Using the attached annual reports of Al Marai Company, you are required to do the following:

1. Calculate and explain Activity Ratios for the years 2017, 2016, 2015
2. Calculate and explain Liquidity Ratios for the years 2017, 2016, 2015
3. Calculate and explain Profitability Ratios for the years 2017, 2016, 2015
4. Calculate and explain Debt Ratios for the years 2017, 2016, 2015
5. All ratios calculated must be graphed so that a trend is created and the decision in (part 6) is justified
6. In a couple of paragraphs, advise a friend on whether or not this company represents a good investment opportunity. Your answer must go in-line with the above ratios you have calculated.

*Attached Financial Ratios formulas
**Required to use the financial statements of Al Marai Company (Attached 3 reports), and calculate several financial ratios to assess the company’s performance. The company’s performance will then be described briefly in the light of the calculated financial ratios.

Criteria

Provide an introduction for each ratio (4 ratios) in which key terms are defined using credible sources. (6 Marks)

Apply the correct formula to calculate Activity, Debt, Liquidity and Profitability ratios. Provide All steps in the calculations (8 Marks)
Graph then explain the above calculated ratios and state whether a high or low ratio is more favorable. (10 Marks)

Conclude the answers briefly describing the company’s overall performance, and state whether the company is a good investment opportunity. for each ratio “4 ratios” (6 Marks)