Financial Performance Growth of Oman Cement Company

Balamurugan Muthuraman,Oman College Of Management & Technology ,Badriya Al Nairi

doi:10.47259/ijrebs.222

Balamurugan Muthuraman, Oman College Of Management & Technology + Show 1 more

Open Access

https://doi.org/10.47259/ijrebs.222

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Abstract

Purpose: The objectives of the study were to analyze the financial growth of Oman Cement Company (OCC) to critically investigate the financial performance along with its growth in the Oman cement industry. Design/methodology/approach: The data was collected from the five years’ financial statements between 2016 and 2020 listed in the Muscat Security Market and the analysis was carried out applying the different ratios – profitability ratios, liquidity ratios, management efficiency ratios, operating ratios, and financing ratios. Findings: The results of the study reveal that the OCC growing more efficiently in finance with effectively utilizes its assets. The company liquidity position was given a positive sign during the study period. The management and operating efficiency are less, and it needs improvement. Overall financial growth is stable impartment started during the end of the study period. Research limitations/implications: The study implies that the company management needs to utilize the fixed assets and improve the cash and cash equivalents. The production policy needs an eye on the future success of management. Social implications: The study suggests that the management should act wisely in handling finance. Further, the OCC policies should maintain standards to compete with foreign competitors. Originality/Value: Only a very few have examined the causes for the financial issue in the Oman cement industry, and it is a first-hand study of its kind, and the results will be useful to the stakeholders. Keywords: Financial Statement Analysis, Performance Growth, Cement industry in Oman, Ratio Analysis, Oman Cement Company.

Highlights

The Sultanate’s building materials sector, in particular, the cement industry has been a beneficiary of the country’s long-term plan of diversifying its economy
The Raysut Cement Company (RCC) being present in the southern part of the country serves the deficit markets of Yemen and East Africa for which it has established cement receiving facilities at the Ports of Mukalla and Aden
The Sultanate is seeking to break the cycle of its oil and gas dependency by cutting the share of hydrocarbons-derived GDP in half by 2020 and substituting a more diversified economic base

Summary

Introduction

The Sultanate’s building materials sector, in particular, the cement industry has been a beneficiary of the country’s long-term plan of diversifying its economy. These are all hampered the price stability of the industry Both the companies OCC and RCC can produce maximum quantity of cement to their fullest capacity to meet the demand due to the ongoing construction activities locally. These companies’ efforts with improved production capacities and efficient cost-cutting measures had made them come out of the cost escalations and the competitive market environment. Due to the COVID-19 restrictions, the construction has slowed and the cement manufacturers have seen lower demand for its products during this period (2020-2021) in Oman. This was the reason for taking up the study – which has raised the questions like – How is the financial performance of OCC? What will be the growth of the OCC by increasing the cost of production?

Objectives

Findings PROFITABILITY RATIOS

Conclusion