المستخلص: |
The financial statements provide information about company’s financial position. Although, It might present a limited information about the shareholders wealth. Hence, the shareholders need to ensure about their equity investment and to decide whether to invest or not in the company, and this necessity can be done by evaluating the financial health of the company. Therefore, the financial performance of a company needs to be evaluated period after period; thus, it is necessary to choose an adequate method and technique to make this analysis. This is a comparative analytical study. It has taken The National Carton Industry (NCI) Company, Nablus, Palestine, as a case study. It used the NCI company annual financial reports’ information for three periods (2011, 2012& 2013). This information was obtained from (NCI) website, necessary information derived from these financial statements, and they were summarized and used to evaluate the company’s financial health. This study aims to evaluate the NIC company financial health by using financial ratio analysis method, It includes a three periods analysis for three aspects; profitability, liquidity and solvency. It found from the comparison of the NCI Company’s financial ratios of three periods, that there is a remarkable progression in the profitability indicators in 2013 compared with the previous two years; nevertheless, there is an intense regression in its liquidity and solvency indicators. It concludes that the company’s profitability increased in 2013, while its liquidity and solvency decreased. Accordingly, the earning power of the business is good presently, but its riskiness is too high.
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