Accounting Question

this ism final project and it consists of two parts, I have completed the first part and still pending the second part which I need your support to complete it. I will attach the analysis that I have done in the first part. the analysis is on the main company which is: Abdulmohsen Alhokair group for tourism and development. the part two requirements will be also attached. after that I want you after completing that to compare our results of the main company with other company which is Tourism Enterprise Co.

Abdul Mohsen Al-Hokair Group
Income Statement
Year ended December
Sales/Revenue
Sales Growth
Cost of Goods Sold (COGS) incl. D&A
COGS excluding D&A
Depreciation & Amortization Expense
Depreciation
Amortization of Intangibles
COGS Growth
Gross Income
Gross Income Growth
Gross Profit Margin
SG&A Expense
Other SG&A
SGA Growth
Other Operating Expense
EBIT
Unusual Expense
Non Operating Income/Expense
Non-Operating Interest Income
Interest Expense
Interest Expense Growth
Gross Interest Expense
Pretax Income
Pretax Income Growth
Pretax Margin
Income Tax
Income Tax – Current Domestic
Equity in Affiliates
Consolidated Net Income
Net Income
Net Income Growth
Net Margin
Net Income After Extraordinaries
Net Income Available to Common
EPS (Basic)
EPS (Basic) Growth
Basic Shares Outstanding
EPS (Diluted)
EPS (Diluted) Growth
Diluted Shares Outstanding
EBITDA
EBITDA Growth
EBITDA Margin
EBIT
2022
2021
2020
All values SAR Millions
721.00
708.00
613.00
0.02
0.16
(0.45)
593.00
613.00
601.00
369.00
358.00
308.00
223.00
255.00
293.00
222.00
253.00
293.00
1.00
2.00 (0.03)
0.02
(0.28)
128.00
96.00
12.00
0.34
6.89
(0.96)
0.18 166.00
172.00
193.00
166.00
172.00
193.00
(0.03)
(0.11)
(0.24)
(38.00) (181.00)
(39.00)
(43.00)
(82.00)
(16.00)
(60.00)
(3.00)
67.00
73.00
96.00
(0.08)
(0.24)
(0.30)
67.00
73.00
96.00
(82.00) (166.00) (198.00)
0.51
0.16
(0.24)
(0.11) 1.00
(1.00)
1.00
(1.00)
(6.00)
(4.00)
(81.00) (174.00) (200.00)
(81.00) (174.00) (200.00)
0.53
0.13
(0.40)
(0.11) (81.00) (174.00) (200.00)
(81.00) (174.00) (200.00)
(0.26)
(0.68)
(0.88)
0.62
0.23
(0.40)
315.00
257.00
229.00
(0.26)
(0.68)
(0.88)
0.62
0.23
(0.40)
315.00
257.00
229.00
185.00
178.00
111.00
0.04
0.60
(0.71)
0.26 (38.00) (181.00)
Tourism Enterprise Co.
Income Statement
Year ended December
Total Revenue
Revenue
Other Revenue, Total
Cost of Revenue, Total
Gross Profit
Total Operating Expenses
Selling/General/Admin. Expenses, Total
Research & Development
Depreciation / Amortization
Interest Expense (Income) – Net Operating
Unusual Expense (Income)
Other Operating Expenses, Total
Operating Income
Interest Income (Expense), Net Non-Operating
Gain (Loss) on Sale of Assets
Other, Net
Net Income Before Taxes
Provision for Income Taxes
Net Income After Taxes
Minority Interest
Equity In Affiliates
U.S GAAP Adjustment
Net Income Before Extraordinary Items
Total Extraordinary Items
Net Income
Total Adjustments to Net Income
Income Available to Common Excluding Extraordinary Items
Dilution Adjustment
Diluted Net Income
Diluted Weighted Average Shares
Diluted EPS Excluding Extraordinary Items
DPS – Common Stock Primary Issue
Diluted Normalized EPS
2022
2021
2020
2019
All values SAR Millions
10.00 15.98 16.06 12.69
10.00 15.98 16.06 12.69
8.96 10.88 10.62 11.32
1.04
3.08
5.43
1.37
19.48 23.14 23.51 21.55
10.52 12.27 10.56 11.13
0.19
0.20
0.23
0.23
6.23
1.97
(0.08) (0.89)
(9.48) (7.17) (7.45) (8.86)
0.03
(2.79)
5.71
(6.72) (12.88) (7.45) (8.86)
0.52
1.15
0.74
(4.68)
(7.23) (14.04) (8.20) (4.19)
(7.23) (14.04) (8.20) (4.19)
(7.23) (14.04) (8.20) (4.19)
(7.23) (14.04) (8.20) (4.19)
(7.23) (14.04) (8.20) (4.19)
1,156.47 105.13 105.13 103.34
(0.01) (0.13) (0.08) (0.04)
(0.01) (0.04) (0.03) (0.05)
Abdul Mohsen Al-Hokair Group
Statement of Cash Flows
Year ended Decemeber
2022
2021
2020
2019
All values SAR Millions
Net Income/Starting Line
Cash From Operating Activities
Depreciation/Depletion
Amortization
Deferred Taxes
Non-Cash Items
Cash Receipts
Cash Payments
Cash Taxes Paid
Cash Interest Paid
Changes in Working Capital
Cash From Investing Activities
Capital Expenditures
Other Investing Cash Flow Items, Total
Cash From Financing Activities
Financing Cash Flow Items
Total Cash Dividends Paid
Issuance (Retirement) of Stock, Net
Issuance (Retirement) of Debt, Net
Foreign Exchange Effects
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
Free Cash Flow
Free Cash Flow Growth
Free Cash Flow Yield
-81.49
109.22
222
34.31
20.47
-66.99
-58.03
-54.18
-3.85
-177.36
-20.47
-156.89
-126.26
171.46
45.21
9.45
-94.11
8.92
-173.72
149.28
253.07
70.8
7.88
22.49
-2.42
-28.29
-28.96
0.67
5.19
-27.87
307
-296.43
0
103.69
67.77
171.46
160.34
64.66
12.99
-201.4
81.35
292.68
-0.23
2.09
-9.7
-52.55
-56.88
4.32
5.05
5.05
0.1
33.95
2.1
-142.99
365.22
364.59
145.49
-1.87
-117.47
-104.81
-12.66
-267.73
-267.73
0.15
-19.83
53.66
33.83
260.41
29.93
Tourism Enterprise Co.
Statement of Cash Flows
Year ended Decemeber
2022
2021
2020
2019
All values SAR Millions
Net Income/Starting Line
Cash From Operating Activities
Depreciation/Depletion
Amortization
Deferred Taxes
Non-Cash Items
Cash Receipts
Cash Payments
Cash Taxes Paid
Cash Interest Paid
Changes in Working Capital
Cash From Investing Activities
Capital Expenditures
Other Investing Cash Flow Items, Total
Cash From Financing Activities
Financing Cash Flow Items
Total Cash Dividends Paid
Issuance (Retirement) of Stock, Net
Issuance (Retirement) of Debt, Net
Foreign Exchange Effects
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
Free Cash Flow
Free Cash Flow Growth
Free Cash Flow Yield
-7.23
1.5
6.38
-3.81
6.15
-7.56
-7.59
0.03
502.44
-23.23
525.67
496.38
13.32
509.7
-4.83
-172.14
-0.732
-14.04
0.95
5.98
8.15
0.99
1.17
-3.41
-3.41
-2.46
15.78
13.32
6.69
-25.45
-0.275
-7.45
5.4
5.79
6.12
0.94
0.94
-1.17
-1.18
0.01
4.23
0.755
-8.86
-6.41
5.92
2.99
3.94
-6.46
-1.92
-1.96
0.04
-8.33
19.88
11.55
-8.37
-3.7
Financial Analysis:
Profitability Analysis:
PROFITABILITY ANALYSIS
Abdulmohsen Alhokair Group
Tourism Enterprise Co.
2022
2021
2020
2022
2021
2020
Gross Profit Ratio
18%
14%
2%
10%
19%
34%
Net Profit Ratio
-11%
-25%
-33%
-72%
-88%
-51%
Return on Asset
-4%
-8%
-9%
2%
23%
21%
Return on Equity
-28%
-47%
-81%
2%
29%
23%
Liquidity Analysis:
LIQUIDITY ANALYSIS
Abdulmohsen Alhokair Group
Tourism Enterprise Co.
2022
2021
2020
2022
2021
2020
Current Ratio
0.57
0.60
0.31
27.64
1.21
3.48
Quick Ratio
0.53
0.57
0.28
27.64
1.21
3.48
Cash Flow to Debt Ratio
0.20
0.27
0.10
0.08
0.06
0.95
Activity Analysis:
ACTIVITY RATIOS
Abdul Mohsen Alhokair Group
Tourism Enterprise Co.
2022
2021
2020
2022
2021
2020
Account receivable
turnover
4.89
6.91
5.39
1.79
6.05
5.02
Account receivable days
74.60
52.81
67.75
204.40
60.30
72.73
Account payable days
67.29
55.80
57.79
30.11
17.88
3.86
Solvency Analysis:
SOLVENCY RATIOS
Abdul Mohsen Alhokair Group
2022
2021
Tourism Enterprise Co.
2020
2022
2021
2020
–
–
–
Long term debt to total
0.578057 0.556384 0.512504
Debt to equity
6.123204 4.800828 7.913184
Time interest earned
Operating cashflow
coverage
2.761194 2.438356
1.15625
no interest expense
0.061471 0.083579
0.04155
0.075339026 0.063165 0.788321
0.036146766 0.271284 0.098363
Cash Flow Analysis:
Abdul Mohsen Al-Hokair Group
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
Free Cash Flow
Free Cash Flow Growth
Free Cash Flow Yield
2022
109.22
-58.03
-177.36
-126.26
171.46
45.21
9.45
-94.11
8.92
2021
149.28
-28.29
5.19
103.69
67.77
171.46
160.34
64.66
12.99
2020
81.35
-52.55
5.05
33.95
2.1
2019
365.22
-117.47
-267.73
-19.83
53.66
33.83
260.41
29.93
Tourism Enterprise Co.
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
Free Cash Flow
Free Cash Flow Growth
Free Cash Flow Yield
2022
1.5
-7.56
502.44
496.38
13.32
509.7
-4.83
-172.14
-0.732
2021
0.95
-3.41
-2.46
15.78
13.32
6.69
-25.45
-0.275
2020
5.4
-1.17
4.23
0.755
2019
-6.41
-1.92
-8.33
19.88
11.55
-8.37
-3.7
Value Analysis:
VALUE ANALYSIS
Abdul Mohsen Alhokair Group
Tourism Enterprise Co.
2022
Book Value of Common Stock
2022
2021
0.922 -1.45027
2020
-1.08428
2021
0.476290781 0.52862 -0.66316
Dividend Payout
no dividends
no dividends
Market to Book Value
no dividends
no dividends
Price Earnings Ratio
(7.69)
(2.94)
(2.27)
2020
(128)
(15.24)
(19.39)
Earnings Quality:
1. Based on an evaluation of accounting policies and accounting method choices
conducted in
earlier sections on areas such as: revenue recognition; accounting for allowance for
uncollectibles; depreciation method choices and estimates; lease accounting; off
balance sheet financing develop an overall evaluation of earnings quality for the firm. Is
the company’s accounting posture, conservative, neutral, or aggressive? Briefly discuss.
2. Based on an examination of the income statement, comment on the segregation of core
vs. non core activities and any nonrecurring items such as discontinued operations,
extraordinary items or effect of accounting changes. How do impact earnings
persistence?
Outside Assessments:
1. Obtain the most recent analysts’ reports and examine them
2. Prepare a schedule that documents management’s forecasts and analysts’ earnings
forecasts for the coming year. Briefly explain why you should not place complete
reliance on management’s and analysts’ forecasts.
3. Concisely summarize the above information, state whether you agree, partly agree, or
disagree with this outside assessment. In other words, is this information consistent,
partly consistent, or inconsistent with your analysis? {Note: I don’t want reports that
resemble analysts’ reports for the company. Analysts’ reports are to be consulted only
as a reference at the end of the project]
Sustainability & ESG:
▪Get the ESG rating for your company and provide your assessment.
Valuation:
1.
Compute the value of the company using dividend discount model, cash flows,
residual income, and market multiples.
2.
What is your final assessment of the market value of your company?