Financial Profile for Du Company

Emirates Integrated Telecommunications Company (EITC) is a telecommunication service provider operating in the United Arab Emirates, also known under the brand name Du. In the previous fiscal year, Du demonstrated sustainable financial performance characterized by decreases in long-term solvency ratios, increases in profitability ratios, and relatively stable performance for market value ratios. The total debt ratio decreased from 8.87% to 5.7% and the debt-to-equity ratio decreased from 0.097 times to 0.06 times. This is explained by decreases in both total assets and total equity as reported by the financial income statement. Times interest earned and cash coverage also decreased to a reasonable amount, while the net income increased. This data suggests good long-term debt solvency and healthiness of the business to address its debt structure.
The increase in profit margin, return on asset, and return on equity also confirms the profitability of the business and suggests stable growth for the recent financial year. Moreover, as suggested by the EMIS report, Du company also benefits from an increase in market price per share since 2015 above 6$ per share, which increased its PE ratio from 13.88 times but decreased the market-to-book ratio from 10 to 9 times due to the shifts in book values per share. However, some comparison on the industry scale is required to be performed prior to the conclusion of the investment


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