Ratios are highly essential profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas.
The purpose of this report is to analyse four years of Kenol Kobil Limited’s financial performance and position in the Kenyan industry and suggest various methods and calculations and interpretations of ratios etc. and conduct a SWOT analysis (Strengths, Weakness’s, Opportunities and Threats of the company and suggest recommendations regarding its pros and cons..
BACK GROUND OF KENOL KOBIL LIMITED
Kenol Kobil Limited engages in the importation of crude oil for refining, trading, storage, and distribution of refined and other petroleum products. It markets and sells various white fuels, including motor spirits, automotive diesel, industrial diesel, bitumen, and kerosene; motor fuels; LPG; K-gas, a cooking gas to its commercial and industrial customers; and Kobil, Kenol, and Castrol lubricants, as well as non-fuel supplies comprising car care products, car accessories, cooking gas accessories, and other non-fuel supplies through a network of Kenol and Kobil service stations. The company also supplies jet A1 aviation fuel variant to international and local airlines. It operates in Kenya, Uganda, Tanzania, Rwanda, Zambia, Ethiopia, Burundi, Zimbabwe, and Mozambique. The company is based in Nairobi, Kenya. Kenol Kobil Limited is looking for acquisition opportunities. "Management will continue to focus on positioning the group strongly in downstream and midstream in all markets it operates in and in the new markets through organic growth and acquisitions," Jacob Segman, Kenol Kobil's Chairman and Group Managing Director said. (Bloomberg Business week, 2012)
The company’s Vision
* To be...