Karim Abdelkader Hassan : 520307 : Misr Cement (Qena) (MCQ)

Karim Mahmoud Solimon : 520309 : Middle East Glass Manufacturing Company (MEG)
Karim Ashraf Elmostafa : 520304 : South Valley Cement (SVC)
From Page 1 to 10 : Financial statements For MCQ
Page 11 : Introduction For MCQ
From Page 11 to 12 : Ratio Analysis For Year 2024 For MCQ
From Page 12-13 : Summary Table For MCQ
Page 14 : Dupont Diagram For MCQ
From Page 15 to 24 : Financial statements For MEG
Page 25 : Introduction For MEG
From Page 25 to 26 : Ratio Analysis For Year 2024 For MEG
From Page 26 to 27 : Summary Table For MEG
Page 28 : Dupont Diagram For MEG
From Page 29 to 38 : Financial Statements For SVC
Page 39 : Introduction For SVC
From Page 39 to 40 : Ratio Analysis For Year 2024 For SVC
From Page 40 to 41 : Summary Table For SVC
Page 42 : Dupont Diagram For SVC
I, (Karim Abdelkader) chose MCQ Because it’s informations were easy to get
I, (Karim Mahmoud) chose MEG for it’s easy access to the financial statements through the
investors relations on the company website
I, (karim Ashraf) chose SVC because I saw the information easily without trying

We all used EGX,

Stockanalysis to get SVC financial statements in english and prices
Investing to get MCQ market price
TradingView to get MEG market price
[Link] + purchases= [Link] + COGS to get purchases
ROE ÷ ROA = FLM to get the FLM
 Introduction for MCQ (Karim Abdelkader)

Misr Cement Qena (MCQ) is one of the major players in Egypt’s cement industry. Founded in 1997 in the Qena Governorate of Upper
Egypt, the company was created to support the country’s growing demand for construction materials—especially in Upper Egypt,
where development has been booming.

MCQ produces high-quality Ordinary Portland Cement and has an impressive annual production capacity of over two million tons.
This allows it to supply everything from large-scale infrastructure projects to smaller private sector developments across Egypt.

As part of the larger Misr Cement Group, the company has expanded over the years through smart acquisitions and partnerships, such
as the integration of Misr Cement Minya. Beyond just production, MCQ plays a key role in the local and national economy by
creating jobs and supporting regional growth

Ratio analysis for 2024

Ratio Formula

Liquidity

Current ratio (current asset ÷ current liability) 1,025,255,607 ÷ 957,753,908 = 1.07

Quick ratio (current asset – inventory ÷ current liability) 1,025,255,607 - 619,571,743 ÷ 957,753,908 = 0.423

Actvity

Inventory turnover (COGS ÷ Inventory) 2,274,796,913 ÷ 619,571,743 = 3.67

Average of inventory (365 ÷ inventory turnover) 365 ÷ 3.67 = 99.45

Average collection period (accounts receivable ÷ average sales per day) 10,453,629 ÷ (2,760,376,497÷365) = 1.38

Average payment period (accounts payable ÷ average purchases per day) 550,944,704 ÷ (2,113,529,265÷365) = 95.1

Total Asset turnover (sales ÷ total Asset) 2,760,376,497 ÷ 2,604,508,424 = 1.06

Debt
Debt ratio (total liabilities ÷ total Asset × 100) 1,097,499,978 ÷ 2,604,508,424 × 100 = 42.1%

Debt to equity (total liabilities ÷ total stockholders equity) 1,097,499,978 ÷ 1,507,008,446 = 0.72

Time interest earned ratio (EBIT ÷ Interest ) 356,670,752 ÷68,305,593 = 5.22

Profitability

Gross profit margin ( gross profit ÷ sales × 100) 485,579,584 ÷2,760,376,497 × 100 = 17.6%

Operating profit margin (operating profit ÷ sales × 100) 356,670,752 ÷ 2,760,376,497 × 100 = 12.9%

Net profit margin (EAFCS ÷ Sales × 100) 215,751,290 ÷ 2,760,376,497 × 100 = 7.81%

ROA (EAFCS ÷ Total Asset × 100) 215,751,290 ÷ 2,604,508,424 × 100 = 8.28%

ROE (EAFCS ÷ total stockholders equity × 100) 215,751,290 ÷ 1,507,008,446 × 100 = 14.3%

Market
Price/Earning (P/E) (market price per share of common stock ÷ EPS) 26.25 ÷ 1.89 = 13.89

Market/book (M/B) (market price per share of common stock ÷ Book value per share of common stock) 26.25 ÷ 17.45 = 1.50

Summary up table

Ratio 2024 2023 2022 2021 2020 time-series. Overall

Liquidity

Current ratio 1.07 0.99 0.82 0.76 0.82 Ok Ok

Quick ratio 0.423 0.16 0.27 0.21 0.25 Poor Poor

Actvity

Inventory turnover 3.67 1.75 2.04 3.13 2.62 Good Good

Average of inventory 99.45 208 178.9 116.6 139.3 Poor Poor

Average collection period 1.38 ___ ____ ____ ____ Good Good

Average payment period 95.1 110 131.4 42.9 81.9 Ok Ok

Total Asset turnover 1.06 0.65 0.53 0.59 0.52 Good Good

Debt
Debt ratio 42.19% 46.6% 43.9% 34% 44% Ok Ok

Debt to equity 0.72 0.87 0.78 0.51 0.77 Ok Ok

Time interest earned ratio 5.22 2.36 14.5 3.52 1.67 Ok OK

Profitability

EPS 1.89 0.67 0.68 1.09 0.58 Good Good

Gross profit margin 17.6% 17.6% 13.13% 19.37% 15.07% Good Good

Operating profit margin 12.9% 11.2% 6.72% 12.18% 9.01% Good Good

Net profit margin 7.81% 4.56% 6.03% 7.54% 4.11% Good Good

ROA 8.2%. 3.0% 3.2% 4.46% 2.14% Good Good

ROE 14.3%. 5.62% 5.7% 7.33% 3.79% Good Good

Market
Price/Earning 13.8 32.38 24.54 8.93 11.89 Ok Ok

Market/book 1.50 1.39 1.08 0.644 0.489 Ok Ok

Quick Ratio and The average age of inventory are poor but
Mostly are ok except (investory turnover and the average collection period and the profitability for the company
are very good)
So in conclusion It’s ok to invest in the company

(Note : Account receivable weren’t written in previous years)

Sales

2,760,376,497

EAFCS

215,751,290
COGS

2,274,796,913
Net profit margin
minus
Divide
7.81
Operating
expenses Sales

128,908,832 2,760,376,49
7
Interest
expense
ROA
68,305,593
8.2
Taxes

72,613,869
Multipl
y
Sales

2,760,376,49
7
Current asset Total asset
Divide
turnover
1,025,255,60 Multipl
7 1.05
y
Plus
Total asset
Non current
asset 2,604,508,42 ROE
4
1,579,252,817 Total liability 14.3
and equity
Total 2,604,508,42 Divide
Current liability liabilities 4
957,753,908 Financial leverage
1,097,499,97
Non current Plus 8 Plus Common equity multiplier
liability Stockholders 1.74
1,496,843,922
136,746,070 equity

1,507,008,44
6
 Introduction for (Karim Mahmoud)

MEG was established in 1979 as the first privately owned glass manufacturer in the Egyptian market for supplying the local market
demands of the Carbonated Soft drinks in Egypt. In 1983, MEG started production with a capacity 160 Tons per Day (TPD).

In 2009 Doubled production capacity with a strong focus on the high volume beverage sector - Capacity 320 TPD.

And in 2011 Acquired 60% of MEDCO Plast diversifying its packaging platform and entering the fast growing

PET market (now the biggest plastic preform company in Egypt

In 2014 Acquired Wadi Glass (MEG Sadat) to gain an entry and strong foothold in the Glass Food and Juice segment - Total Overall
Capacity 670 TPD.

Also in 2014 Gulf Capital, a leading private equity company in the Gulf region acquired 39% of MEG giving it significant muscle to
support strategic expansion needs.

2016 Acquired MGM consolidating the local market with a total share of more than 60% and entering the pharmaceutical segment.
Emerges as the biggest glass containers player in the MENA region with a flexible production capacity and capability to service the
local and selected export markets - Overall Total Capacity of 940 TPD.

2018 Exited MEDCO Plast to concentrate on the glass containers manufacturing. Started-up a new furnace in MEG (El Sadat) to reach
a capacity of 1,050 TPD.

Ratio analysis for 2024

Ratio Formula

Liquidity

Current ratio (current asset ÷ current liability) 1,702,687,391 ÷ 1,549,140,117 = 1.10

Quick ratio (current asset – inventory ÷ current liability) (1,702,687,391 – 168,210,879) ÷ 1,546,140,117 = 0.99

Actvity

Inventory turnover (COGS ÷ Inventory) 1,218,928,413 ÷ 168,210,879 = 7.24

Average of inventory (365 ÷ inventory turnover) 365 ÷ 7.24 = 50.4

Average collection period (accounts receivable ÷ average sales per day) 193,283,849 ÷ (1,828,808,204 ÷ 365) = 38.58

Average payment period (accounts payable ÷ average purchases per day) 203,037,780 ÷ (1,218,928,413 ÷ 365) = 59.4

Total Asset turnover (sales ÷ total Asset) 1,828,808,204 ÷ 3,145,500,280 = 0.58

Debt
Debt ratio (total liabilities ÷ total Asset × 100) 1,975,524,177 ÷ 3,145,500,280 × 100 = 63%

Debt to equity (total liabilities ÷ total stockholders equity) 1,975,524,177 ÷ 1,169,976,103 = 1.69

Time interest earned ratio (EBIT ÷ Interest ) 446,303,484 ÷ 220,987,088 = 2.01

Profitability

Gross profit margin ( gross profit ÷ sales × 100) 609,879,791 ÷ 1,828,808,204 × 100 = 33.35%

Operating profit margin (operating profit ÷ sales × 100) 446,303,484 ÷ 1,828,808,204 × 100 = 24.4%

Net profit margin (EAFCS ÷ Sales × 100) 170,458,070 ÷ 1,828,808,203 × 100 = 9.32%

ROA (EAFCS ÷ Total Asset × 100) 170,458,070 ÷ 3,145,500,280 × 100 = 5.42%

ROE (EAFCS ÷ total stockholders equity × 100) 170,458,070 ÷ 1,169,976,103 × 100 = 14.57%

Market
Price/Earning (P/E) (market price per share of common stock ÷ EPS) 12.54 ÷ 2.35 = 5.3

Market/book (M/B) (market price per share of common stock ÷ Book value per share of common stock) 12.54 ÷ 29.51 = 0.425

Summary up table

Ratio 2024 2023 2022 2021 2020 time-series. Overall

Liquidity

Current ratio 1.10 1.10 1.80 2.41 2.78 Poor Poor

Quick ratio 0.99 1.00 1.60 2.29 2.59 Poor Poor

Actvity

Inventory turnover 7.2 6.1 6.3 11.8 9.7 Ok Ok

Average of inventory 50.7 59.8 57.9 30.9 37.6 Ok Ok

Average collection period 38.58 37.72 19.7 45.98 34.18 Ok Ok

Average payment period 59.4 79.7 68.9 29.7 52.02 Ok Ok

Total Asset turnover 0.58 0.42 0.41 0.43 0.39 Ok Ok

Debt
Debt ratio 63% 59% 45% 40% 39% Poor Poor

Debt to equity 1.69 1.43 0.81 0.68 0.65 Poor Poor

Time interest earned ratio 2.01 1.18 -0.95 1.42 1.95 Poor Poor

Profitability

EPS 2.35 0.003. -0.58 1.15 1.04 Ok Ok

Gross profit margin 33.35% 28.54% 23.51% 22.49% 22.36% Ok Ok

Operating profit margin 24.4% 20.86% 25.25% 14.68% 18.38% Ok Ok

Net profit margin 9.32% 1.83% -1.27% 8.39% 7.56% Ok Ok

ROA 5.42%. 0.77% -0.52% 3.57% 2.91% Ok Ok

ROE 14.57%. 1.87% -0.95% 5.99% 4.8% Ok Ok

Market
Price/Earning 5.3 4166.7 21.55 10.87 7.7 Poor Poor

Market/book 0.425 0.54 0.88 0.80 0.65 Poor Poor

The Final decision for investing is

Liquidity and debt and market are very poor
Profitability and activity are just ok but aren’t good
Conclusion to avoid investing in this company
Sales

1,828,808,204

EAFCS

170,458,070
COGS

1,218,928,413
Net profit margin
minus
Divide
9.3
Operating
expenses Sales

163,576,307 1,828,808,20
4
Interest
expense
ROA
220,987,088
5.4
Taxes

54,858,326
Multipl
y
Sales

1,828,808,20
4
Current asset Total asset
Divide
turnover
1,702,687,39 Multipl
1 0.58
y
Plus
Total asset
Non current
asset 3,145,500,28 ROE
0
1,442,812,889 Total liability 14.5
and equity
Total 3,145,500,28 Divide
Current liability liabilities 0
1,546,140,117 Financial leverage
1,975,524,17
Non current Plus 7 Plus Common equity multiplier
liability Stockholders 2.7
1,165,000,104
429,384,060 equity

1,169,976,10
3
 Introduction for (Karim Ashraf)

Established in the late 1990s, South Valley Cement Company (SVCC) has grown to become a key player in Egypt’s building materials
industry. In 2006, the company launched its first cement production plant, built using advanced industrial and environmental
technologies. With an average annual production capacity of 1.6 million tons of high-quality cement, SVCC supports Egypt’s
infrastructure and construction sectors through a robust network of transportation, storage, and wholesale facilities. In addition to
cement production, the company has expanded into the Ready Mix Concrete market, operating two major facilities with plans to open
five more across the country—reinforcing its commitment to serving Egypt’s growing construction needs.

Ratio analysis for 2024

Ratio Formula

Liquidity

Current ratio (current asset ÷ current liability) 948,800,000 ÷ 2,369,000,000 = 0.4

Quick ratio (current asset – inventory ÷ current liability) (948,800,000-276,210,000) ÷ 2,369,000,000 = 0.283

Actvity

Inventory turnover (COGS ÷ Inventory) 1,689,000,000 ÷ 276,210,000 = 6.1

Average of inventory (365 ÷ inventory turnover) 365 ÷ 6.1 = 59.7

Average collection period (accounts receivable ÷ average sales per day) 1,820,000 ÷ (1,678,000,000 ÷ 365) = 0.39

Average payment period (accounts payable ÷ average purchases per day) 37,660,000 ÷ (1,777,700,000 ÷ 365) = 7.73

Total Asset turnover (sales ÷ total Asset) 1,678,000,000 ÷ 7,201,000,000 = 0.23

Debt
Debt ratio (total liabilities ÷ total Asset × 100) 4,101,000,000 ÷ 7,201,000,000 × 100 = 56.95%

Debt to equity (total liabilities ÷ total stockholders equity) 4,101,000,000 ÷ 3,100,000,000 = 1.32
Time interest earned ratio (EBIT ÷ Interest ) -126,690,000 ÷ -158,280,000 = 0.8

Profitability

Gross profit margin ( gross profit ÷ sales × 100) -10,560,000 ÷ 1,678,000,000 × 100 = -0.629%

Operating profit margin (operating profit ÷ sales × 100) -126,690,000 ÷ 1,678,000,000 × 100 = -7.55%

Net profit margin (EAFCS ÷ Sales × 100) -382,410,000 ÷ 1,678,000,000 × 100 = -22.8%

ROA (EAFCS ÷ Total Asset × 100) -382,410,000 ÷ 7,201,000,000 × 100 = -5.3%

ROE (EAFCS ÷ total stockholders equity × 100) -382,410,000 ÷ 3,100,000,000 × 100 = -12.3%

Market
Price/Earning (P/E) (market price per share of common stock ÷ EPS) 3.42 ÷ -0.79 = -4.32

Market/book (M/B) (market price per share of common stock ÷ Book value per share of common stock) 3.42 ÷ 6.43 = 0.531

Summary up table

Ratio 2024 2023 2022 2021 2020 time-series. Overall

Liquidity

Current ratio 0.4 0.57 0.97 1.49 1.29 Poor Poor

Quick ratio 0.283 0.43 0.835 0.63 0.89 Poor Poor

Actvity

Inventory turnover 6.1 4.35 5.67 2.31 2.54 Ok Ok

Average of inventory 59.7 83.92 64.32 158 143.7 Ok Ok

Average collection period 0.39 4.004 2.19 8.7 3.65 Ok Ok

Average payment period 7.73 22.4 22.02 66.9 ____ Ok Ok

Total Asset turnover 0.23 0.125 0.21 0.07 0.08 Ok Ok

Debt
Debt ratio 56.95% 46.21% 62.93 52.5 46.4 Poor Poor

Debt to equity 1.32 0.86 1.67 0.76 0.54 Poor Poor

Time interest earned ratio 0.8 0.185 3.32 1.18 5.22 Poor Poor

Profitability

EPS -0.79 -0.4. -0.43 -0.47 -0.52 Poor Poor

Gross profit margin -0.629% 7.28% 2.86% - 34.33% -45.87 Poor Poor

Operating profit margin -7.55% -3.72% -6.94% -44.37% -54.31% Poor Poor

Net profit margin -22.8% -22.1% 23.89% -79.27% 71.56 Poor Poor

ROA -5.3% -2.781% -5.2% -1.9% -2.79% Poor Poor

ROE -12.3% -5.1% -14.06% -10.75% -10.31% Poor Poor

Market
Price/Earning -4.32 -4.5 -3.58 -3.36 -3.76 Poor Poor

Market/book 0.531 0.230 0.5 0.39 0.42 Poor Poor

The Final decision for investing is

Most Ratios are very poor
Except Activity is ok
Conclusion to avoid investing in this company
 Sales

1,678,000,000

EAFCS

-382,410,000
COGS

1,689,000,000
Net profit margin
minus
Divide
-22.8
Operating
expenses Sales

-126,690,000 1,678,000,00
0
Interest
expense
ROA
-158,280,000
-5.3
Taxes

83,800,000
Multipl
y
Sales

1,678,000,00
0
Current asset Total asset
Divide
turnover
948,800,000 Multipl
0.23
y
Plus
Total asset
Non current
asset 7,210,000,00 ROE
0
6,252,200,000 Total liability -12.3
and equity
Total 7,210,000,00 Divide
Current liability liabilities 0
2,369,000,000 Financial leverage
4,101,000,00
Plus 0 Plus Common equity multiplier

2.32
3,107,758,621
 Stockholders
Non current equity
liability 3,100,000,00
1,732,000,000 0