This document provides an overview of Ghazi Al Mahayni's credentials and services offered for financial analysis and advising for startups. It includes his education background, certifications, work experience, training, and areas of expertise. The agenda outlines topics to be covered such as understanding financial statements, analyzing financial statements, stock analysis for investment decisions, accounting advice for startups, and a Q&A session. Sample financial statements from Amazon are presented to demonstrate balance sheet, income statement, and cash flow statement formats and key metrics. Comparisons are made between Amazon and Alibaba's financial statements to analyze assets, liabilities, revenues, expenses, profits and identify strengths and weaknesses.
UOPFIN 370 NEW Become Exceptional--uopfin370.comkopiko142
For more course tutorials visit
www.uopfin370.com
FIN 370 Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®.
The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
All financial ratios of bata shoe of last five years Faiz Subhani
financial analysis of firm's financial statements & horizontal and vertical analysis is also given in this
also explained the purpose of finding each ratio for a firm and how can we compare with its past years and with other organizations and with industry standards
UOPFIN 370 NEW Become Exceptional--uopfin370.comkopiko142
For more course tutorials visit
www.uopfin370.com
FIN 370 Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®.
The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
All financial ratios of bata shoe of last five years Faiz Subhani
financial analysis of firm's financial statements & horizontal and vertical analysis is also given in this
also explained the purpose of finding each ratio for a firm and how can we compare with its past years and with other organizations and with industry standards
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
UOPFIN370 NEW Education Begins--uopfin370.comclaric235
For more course tutorials visit
www.uopfin370.com
FIN 370 Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®. Complete the Week 1 “Apply: Finance and Financial Statement Analysis Homework” in Connect®. Note: You have only one attempt available to complete this assignment. Grades must be transferred manually to eCampus by
Class 12 Accountancy Project
Analysis of Financial Statements of Deepak Nitrite Limited.
Specific 1=> Calculation of Accounting Ratios. (2018-19, 2019-20)
Specific 2=> Cash Flow Statement and comments on it. (2018-19, 2019-20)
Specific 3=> Segment analysis of 4 segments on the basis of Revenue, PBIT, Capital Employee and Combined Comparative Statement.
The data used for this project is from the annual report of Deepak Nitrite Limited taken from www.bseindia.com.
From the data of the financial year ended 31st March 2020
basic financial analysis, framework for ratio analysis, types of ratio analysis, liquidity ratios, debt ratios, equity ratios, activity ratios, profit ratio, index analysis, common size financial statements
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RCL Foods Financial Performance and KPIs: A brief reply to Johan Rupert's req...DavidHolland87
Johan Rupert, the chairman of Remgro, asked for investors' suggestions for key performance indicators (KPIs). Attached is a brief analysis of RCL Foods financial performance, which is a Remgro holding that has reported poor performance over many years. KPIs aligned with value creation, and improved financial decision analysis would greatly benefit RCL Foods and its capital allocation. We do not provide a valuation, just a peek into why performance has been poor.
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ACG Cup 2nd round case competition final presentationliujingyi
I stood for Univeristy of Texas at Dallas to compete in the ACG Cup case competition in Feb, 2011. The case is about offering LBO advisory to a PE firm as a investment banker. Here is the slides our group used in the final round. Finally, we were placed the second.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
UOPFIN370 NEW Education Begins--uopfin370.comclaric235
For more course tutorials visit
www.uopfin370.com
FIN 370 Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®. Complete the Week 1 “Apply: Finance and Financial Statement Analysis Homework” in Connect®. Note: You have only one attempt available to complete this assignment. Grades must be transferred manually to eCampus by
Class 12 Accountancy Project
Analysis of Financial Statements of Deepak Nitrite Limited.
Specific 1=> Calculation of Accounting Ratios. (2018-19, 2019-20)
Specific 2=> Cash Flow Statement and comments on it. (2018-19, 2019-20)
Specific 3=> Segment analysis of 4 segments on the basis of Revenue, PBIT, Capital Employee and Combined Comparative Statement.
The data used for this project is from the annual report of Deepak Nitrite Limited taken from www.bseindia.com.
From the data of the financial year ended 31st March 2020
basic financial analysis, framework for ratio analysis, types of ratio analysis, liquidity ratios, debt ratios, equity ratios, activity ratios, profit ratio, index analysis, common size financial statements
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RCL Foods Financial Performance and KPIs: A brief reply to Johan Rupert's req...DavidHolland87
Johan Rupert, the chairman of Remgro, asked for investors' suggestions for key performance indicators (KPIs). Attached is a brief analysis of RCL Foods financial performance, which is a Remgro holding that has reported poor performance over many years. KPIs aligned with value creation, and improved financial decision analysis would greatly benefit RCL Foods and its capital allocation. We do not provide a valuation, just a peek into why performance has been poor.
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ACG Cup 2nd round case competition final presentationliujingyi
I stood for Univeristy of Texas at Dallas to compete in the ACG Cup case competition in Feb, 2011. The case is about offering LBO advisory to a PE firm as a investment banker. Here is the slides our group used in the final round. Finally, we were placed the second.
Jimmy Gentry presents "The Income Statement and Cash Flows" in Minneapolis on Oct. 4, 2011 at the Star Tribune during the Reynolds Center's free workshop, "Business Journalism Boot Camp."
For more information about free training for business journalists, please visit businessjournalism.org.
Prepared by: Group 1
Leader:
Bau, Ella Mae G.
Members:
Adem, Angelie Lyka L.
Amper, Catherine Mae S.
Atienza, Trisha Lane M.
Babela, Ma. Ella V.
Bagang, Aleli M.
Bartolome, Kristine Joy G.
Bayani, Emanuel M.
Cabrera, Kathleen Anne A.
Making The Most Of Your Financial Statements4Good.org
Like it or not, a not-for-profits financial statements are often used by a variety of stakeholders as a tool by which to judge an organization’s potential for success. Making sure your statements do more than just reveal the value of your assets is essential, especially when donors receive more requests for support than they can ever hope to meet.
This webinar will provide attendees with tips for improved financial communication & insight into the analysis that would be funders may conduct.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. Ghazi Al Mahayni
2
Education
Certified Financial Manager-Certificate No # 4839
Institute of Management Accountants. USA New Jersey.
Certified Management Accountant-Certificate No # 28567
Institute of Management Accountants.
Damascus University.
Institute of Management Accountants. USA New Jersey
Finance Manager –HQ
Accounting Manger – Asia & Australia
Financial Controller – Sub-Saharan Africa
Cost Controller
Chief Accountant
Malaysia. SLB
Malaysia. SLB
Saudi Arabia. SLB
Qatar. SLB
Syria. Space Toon TV
Syria. Dublin International
Petroleum
+17 years of Experience
Training & Courses
Financial Training Level 1 Abu Dhabi
Financial Training Level 2 Dubai
Unleash the lead in You Kuala Lumpur
Effective Communication Skills Kuala Lumpur
Segment Financial Training Houston
CFM
CMA
Bachelor
Of Economics
A Member of
ICMA
A Member
CFA
Institute of Chartered Financial Analyst
Financial Controller – Sub-Saharan Africa
Senior Chief Accountant
Chief Accountant
Angola. SLB
3. Agenda
• “Financial Statements” Understanding .
• “Financial Statements” Analysis. Vs
• Stock Analysis for investment Decisions making.
• General Accounting Advises for Startups-business.
• Q&A
3
4. Financial Statements (Understanding):
Each listed Company must reports its financial statements annually.
(Within the 1st quarter of the subsequent year).
These statement are prepared by the corporate management and audited by
an independent accounting firm ( Mostly one of the big four firms).
4
Balance
Sheet
Notes.
Income
Statement
Cash Flow
Statement
Change of
Equity
Statement
5. Financial Statements (Understanding):
• The annual report is publicly published and available for any one on
the official website of the corporate itself or the listing stock market.
5
Owners
Management
Employees
Investors
Suppliers
Customers
Government
Financial
Statements
stakeholders
6. Financial Statements (Understanding):
Accountant must follow the basic accounting principles while performing the bookkeeping
1. Economic Entity Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Cost Principle
5. Full Disclosure Principle
6. Going Concern Principle
7. Matching Principle
8. Revenue Recognition Principle
9. Materiality
10. Conservatism
6
7. Financial Statements (Understanding):
The financial statements are prepared based on certain accounting
principles:
7
GAAP
(Generally Accepted Accounting Principles)
US Companies
IFRS
(International Financial Reporting Standard)
International Companies
8. Financial Statements (Understanding):
8
• Top differences between GAAP and IFRS:
GAAP IFRS
• Globally accepted standard for accounting, and is
used in more than 110 countries.
• Exclusively used within the United States and has a
different set of rules for accounting than most of the
world.
• GAAP focuses on research and is rule-based. • IFRS looks at the overall patterns and is based on
principle.
• Under GAAP, a company is allowed to use the Last In,
First Out (LIFO) method for inventory estimates.
• Under IFRS, the LIFO method for inventory is not
allowed.
• Development costs must be expenses under GAAP. • Development costs can be capitalized under IFRS
• Intangible assets under GAAP are recognized at the
fair market value and nothing more.
• It takes into account whether an asset will have a
future economic benefit as a way of assessing the
value.
9. Financial Statements (Understanding):
• Balance Sheet Notes:
Is a financial statement that reports a company’s ASSETS,LIABILITIES,
and SHAREHOLDERS equity at a Specific Point in Time.
9
Assets Liabilities
Resources owned the company Obligations of a company
They have future economic value They have future economic sacrifices.
Measured or expressed in Monetary basis
10. Financial Statements (Understanding):
• Example:
By 31/12/2018 reported their Balance Sheet Notes ( Listed on
NASDAQ Stock Market, Numbers in millions).
10
Cash and Cash Equivalents
Short-Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term investments
Fixed Assets
Good Will
Intangible Assets
Other Assets
Total Assets
Assets
31,750$ 20%
9,500$ 6%
16,677$ 10%
17,174$ 11%
-$ 0%
75,101$ 46%
-$ 0%
61,797$ 38%
14,548$ 9%
-$ 0%
11,202$ 7%
162,648$ 100%
Amazon
2018
%
Accounts payable
Short-term debit
Other Current liabilities
Total Current Liabilities
Long Term Debit
Other Liabilities
Defered liabilities charges
Misc Stocks
Minority interest
Total Liabilities
Total Equity
Total Liabilities
Liabilities
61,855$ 38%
-$ 0%
6,536$ 4%
68,391$ 42%
23,495$ 14%
27,213$ 17%
-$ 0%
-$ 0%
-$ 0%
119,099$ 73%
43,549$ 27%
162,648$ 100%
Amazon
2018
%
11. Financial Statements (Understanding):
• Income Statement (Profit or Loss statement):
Is a financial statement that reports the company’s Revenue and
expenses During a particular period.
11
Revenue
Expenses
Income Before Taxes
Taxes
Net Income
12. Financial Statements (Understanding):
• Example:
Amazon reported their income Statement for the year of 2018
Numbers in thousands :
12
Total Revenue $232,877
Cost Of Revenue $139,156
Gross Profit $93,731
Sales, General and Admin. $81,310
Operating Income $12,421
Interest Expenses $1,417
Income Tax $1,197
Net Income $10,073
13. Financial Statements (Understanding):
• Cash Flow Statement:
Is a financial statement reports the sources and uses of cash by
operating activities, investing activities, financing activities, During a
particular period.
13
Net Income ***
Cash generated by operating activities +/-
Cash generated by Investing activities +/-
Cash generated by Financing activities +/-
Ending Cash Balance ***
14. Financial Statements (Understanding):
• Example:
Amazon reported their cash flow Statement for the year of 2018
Numbers in thousands :
14
Net Income $10,073
Cash generated by operating activities +$30,723
Cash generated by Investing activities -$12,369
Cash generated by Financing activities -$7,686
Ending Cash Balance $21,317
16. Financial Statements (Analysis):
To perform a quality financial Analysis for any targeted company we
need the following:
• The financial statements of the targeted company .
• The financial statements of a main competitor.
• Some information about the sector itself.
• Perform common size conversion.
16
17. 20%
6%
10%
11%
0%
46%
0%
38%
9%
0%
7%
100%
%
31,750$
9,500$
16,677$
17,174$
-$
75,101$
-$
61,797$
14,548$
-$
11,202$
162,648$
Amazon
2018
Stock Analysis:
Balance Sheet Note analysis:
17
Cash and Cash Equivalents
Short-Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term investments
Fixed Assets
Good Will
Intangible Assets
Other Assets
Total Assets
Assets
20,522$
10,464$
13,164$
16,047$
-$
60,197$
-$
48,866$
13,350$
-$
8,897$
131,310$
Amazon
2017
16%
8%
10%
12%
0%
46%
0%
37%
10%
0%
7%
100%
%
32,221$
1,733$
-$
-$
6,871$
40,824$
28,274$
10,568$
25,772$
5,856$
2,686$
113,979$
AliBaba
2018
28%
2%
0%
0%
6%
36%
25%
9%
23%
5%
2%
100%
%
4% YOY cash increase, but
still 8% lower than a main
competitor
Absence of long term
investments in other
companies, while Alibaba
massively did.
Amazon is increasing
investments in fixed assets
compared to Alibaba
Amazon estimated Good
will value prior to public
issuance is much lower
than Alibaba
Slight increase on
inventory
However, competitor has
relief of these items and
absence of risk
18. Liabilities Amazon 2017 % Amazon 2018 % AliBaba 2018 %
Accounts payable $ 52,786 40% $ 61,855 38% $ 15,076 13%
Short-term debit $ - 0% $ - 0% $ 1,443.00 1%
Other Current liabilities $ 5,097 4% $ 6,536 4% $ 5,066 4%
Total Current Liabilities $ 57,883 44% $ 68,391 42% $ 21,586 19%
Long Term Debit $ 24,743 19% $ 23,495 14% $ 18,997 17%
Other Liabilities $ 20,975 16% $ 27,213 17% $ 325 0%
Defered liabilities charges $ - 0% $ - 0% $ 3,227 3%
Misc Stocks $ - 0% $ - 0% $ 477 0%
Minority interest $ - 0% $ - 0% $ 11,224 10%
Total Liabilities $ 103,601 79% $ 119,099 73% $ 55,836 49%
Total Equity $ 27,709 21% $ 43,549 27% $ 58,144 51%
Total Liabilities $ 131,310 100% $ 162,648 100% $ 113,979 100%
Stock Analysis:
Balance Sheet Note analysis:
18
Amazon increased other
liabilities by 1%, but
competitor has a relief of
such obligations.
Amazon equity increased
by 6% however Alibaba
still has higher value of
equity and better
coverage.
Amazon has no minority
interest while Alibaba has
10%
2% YOY payable decrease,
but still 25% higher than a
main competitor
19. Period Ending: 2016 % 2017 % 2018 % AliBaba % Sector
Total Revenue $135,987 100% $177,866 100% $232,887 100% $39,777 100% 18%
Cost of Revenue $88,265 65% $111,934 63% $139,156 60% $17,014 43%
Gross Profit $47,722 35% $65,932 37% $93,731 40% $22,764 57%
Operating Expenses 0% 0% 0% 0%
Research and Development $0 0% $0 0% $0 0% $3,617 9%
Sales, General and Admin. $43,536 32% $61,826 35% $81,310 35% $6,920 17%
Non-Recurring Items $0 0% $0 0% $0 0% $79 0%
Other Operating Items $0 0% $0 0% $0 0% $1,132 3%
Operating Income $4,186 3% $4,106 2% $12,421 5% $11,017 28%
Add'l income/expense items $190 0% $548 0% $257 0% $5,508 14%
Earnings Before Interest and Tax $4,376 3% $4,654 3% $12,678 5% 16525 42%
Interest Expense $484 0% $848 0% $1,417 1% $567 1%
Earnings Before Tax $3,892 3% $3,806 2% $11,261 5% $15,985 40%
Income Tax $1,425 1% $769 0% $1,197 1% $2,893 7%
Minority Interest $0 0% $0 0% $0 0% $426 1%
Equity Earnings/Loss Unconsolidated
Subsidiary
($96) 0% ($4) 0% $9 0% ($3,305) -8%
Net Income $2,371 2% $3,033 2% $10,073 4% $10,187 26%
3% Gross profit increase.
However still 17% lower
than the competitor.
30% YOY Revenue Growth,
12% higher than the sector
and 6 times the
competitor revenue.Stock Analysis:
Income Statement analysis:
19
Sales and operating
spending is 18% higher
than a competitor
Low gross profit and high
sales and operating costs
heavily reflected on EBIT
and NET income is
22% lower than a
competitor
20. 55% reduction on
investment spending.
Still in line with Alibaba
Stock Analysis:
Cash Flow Statement analysis:
20
Reversal direction in
finance activities Vs last
year.
Period Ending: 12/31/2016 12/31/2017 12/31/2018 3/31/2018
Net Cash Flow-Operating $ 17,203 $ 18,365 $ 30,723 $ 19,895
Net Cash Flows-Investing $ (9,516) $ (27,084) $ (12,369) $ (13,333)
Net Cash Flows-Financing $ (3,716) $ 9,928 $ (8,037) $ 2,272
Net Cash Flow $ 3,759 $ 1,922 $ 10,317 $ 8,833
67% YOY Operating cash
flow increase, 54% higher
than the competitor.
21. Stock Analysis:
21
Item Amazon
Cash + Steady positive Growth.
Receivables And Inventory -/+ Steady Growth Vs a competitor with relief of such burden.
Which means more risk on collection and management.
Long Term investments - Absence of such items Vs a competitor heavily doing so, which reflects
higher risk during any financial crisis.
Fixed Assets - Heavily investing in Fixed Assets compared to a competitor which make it
difficult to liquidate the assets if required.
Good Will +Less than a competitor which means possible increase during a potential
acquisition.
Accounts Payable & other liabilities - Higher than a competitor, though it is slightly decreasing.
Total Equity - Lower than a competitor which means less coverage and owners
protection
22. Stock Analysis:
22
Item Amazon
Revenue + Steady positive Growth and higher than the sector itself.
Gross Profit + Steady Growth 2% YOY.
- Still 17% lower than a competitor.
Sales and operating expenses - Increase in the sales cost and 18% higher than a competitor.
Net Profit - Very low net income at 4% Vs 26% for a competitor.
23. Stock Analysis:
23
Conclusion
Amazon Alibaba
Stock Market Price $1,844 $185
EPS $20.14 %0.11 $4.33 %2.3
Book Value per share $88.65 $42.53
Market value 20.8 times the book value 4.34 times the book value
• Amazon stock is overpriced and at high risk on the long run.
• Alibaba is currently providing higher EPS, but showing better business strategy and long term vision.
• That’s why Amazon is showing insider sales while Alibaba showing no sale or buy during the last 12
months.
24. General Advises:
24
• Build your Financial plan on Monthly &Yearly basis.
• Update the Actual results.
• Compare and make decisions
• Hire a qualified accountant to perform the accounting as early as possible.
• Hire a qualified Tax advisor “Mali Meşaver” to avoid surprises.
• Select the right Accounting software which fits your current and future needs. Ask
experts.
• Focus on the cash flow: Where it came from and where is the best to go for.
• Make priority on spending. The added back value 1st.
• Keep a reserve of cash for surprises or investment chances.
• When it is about planning : Be pessimistic with Sales forecast. And conservatism with
expenses.
Good evening every one and thanks for your participation in todays’ meeting though it is midweek day.
1st of all I would like to thanks Mr. Rashid for his generous hosting of today’s presentation and of Course many thank to Mr. Mustafa for his continouse efforts brining all of us together on this table.
In today’s meeting we’ll put some lights on the finance and accounting topics as everyone will need this skills one day, especially with statrtup-projects
I’ll try to make it simple as possible.
My name is Ghazi Al Mahayni
I hold a bachelor in Economics-Accounting department.
In addition to being CM and CFM, Certified Management Accountant and Certified Financial Manager from US.
A member of ICMA And CFA
More than 17 years of experience in accounting and finance files with oil and gas industry in Syria, Saudi Arabia, Qatar, Malysia, And Angola.
I moved recently to Turkey and started ACCYBER as a remote accounting services firm.
I also attended courses in Finance and management in USA, Malaysia, and Dubai.
In Today’s presentation we’ll cover those topics
Financial Statement understanding
Financial statement Analysis Amazon Vs Alibaba
Stock Analysis also Amazon Vs Alibaba
Will give some general advises and hopefully will help
And then we’ll end up with Q&As
How many Financial statements are prepared by the accountant ?
Ok we have 4 financial statements: Balance sheet notes, Income statement , Cash flow statement
Those financial statements are prepared by the corporate itself by audited by an independent accounting firm.
And we’ll explain each one in some details
These financial statements are publicly published on the company official website of the corporate itself and the listing stock market
So any one can browse these statements and get the numbers
The reason of being published is the high number of stakeholder of the financial statements
Internally : Owners, management and employees
Externally : Investors , suppliers, customers and government
Accounting is like any science we have rules and principles to follow while performing the accounting
We have 10 basic principles to follow were each accountant in the world must do
1. Economic Entity Assumption: which means the company has it is own independence out of the owners and accounted as legal entity example: the equity paid by the owners are considered liability and not granted for.
2. Monetary Unit Assumption: we use the money units to record our transactions
3. Time Period Assumption: we report our numbers along with specific dates
4. Cost Principle: we records our purchases on cost basis only.
5. Full Disclosure Principle: all the information must be available for any audit along with supporting documents.
6. Going Concern Principle: We assume the company is
7. Matching Principle
8. Revenue Recognition Principle
9. Materiality
10. Conservatism
Though we have basic principles to follow however at the international level we have 2 accounting principles GAAP and IFRS
We’ll talk about 5 top differences only
So we’ll start with 1st financial statement the BSN. BSN is a statement which shows the assets and the liabilities of the company at certain point of time.
On the left side we see the assets on the right side we see the liabilities and equity.
Example:
Amazon BSN as end of 2018 numbers in millions
Numbers are as per below
The second statement is the financial statement
It shows the company revenue and expenses over a period of time like 1 year.