Project Research Essay Example | Topics and Well Written Essays - 2500 words

Project Research - Essay ExampleHere we willing analyze several(prenominal) ratios like Profitability ratio, asset management ratio, Debt management ratio and Leverage ratio to understand the pecuniary position and performance of the friendship. Profitability Ratio can be defined as financial a tool which is used to justify a associations ability to generate revenue. Profitability of Emirates indemnity Company has decreased everyplace the years as the ROE, gross sugar margin and net profit margin of the company has declined in 2012 as compared to 2011. Liquidity ratio measures the firms ability to gather its short term requirements which defines the firms capacity to pay off the current liabilities as and when needed. The company does not have enough liquid cash ready in its hand and it needs to meliorate its liquidity position. Asset management ratio can be defined as the relationship betwixt sales and assets. The company is efficient in managing its assets except its pa yables turnover ratio. Debt management ratio measures the ability of the company to reduce the risk of financial problems in long run. The financial leverage of the company is higher on 2012. Thus it can be concluded that the company is having average position in the market and it should mend its sales to generate more profitability in future. Introduction Emirates Insurance Company was established in the year 1982 in Abu Dhabi, UAE. It has total assets of more than AED 1.5 billion and its gross written premium for 2012 was AED 650 million. The company operates over 20 locations in UAE. Emirates Insurance Company offers a wide thread of insurance related products and go to serve its sundry(a) customers like corporate, business organization, other financial institution and individuals. The company provides different insurance benefits like Hotel Block Insurance, Jewelers Block Insurance, and office comprehensive insurance. Under corporate insurance it provides General Third Par ty Liability Insurance, Workmens Compensation Insurance, Fidelity Guarantee Insurance and freeing of money insurance. The company also has a policy of covering money loss if it occurs during the money is in locker or money loss in the company premises during business hours or in transit between bank and office premises. Oil and Energy team of Emirates insurance Company offers various services to its clients in the world and it focuses on the risk related to oil and gas. It has a wide range of insurance products like Motor Insurance, Marine Hull Insurance, Medical Insurance, Third party general insurance, tune insurance, Bankers Blanket Bond Insurance, Cargo Insurance, fidelity Guarantee Insurance and Life Insurance. Here we will analyze respective ratios like Profitability ratio, asset management ratio, Debt management ratio and Leverage ratio to understand the financial position and performance of the company. Ratio Analysis Ratio summary states the systematic analysis of the fi nancial statement of a company to understand and interpret its performance and financial positions for a incident period of time. Ratio analysis can be compared