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Cash Flow Analysis (Group case study 1)

Group case

Q Please read these instructions carefully. The project will be done in teams. Therefore, there is no reason to delay submission beyond the deadline (September 25, 2016). In case you are unable to complete the project by the deadline, submit what you have done. I recommend distributing the project among the team members and then integrate the parts into a single comprehensive document. Please submit a soft copy through blackboard. 1. Select your Company: Select one publicly traded corporation from industry sector. Make sure that the company has common shares traded in the UAE. Do not select financial institutions (banks, insurance, or investments); instead focus on medium-size or large manufacturing or retail companies. Do not select companies with negative book value of equity. It would be a good idea to select stable, visible companies that are followed by analysts. 2. Knowing you Company: Describe the company. When was founded? What its business? Who are the main shareholders and where is traded? What are the main products and geographical markets? Who are the main customers and suppliers? What are the main advantages of the company? Were there any interesting acquisitions or divestitures in the last three years? Do the company has traded debt? Present summary statistics for the company (for instance, a table with sales, sales growth, total assets, net income, number of employees, volume of trade, and feel free to add more). 3. Corporate governance Write a short report on the composition of the Board of directors (size, gender), the main executives, and institutional shareholders. Try to assess to what extent the board is independent. 4. Liquidity and cash flow analysis • How liquid would you say that the company is? Calculate the absolute liquidity of the firm. How does it compare with the previous year's liquidity position? Highlight changes over time. • How does the market value of the stock compare with its book value? Is the book value accurately reflecting the true condition of the company? • Analyze the cash flow of the company and whether it has changed over time. Explain why the cash balance has dropped/increased. • Measure the free cash flow (FCF)of the firm. What does it indicate? • Did the cash flow of the company over time has reflected in stock price? Explain your answer. 5. Recommendation Write on the company cash flow position and what recommendations you have to improve its cash flow position. Important Notices: 1. All students within the same group are responsible for the overall project, including analysis and interpretation of results and decision making and the whole structure of the final group’s report. 2. There is no page limit of the final report, however the contents should be meaningful and to the point and include all the items and procedures as discussed above. 3. The deadline of submission is announced in the in-class and Blackboard. 4. The submission should be in Softcopies Only and to be delivered on time through the Blackboard. No exception will be given under any circumstances. 5. Each group will defend its final report and explain relevant findings and results. The groups are required to summarize their report and present it in the form of PowerPoint slides. Grading & Assessment: Students are required to produce a professional report. Grades will be given on compliance with Questions and other Requisites to be addressed in the case, in addition to: 1) Proficient analysis and explanation of results & findings, 2) Professional English writing, 3) The overall neatness and organization of the report. 4) In-Class Presentation and Quality of Discussion Generated: Have you presented your case to the class in a way that engaged your audience? Were you prepared for questions from the class and did you come up with your own questions to draw the class into discussion about your case?

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1. Selected- Abu Dhabi National for Building Materials Co. for PJSC. Currency used UAE Dirhams. 2. Abu Dhabi National for Building Materials Co. for PJSC is a manufacturing company dealing mainly with products related to concrete, cements, reinforced steel, tiles etc. This company possesses public listing and was established in the year of 1974. Since this is a public company, majority of shares are owned by the Nation’s Government. Currently it had 300,000,000 shares. Since the company’s main business is industrial manufacturing, their main customers with whom they deal with are factory builders, mill builders, entrepreneurs having interest in infrastructure building.