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    Du, one of the largest telecom companies in the UAE, saw a 32% increase in sales in 2010 to 7 billion AED and a six-fold increase in profit before tax due to higher sales and lower royalties. While Du's revenues and loans increased, allowing it to significantly grow its cash holdings and purchase property and equipment, its current ratio of 0.72 means it may not be able to immediately pay obligations if due. Du's strong financial performance resulted in increased share prices from 2010 to 2011.

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    Du, one of the largest telecom companies in the UAE, saw a 32% increase in sales in 2010 to 7 billion AED and a six-fold increase in profit before tax due to higher sales and lower royalties. While Du's revenues and loans increased, allowing it to significantly grow its cash holdings and purchase property and equipment, its current ratio of 0.72 means it may not be able to immediately pay obligations if due. Du's strong financial performance resulted in increased share prices from 2010 to 2011.

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    Download as DOCX, PDF, TXT or read online from Scribd
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    17 views1 page

    Exec

    Uploaded by

    Vasudev Raman
    Du, one of the largest telecom companies in the UAE, saw a 32% increase in sales in 2010 to 7 billion AED and a six-fold increase in profit before tax due to higher sales and lower royalties. While Du's revenues and loans increased, allowing it to significantly grow its cash holdings and purchase property and equipment, its current ratio of 0.72 means it may not be able to immediately pay obligations if due. Du's strong financial performance resulted in increased share prices from 2010 to 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    The report analyses the financial performance of Du in 2010, one of the biggest telecommunications

    company in the UAE. Du has seen a 32% increase in sales in 2010 as compared to the previous year,
    with sales amounting to 7 Billion AED. Profit before tax has seen a six-fold increase because of
    increase in sales and reduction in royalty. The current ratio, however, is 0.72, which means Du would
    not be able to pay its obligations immediately if they become due immediately.

    Du has outstanding loans to the amount of 0.9 billion which has been instrumental in financing its
    major assets – the purchase of property, plant and equipment. Increased revenues and loans has
    also enabled Du to increase its cash holdings significantly, from 0.8 billion in 2009 to 2.8 billion.
    These indicate signs of growth and expansion in the forthcoming years. As a consequence of its good
    performance in terms of increase in sales and revenues, Du’s share price has increased from 2.86
    AED as on 31st December 2010 to 3.27 as on 19th May 2011.

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