Measuring the Financial Performance of a Telecommunications Corporation
Mukdad Ibrahim, Business School, American University of Ras Al Khaimah, United Arab Emirates.
Manuscript received on November 12, 2019. | Revised Manuscript received on November 25, 2019. | Manuscript published on 30 November, 2019. | PP: 4992-4994 | Volume-8 Issue-4, November 2019. | Retrieval Number: D8073118419/2019©BEIESP | DOI: 10.35940/ijrte.D8073.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The aim of this paper is to measure the financial performance of the Emirates Telecommunications Group Company, the largest provider of internet and telephony services in the United Arab Emirates, during the years 2016 to 2018. This paper empirically analyzes three groups of indicators, profitability, liquidity and capital structure. Due to its high degree of validity in its ability to dissect and measure various aspects of a firm’s financial health, financial ratio analysis was performed using data provided by the Emirates Telecommunications Group Company in its annual reports. Ratio analysis has consistently been recognized as the gold standard for investorsinterested in analyzing the financial performance of large institutions. Relevant ratios that reflect various aspects of the firm’s financial health have been analyzedand compiled in order to reach a conclusion regarding the overall financial standing of Emirates Telecommunications Group Company. The findings indicate a noticeable improvement in the level of profitability in 2018 when compared to the previous years, possibly indicating a strengthening in the firm’s ability to control costs in its pursuit of higher profit margins. Liquidity, or cash on hand levels have slightly declined for the three years under study. The Profitability, liquidity and capital structure analysis clearly shows a stable and largely positive trend for the years 2016 through to 2018, highlighting an improvement in the firm’s management of resources and pointing towards a positive outlook for the company and good news for investors should current trends continue. Due to the public availability of the data required as well as the validity of this type of analysis, current and prospective investors alike are encouraged to employ ratio analysis in order to measure the viability of their investments as well as discover new investment opportunities where they may arise.
Keywords: Financial Analysis; Performance Management; Communication Technology; Performance Indicators.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.