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Financial Analysis for Managers Individual Assignment : Dubai Refreshment Company PJSC , Rochester Institute of Technology Dubai
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| University | Rochester Institute of Technology Dubai |
|---|---|
| Subject | Financial Analysis for Managers |
Dubai Refreshment Company PJSC
MBA
Financial Analysis for Managers’ Assignment 9th – 13th October 2025 course delivery Submission Date: 6 November 2025
Report page limit – maximum 10 double sided pages plus appendix for workings / supplementary data
This assignment will be based on real data which can be taken primarily from the annual reports of Dubai Refreshment Company PJSC for the last 3 years ended December 31, 2024/2023/2022 (1 prior year’s 2021 annual report is also available for more depth and to be used as a base for Horizontal Analysis).
Full copies of the Annual Financial Reports are available on Moodle and through the websites of Dubai Financial Markets and Dubai Refreshment Company PJSC company’s website as below:
https://www.dfm.ae/the-exchange/market-information/company/DRC/reports
This is an individual assignment. Required
You have been hired as a consultant by Dubai Refreshment Company PJSC to prepare an independent report analysing the financial status of the company and to communicate your findings in a formal written report to a group of its senior managers. This forms part of a management development programme which is designed to enable them to understand the company’s financial statements so that they in turn can brief their own departmental staff on the company.
You are therefore required to produce a professional report which should include a detailed analysis of the following areas: -
(a) Profitability
(b) Efficiency
(c) Liquidity
(d) Gearing
(e) Horizontal common size analysis using the consolidated statement of income (use 2021 as a base)
(f) Vertical common size analysis Using the consolidated balance sheet (use total assets as a base)
(g) Comparative analysis with a competitor company within the same industry
(h) The evaluation of performance of business units using financial and non-financial measures
(i) Conclusions and Recommendations
Your findings should be submitted in a formal report with well-founded conclusions and recommendations.
You should state any assumptions made.
Assessment Criteria/marking scheme is attached for your reference. Copies of the annual financial reports for the last 3 years (2020-2023) are also included for your reference on Moodle.
Please make sure you are aware of the rules regarding plagiarism. Whilst we encourage you to discuss ideas and issues with your colleagues, the final piece of work MUST BE ENTIRELY YOUR OWN.
Additional assisting tips to be carefully considered:
- You need to present your report in a professional way as described in the marking grid.
- A separate title page and another separate page for the table of contents.
- You may differentiate the Executive Summary section from the Introduction section (two different parts).
- A separate section must exist for each set of ratios (e.g., profitability ratios must be listed in a section with clear starting and ending page, the next ratios must start in a new page, and so on).
- The conclusion must be totally different from your recommendations. Each one is in different section. Your conclusion describes the company’s current position as is in different aspects related to the ratios as findings, where your recommendations are to suggest improvements as much is possible theoretically (it may not be applicable in reality).
- References must be clear and listed at the end after your recommendation section, but in-text citation is essential.
- All tables and calculations must be referred to in the appendix. It is strongly recommended to mention all formulas in writing for each ratio, and then to express the formulas in numbers derived from the annual reports, and lastly to present the calculated ratio (below is merely an example):
|
|
Profitability Ratios |
Formula (Equation) |
2022 |
2023 |
2024 |
2022 |
2023 |
2024 |
|
1 |
Gross profit margin |
Gross profit / Sales |
5000 / 10000 |
5500 / 12000 |
8000 / 14000 |
50% |
45.8% |
57.14% |
|
2 |
Net profit margin |
Net profit / Sales |
|
|
|
|
|
|
|
3 |
Return on Shareholder funds |
|
|
|
|
|
|
|
- A diagram highlighting the ratio direction is highly advised to be presented well before explaining the ratios and its direction.
- A logical ratio analysis is expected describing the meaning of ratio first and then its trend as healthy or unhealthy as compared to the previous years (you may use 2020 data as a base year), and compared to the standard norms, and compared to a competitor from the same industry as you may suggest (highly recommended).
- After completing analysing each individual ratio, a thorough explanation for the whole set of ratios within the same category is a must to describe for example the overall profitability after having explained each ratio in that category.
- To avoid high similarity, it is recommended to express yourself in your own words, do not copy and paste any text from the company’s annual report or from any other teaching materials especially if citation is not clearly indicated and quoted.
MBA FINANCIAL ANALYSIS
Dubai Refreshment Company PJSC and its subsidiaries MARKING GRID FOR STUDENTS
|
CRITERIA |
Total marks available % |
Marks awarded % |
COMMENTS |
|
Quality of presentation: correct referencing / bibliography
|
7.5
|
|
Professional presentation expected Font size 12 Times New Roman Standard margin sizes, headers & footers In text citations and Harvard style Referencing where appropriate All tables, graphs, charts and calculations to be placed in the appendix and cross referred to in the main text. Report style language – not essay |
|
Structure of Report Report format
|
7.5
|
|
Should include: - • Title page, • Table of contents • Executive Summary (approx. 1/8th in size of the main report) • Introduction which should, include a brief background and an indication of what is to come in the report • The main body of the report should include sections on: - profitability efficiency, liquidity, gearing, horizontal analysis and vertical analysis • Conclusion • Recommendations • References • Appendix (which should include all graphs, charts, calculations etc.) |
|
Profitability – ratios could include • Gross Profit Margin • Net Profit Margin • Return on Shareholder funds • Return on Capital Employed • Any Others? |
9
|
|
Range of profitability ratios (4 minimum) Ratios should be correctly worked out and any assumptions stated regarding figures used Trends should be analysed correctly and an attempt made to explain the trends. Secondary supporting data could be used to support reasons put forward in your analysis. Once all of the individual profitability ratios have been analysed you should provide a summary at the end of the profitability section giving the overall profitability position. |
|
Efficiency • Stock (inventories) turnover • Debtor (receivables) turnover • Creditor (Payables) turnover • Sales Revenue to Capital Employed • Could look at other more appropriate measures of efficiency |
9 |
|
Careful selection of efficiency ratios required. Only use those that are application to the organizations in question. Again, ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data - customer numbers, space, asset utilization etc. |
|
Liquidity • Current ratio • Acid test ratio
|
6 |
|
Current ratio should be analysed and Acid test ratio. Cash Flow Statement should be used for further detailed analysis of the cash position. Again, ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data. |
|
Gearing • Loans to Capital Employed • Interest Cover
|
6 |
|
2 main gearing ratios should be used Again, ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data. |
|
Horizontal Analysis Analysis of individual elements over 3 years (use 2020 as a base) |
6 |
|
Income Statement only. Look at the changes in the key areas only e.g. investigate Sales / Cost of Sales/ Operational Profit / Net Profit / Appropriations. If there are significant changes then investigate further, e.g. if there is a significant change in net profit, examine all expenses to see why this has occurred. To summarize, analysis should highlight key changes from 2018, any significant increases or decreases should be investigated further |
|
Vertical Analysis Analysis of individual elements over 3 years
|
6 |
|
Balance Sheet Only. Analysis should highlight percentage to total assets and comments should be made on any significant changes. Look at the 5 main areas in the Balance sheet Total Noncurrent assets, total current assets, total current liabilities, total long-term liabilities and total shareholder equity and compare them to total assets as the base. To summarize, analysis should highlight key changes from 2019, any significant increases or decreases should be investigated further |
|
Comparative Analysis |
10 |
|
Comparison between 2 organizations (from the same industry) should be undertaken as you go through the report |
|
Evaluation of business performance using financial and nonfinancial measures |
8 |
|
(a) Identify how business success is measured (b) Explain the structure – centralized / decentralized and the reasons for this structure and the link with responsibility accounting (c) Identify how the company evaluates performance and whether they use the balanced score card (d) Evaluate how responsibility reports attempt to measure cost, revenue and profit centres (e) Identify the main financial and non-financial performance measures that are used and their effectiveness |
|
Conclusion Summary of overall position of the Organization over 3 year period and current financial standing |
10 |
|
What conclusions that you draw from your analysis – it should provide a holistic view of the financial status of the company. The conclusion should be linked closely with you findings. |
|
Recommendations Consistency with analysis Should be financially rather than business driven |
15 |
|
Recommendations should logically flow from your analysis. You need to focus on prioritizing your recommendations. Recommendations should be financially driven and not general recommendations. Recommendations should also focus on improving / strengthening i.e. they don’t just have to come from areas within your analysis that need improvement. |
|
TOTAL MARK |
100 |
|
|
|
General Comments |
|||
|
Assessor: Dr. Rifat Abdel Rahman Signature: Date : |
|||
|
Quality of presentation |
7.5 |
|
|
Structure of Report |
7.5 |
|
|
Profitability – ratios |
9 |
|
|
Efficiency |
9 |
|
|
Liquidity |
6 |
|
|
Gearing |
6 |
|
|
Horizontal Analysis |
6 |
|
|
Vertical Analysis |
6 |
|
|
Comparative Analysis |
10 |
|
|
Evaluation of business performance |
8 |
|
|
Conclusion |
10 |
|
|
Recommendations |
15 |
|
|
TOTAL |
100 |
|
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