Financial managment project Essay Example | Topics and Well Written Essays - 2000 words

Financial managment project - Essay ExampleTAQA is operating in a multi-billion-dollar global market oil and efficiency market. As a result of this, the financial performance of TAQA is located by the trend in the global market. Lately, the price of oil has been erratic, and this has also affected the economic stand up of many oil companies worldwide, TAQA inclusive. Some of the major competitors of TAQA are Shell, Chevron, British Petroleum, and Exxon Mobil.These financial analyses will unravel the suitableness of TAQA for investment as it reveals the level of profitability, durability and the benefits any future investors could gain by putting their hand-earned bullion on the company.(I) Level of Profitability From the fiscal socio-economic class 2007 to 2009, Abu Dhabi National Energy Company demonstrates a brawny level of profitability. This observation can be supported with the following dataIn 2007, TAQAs clean profit margin was 0.12, and its returns on equity was appro ximately 0.12. These are encouraging figures because 2007 was a terrible grade in the energy market. It was the period the oil price shot up to the sky and made energy business almost seemed unprofitable. However, TAQA was able to have an appreciable return on assets that worth 0.015. The following course of instruction (in 2008), TAQAs profit margin increased considerably to 0.19, and its returns on equity did a lot fall apart coming to 0.2, while the returns on asset surprisingly came to 0.02. These results indicate the fact that the profitability of TAQA increases every year. Although, the year 2009 is different because the financial crisis that began in the United States also affected TAQA, bringing its profit margin polish up to 0.01, its returns on equity plummeted to 0.014 and its returns on assets shrank to 0.001. However, there is every possibility that once the financial crisis is over, TAQA will be able to rebound to its profitability level.(ii) Degree of Solvency The analyses