The following are guidelines to help you with your company’s analysis. I have assigned one company to analyze (SAUDIA RAMCO). Nonetheless, you may need to analyze another one or look to the industry ratios if needed, (compare your main company to the industry). The following guidelines are the minimum requirements that you could do. You have SAR 750,000, and you can borrow SAR 250,000 from the bank at an interest rate of 8%. You can buy SAUDI ARAMCO stock; however, you must maintain account of your investment (date of purchase should be on January1, 2024 or later) and then analyze your investment on May 10, 2024. You should demonstrate your understating of the materials through this Report.
You are assigned ARAMCO thus do the following
After choosing your company (SAUDI ARAMCO); you need to select another company that would represent the industry. Then do the same for both companies.
Generally speaking:
1 Step #1 – Defining the company
Describe your company
1) Name the company and ownership structure
2) Location of company; its main line of business
3) Equity shares versus debts
4) Specify the number of shares valued and total outstanding shares
5) Non-controlling versus controlling interest (if any)
6) Any other information you feel the reader should know
2 Step #2 – Data Discovery
The information required includes (but is not limited to):
1) Company Information on:
a) Financial
b) Operational
2) Industry information
a) Economics literature covering the company and its industry.
3 Step #3 – Data Analysis
A. Qualitative Analysis – emphasis is on assessing qualitative risk and competitive advantages or disadvantages.
1) Description and analysis of Subject Company’s
b) SWOT analysis (strengths, weaknesses, opportunities, threats)
2) Macroeconomic and microeconomic research
a) Analysis of the macro and microeconomic forces which affect performance and outlook
of the Industry research
b) Size in Riyals of industry revenues
c) Size characteristics of industry
d) Do companies compete on price? Service? Product quality? (Indicate its strategy)? Why you think this is suitable strategy for it, or not, explain.
B. Quantitative Analysis
1) Analysis of Subject Company on basis of:
a) Growth
b) Profitability
c) Asset management
d) Coverage
e) Leverage
Conclusion
Deadline on April 26
Please use the attached Operating statement of Saudi Aramco for your reference and information.
Make sure to the report reaches to 10000-13000 words.