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Financial Analysis 2025

The company has experienced significant revenue growth, increasing from AED 428,865.00 in 2022 to an estimated AED 4,213,000.00 in 2024, alongside a turnaround in profitability from a net loss of AED -361,192.45 in 2022 to a net profit of AED 1,334,472.88 in 2023. Operating expenses are high at AED 1,888,775.23 in 2024, necessitating a review for potential cost reductions. Overall, the company shows improved liquidity and equity, indicating a stronger financial position.

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18 views2 pages

Financial Analysis 2025

The company has experienced significant revenue growth, increasing from AED 428,865.00 in 2022 to an estimated AED 4,213,000.00 in 2024, alongside a turnaround in profitability from a net loss of AED -361,192.45 in 2022 to a net profit of AED 1,334,472.88 in 2023. Operating expenses are high at AED 1,888,775.23 in 2024, necessitating a review for potential cost reductions. Overall, the company shows improved liquidity and equity, indicating a stronger financial position.

Uploaded by

ctluaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Summary of Company Performance:

Revenue Growth: The "Revenue of Central Lab" increased significantly from AED
428,865.00 in 2022 which is due to the fact that it was operational only from June. Estimated
sales for the year 857,730.00.
AED 2,932,119.77 in 2023 and further to AED 4,213,000.00 in 2024. This indicates strong
top-line growth.

Profitability: The company has shown a significant turnaround in profitability. In 2022,


there was a net loss of AED -361,192.45, but in 2023, the company generated a net profit of
AED 1,334,472.88, which decreased to AED 552,824.99 in 2024 after 1,800,000.00 payout
to Higher management.
The operating profit also reflects this trend, moving from a loss to a substantial profit.

Operating Expenses: Operating expenses are substantial, reaching AED 1,888,775.23 in


2024. A detailed analysis of these expenses is needed to identify potential areas for cost
reduction. Salaries constitute a significant portion of these expenses.

Liquidity: The current ratio shows a significant improvement in liquidity, increasing from
0.28 in 2022 to 5.9 in 2024. This indicates that the company is in a better position to meet its
short-term obligations.

Solvency: The debt-to-equity ratio has improved drastically, suggesting that the company is
less reliant on debt financing compared to equity.

Equity: The total equity has seen substantial positive change over the years, increasing
from -361,192.45 in 2022 to 2,660,348.02 in 2024.

Overall Assessment:

The company demonstrates strong revenue growth and a significant improvement in


profitability and liquidity. However, there can be significant changes in Net Profit once the
costs are identified and discussed further for cost reduction measures.
Ratio Formula 2024 2023 2022
Liquidity Ratios
Current Ratio Current Assets / Current Liabilities 0.11 0.47 5.89
(Current Assets - Inventory) / Current
Quick Ratio 0.1 0.41 3.71
Liabilities
Profitability Ratios
-
Net Profit Margin Net Profit / Revenue 13.03% 45.48%
73.89%
Return on Assets
Net Profit / Total Assets 0.22 0.45 -0.13
(ROA)
Return on Equity
Net Profit / Total Equity 0.21 1.37 -0.14
(ROE)
Solvency Ratios
Debt to Equity Ratio Total Liabilities / Total Equity 0.05 2.04 0.05
Efficiency Ratios
Asset Turnover Ratio Revenue / Total Assets 1.69 0.99 0.17

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