Finance

Comparison on Umm Al Qaiwain/Gulf Cement Co. With Industry Average

1) Profit margin ratio

Company2009201020112012

Gulf cement co0.050.12-0.09-0.01

Umm Al Qaiwain-54.44%16.80%51.76%79.20%

Industrial average13.1916.89-1.6114.66

While comparing with the gulf cement co, the umm al qaiwan is having less profitability in the year 2009.but as we go through the years the profitability of the Gulf cement company is decreasing and reached to negative figure. While comparing with the umm al qaiwain performed much better than the gulf cement company.

2) Return on asset ratio

Company2009201020112012

Gulf cement co0.020.05-0.040.00

Umm Al Qaiwain-7.88%1.05%1.93%1.88%


The return on asset ratio of the industry average seems to be decreasingover the years .in case of umm al qaiwain the ratio shows a negative value in the year 2009 but when the years go it shows a positivevalue, much more than the industry average. The return on asset ratio of the `gulf cement company like the profitability it also declines over the years.

3) Return on equity

Company2009201020112012

Gulf cement co0.0245074810.0501021-0.044536-0.00550218

Umm Al Qaiwain15.35%6.57%3.92%2.53%


The return on equity of the umm al qaiwain seems to decreasing over the years. But it is not bad when compared to the Gulf cement company and the industry averages. The industry average is decreasing from 9.07 to 2.95. the gulf cement co from 2.4 they went to -.5.

4)Receivables turn over ratio

Company2009201020112012

Gulf cement co3.073.193.863.48

Umm Al Qaiwain4333

Industrial average3.433.433.692.92

The receivables turn over ratio of is much better than the umm al qaiwain. The umm al qaiwain shows a decrease from 4 to 3 and remain same for the years 2010 to 2012. While the Gulf cement shows almost a ratio, which is similar to industry average.

5) Average collection period

Company2009201020112012

Gulf cement co11911495105

Umm Al Qaiwain87107130143


The average collection period of umm al qaiwain seems increasing due to bad collection policy or extending more time for the creditors to make payment. But in the case of Gulf Cement Company the collection period is much better. Because they are well in collecting the cash from the creditors. Even when we compare with the industry the collection period of Gulf Cement Company is much more better.

6) Inventory turnover

Company2009201020112012


Umm Al Qaiwain9430.95


The inventory turn ratio of Gulf Cement Company is much better than Umm Al qaiwain. Comparing with industry average the Umm Al qaiwain is not up the industry average. The gulf cement co. is better in inventory turn over ratio.

7) Fixed asset turnover

Company2009201020112012


Umm Al Qaiwain0.520.190.110.07

Industrial average1.421.020.981

The fixed assets turn over ratio of Gulf cement co. is performing almost similar to the industry average. The fixed asset turn over ratio of the umm al qaiwain is decreasing from 0.52 to .07. Which means the umm al qaiwain is poor in making revenue from their fixed assets.

8) Total asset turn over

Company2009201020112012


Umm Al Qaiwain0.14470.06250.03720.0238


Total asset turn of the umm al qaiwain is not good when we compare with both the industry and competitor company, Gulf Cement co. the umm al qaiwains total asset turn over ratio is decreasing tremendously over years.

9) Current ratio

Company2009201020112012




The current ratio of Gulf Cement Company is very much high in each year when we compared with the performance of umm al qaiwain. We can see it is even more than the industrial average.

10) Quick ratio

Company2009201020112012




The quick ratio of the umm al qaiwain is shown some progress in the initial year but it starts diminishing after 2011.while in the case of Gulf cement company the it is increasing slightly over the years which means a progress. When we compare with the industry average the Gulf Cement company shows much better than Umm Al Qaiwain

11) Debt to total asset

Company2009201020112012

Gulf cement co0000

Umm Al Qaiwain5.73%4.83%5.00%5.91%


The debt to total asset turn over ratio for Gulf cement co. is nil through out the years. Hence while we compare with the umm al qaiwain and industry average the umm al qaiwain is performing much better than the Gulf cement CO.

12) Times interest earned

Company2009201020112012

Gulf cement co-22.995.2174.600.00



In the case of times interest earned the umm al qaiwain have 5.42 in the year 2009. And the Gulf cement company shows a negative figure in the initial year and it steadily increases as the years go. And when we compare with the industry average the Gulf cement Co. is showing a better value

13) Fixed charge coverageCompany2009201020112012

Gulf cement co-22.995.2174.601.00



The fixed charge coverage ratio for umm al qaiwain is similar to the fixed charge coverage. And when we compare with the industry average the gulf cement company shows a better ratio.

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