curent ratio [Current at

2) The larger the Liquidity of INV, the greater the need for cash
=>? to finance operations

In 2020, with the advent of the Corona pandemic, which led to
port closures and quarantines, stock liquidity was the highest
in four consecutive years, consequently decreasing the net
profit this year by 12% from the 2019 net profit.

In 2021, the Liquidity of Inventory Rati

improved to 135 days.

2020 the Liquidity of AR is less than 36,0, and the Liquidity of
inventory is longer than 360, so recommended that the Quick
Ratio be used as a measurement of the liquidity ratio.
2021Since ASP and ACP can be liquidated in less than 360 days
fora good ratio. So, Accounts receivables and inventory are
considered current assets (Current Ratio)

23. e a, st nl
Financial Ratios & ole
Liquidity of Inventory = ACP + ASP

> Stored fr > Selling Lou = | 135 days

Liquidity of Inventory

ne = i
reinó ron mo NA s o
sour paro Mal LAY 3 2
zo | zo | wm | zx
fosses 5262 and [3503710235 [9.450 820,20 [ares 7205
fenstotsaies |3,965380,009]3.166.01.834] 3,036.50, 1823620 207.4%
Inventor 503310057 [ozus7o 00 [sazozizo [roms
Ra materia asdays _| 326ms | 12ays | 1660
[Worinprocess (| coëws | 2days | 109 | 167
FFnished proue | may | rey | Bay | om
pare pars Wateral radays | adays | says | 2d

24. er ee yl eal
Financial Ratios & aaa

nt Ratios,

Total Debts / Total assets

Debt Management Ratios

cetro
Ë wx
E u ue
E73 zx 29 ma
roues sous 535303] 207,206 200 [27% 542792 [5053301400]
otal abies ,<27,632,640|1,640,688,468 [Dao aus 672 |2772,400,720|
(bebtratio En] EN 30% E

The 2021 debt ratio has illustrated the highest ratio at 44%,
which is less than 50% which means the company still
maintains the balance by relÿing on borrowing to finance its
assets. Every unit of the total assets is financed by 56% of the
equity.

This means that Each 1 Million LE of the company’s total assets
is financed by 35%, 39%, 39%, and 44% in 2018, 2019, 2020, and
2021 respectively, of total debts.

In another interpretation, every Million L.E of total assets is
financed by 65%, 61%, 618, and 56%% in 2018, 2019, 2020, and
2021 respectively, of its equity.

25. 3 A y soul opta
Financial Ratios “OMENTAL WEAVERS

jagement Ra

DebtRatio — S-T.Debt/Current Assets

#S.T.Debt Ratio -L.T.Debt Ratio

BR

60%

40%

ae ee Ate

ox

20 zu 2020
os] so [foro] wm

al won Garant atid NI EA E
EE 769,75" 957 001220004
oe zur CS 76 mr

Total current ablüties _|1,315,656,036| 1,560,808 920|1,599,870,799|1,690,028897
fetal Curent Assets [1,75 413159 [1.944,55 574 [2.224,707.655 [240,532.65
[Enoc CON E 1%

‘This means that Each Million of the company's total Current assets
is financed by 75%, 80%, 72%, and 75% in 2018, 2019 & 2020, and
2021 respectively, of Short-term debts.

And the interpretation of Long- term Debt Ratios in 2018, 2019,
2020, and 2021 is that each Million of total fixed assets is financed
by 5%, 4%, 49%, and 15%, respectively, of the company’s Long: term
Debt.

26. Financial Ratios

Debt: Equity Ratio Total Debts / Equity

jt Management Ratios

eat: Equity Ratio
[]
Doebt: Equity Rato 55% | 6% 6% 7

1. Debts /Eny

otal Equity [251590246 2617 406,905 [2687327345 [830,261,740]
otal Labios 427,632,640 1,640,808 408 [3,093 49997 [2222,408,70
(bebe: Equity Ratio EJ E En 7056

Consequently, the Debt: Equity Ratioih 2021 is 79%, less than
100% since the Debt Ratio was 44%rléss than 50%. Thus, the
company still depends on its öquity more than Debts in
financing.

Every million invested inthe company is funded by 55%, 63%.

63% and 79% of total debts in 20218, 2019, 2020, and 2021
respectively.

D Gaining the leverage of Finance, the company should

= maintain the balance of relying on internal sources of
finance and external debt to finance its investments and
expansion. Keeping the Debt Ratio less than 50% and The
Debt: Equity less than 100%.

27. soul opal

Financial Ratios RENTAL WEAVERS
Capital structure ratio (CSR) LTL/(LTL+ME)
«Capital structure ratio (CSR)
40%
20%
20%
A
2 =_ =,
2018 2019 \
z0 EN 200 | a
oral Eau [2015 002,201 207.06 re 200112118 [250800
Total mon-<umenelinbihiegn.770004 jonas [91544075 [02460,802
er a, o EJ 12

33%. 3%, 3% and 12% of the company’s capital was generated
from long-term liabilities in 2018, 2019, 2020, and 2021
respectively.

In 2021, the company felied on L.. T. Debt by 12%, 9% more
than the previous year, 2020.

Interest Coverage Ratio(ICR),

EBIT (Earning before Interest & Tax) /1
kerr [6017044030 1057343308]
Financing expenses mous [2360920 [74306459
Frnerest coverage Rati 50 ],, 452 277 e

28. 3 A y soul opta
Financial Ratios “OMENTAL WEAVERS

58 Million LE of the company’s EBIT covered each Million of
Interest in 2021, While the cost of goods sold and operating
income did not change considerably compared to the
significant increase in the interest value compared to the
previous three years.

In 2020, 2019, and 2018 each million of the cost of funds was
covered by 27.7, 45.2, and 58 Million, respectively of the EBIT.

nanagement

y ratios)

Total Assets Turnover (TAT). Sales / Total asset®

E 2019 Ez] E23
Nersaier [5228278213 [3583:8205 [3250 820.221 [aa2s 720223
ota Ascot 4,043,596, 125 «267,208,300 |a.278,42792 [501310109]
[ovat Asets Turnover 0 0 on os

Each Million of the company’s total assets yields less than a
million in sales. In 2021, total assets increased compared with
the three previous years, reflecting an increase in net sales.

‘The changes in total assets are almost similar to the change in
Sales,

29. Financial Ratios

Fixed Assets Turnover (FAT) Sales/ PA

Fixed Assets Turnover (FAT)

200 2020 za
posa Rasa (aseeens [3450 2001 fees ons
fetal Fined Assets [2,300,121 368] 2.522,40,715 [2353253231 [2 561,228 604
[Fined Assets Turnover 140 154 D 5

The company’s Fixed Assets have the capabilityito generate 1.49,
1.54, 5, and 5 Millions of sales in 2018, 2019, 2020, and 2021
respectively.

Considering that the change in Fixed Assets is less than the
change in net sales, which reflects the efficiency in managing FA
capability to generate more Sales! |

mare Sales/cA

“Current Assets Turnover (CAT)
20 2020S
Net Sates [5428275 213|3385102.15 |5:50520721|1:02529343
Total Current Assets _ |1743,1358 1.044.554 672224907, [20.32.65
[eurrentAssets Turnover 197 108 199 178

Each Million of the company's current assets generated 1.97, 1.84.
1.55, and 1.78 Million in 20218, 2019, 2020, and 2021 respectively.
‘The change in current assets reflected the efficienc

consequently, the net sales changing rate is more significant.

30. Financial Ratios & sae spat
Cash Turnover_ Sales / Cash

Assets Efficiency Ratios

Ee
S
[a
[a

z00 | 25 2020 za
et Sales [3220278 2123308102113 3450.920221|3425,729,8
ashatbanksandhands6.029459 jonasıacı [97350954 [vase
(cash Turnover 03 | 360 ET 36

Each Million of the company’s either cash or cash in kind generated
60.3, 36.03, 39.6, and 36 Million of sales in 20218, 2019, 2020, and
2021 respectively. Takeing into consideration the increase in cash
by the double percentage that is not necessary Lo reflect the rise in
sales by the same ratio. A

Inventory Turnover (CATO) “KAS / Inventory
Asset efciency Ratios

ras 2019 2020 za
[Gostarsales [5005250000 |s166461854[5056 0501025820 67204
Inventor [563518057 [ons [saze21201 [7,677.28
Inventory Tamover 5 En 56 34

Fach Million of Inventory generated 5.4 Million of the cost of
goods sold in 2021

‘The increase in the inventory is higher than the % increase in
COGS. The company could have needed to be more efficient in

utilizing its inventory.

31. ant ; Pst pal
Financial Ratios Seat Weer

Liquidit

of AR(

=P) (Balance of AR X 360) / Credit Sales

+ Average Collection Period (ACP)

75 days
50 days
S | |
Odays
2018 2019 2020 2021
2 2019 IV | za

Net Sate 3428278218 [383182110 Bas 000221 228, ao
NR [440,003,926 |494,983,422s]869,002,005 [831,094,023

| aodays | s0days | sadays | coaays

Liquidity of Inventory, (AS (ACP)

“Liquidity of inventory

750 days
so0aaye
so days
MM |
206 20 22% 21
bazas [5500102118 |3550:2022/2425729303
Inventor 563518057 [omsmoce [orzcanze1 [11077426
[iia orient Aaios _| sous | zic | 7ordms | 13549
hace ASP 1190300 _| 121q300 | 701) 360_| 1950200
ommended Liquidity aos | Guen ato | qui tao | Coment Rat | Current Rato
ara ques a

® Once, the ACP decreases, the sale will increase respectively

32. Financial Ratios

Profitability Ratios

GPM Gross Profit Margin. Gp / sales

Profitability Ratios.

Probyte

À

ons 2009 7] ao | zen
Gros rom 25,025,406 672020 |23310.059 [90501645
fe saes_| 420,275 15/5812 18 450,620.21 442572065
Ko où [Abas | om | ou

Every unit of sales generated 12% of gross Profit in 2018, 2019,
and 2020, respectivelycand in 2021 increased to 14%.

Each Million of thesales generated 12 Million in gross Profit in
2018, 2019, and 2020, respectively, and in 2021 increased to 14.
Increasing GPM has reflected the profitability of the company.
Reducing the cost of goods sold over time will generate
increasing GP.

33. 3 A y soul opta
Financial Ratios “OMENTAL WEAVERS

OIM Operating Income Margin
O1/ sales = ( Sales-COGS -Others) / sales

: Prof ato
ii Ela;
i 8 ii
ince oD me

orales (34282755 |5503182155450.220221/2.42529.43

ro Profit (a23025:100]1416720.281)|(013970599)|1008.401.049]
Distribution expenses (6,036,728 |t7597400) | 40209,920) 432,197,203)
eneral administrativo expenses 104,370,415] 104,696,154] 108,867,340) | 126,958,066)
m 007 006 006 0.08

In 2021, every unit of sales generated'S% of the Operating income
margin.
‘This increase compared to the three previous years has a good
indicator of achieving moréptofitability for the company.
NIM Net Income Margin "ON! /Sales
‘The difference betweeng@¥M and NIM is the Interest since the Taxes
area fractional valu

DP =NIM Net income Margin
0075 A:

0.05 AA

0.025

o
2018 2019 2020 2021

pow 09 | mm | wa
Jet income|234,553;608 (1962020 [1902935 [250101917
Jet sales [32625 435|3583160,35)9480,000 | 287291
no 00 | oo | oo | oo

The net income margin was higher in 2018 than Tt decreased to 5%
in 2020, to return to the increase again in 2021 to 7%, reflecting an
improvement in how the company managed its debt.

Every unit of sales generated 0.19 of the Net income margin.

34. en R ni la
Financial Ratios tia Reve

Profitability Ratio of Financial performances

Return on assets (investment) ROLor ROA
EBIT / Total Assets

Horn. 50275 053301108
fo [as 5
‘This increase compared to 2020 hasa good indicator of
improving its financial position by investing in its assets.

Each Million of the compang's total assets generated 0.21 million
of EBIT in 2021, after decreasing to 0.13 million in 2020.

Return on Equity (ROB tis? / Equity

Performances

Fois 2018 2020 ma]
far [750,215 510 [non [63792540300 905,146,900 |
[Total €quin}2.615,902,463]2.617408,925|2697,127.318 [230,661,740

Each Million of the company’s total Equity generated 0.32, 0.50,
0.21, and 0.35 Million of EBT in 2018, 2019, 2020, and 2021 as the
;hest ROI ratios, respectively i

35. a A d À soul lal
Financial Ratios “OMENTAL WEAVERS

Profitability Ratio of Financial perf

OE. ROI + ROBF( Return of Borrowing Fund)

Financial Performances

a em RO
Rose as 1 > EJ
Roc E 308 a E23

In 2021 ROI was generated by the return on investment that
formed the company’s totahassets and ROBF.

Regarding 2020 and 2021 sources and uses analysis, the
company have almostachieved the golden role of 50.66% to
53.51% (short-fot-short) and 49.39% to 46.49% (Long for-
long). which reflects the successful management ofits Debts
that have the upper hand to achieve profitability.

36. À soul lal

Financial Ratios NERAL WEAVERS

(ROI- EBIT/Total assets) x sales / sales
So, ROI -EBIT/Sales x $:

018 EX 2020 | sa
Natincome 335,586,601 [193782726 |831028483 [083148000
etsates 228,275 8 [3363102215 [saso 820 714,2 720125
otal Asset Fu 08 02 070 088
or 03 030 oa 035

ch Million of the company’s total assets yields less than a
million in sales. In2021, total assets increased compared with
the three preyiöus years, reflecting an increase in net sales.
ROI in 2021 was higher, which improved its assets capability to
generate more sales effectively

37. 5 à E oir pl
Financial Ratios ‘ORIENTAL WEAVERS.
Modern tech. of analysis
EVA Economic Value Added NP - Total Cost of Capital
Capital = LT. Loans or Bonds + Equity
2 [espialvalue | cost
EVA Economic Value Added one-term ang 76,015,367 14789056
um mm mm Common shares [443,408,648 [69707268
reserves
an tan Earring 20.01.2221" 01866)
= ms Focal ,940,038,872 054554790
on _[irose
ale m um u LUS [714154513
ocean Pa
Total |. | 954935443 679,635,677
a O 70020267
D Capital value
one Loans| 4024847
(ET

S
Sy
0%

Feserves [1,.094,361256)
[Retained Earring 378,208,077 117207988
Tout 2170,095,028 650,756,637
en 10116720.

Capital value

137847,008

704,480

(665,107,268
1000185826

"717307266

201491780

130,067,761

2103331808

‘21,560,406

56,492,626

In 2021, EVA significantly improved; the capital of 2103,331,888
generated 921,569,486 as a net profit compared with the three
previous years. Accordingly, the capital cost is higher than its

return,

38. Financial Forecasting

Forecasted

financial position

Method of
orecasting

39. Financial Forecasting

Repaying funds by 165 Million

Balancing the financial position after increasing sales by 10% by
Repaying 164 Million.

Balancing the financial position after increasing sales by 10% by

Repaying 164 Million.

ae Jreaidvaiwe | cost
Tio 7307008 sense pasoo
[Bone crest aceoons 15.001510 ON
Financing expenses 7194489 9,000,000. 54.000.000
come Tax Pyata Poassow — paras
a Hs

1-75% from Short- term loans
75%" 515,691,546 - 386.768.660
CostofS.T. Loan
89% * 74.194.459 = 5.935.557.

2-25% from Long- term Joan’
25%" 137,547,008 = $4,586,752

Cost of L.'T. Loan
109%" 137,547,008 = 7.419.446
Interest = 7.419.446 45935557 = 13.355.003 = 14 M

‘The second Stage in the Financial Hierarchy to balance the financial
position statement is Repaying a portion of Income- Tax Payable by
the excess amount, which is 28,133,541 Million.

40. Financial Forecasting

asted financial position

‘oul opal
Stat wenns

e nancial position In ee
ee ee a ee
a RS a 0205

bon zi zarza
doo rm En
3
AA Hem | Neue 082940 lan
pt aa es | Nec 1391702 zu?
da tenes 078 | Recharge 1940758 sans
rey er 1881372 | and 6.65372 ‘sera
rere 20 | tocar 6005220 joss
Peres oops ret oss 289208 | Hochange 989208 I Iasse20s
Devon epee monn 2m
A 28938060) 11 oa aso!
Se | a
AS inxoeió | noce Jaca, 9005006094050
erectus otr 90030 No Ds
Feiern mat pO. |G Rowena Homann

— eae u aoe
ae fie aoe
EE NE —
EE

a —— joo
A Oe | — ee
a

— a =
== ——— Irma
er Ses
= EE =
Es Ba ee

41. hand ; Pst pal
Financial Forecasting RL Kehvens

Forecasted financial position

ing sales by 10%

neuatrr | ofincrense | rststge | Returned | Second

Financial Postion 31122021 info. | Stage
0 a a ES a

ne Assets RO |

roc Progress 2023753

ignore 19500948.

nana Asset Ava fr Sale

inventory ma ik LUS
ads anna reesable 601004023 Lt 42034

Dors endete ei ce 3L/08 578 A mes
oat ase ssaaeiassca—(_) baaa
hours ablar 7

Era iersırao0hnctänge 19757008
Derr arabes |
et contract ab masses Li 310953
alor <arer abies 382409832” cat 0.656301
current abies S

man Cin 205 hacias

Banks credit accounts"). Ys18.601.546_ Nochange

ent abies Cure ori ha

ersanane N ha

E abit curent portions Nechange
reitors and other credit E

come Tax Payable ‘Nochange

otal curren alles a

Total Lader ea

Euty

issued and paid up capital 865107268 Nochange 66507268

et pro forthe year 5070.00 O
seven 00013526 1.000 185226
tained earnings 101491786 MASON) 74229908
rota Equity .580188.28, 130 582107
ta Equtyand Uablties 3782663057 ‘5,490,828 578

[No Financia Need63,650 836),

‘There is no need for a financing hierarchy as the company's
equity and liabilities exceed the total assets by 163,65 Million.

42. Financial Forecasting

Forecasted financial position

‘oul opal

Stat wenns

Forecasted financial position in 2022 increasing sales by 10%

Pa ee y
der: 5 =
en a en
Bee nn a
aaa oi cs
Snes ere ee
reer Lune ee
ee a a
mu a sr
a a en
ne en Sera
[El ae Dee
Four those o

anos aan
sn 2. en
[137547008 | (24,386,382) | 303,160,256" 103160256
ae m a

er 200,040,085
Fr Ce een
Er eas es
ue cons ‘outa
1,031,067,692 | v 1,031,067,692 1,031,067,692_
aaa? [anime ‘70.0
maa ee ue
san Fr à
ses on os
== a ae
fau sans ss
a us oe
Eon a
eee rn ae
15,490,820,578 EEE 15,327,177,140,
(163,080,036), 28,133,841)

43. Be . st ga
Financial Forecasting & ole

EVA after increasing sales by 10%
NP - Total Cost of Capital

Ir neressng Sales 30% Teale sex
term Lors Haaac0256 — fuyssess
men shares [9.101206 —fnra0720
eserves 1n090.105020 [2045208201

[ramos tang 50368020
rat asomar — [27m
Em [1912.05205
N
(0)

¿Y
>
Reject the proposed increase in sales by'10%. The EVA is
deteriorating, which means the company’s financial position

will be more harmful. “yy
>

44. ; . D nt oia
Financial Forecasting & aa

Calculate the increase of R/E
NP - Total Cost of Capital

‘The actual net sales: 4425,729.143,
Net profit: 865.076.860

Profit Margin: 19.55%

Dividends: 76.88%

R/E:23.12%

Proposed Sales: 5,000:000,000

PM: 977.326.935

Dividends: 76.88%* 977.326.935 = 751,409,820 N

R/E: 23.12% * 977.326.935 = 225.917.115 x

Ww
{income Statement ©
ry ea
= CO
‘eeu ret Qa
7

re LUN
AA LUTO
CTE Bam
EST En
mem
re
er zos
Dago amos
Gen coms oR AN
Formed proves mime (00000000)
Frances res |
[E |
Tee
fo
inser GOW re
en aan
ier rte namen | os oreo
ere
> a
HA messe

45. es . ac i
Financial Forecasting & aa

‘The proposed 5.000.000.000.
nant 32202 Jaivas Actuar 25,729.34 Proporta 500,000,005

Nor Cant Assets T
ren sosoass | za iso O

tin ross 2022 | 202250

Petare set 966648 | ECO
investi susi 341608 58416086

FisncalaeretsAvalabiefor Sale 1269982 | 12600222

saure E 2sssese

mes T

Inventory mena | x osoazson

rade anions vecenable——pauon.o28_| tom E
or another debt accounts 31708978 | ES E

= t san

Casma andan

Tota Cument asses

[>

Dates tables
Pet contas tt
Tota Mor current abs

as
Es m
tao E |
ny T
]

Lines cree

[redtorsand refe gears 162120112 | = 6526842
Jrcame TaxPaatie 7 43507 438007
Tota cren OE orcos
ot nds Rana 2365363086
Eau T

sun and gi 5107266 | 101268
het profnfortneyar 576 660 16.07.80.
eserves 00106626 000 186,26
nine ane | lmaossos
oui Eauty svoaneazs | 036778085
“otal equity an abies 72083857 | Samson

[ TU 1320578

FSN = A/S1x AS - L/S1x AS - PS2x (1- D)
355,296,719 - 142,663,517 - 225,917.15 = 13.283.713

47. pa ess

nancial investments revenues caes 508701393
capital ain ae
er Revenues 3900738
reasury bls returns 676073 ‚6
edit interest, 9.974610

one

hover expected et os Jose
Oria expenses VO sı2a01200 10200820 (09000720
al «28 938090) 0820734) 104990550] (08.70.40
Ho
mad provisos marient (20,000,000) 71001791 |(50,000,000) (65473180)
arcing expenses 04100450) |a3060920) (ar9%zaen |narasaso)
oran echane ferences ‘3900381 [mous scan \aaosss
nerprofttortneyearbeforeincomatat 953149900 [631925488 703782720. [500021
7
muette (19072049) (9858566) (7968837 |noansam
ones 20200 [ess
Netprofttorteyearaterincome tex [065076860 519229017 oe 511710. pasara