KöTöN Company: Finaincail Analysis

MGT-303 |

KÖTÖN Company

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FINAINCAIL ANALYSIS |

Group members:

Adham Hakmi

Mahmoud Albitar

Jehad Taie

Group members:

Adham Hakmi

Mahmoud Albitar

Jehad Taie

Abstract:

In this report we analyze the financial situation of KÖTÖN Company by comparing the company to three other company in the same sector which are Boyner, Soktas, and VAKKO. We wrote our analysis by depending on many financial ratio that give us information about liquidity, profitability, asset management efficiency and the capital structure of the company as we compare it to industry average.

Liquidity Ratios:

Liquidity Ratios | KÖTÖN | INDUSTRY AVERAGE |

Current Ratio | 1.12291767 | 0.92 |

Acid-Test Ratio | 0.603001957 | 0.40 |

Average Collection Period | 14.80183912 | 39.35 |

Accounts Receivables Turnover | 24.65909791 | 12.19 |

Inventory Turnover | 4.456991741 | 3.96 |

Current Ratio

The company has no problem with paying its liabilities which means that the company should has a high current ratio. In our project, KÖTÖN Company has a ratio higher than the industry average which means that the company has well ability in term of paying its liabilities. KÖTÖN Company has a ratio above 1 which shows that the company's assets are greater than its liabilities. By contrast, the industry average has a ratio under 1 indicates that the industry average's assets is less than its liabilities.

Acid-Test Ratio

If a company has ratio that much below than its...