Group Assignments Introduction to Accounting DAMAC Properties has been at the fo

Question

Group Assignments Introduction to Accounting DAMAC Properties has been at the forefront of the Middle East's luxury real estate market since 2002, delivering luxury residential, commercial and leisure properties across the region, including the UAE, Saudi Arabia, Qatar, Jordan, Lebanon and the United Kingdom. Making its mark at the highest end of stylish living, DAMAC Properties has cemented its place as the leading huxury developer in the region having delivered over 19.855 homes, with a development portfolio of more than 44,000 units at various stages of progress. This includes 13,000 hotel rooms, serviced hotel apartments and hotel villas that will be managed by it's wholly owned DAMAC Hotels & Resorts. From the financial information available to you, calculate the following top access the annual picture of Damac 1. 2. 3. Horizontal Analysis Vertical analysis Calculate the following ratios (4 marks) (4 marks) (0.5 x 14-7) vi Times interest earned vii Free cash flovw viii Eamings per share ix. Price-eamings ratio x Profit margin xi. Return on assets xii Asset tumover xii. Payout ratio xiv. Times interest earned

Explanation / Answer

DAMAC PROPERTIES HORIZONTAL ANALYSIS STATEMENT S.NO DESCRIPTION 2015 2016 INCREASE(DECREASE % A REVENUE 8536067 7156182 -1379885 -16.17% B COST OF SALES -3469006 -3159129 309877 -8.93% C GROSS PROFIT (A-B) 5067061 3997053 -1070008 -21.12% D OTHER OPERATING INCOME 503935 594149 90214 17.90% E GENERAL ADMINISTRATIVE & SELLING EXPENSES -1014586 -859419 155167 -15.29% F DEPRECIATION -12630 -15265 -2635 20.86% G OPERATING PROFIT (C+D-E-F) 4543780 3716518 -827262 -18.21% H OTHER INCOME 33508 44814 11306 33.74% I FINANCE INCOME 90181 115878 25697 28.49% J FINANCE COST -152639 -182563 -29924 19.60% K PROFIT OF THE YEAR (G+H+I-J) 4514830 3694647 -820183 -18.17% L OTHER COMPREHENSIVE INCOME FOR THE YEAR 0 0 0 M TOTAL COMPREHENSIVE INCOME FOR THE YEAR (K-L) 4514830 3694647 -820183 -18.17% DAMAC PROPERTIES VERTICAL ANALYSIS STATEMENT S.NO DESCRIPTION 2015 2016 INCREASE(DECREASE % ASSETS PROPERTY & EQUIPMENTS 63875 58742 -5133 -8.04% DEVELOPMENT PROPERTIES 9143770 10245064 1101294 12.04% OTHER FINANCIAL ASSETS 788655 1016628 227973 28.91% TRADE & OTHER RECEIVABLES 3803432 4804278 1000846 26.31% FINANCIAL INVESTMENT 147000 185022 38022 25.87% CASH & BANK BALANCE 9500765 8316048 -1184717 -12.47% TOTAL ASSETS 23447497 24625782 1178285 5.03% EQUITY SHARE CAPITAL 6050000 6050000 0 0.00% STATUTORY RESERVE 533643 634196 100553 18.84% GROUP RESTRUCTURING RESERVE -4912810 0 4912810 -100.00% RETAINED EARNINGS 8160080 5933864 -2226216 -27.28% TOTAL EQUITY 9830913 12618060 2787147 LIABLITIES BANK BORROWINGS 1024905 1162636 137731 13.44% SUKUK CERTIFICATES 2739716 2653598 -86118 -3.14% ADVANCES FROM CUSTOMERS 5533221 4196801 -1336420 -24.15% TRADE & OTHER PAYABLES 4318742 3994687 -324055 -7.50% 13616584 12007722 -1608862 TOTAL EQUITY & LIABLITIES 23447497 24625782 1178285 5.03% TIME INTEREST EARNED 73.28586 56.40447 BASIC EARNING PER SHARE 0.75 0.61 NET PROFIT RATIO 52.89% 51.63% RETURN ON ASSETS RATIO 19.26% 15.00% ASSETS TURNOVER RATIO 36.41% 29.06% PAYOUT RATIO 20.10% 14.89% STATEMENT SHOWING THE RATIO CALCULATION A TIME INTEREST EARNED INCOME BEFORE INTEREST & TAXES INTEREST 2015 2016 INCOME BEFORE INTEREST & TAXES PROFIT OF THE YEAR (G+H+I-J) 4514830 3694647 ADD: FINANCE INCOME 90181 115878 FINANCE COST -152639 -182563 A INCOME BEFORE INTEREST & TAXES 4577288 3761332 INTEREST FINANCE COST 152639 182563 FINANCE INCOME -90181 -115878 B INTEREST 62458 66685 TIME INTEREST EARNED 73.28586 56.40447 EARNING PER SHARE PROFIT AFTER TAXES NO OF SHARES A PROFIT AFTER TAXES 4514830 3694647 B NO OF SHARES 6019773 6019773 BASIC EARNING PER SHARE 0.75 0.61 PROFIT MARGIN GROS SPROFIT MARGIN GROSS PROFIT*100 SALES GROSS PROFIT 5067061 3997053 SALES 8536067 7156182 GROSS PROFIT RATIO 59.36% 55.85% NET PROFIT 4514830 3694647 SALES 8536067 7156182 NET PROFIT RATIO 52.89% 51.63% RETURN ON ASSETS RETURN ON ASSETS RATIO PROFIT AFTER TAXATION AVERAGE TOTAL ASSETS PROFIT AFTER TAXATION 4514830 3694647 AVRAGE TOTAL ASSETS 23447497 24625782 RATIO 19.26% 15.00% ASSETS TURNOVER RATIO SALES TOTAL ASSETS SALES 8536067 7156182 TOTAL ASSETS 23447497 24625782 RATIO 36.41% 29.06% PAYOUT RATIO DIVIDEND PAYMENT TOTAL EARNINGS DIVIDEND 907500 550000 TOTAL EARNINGS 4514830 3694647 RATIO 20.10% 14.89%

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