Contents

• Financial Statement Analysis of Galfar Engineering 3
• Introduction 3
• Industry Chosen – Construction and Engineering Services 4
• Galfar Engineering 4
• Analysis of Key Financial Items: 4
• Ratio Analysis 5
• Profitability Ratio 6
• Short Term Liquidity Ratio 6
• Capital Structure Ratios 6
• Asset Turnover Ratios 7
• Return Ratios 7
• Comparison with Peers in the Industry - (Muscat Securities Market, 2014) 7
• Conclusion 9
• Recommendation 9
• Bibliography 10
• Appendix 11
• Financials of Galfar Engineering - (Financial Times, 2014) 11
• Financials of Douglas Oman - (FT, 2014) 14
• Financials of Construction Materials Industries and Contracting Company - (Financial Times, 2014) 17

Description

All listed companies need to follow the Generally Accepted Accounting Principles while reporting their results to the prime lender Central Bank of Oman and Capital Market Authority, which is the financial regulator in the country, as well as the shareholders. Also all listed companies need to follow the International Finance Reporting Standards issued by the International Accounting Standard Board (IFRS, 2014). . It also lends objectivity and relevance to accounting information especially when the users have conflicting objectives (Flood, 2014).Financial statement analysis helps identify the trends between financial statement items which the internal management and external users like creditors, investors, suppliers can use to take decisions about investing in the company. Some of the common methods used for financial statement analysis are trend analysis, common‐size statements, and ratio analysis.