Please do the ratio on the first page please do it as soon as possible today is
ID: 2599624 • Letter: P
Question
Please do the ratio on the first page please do it as soon as possible today is last date.
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 luxury 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) i. Working capital ii. Current ratio iii. Current cash debt coverage iv. Debt to assets ratio v. Cash debt coverage vi. Times interest earned vii. Free cash flow vii Eamings per share ix. Price-eanings ratio x. Profit margin xi. Retum on assets xii. Asset turnover xiii. xiv. Payout ratio Times interest earnedExplanation / Answer
Calculation of Ratios:-
i) Working capital = Current Assets - Current Liabilities
Current Assets = Trade and other receivables+Development Properties+Cash and Bank balances
Current Liabilities = Advance from customers+Trade and other Payables
Working Capital (2016) (in AED'000)
= [(10,245,064+4,804,278+8,316,048)-(4,196,801+3,994,687)
= 23,365,390-8,191,488 = 15,173,902
ii) Current Ratio = Current Assets/Current Liabilities
Current Ratio (AED'000) (2016) = 23,365,390/8,191,488 = 2.85
iii) Current Cash debt coverage = Net cash provided by operating activities/Average current Liabilities
Net cash provided by operating activities = (in AED'000) 9,019
Average Current Liabilities = (Opening liabilities+Closing liabilities)/2
= [(8,191,488)+(5,533,221+4,318,742)]/2 = (8,191,488+9,851,963)/2 = 9,021,726
Current cash debt coverage = 9,019/9,021,726 = 0.099%
iv) Debts to Assets Ratio = Total liabilities/Total Assets = 24,625,782/12,007,722= 2.05
v) Cash debt coverage = Cash from operating activities/Total Debt
= 9,019/(1,162,636+2,653,598) = 9,019/3,816,234 = 0.24%