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Original Research Article
What is the importance of financial analysis at STC and Mobily to predict failure, for the financial period 2008 – 2012
*Badi Salem AL-Rawashdeh, Awni Ataallah Hamad and Haya Almugarry
College of Business Administration, Princess Nora Bint Abdul Rahman University,Saudi Arabia.
*Corresponding Author E-mail:badi1979raw(at)gmail.com
Article Number: | Pages: | | DOI:
Received: Accepted: February 25, 2015 Published:
Abstract
This research aims to identify the significance of financial analysis and its role in predicting failure in companies. The researcher has selected the Telecommunications sector in the Kingdom of Saudi Arabia represented by Saudi Telecom Company and communications union company (STC and Mobily). And by conducting a financial analysis for the actual data of the two companies, the results of the research shows that the two companies are still standing away from failure, and to avoid failure in the future they must enhance their working capitals to maintain good current ratios, also they have to rationalize the expenses especially the selling expenses.
Keywords: Financial analysis, predicting failure, financial statements.