Profit Margin

The profit margin has been progressively increasing for RAK properties in all the
3 years. For RAK the profit margin is much higher compared to the industry
average for the year 2011. Thus it depicts that the return on sales is vastly
higher than the Industrial average for 2011, though the company has been
showing increased returns for the next two years the industry has been
performing marginally well.
Return on Assets
Following Du Pont system of analysis Return on Assets is measured by 2 factors
profit margin and asset turnover. For RAK their ROA has been improving steadily
for the three years whereas their Total asset turnover has been good as well
except for 2013 where they have a slight dip. This has happened mainly because
there has not been enough sales to earn profits. This explains that RAK has been
efficiently managing its assets to obtain higher net income.
Return on Equity
Return on Equity is affected by two components wiz return on assets and debt
ratio. For RAK their return on assets have been increasing whereas their debt
ratio have been quite stable therefore the performance of the firm has been
quite well. The return on equity figures are also quite high and better than the
industrial average which suggest that the company is earning higher returns for
the amount of capital employed.
Receivables Turnover
It can be seen that RAK properties have maintained to keep a good control of
their credit policies where they managed to collect their receivables far more
than their industry. Thus, it shows that the firm is able to collect cash more
frequently which helps it meet their obligations and manage operations smoothly
Average Collection Period
RAK properties have been collecting their receivables nearly at par when
compared to the industry average except for the year 2013 where the industry
average is quite high.
Inventory Turnover
Fixed Asset Turnover
The fixed asset turnover fo RAK properties has been way too low when compared
to its industrial average which suggests the company is not making use of its
fixed assets productively. It becomes necessary for the firm to utilise its fixed
assets optimally to earn higher revenue and increase its net income.
Total Asset Turnover
The total asset turnover for RAK properties has been increasing for the year 2011
and 2012 which suggests that the firm is utilising their total assets efficiently but
in comparison to the industrial average the firms performance has not been up
to the mark where its utilisation of total assets have not been effective enough to
generate sales. A low turnover portrays lower returns.

Current Ratio
The current ratio for RAK properties has been low for 2011 but it has shown
healthy progress for 2012 and 2013 where there has been a significant increase
thus showing that the firm has more current assets than current liabilities
maintaining good liquidity. In comparison to the industrial average, RAK
properties has shown better results suggesting that their cash flows are quite
strong.
Quick Ratio
The quick ratio for RAK properties was low for the year 2011 but significantly
increased for the years 2012 and 2013 suggesting that the company has more
quick assets than its liabilities which help in paying off any short term
obligations. In comparison to the industrial average the company has been
performing moderately where it has been at par with its incumbents in the
industry.
Debt to Asset Ratio
The debt ratio for RAK properties has been low for the three years which
suggests that the company has been having a stable business operations where
it has to utilise fewer assets to pay off its liabilities. In comparison to the
industrial averages the firms performance has been much better.