Israeli-Palestinian problems Essay Example for Free

Israeli-Palestinian problems Essay The Israeli-Palestinian problems arise out of an ongoing conflict between Israel and Palestine and contributes to the Arab-Israeli conflicts. (David, 1996, 363) Historians generally take the position that resolving the ongoing problems between the two nations is the key to eradicating at least in part, the threat of Islamic terrorism around the world. (Schoenbaum, 2006, 281) There have been many attempts by the United Nations and world powers, particularly the US to resolve the tensions between Israel and Palestine, but to no avail. (Slater, 2001, 171) The most that can be gleaned from these peace-making efforts is the identification of the barriers to building peace between Israel and Palestine. This research paper will critically evaluate the problems between Israel and Palestine, the barriers to peace building and the possible solutions for removing these barriers and building peace between the two nations. This paper will also examine the consequences for world peace should the conflicts and tensions between Palestine and Israel continue to brew. Overview Historically, the Israeli-Palestinian conflict is characterized by six distinct periods of tensions. The first period and the origins of the conflict can be traced back to the late 19th century with the rise of Zionism and Arab Nationalism. (Gelvin, 2005, 93) The Zionist movement was a Jewish national movement formed in 1897, primarily in response to sentiments of anti-Semitism throughout much of Europe and Russia. The Arab nationalism movement was in turn a reaction to Zionism. (Gelvin, 2005, 93) Zionism advocated for the formation of a Jewish nation-state in Palestine. (Rolef and Sela, 2002, 928-932) Furthering the cause of the Zionist movement, the World Zionist Organization together with the Jewish National Fund purchased land in the Palestine area under both the British and the Ottoman rule and advocated for immigration to the area. (Tessler, 1994, 53) During the rise of the Zionist movement during the late 19th century much of Palestine had been occupied by Arab Muslims and Bedouin with a relatively small number of Christians, Druze, Circassians and Jews. (Medding and Harman, 2008, 3-7) Palestinian Arab rulers began to regard these Zionist aspirations as a threat. (Fortna, 2004, 97) The Arab unrest with the Jewish immigration to Palestine was more about their national identity since they originated from Europe and Russia. The prevailing feeling among the Arabs in Palestine was that the migration of Europeans and Russians to the area disturbed Palestine’s national identity. (Kramer and Harman, 2008, 121) A number of Arab protests arose as a result of Zionist purchases of property in Palestine. The result of these land purchases and immigration policies was a significant increase in the Jewish population in the area. By 1917, the British defeated the Ottoman Turkish military and subsequently occupied Palestine where they remained until the First World War ended. (Kramer and Harman, 2008, 121) The second period of conflict followed the end of the First World War with the British occupation of Palestine. The League of Nations transferred the Palestine problem to the British, indorsing the Balfour Declaration and calling upon the British to create the Jewish Agency, designed to organize and manage Jewish matters in Palestine. (Yapp, 1987, 290) The Balfour Declaration was formulated by the British government in 1917 and stated as follows: â€Å"His Majestys government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavors to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country. (Yapp, 1987, 290) The Palestinian Arab population grew increasingly hostile toward British pro-Zionist policies. Making matters worse, Jewish immigration continued to grow, with significant numbers of Jew migrating to Palestine as a result of increasing anti-Semitism in Europe. In the Ukraine, 10,000 Jews had been killed. (Berry and Philo, 2006, 4) The Nazi’s rise to power in Germany only served to increase Jewish immigration to Palestine. A number of riots erupted in Palestine, spearheaded by the Arab population in protest against the growing Jewish population. (Nicosia, 2008, 130) The British attempt at resolving these conflicts was the Haycraft Commission of Inquiry, 1921, the Shaw Report 1930 and the Peel Commission of 1936-1937 which was followed by the White Paper of 1939. (United Nations, 1947) These reports reflect the character of the efforts for resolution of the Israeli-Palestinian conflict. The Peel Commission recommended a partition of the area and the White Paper suggested a single state resolution with quotas for the both Jewish and Arab immigrants to Palestine. (United Nations, 1947) The cut off period for these immigration restrictions extended over the Second World War at a time when the Holocaust displaced a number of Jews in Europe. This resulted in a number of illegal immigration by Jews to the region and this only served to increase tensions. (Nicosia, 2008, 130) After the Second World War, the Jewish Resistance Movement was established and in protest against British policies in Palestine, engaged in a number of attacks against the British military. One such attack saw the bombing of the King David Hotel in Jerusalem, the headquarters for the British troops. (Tessler, 1994, 256) Be that as it may, news of the Holocaust brought with it international sympathy for the Zionist movement. (Tesler, 1994, 210) Coinciding with these developments, the United Nations encouraged the division of Palestine into three sections under a Mandatory Palestine policy. (Tessler, 1994, 185) These divisions included an Arab State, a Jewish State and an International Zone which would include Jerusalem and the area around it. In the meantime, Bethlehem and Jerusalem would be controlled by the United Nations. Tessler, 1994, 185-268) The Unitied Nations’ solution was unpalatable to both the Jews and Aabs in Palestine. (Laquer and Rubin, 2001, 69-80) Despite these early signs of the futility of a divided state in Palestine, the UN indorsed the plan on Novermber 29, 1947. The date for partition was earmarked at May 15, 1948, the date by which the British were scheduled to withdraw its troops from the region. (Laquer and Rubin, 2001, 69-80) With a strategic plan for division in place, violence between the Jews and the Arabs, typically instigated by the Arabs, picked up momentum with open warfare over routes in Palestine taking centre stage. (Greenville, 2005, Chapter 39) Zionist leader, David Ben-Gurion, declared the implementation of the State of Israel on May 14, 1948, following a decisive victory in fighting against the Arabs and became Israel’s first Prime Minister. (Hazony, 2001, 267) The declaration of the State of Israel received wide approval with both the US and the USSR supporting the new State at the United Nations. Hazony (2001) doubts however, if this declaration would have garnered such wide spread support if emotions hadn’t been â€Å"stirred by the Holocaut. †(xx) In the years that followed, the turmoil and threat to world peace that followed, compromises whatever satisfaction the Zionists and their supporters derived from the creation of the Jewish state. (Hazony, 2001, xx) The consequences for world peace began almost immediately following the declaration of the State of Israel, setting forth the third period of Israeli-Palestinian problems. An Arab-Israeli War erupted on May 15-16, 1948 when armies from Jordan, Syria, Egypt and Iraq and later Lebanon, invaded Israel. (Nazzal, 1978, 18) The new State of Israel emerged victorious and subsequently annexed territory that would encroach upon the partitioning borders of the Jewish State and reaching over into the Arab borders in Palestine. Jordan occupied the West Bank ad East Jerusalem, Israel occupied West Jerusalem and Egypt, the Gaza Strip. (Sela, 2002, 491-498) In 1950 however, would take possession of the West Bank. (Sela, 2002, 491-498) The Israeli-Arab War of 1948 would only serve to complicate matters for world peace and particularly Jews. Approximately 856,000 Jews either fled voluntarily or were forced to flea from Arab nations, many leaving their property and personal possessions behind. (Shulewits, 2001, 139-155) Likewise, Palestinian Arabs suffered a vastly similar fate in area then forming the new Israeli state, becoming known as Palestinian refugees. These refugees were simultaneously denied re-entry into Israel and entry or citizenship in the adjourning Arab States, save and except for the Transjordan West Bank, the Egyptian occupied Gaza Strip, the East Bank of Jordan Riverm Syria and Lebanon. (Brynen and El-Rifai, 2007, 1) In 1949, Israel proposed repatriating 100,000 refugees and to re-open previously frozen bank accounts. (Sela, 2002, 58-121) Arab leaders, however, fortified in their position against the recognition of an Israeli state primarily refused to accept the Israeli olive branch. (Sela, 2002, 58-121) The result is, the Palestinian refugees continued to remain a source of conflict and tension between Israel and Palestine as many of these refuges remain in refugee camps. (Brynen and El-Rifai, 2007, 132) Conflicts between Arabs and Jews accelerated along the border of Israel and Jordan, starting with minor Israeli raids and Palestinian responses which only escalated in time and intensity. After the Israel attack on an Egyptian military base in the Gaza strip in February 1955, the Egyptian officials began to engage in sponsoring, arming and training Palestinian Fedayeen from along the Gaza Strip who would conduct raids on Israel. (Shlaim, 2000, 128) According to Avi Shlaim (2000) it was not until the Israeli raid on the Gaza strip that Egypt took such a militant approach to Israel. (129) Previously: â€Å" the Egyptian military authorities had a consistent and firm policy of curbing infiltration by Palestinians from the Gaza Strip into Israel. † (Shlaim, 2000, 129) Be that as it may, several years later, in 1964, the Palestinian Fedayeen resulted in the formaiton of the Palestine Liberation Organization (PLO). The PLO had as its goal the liberation of Palestine via the auspices of armed combat whose duty it was to â€Å"puge the Zionest presence from Palestine. † (Rubinstein, 1982, 209) In 1967 Egypt conducted a number of scare tactics by mobolising troops in the Sinai Peninsula which was followed by several other vastly similar moves by Arab nations neighbouring Israel. As a pre-emptive strike, Israel attacked Egypt and the Six-Day War followed. At the end of this latest foray, Egypt annexed the Gaza Strip and the West Bank which also included East Jerusalem. This would only increase hostilities between Israel and the Arabs. (Oded, 2002, 127) The fourth period of Israeli-Palestinian tensions commenced following the Six-Day War. In February 1969 Yasser Arafat was selected to chair the PLO and almost immediately, the PLO set about commiting armed attacks on Israel in an attempt to seize control of the West Bank. However, Israel got the better of these armed conflicts and PLO forces were exiled to Jordan where the Palestinian population was overwhelming and attacks on Israel continued by virtue of terrorist attacks. The inevitable followed with Israeli responding with counter attacks. (Shlaim, 2000, xxiii) The tensions increased and by 1970, the PLO seized control of southern Lebanon and conducted rocket attacks against the Galilee towns and other terror attacks on the north border of Lebanon and Israel. Palestinian terrorist groups spearheaded by the PLO together with the Popular Front for the Liberation of Palestine commenced an intense campaign against the Israelis abroad, particularly in Europe. (Streissguth, 1993, 43-58) In an effort to fortify the campaign, Palestinian guerrillas waged several attacks on Israeli civilians at schools, on busses and in apartment complexes. Attacks overseas targeted embassies, airports and the hijacking of aircraft. At the 1972 Munich Summer Olympics, Israeli athletes were taken hostage by the Black September â€Å"faction of the PLO†. (Judaken, 2006, 201) The Israeli authorities responded by virtue of a raid on the PLO headquarters in Lebanon. Other infamous terror attacks would follow including the Savoy Hotel attack, the Zion Square refrigerator explosion and the Ma’alot massacre in 1974 which claimed the lives of 22 children. (Streissguth, 1993, 43-58) In 1974, the Yom Kippur War commenced under the instigation of Egypt and Syria which was a surprise attack on Israel. A cease fire ended the war and gave way to the onset of the Camp David Accords, 1978 setting guidelines for peace negotiations in the future. Still the terror attacks continued. (Jureidini and McLaurin 1981, 1-26) Israel launched the Operation Litani which was designed to regain control of Southern Lebanon to the border with the Litani River. (Ron, 2003, 175) The operation was successful and the PLO took up residence in Beirut. Even after Israel’s withdrawal, Palestinian terrorist and guerrillas continued to fire rockets at Galilee, Israel. Finally, in 1981, US president Regan negotiated a cease fire that endured for a year. (Ron, 2003, 175) An assassination attempt on Shlomo Argov, Israeli’s Ambassador to the UK ended the cease fire on June 3, 1982. (Bar-On, 2004, 200) This gave way to the 1982 Lebanon war in which Israel invaded Lebanon on June 6, 1982 claiming the move necessary for the protection of northern Israel. (Bar-On, 2004, 200-201) In order to bring an end to this latest military conflict in the region, US and European diplomats negotiated for the safe transport of key PLO leaders such as Arafat to Tunis, an exile destination. (Bregman, 2002, 145) By June 1985, the Israelis withdrew in large part from Lebanon, leaving behind a minimal faction in South Lebanon in an area designated a security zone. In Tunis, the PLO lead campaigns against Israel with a number of terrorist attacks which resulted in the Israelis bombing the PLO’s camp in Tunis during the conduct of Operation Wooden Leg. (Bregman, 2002, 152) Continuous uprisings in the West Bank and the Gaza Strips continued and by January 1988, directed by the PLO in Tunis these uprisings became more organized, characterized as Intifadas. The first Intifada resulted in the death of 1, 551 Palestinians and 422 Israelis. (Israeli-Palestinina Deaths, 1987-2007) During the Gulf War of 1990-1991, Arafat appeared to support Iraq’s invasion of Kuwait following which the PLO was financially cut off by many Arab states. (Aburish, 1998, 201-228) The US and the USSR seized the opportunity following the Gulf War to start a peace conference between the Palestinian Arabs from countries such as Syria, Lebanon and Syria and Israel. It began with the Madrid Conference in October 1991, commandeered by Russia and the US. (Bush, 1991 2-23) Even so, the end of the Gulf War saw more international efforts with respect to resolving the issues in the Israeli-Palestinian tensions. This would mark the fifth stage of this ongoing sage and commenced from 1993-2000. In January 1993 there appeared to be some progress toward peace when Arafat sent an official letter to Israel’s then prime minister Yitzhak Rabin, claiming to renounce terrorism and to recognize Israel as an independent state. (Exchange of Letters between Rabin and Arafat, Sept. 9, 1993) What followed was the Olso Accords in which the parties tried to set up a two-state solution. The agreement called for a Palestinian Authority, headed by Arafat which would practice and encourage Israeli tolerance. (BBC News, November 2003) However, there is evidence that the Palestinian Authority not only supported but also funded terrorist strikes and organizations. (BBC News, November 2003). The violence in the Palestinian areas continued and in February 1994 the Kach movement killed 29 Palestinian Arabs in the Cave of the Patriarchs massacre. (Scharfstein and Gelabert, 1997, 306) The Palestinian Hamas retaliated by conducting suicide bomb attacks against Israeli civilians throughout Israel. Scharfstein and Gelabert, 1997, 306) In September 1995 Arafat and Rabin signed an Israeli-Palestinian Interim Agreement with respect to the West Bank and the Gaza Strip. The agreement called for Palestinian Arabs to return to occupied areas of Palestine and for Palestinian recognition and acceptance of Israel’s right to a peaceful existence. The agreement however was not accepted by Hamas and other PLO affiliates who were continuing to commit terror attacks in Israel. (Rheinhart, 2005) These bursts of violence would characterize the sixth stage of peace negotiations during the Camp David Accords 2000 with the result that nothing has been resolved between the Palestines and the Israelis today. (Rheinhart, 2005) The difficulties with resolving the issues that give rise to the problems between the Jews and the Arabs arise out of the fact that they are being mediated from a purely subjective and entirely selfish perspective. Having examined the nature of the conflict and the failed attempts at peace, the remainder of the paper will evaluate why these problems persist despite attempts to eradicate them. The Peace Process As previously, noted, the approach taken to the support of the establishment of the Jewish State is primarily dictated by emotions in the aftermath of the Holocaust. However, there were other matters that influenced the approach. The United States on the other hand, had and very likely still has its own agenda. Willaim Viorst maintains that the US’ role with respect to the peace building process in the Middle East was influenced by a two-tier agenda built around the following ideology: â€Å"†¦pressing for concessions from all sides to establish some permanent negotiated settlement, and ensuring Israel came out of the agreement strong enough to act as the U. S. proxy in the area against Soviet threats. †(Viorst, 1987) In addition, the US’s attitude toward a number of Middle Eastern countries, such as Syria, who is very much involved in the Israeli-Palestinian conflicts, is characterised by mistrust. Sepearte and apart from disapproving of nations such as Syria’s autocratic governence, the US has always taken a stand against that nation’s link to terrorists and its anti-Israel position. (Zunes, 1993, 62) This stance against terrorism is particularly strong following the September 11 attacks on the US. In the final analysis, the only thing that was accomplished in the days following the Six-Day War and the present was a string of dishonored concessions on the parts of both Palestinian and Israeli officials. One example is found in the ongoing struggles with Syria. (Zunes, 1993, 62) Syria agreed to demilitarize the Golan Heights area, permit international supervision together with other security comittments in return for Israel’s withdrawal neither side have been able to live up to their side of the bargain. (Zunes, 1993, 62) Viorst raises yet another point. The Ma’a lot Massacre which only threatened the peace building process and provided Isreal with grounds for making renewed demands of neighbouring Arab nations to close its borders to terrorist. (Viorst, 1987) Syria’s Hafez Assad, exemplifies the degree of Arabic pride that was virtually ignored in these peace-builing processses. This pride commands loyalty to Arabic culture to such an extent that it compromises the ability to objectively agree to such a demand for fear of the perception that the leader is regarded as having been weakened to the will of the Israelis. (Viorst, 1987) A stalemate was therefore inevitable. US Secretary of State, Henry Kissinger responded by sending a letter to the Israeli government indorsing whatever means of redress it desired in reponse to the terrorist attacks on its terrirory. Viorst points out that Kissenger effectively pledged that: â€Å"†¦no future president would withhold American economic or military assistance as punishment for antiterrorist reprisals. It committed Washington to support such attacks before the world, most notably at the United Nations. In effect, it imposed a serious new limitation on Americas ability to compel restraint within the cycle of violence that so often ran amok in the Arab-Israeli struggle. † (Viorst, 1987) When this letter is read together with reference to the fact that the Americans provided military aid to Israel during the Yom Kippor War, it is hardly surprisig that peace building between Israel and Palestine failed time and time again. Particularly compromising was the fact that the US in its role as mediator, President Nixon was caught up in the midst of the Watergate scandal by1974. (Viorst, 1987) It would appear, that Nixon’s focus on the Palestine-Israel conflict was quite possibly more of an attempt to distract attention away from the Watergate scandal and was determined to convince the public that he was an â€Å"indispensable to peacekeeping† in this hostile region. (Viorst, 1987) Nixon’s first tour of the Middle East did not turn out as well as planned. Newly elected Israeli Prme Minister Yitzhak Rabin made it clear that he wanted Israel to remain the US stronghold in the Middle East but at the same time he was not interested in the current peace-keeping negotiations. (Viorst, 1987) Russia’s role in the peacebuilding process in the earlier years also gave off the impression that, like the US, the Soviets were intent on maintaining a stronghold in the Middle East, by providing support for the Palestines. To this end, the Palestinian-Israeli conflict came to be a provy war, between the world’s super powers, in their respective struggles for world dominance and power. Stephen Zunes provides a rational basis for placing the blame for the continuous failure of the peace building process between Palestine and Isreal on the US. To start with, it probably goes without saying that Israel’s neighbours, particularly Palestinian Arabs, have both political and economic motives for wanting peace with Isreal. The disintegration of the Soviet Union gave way to â€Å"dramatic political and economic shits† in the Middle East as a whole. (Zunes, 2000, 1-4) Moreover, US dominance in the region in the aftermath of the Gulf War, together with â€Å"the establishment of the Palestinian Authority† the circumstances are such that those caught in the middle of the Palestinian-Syrian conflict on the Arab side, â€Å" can no longer reap politial capital from provoking conflict with Israel. † (Zunes, 2000, 1-4) On the other side of the spectrum , Israel is not motivated nor is it inclined â€Å"to take the necessary steps† to facilitate a viable settlement and similarly, the United States â€Å"appears unwilling to push its ally to compromise. † (Zunes, 2000, 1-4) Despite the ongoing peace talks final Israel-Palestinina peace accord may not be possible any time soon. (Zunes, 2000, 1-4) It becomes increasingly clearer with time that while the United Sates is holding itself out as an impartial mediator, when one looks beneath the surface the United States is slanted in its support of Israel and its approach to the Israeli-Palestinian problems. Zunes explains how this is so by directing attention to the US approach to the annexed land following the UN Security Council Resolutions 242 and 338 in respect of wars between Arab States and Israel. Resolution 242 called for peace in the Middle East by requiring Israel to withdraw from the territories it annexed following the 1967 War and for the Termination of all claims or states of belligerency. (UN Security Council Resolutions 242) Resolution 338 followed the Yom Kippur War and basically called for a cease fire. (UN Security Council Resolutions 338) When Syria rejected the resolution the United States claimed that Syria was â€Å"hard-lined† for its rejection of these Resolutions. When Syria â€Å"dramatically moderated its policies† and accepted the resolutions the United States complained that Syria was â€Å"hard-lined for their insistence on the resolutions’ strict implementation. † (Zunes, 2000, 1-14) The obvious consequence is â€Å"an impasse that can be broken only by a shift in U. S. policy. † (Zunes, 2000, 1-14) The Madrid Conference was co-sponsored by the United States and the Soviet Union. The conference involved peace talks themed after UN Resolution 242, â€Å"land for peace talks† between Israel and the Arab States caught up in the Palestinian-Israeli conflict. (Rabinovich 1999, 39-43) These peace talks represented a tie in to additional peace talks at various other forums up to the year 2000. Yet no accord was struck. Conclusion Clearly, the sollution to the Israeli-Palestinian problems involves a quid pro quo approach. The Middle Eastern countries directly bordering Palestine want their land returned to them and Israel wants security against terrorist attacks. In order to resolve these issues in a manner that is fair to both sides, the US, as primary mediator should propose that Israel withdraw from the regions in exchange for clearly defined security gaurantees from its neighbouring Arab nations. The US can achieve this goal by threatening to withdraw its current economic and military support to Israel. The underlying impediment to the long history of negotiations between Israel and Palestinian neighbours has been the imbalance of pressure. While the surrounding Arab nations, particularly Syria, have been pressured by a lack of military and economic aid to make concessions Israel has had no incentives or pressure to at least meet its hostile neighbours halfway. The United States role appears to be disingenuous since it has repeatedly failed to put pressure on Israel to be fair and objective. Works Cited Aburish, S. (1998) From Defender to Dictator. New York: Boomsbury Publishing. Bar-On, M. (2004) A Never-Ending Conflict: A Guide to Israeli Military History. Greenwood Publishig Group. BBC News. (November 7, 2003) â€Å"Palestinian Authority Funds Go to Militants. † http://news. bbc. co. uk/2/hi/middle_east/3243071. stm Retrieved 2 May, 2009. Berry, M. and Philo, G. (2006) Israel and Palestine: Conflicting Histories. Pluto Press. Bregman, A. (2002) Israel’s Wars: A History Since 1947. Routledge. Bryen, R. and El-Rfai, R. (2007) Palestinian Refugees: Challenges of Rapatriation and Development. I. B. Tauris. Bush, P. (1991) â€Å"The Madrid Middle East Peace Conference October 30-November 1, 1991. † Foreign Policy Bulletin 2, 2-23. David, Newman. (1996) â€Å"Shared Spaces – Separate Spaces: The Israel-Palestine Peace Process. † GeoJournal 39(4) 363-375. Exchange of Letters between Rabin and Arafat. (Sept. 9, 1993) http://www. mideastweb. org/olsoletters. htm Retrieved May 3, 2009. Fortna, V. (2004) Peace Time: Cease-Fire Agreements and the Durability of Peace. Princeton University Press. Gelvin, J. (2005) The Israel-Palestine Conflict: One Hundred Years of War. Cambridge University Press. Greenville, J. (2005) A History of the World From the 20th to the 21st Century. Routledge. Hazony, Y. (2001) The Jewish State: The Struggle for Israel’s Soul. Basic Books. Israeli-Palestinian Deaths, 1987-2007. (n. d. ) http://israelipalestinian. procon. org/viewersousce. asp? resourceID=639 Retrieved 2 May 2009. Judaken, J. (2006) Jean-Paul Sartre and the Jewish Question: AntipAmtisemitism and the Politics of the French Intellectual. University of Nebraska. Jureidini, P. and McLaurin, R. (1981) Beyond Camp David: Emerging Alignments and Leaders in the Middle East. Syracuse University Press. Kramer, G. and Harman, G. (2008) A History of Palestine: From the Ottoman Conquest to the Founding of the State of Israel. Princeton University Press. Laquer, W. and Rubin, B. (2001) The Israel-Arab Reader: A Documentatry History of the Middle East Conflict. Penguin. Medding, P. and Harman, M. (2008) Sephardic Jewry and Mizrahi Jews. Oxford University Press. Nazzal, N. (1978) The Palestinian Exodus From Gallilee. 1948 Institute for Palestine Studies. Nicosia, F. (2008) Zionism and Anti-Semitism in Nazi Germany. Cambridge University Press. Oded, E. (2002) â€Å"Arab-Isreal Peacemaking† cited in Sela, A. (ed) The Continuum Political Encyclopedia of the Middle East. New York: Continuum. Reinhart, Tanya. (2005) Israel/Palestine: How to End the War of 1948. New York: Seven Stories Press Roelf, H. and Sela, A. (2002) â€Å"Zionism. † Cited in Sela, A. (ed) The Continuum Political Encyclopedia of the Middle East, New York: Continuum. Ron, J. (2003) Frontiers and Ghettos: State Violence in Serbia and Israel. University of California Press. Rubinstein, W. (1982) The Left, The Right and The Jews. Croom Helm. Scharfstein, S. and Gelabert, D. (1997) Chronicle of Jewish History: From the Patriarchs to the 21st Century. KTAV Publishing House Inc. Schoenbaum, T. (2006) International Relations: The Path Not Taken: Using International Law to Promote World Peace and Security. Cambridge University Press. Shlam, A. (2000) The Iron Wall: Israel and the Arabl World. W. W. Norton and Company. Shulewitz, M. (2001) The Forgotten Millions: the Modern Jewish Exodus from Arab Lands. Continuum. Slater, J. (2001) â€Å"What Went Wrong? The Collapse of the Israeli-Palestinian Peace Process. † Political Science, 116(2), 171-199. Streissguth, T. (1993) International Terrorists. The Oliver Press, Inc. Tessler, M. (1994) A History of the Arab-Israeli Conflict. Indianapolis: Indicana University Press. United Nations. (October 2, 1947) â€Å"Ad Hoc Committee on the Palestinian Question: Communication From the United Kingdom Delegation to the United Nations. † A/AC. 14/8. UN Security Council Resolutions 242 UN Security Council Resolution 338 Viorst, William. (June 1987) â€Å"The Kissinger covenant and other reasons Israel is in trouble Henry Kissinger, excerpt from Sands of Sorrow: Israels Journey From Independence. † Washington Monthly, Available online at† http://www. findarticles. com/p/articles/mi_m1316/is_v19/ai_5010446/pg_5 Retrieved 3 May, 2009 Yapp, M. (1987) The Making of the Modern Near East 1792-1923. Longman. Zunes, Stephen. (1993) â€Å"Israeli-Syrian Peace: The Long Road Ahead. † Middle East Policy, Vol. 2, p. 62 Zunes, Stephen. ( February 2000)†The US and the Israeli-Syrian Peace Process. † Foreign Policy in Focus, Vol. 5 No. 3 pp 1-4

Tennis Made Easy :: essays research papers

When surfing the Internet, eventually winding up at tennis4you.com, I found something called the â€Å"Lesson Lounge† which has instructional articles on the game of tennis. My particular article discusses a very crucial part of the game, and also a difficult one, the first serve. The reason this drew my attention is because this is a major weakness in my already pathetic tennis repertoire. By reading the article, I hoped to find strategy to learn from, and eventually, with practice, to improve from. In the article, they explain how the first serve can become â€Å"†¦someone’s biggest weapon making someone else’s worst nightmare!† That, not only can one use a power serve or a placement serve to attack their opponents, but that working out is not even necessary to do so. The tennis serve can have significantly more power by using â€Å"†¦legs, shoulder rotation, and stomach muscles†¦Ã¢â‚¬  during one’s motion. They stress that since you have two serves, it is crucial to take a chance and make sure your first serve is NOT â€Å"†¦easily attackable†. From here, they lead into more complicated serving techniques that involve the type of hit- such as the flat, slice, kick, and topspin serves. Although I am not good enough to test them out, through time, they could certainly help someone with an interest in tennis who is willing to practice. After establishing the four types, the writer goes more in depth to differences between power and non-power serves. With power serves, they emphasize the importance of rhythm, significance of keeping your opponent guessing and lastly, the need to hit it in bounds. They continue to say that, obviously, no matter how hard your serve is, it is useless if it cannot land in bounds. As far as non-power serves, they speak of smaller players and how technique and mechanisms such as spin. Another main point here is that one must serve deep into the service box.

ANG KONSEPTONG PAPEL Essay

Awareness of the Parents about the K to 12 Education in its general sense is a form of learning in which the knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, or research. Education frequently takes place under the guidance of others, but may also be autodidactic.[1] Any experience that has a formative effect on the way one thinks, feels, or acts may be considered educational. 12-Year Basic Education Cycle Universal Kindergarten Madaris Education Technical-Vocational Education Every Child a Reader by Grade One Science and Math Proficiency GASTPE (Gov. Assistance to Student and Teachers to Private Education) Medium of Instruction Quality Textbooks Covenant with LGUs The Philippines is the only remaining country in Asia with a 10-year pre-university program. The majority who do not go to college are too young to enter the labor force. Thus, they would either be unemployed or be vulnerable to exploitative labor practices. Those who may be interested to set up businesses cannot legally enter into contracts. The few, (only 23%) who would proceed to tertiary education, usually have to undergo remedial and high school level classes in colleges and universities. Those who graduate (17%) may not be recognized as professionals abroad. The Washington Accord prescribes 12 years of basic education as an entry to recognition of engineering professionals. The Bologna Accord requires 12  years of education for university admission and practice of profession in European countries. We need to add two years to our basic education. Those who can afford pay up to fourteen years of schooling before university. Thus, their children are getting into the best universities and the best jobs after graduation. I want at least 12 years for our public school children to give them an even chance at succeeding.† -Pres. Benigno Simeon C. Aquino III Enhancement of the basic education curriculum is the central focus of K to 12. The enhanced curriculum will offer areas of specialization or electives such as science and technology, arts, sports, journalism, tech-voc, foreign language, entrepreneurship, and subjects for advanced placement.

The Seven Early Kings of Rome

My Mother, My Hero Essay - 802 Words

My Mother, My Hero In 1859 Henry Ward Beecher said, the mother’s heart is the child’s schoolroom. I believe that statement because of experiences I’ve had with my own mother. I have learned more about life from her than from my 15 years of schooling. Over the last 20 years my mother has taught me many valuable lessons just by being a living example of compassion, thoughtfulness, and generosity. She is an angel that has protected and carried me throughout life. In the book, One Day My Soul Just Opened Up, Iyanla Vanzant said, a truly compassionate person is one who can feel what you feel because they are one with you in mind, body, and spirit, not out of obligation or a false sense of responsibility. A compassionate person is†¦show more content†¦Besides being compassionate my mother is thoughtful. She stays at work late if someone needs help with theirs. She brings my grandmother dinner and runs errands for her. She is always putting others before herself. For instance, last year I began singing in the choir at Iowa State. It was really important to me because singing has always been a passion of mine. She drove to Ames for every single concert. It meant a lot to me to have her in the audience supporting me. This year I also started singing in the choir at my church. I was really excited and nervous about singing the first Sunday so few days before I was going to sing she gave me a beautiful necklace with a star pendant on it. I r emember her warm hug and her telling me good luck and that I was ‘her star’. It touched me that she took time out of her busy schedule to encourage and support things that she knew were important to me. She could have just wished me well and enjoyed her few minutes of spare time, but instead she put me first. The third aspect I admire in my mother is her generosity. She is always buying things for others. We aren’t a rich family by any means, but she is always giving. Just a few weeks ago my mother’s friend was talking about not being able to afford a new winter coat for her son. That night my mother went out and bought him one. Then about a month ago my mother heard about a woman who is a recovering drug addict.Show MoreRelatedMy Hero : My Mother Is A Hero813 Words   |  4 Pagesresponsibility, said uncle ben in spiderman. A hero to me means someone who does their best to help whenever they can, gives the best advice and always show compassion. All of these traits represent the hero I call my mom. She may not have super powers to climb walls and scale buildings but she has many other heroic qualities. My mother is my hero because she has courage when confronted with a problem, gives me strength when I need it, and has the power to teach. My mother will spring into action when facedRead MoreThe Hero Of My Mother : My Favorite Hero792 Words   |  4 Pagesmyself a cliche when asked who my favorite hero is-- I always answer my mother. It’s an honest answer. As long as I can remember, my mom has always been the one beside me and supporting me in what I do. My father was around, but he was also, in a way, absent. He didn’t care. My mother did all the work around the house, including supporting the family emotionally. She and my father are no longer together, and I honestly don’t know how she lasted as long as she did. My mom is a strong woman that inspiresRead MoreMy Hero: My Mother Essay496 Words   |  2 PagesThe one person that I could never live without, the reason I am standing till this day, is my mother. My mother is who I thank and admire most of all. Without her dedication and hard work, I would be in the squatters of the Philippines, stuck in a place where it is a very difficult place to make a good enough living or even make enough money to keep the bread on the table for your family. Her main goal and dream was to pass the NCLEX exam, it would permit her to go to America. That would allow herRead MoreNegative Speech : My Mother Is A Hero824 Words   |  4 PagesChristopher Reeve once said, A hero is an ordinary individual who finds the strength to preserve and endure in spite of overwhelming obstacles. Everyday people get hit with obstacles but most people get scared and give up. A true hero however is one who gets up off the canvas and keeps growing no matter the circumstance. My mother is my hero because every single day of her life she gets up with a positive attitude and grinds no matter what. If she gets knocked down she always gets up and becomesRead MorePersonal Narrative : The Perfect Day1671 Words   |  7 Pagest have been happier. How could I have not been happy. I had a great day of school with all my friends, my mom bought me lunch and I was just on my way to the comic book store. It was a 6 year old s dream. I was skipping down the sidewalk, holding my mom’s hand when I noticed a weird man in the alleyway. â€Å"Want some free comics?† he begrudgingly asked, and being the idiotic 6 year old I was, I let go of my mother’s hand and ran towards him. At the moment I entered the alley, everything turned darkRead MoreA Hero Essay939 Words   |  4 Pages                                                               Hero         A hero is defined as many things. While many people consider heroes to be larger than life figured, Christopher Reeves says that, A hero is an ordinary person, who preserves, and endures despite overwhelming challenges. This quote analyzes an unconventional definition of a hero from Christopher Reeves point of view. What truly makes a hero is the courage to say that, it is not one, which is the hero it is someone else. Someone else that foughtRead MoreHeroes Essay957 Words   |  4 PagesHeroes Essay The question remains: who is worthy to be called a hero? I have seen many people who deserve the title of a hero for many bold actions. Sure, they do not wear legendary costumes, drive bat-mobiles or possess superhuman abilities. Of course, there is much more to a hero than just what is visible to the eye. As a matter of fact, it is all about what is on the inside—the qualities and behavior fixed in a mentality. That is why self-obsessed people do not make it on the list of heroesRead MoreMark Mathabane’s Kaffir Boy Essay1684 Words   |  7 Pagesovercomes the hardships and goes to college in America. Mathabane as a child is reluctant to go to school although his mother forces him to go but he earns rewards through education in school and tennis. His family is his aid that helps in his journey and sufferings in South Africa. He almost quits school when his friends in his neighborhood put a bad influence over him however his mother is there to support him. In the end o f the journey, he earns a scholarship and is recognized for his sportsmanshipRead MoreMy Mom Is My Hero992 Words   |  4 Pagesand everyone has a different hero. Some people’s heros may be someone famous or someone in a book. My hero just happens to be my mother, Naomi Peterson. She raised me and continues to raise me into the person I am and the person I am becoming. She taught me from a very young age how to be a hard worker and to help others. For obvious reasons she is my idol and hero. When I think about the qualities of a hero, I think of someone who is courageous, loving, and selfless. My mom is all of these and moreRead MoreAnalysis of Julia Alvarezs Book, In the Time of the Butterflies1198 Words   |  5 Pagesthinks she is. Her physical flaws, her need for reliance, and her loss of her own determination proves that she is not the strontest sister in the story, or the hero of the story. Minerva is the type of person who makes sure that everyone looks at her as being a strong person, however, this desired image is only a betrayal of herself. Many heros or courageous leaders in stories never have chararcterics flaws or in other words health problems. In the book though, Minerva has many health problems that

The Black Death Swept Across The Europe - 1903 Words

In the fourteenth century, the Black Death swept across the Europe. In just two years this terrible plague took over 20 million lives. The rumors say that the struggle against this mysterious disease would alter the course of human history. In a remotely continent in Central Asia, the Bacillus Yersinia Pestis lay for hundreds of years for wild rodents. Then on 1388, a drought or an earthquake violently disturbed the balance of nature, driven from its natural habitat, the Bacillus began a deadly exodus, the Black Death. From its cradle in Central Asia, the plague slowly migrated towards man. It was carrie d the blood stream of black rats and the fleas that fed with them. The Bacillus moved quickly as it moved along the traders as the blood of infected rats. With it came the plague, spreading like a deadly river of death, first into China, then into India, then west into Egypt and Asia Minor. Within eight years, it could reach the Crimea. Rumors of the terrible plague raising in the east began to circulate through the Mediterranean Sea poles, but no one thought that this disease would strike Europe. A group of Italian merchants, expelled from their trading post had taken refuge in the fortified city of Caffa, on the Black Sea. Tensions between the Christian merchants from Italy and the local Muslims residents erupted into street brawls. The minor skirmish soon became a war, the Muslims sought help from their local Mongol prince to lay siege to the Italians inside the wallsShow MoreRelatedEffects Of The Black Death On The Economy930 Words   |  4 PagesThe Black Death or more commonly known as Bubonic Plague, decimated European society in the mid 14 century to the extent that it has not been seen since in human history. It not only killed fifty to sixty percent of the population, but it also brought huge changes to the people of Europe. The impact of the plague caused effects on the economy, society, family structure, public policy, health science, religion, philosophy and literature. Its’ effects would last until the eighteenth century and beyondRead MoreThe Myth Of Fou rteenth Century Europe845 Words   |  4 PagesDuring a period within fourteenth century Europe, a pestilence known as the bubonic plague swept across eastern Asia and into England via trade, leaving millions dead in its wake. The Black Plague arrived at a time of war and famine in Europe, only further devastating the lives of medieval citizens. Religiously, socially, and politically, there were no immediate changes from the Black Plague, however, a Catholic schism, the ability for social mobility, and standing armies would develop in the followingRead MoreThe Plague Of Europe And Asia1165 Words   |  5 Pageshundreds were a time of turmoil in Europe and Asia for many reasons . It was a time of Panic, disease, political instability, and a decline in the power of the church . Although each of these problems are somewhat unrelated, they all stem from the same source, the Bubonic Plague. The bubonic plague started in Asia, and spread its way into parts of Northern Africa and Europe devastating everything in its path. Not only did the Black Death effect the people of Europe and Asia, it effected their economicRead MoreIs Yersinia Pestis A Bacterial Infection Responsible For The Deaths Of Millions Of People?976 Words   |  4 PagesYersinia Pestis is a bacterial infection responsible for the deaths of millions of people starting in the 1300’s and still continues to infect people to this day. This bacterial strain is the basis of three very serious and potentially fatal diseases: the Bubonic plague, the Pneumonic Plague, and the septicemic Plague. The difference between the plagues is primarily the location of the infection but the symptoms also vary as well. The bubonic plague attacks the Lymphatic system whereas the PneumonicRead MoreThe Black Death Hit The Shores Of Europe983 Words   |  4 PagesThe Black Death hit the shores of Europe in October 1347. After a long a tough journey, through the Black Sea, twelve ships or Genoese docked at the Sicilian Port. Those who greeted the ships had a horrifying site of dead sailors and the sailors who were alive were greatly ill. It is said that the sailors had awful fevers, were not able to keep food down, and they were covered in black boils that oozed blood and puss. This is where the name Black Death came from. Although the ships were ordered toRead MoreThe Economic, Political, and Social Effects of the Black Death1268 Words   |  6 Pages1351 in Europe. This massive destruction of human life was known as the Black Death. This Black Death was an ecological disaster on a global scale. The effects of the plague on human and certain animal populations from East Asia to as far west as Greenland were catastrophic. All facets of society, from peasant to king were affected; no one was safe. All of society was affected; nothing would ever be the same. Thus, there were many economic, social, and political effects of the Black Death. BeforeRead MoreThe Causes Of Death : The Death Of The Black Death820 Words   |  4 PagesThe Black Death was a disastrous disease that spread across Europe in the years 1346-53. The name although might be a mistranslation of the Latin word ‘atra’ meaning both ‘terrible’ and ‘black.’ Meaning the people of the time probably called it the terrible death, not the black death. One major poet of the time thought that nobody would believe what they went through and thought their testimonies would be seen as fables. In the course of just a few months, 60 percent of Florence’s population wasRead MoreHow Stability was Maintained during the Middle-Ages622 Words   |  3 Pagesobligations. Stability is maintained as long as the system doesn’t change. Physical power resides with the king and nobles through their knights. The Church’s power resides through controlling people’s beliefs. Serfs were tied to the land. The Bla ck Death, however, brought about such massive changes in demographics / population that the demand for a limited labor source (the peasants) meant that this social group at the bottom of the social ladder grew in importance (as seen in the 1381 PeasantsRead MoreThe Black Death Essay1196 Words   |  5 Pagesfalling down. The nursery rhyme refers to the Black Death, one of the worst plagues of all time (Schladweller). Known as infectious diseases that spread quickly and kill countless people, plagues have had a tremendous affect on people around the world since the beginning of time. The Black Death, also known as the bubonic plague, is a contagious bacterial infection that has killed millions of people. With the bubonic plague brutally killing one fourth of Europe in the 14th century and devastating ChinaRead MoreThe Plague Of Bubonic Plague945 Words   |  4 Pagesdisease that rapidly swept across Europe. Also known as the Black Death, the plague spread from port to port and star ted to wipe out entire civilizations. All of Europe was eventually contaminated, with over two-thirds of the population dieing to the infectious disease. Believed to have started in 1346 when the Mongol armies overtook the Genoese trading outpost of Caffa on the Black Sea, over half the soldiers on the boat returned dead. The quickness of the infection and then death, brought a fear to

Financial analysis report Free Essays

Letter of internal control from external auditors 5. Minutes of board meetings 3. Energy sector analysis Energy is considered to be the lifeline of economic development. We will write a custom essay sample on Financial analysis report or any similar topic only for you Order Now For a developing economy with a high population growth rate, it is important to keep a balance between energy supply and emerging needs. If corrective measures are not effectively anticipated significant constraints start emerging for development activities. The rise in global energy demand has raised questions regarding energy security and increased the focus on diversification, generation and efficient allocation. The answer lies in the attainment of optimal energy mix through fuel substitution by promoting energy efficiency and renewable energy and interregional co-operation. However, oil and natural gas will continue to be the world’s top two energy sources through 2040. Pakistanis economy has been growing at an average growth rate of almost 3 percent for the last four years and demand of energy both at production and consumer end is increasing rapidly. Pakistanis total energy consumption stood at 38. Million tones of oil equivalent in 2010-11. The relative importance of the various sources Of energy consumption of Liquid Petroleum Gas (LAP), electricity and coal has been broadly similar since 2005-06. The share of gas consumption stood at the highest equal to 43. Percent of the total energy mix of the country, followed by oil (29. 0 percent). 3. 1 crude Oil The total supply of crude oil for the fiscal year 2010-11 was 75. 3 million barrels. The 68. 1 percent was imported and 31. 9 pe rcent was locally extracted. 3. Natural Gas The consumption of increasing natural gas is rapidly. As on December 31st 201 1, the balance recoverable natural gas reserves have been estimated at 24. 001 Trillion Cubic Feet. The average production of natural gas during July- March 2011-12 was 4236. 06 million cubic feet per day (Emcee) as against 4050. 64 (Emcee) during the corresponding period of last year, showing an increase Of 4. 57 percent. Natural gas is used in general industry to prepare consumer items, to produce cement and to generate electricity. In the form of CNN, it is used in transport sector and most importantly to manufacture fertilizer to boost the agricultural sector. Currently 27 private and public sector companies are engaged in oil and gas exploration production activities. 3. 3 Liquefied Petroleum Gas-LAP LAP currently contributes only 0. 5 percent to the total primary energy supply in the country. However, 87 percent of its demand is met through local production. The rest is imported. This lower share is mainly due to local apply constraints and the higher price of LAP in relation to competing fuels like fuel wood, dung etc. Currently, in Pakistan, out of 27 million households, approximately 6 million are connected to the natural gas network while the rest are relying on LAP and conventional fuels such as coal, firewood, kerosene, biomass etc. LAP has thus become a popular domestic fuel for those who live in areas where the natural gas infrastructure does not exist. The annual total supply of LAP remained 467,476 tones; 1 , 281 tones were produced daily during 201 2, out of this 46 percent is produced in the private sector while 54 percent is produced in the public sector. How to cite Financial analysis report, Papers Financial Analysis Report Free Essays string(48) " licenses to use the above mentioned oilfields\." [pic] Bang College of Business (BCB) MBA Program Fall 2012 FN5201: Managerial Finance Draft Paper: Financial Ratio Analyses of JSC KMK Munai and ZhaiykMunai LLC Students: Kaisar Zharokov ID: 20110299 Zhanar Stambak ID: 20092628 Instructor: Mujibul Haque, Ph. D. Date of submission: November 14, 2012 Almaty 2012 Acknowledgement This report analyzes the balance sheets and income statements of ZhaiykMunai LLC and KMK Munai JSC, comparing 2009, 2010 and 2011. We will write a custom essay sample on Financial Analysis Report or any similar topic only for you Order Now The data in this report represent two companies’ financial performance. Common size income statements and balance sheets are used to compare two companies’ sizes and types. Trends for major balance sheet and income statement items and ratio analysis are used to compare and contrast companies by size and type. This report studied the financial statements of both companies, comparing 2009, 2010, and 2011, the last three years. Trends of major balance sheet and income statement items as well as financial ratios are presented for two companies’. We would like to thank the companies for the published financial statements for the last three years on the web-site of Kazakhstan Stock Exchange and made this report possible. Table of Contents I. Introduction II. Brief description of companies III. DuPont Analyses IV. Evaluation Working Capital Policies V. Assessment of Capital Structure Policies VI. Assessment of Dividend Policies VII. Break-even and leverage analyses VIII. P/E ratios analyses IX. Summary and Recommendations X. Appendix A – Financial statements from 2009 to 2011 XI. Appendix B – DuPont Analysis Working Capital Ratios tables 1 Introduction Objective The objective is to reveal the financial analysis techniques used to evaluate the financial performance of Zhaikmunai LLC and JSC KMK Munai, and evaluate the companies worthiness as an investment. Scope Using financial statements from 2009, 2010, and 2011, along with standard financial ratio analysis, we have been able to develop what we believe is a clear picture of companies’ financial performance. Note that the financial analysis was done using the financial report data from publicly available financial statements for the years 2009, 2010 and 2011 from KASE. We have included these statements for your review in Appendix A. Appendix B contains other measures of Zhaikmunai and KMK Munai Companies’ financial performance, as expressed in standard financial ratio analysis techniques using figures from the financial reports in Appendix A. Methodology Our research methodology requires gathering relevant data from the specified documents in order to analyze the material and arrive at a more complete understanding and historical changes of the selected companies. We hope to shed light on the following questions through our research: 1) A brief description and comparison of two chosen companies from the same industry, listed on KASE. 2) To perform the extended Du Pont analysis of both companies, analyze the results and make the comparison. 3) Working capital policies evaluation, classification and conclusion. ) Capital structure policy evaluation and comparison between two companies. 5) Assessing dividend policy of both companies and comparison. 6) Undertake break-even and leverage analyses, evaluation and comparison of it. 7) P/E ratios analysis and comparison. Limitations Although this research was carefully prepared, we are still aware of its limitations and shortcomings. First of all, the research was conducted based on financial statements from KASE for the last three years. Some information from financial statements might not be sufficient for a full company analysis. Secondly, in Zhaikmunai LLC company there were no dividend payments for the last three years and fifth paragraph from methodology – Assessing dividend policy couldn’t be calculated for that company. Finally, while acquiring data for the chosen companies we were limited only with financial statements of JSC KMK Munai for the 2010 and 2011 provided in Russian language but all the presented in data was easily translated and figures were recognizable. (II) Brief description of Zhaikmunai LLP and JSC KMK Munai companies Zhaikmunai Company Zhaikmunai LP is an Isle of Man registered limited partnership whose global depository receipts are listed on the London Stock Exchange. The Partnership indirectly holds 100% of Kazakhstan registered Zhaikmunai LLP (â€Å"Zhaikmunai†). Zhaikmunai is an independent oil and gas company developing the 274 square km Chinarevskoye field. The Chinarevskoye field is located in north-western Kazakhstan, 80 km northeast of Uralsk and about 60 km from the Russian border. Zhaikmunai’s name is derived from â€Å"Zhaik†, being the Kazakh name for the Ural River and â€Å"Munai† which means oil or hydrocarbons in Kazakh. Zhaikmunai was formed in March 1997 to explore, produce and sell crude oil and gas condensate in north-western Kazakhstan. In May 1997, Zhaikmunai was granted an exploration and production licence for the Chinarevskoye field, in the northern part of the oil-rich Pre-Caspian Basin. In October 1997, the Company entered into a Production Sharing Agreement (â€Å"PSA†) with the Republic of Kazakhstan. Zhaikmunai started with crude oil production in October 2000, and increased average monthly crude oil and condensate production from 2,210 boepd in 2004 to 33,552 boepd (including GTF products) in Q1 2012. Zhaikmunai’s operational facilities are located in Chinarevskoye field in the province of Batys in north-western Kazakhstan. They include an oil processing facility capable of processing 400,000 tpa (tones per annum) of crude oil, multiple oil gathering and transportation lines, a gas powered electricity generation system, major warehouse facilities and a tank farm for the storage of crude oil, materials, machinery and chemicals used in crude oil production, and an employee field camp. As of 31 December 2011, 11 wells were producing from the Tournaisian and 8 wells from the Ardatovsky and Biski Afoninski reservoirs. JSC KMK Munai JSC KMK Munai was established in 2004 through the merge of Kokzhide Munai LLP, Kumsai Munai LLP and Mortuk Munai LLP. Previously, the company was named as Lancaster Petroleum and then as KKM Operating Company. By the decision of new shareholders the company was renamed to JSC KMK Munai since March 2010. KMK Munai is an independent joint stock company that has subsoil contracts for Kokzhide, Mortuk and Kumsai oilfields based in Aktobe, West Kazakhstan region. The company has licenses to use the above mentioned oilfields. You read "Financial Analysis Report" in category "Essay examples" It has own pipeline which is connected with TransNeft. Comparison of Zhaikmunai LLP and JSC KMK Munai: Despite Zhaikmunai LP was formed in 1997 and JSC KMK Munai was established in 2004, Zhaikmunai LLP is a much smaller company cause it’s part of Zhaikmunai LP, which is currently engaging in the exploration, production, and sale of crude oil and gas condensate in northwestern part of the Republic of Kazakhstan. If we compare Total Assets and Revenues of these two companies for 2011 year, it will be easier to see the difference in size of these companies: |Zhaikmunai LLP |JSC KMK Munai | |Total Assets |1,231,883 |23,104,453 | |Sales |300,835 |7,806,540 | As we can see the difference is significant. JSC KMK Munai has much greater amount of assets and it’s greater in size than Zhaikmunai LLP. Generally speaking JSC KMK Munai company is much more developed company in that sphere of business. Profitability of Zhaikmunai and KMK Munai Companies 2) DuPont analysis The DuPont Analysis is important determines what is driving a company’s ROE; Profit margin shows the operating efficiency, asset turnover shows the asset use efficiency, and leverage factor shows how much leverage is being used. The method goes beyond profit margin to understand how efficiently a company’s assets generate sales or cash and how well a company uses debt to produce incremental returns. Using these three factors, a DuPont analysis allows us to dissect a company, efficiently determine where the company is weak and strong and quickly know what areas of the business to look at (i. e. , inventory management, debt structure, margins) for more answers. The measure is still broad, however, and is not a substitute for detailed analysis. The DuPont analysis looks uses both the income statement as well as the balance sheet to perform the examination. As a result, major asset purchases, acquisitions, or other significant changes can distort the ROE calculation. Many analysts use average assets and shareholders’ equity to mitigate this distortion, although that approach assumes the balance sheet changes occurred steadily over the course of the year, which may not be accurate either. First, let’s look at the Return on Investment (ROI) for 2009, 2010 and 2011, using the DuPont Model, which is margin times turnover. Margin is net income divided by the sales, and turnover is sales / average total assets  (Marshall, 2002). Zhaikmunai Company ROI for 2009:    |ROI |= |MARGIN |x |TURNOVER | |   |   |   |   |   |   | |   |Net profit after taxes |= |Net profit after taxes |x |Sales | |   |   |   |   |   |   | |Input: |-15,480 |= |-15,480 |x |116,033 | |Result: |-1. 5% |= |-13. 34% |x |0. 1160 | |   | | | | | | |   |   |   |   |   |   | Zhaikmunai Company ROI for 2010:    |ROI |= |MARGIN |x |TURNOVER | |   |   |   |   |   |   | |   |Net profit after taxes |= |Net profit after ta xes |x |Sales | |   | |   |   |   |   | |Input: |15,105 |= |15,105 |x |178,159 | |Result: |1. 9% |= |8. 47% |x |0. 1641 | |   | | | | | | |   |   |   |   |   |   | Zhaikmunai Company ROI for 2011: |ROI |= |MARGIN |x |TURNOVER | |   |   |   |   |   |   | |   |Net profit after taxes |= |Net profit after taxes |x |Sales | |   |   |   |   |   |   | |Input: |65,775 |= |65,775 |x |300,835 | |Result: |5. 4% |= |21. 86% |x |0. 2442 | |   | | | | | | |   |   |   |   |   |   | | |2011 |2010 |2009 | |Net Profit Margin (Net Income ? Sales) |22% |8,5% |-13% | |Return on Equity (ROE) = NI/E |29% |9,15% |-6,1% | |Return on Investment (ROI) |5,34% |1,39% |-1,5% | |Return on Assets (ROA) = NI/TA |5,34% |1,4% |-1,5% | Analysis and conclusion: First of all let’s just look what happened from 2009 to 2011 briefly, and then analyze and conclude company’s actions. As we know Net profit margin, ROE and ROA are calculated from NI, and due to world financial crisis, in 2009 Zhaikmunai LLP Company had losses of -15,480, it caused coefficients as Profit Margin, Return on Asset and Return on Equity to became negative for the 2009 year. Simply talking, there were no returns, moreover there were only losses. Next, in 2010 we can see that Profit Margin grew, as Return on Asset and Return on Equity, from negative to positive in comparison to 2009, but rise of coefficients was not great due to the results of financial crisis. Profit margin increased to 8. 5%, which reflected company’s successful actions during crisis. ROA became 1. 4% which is representing not bad, medium growth on return on assets. And ROE grew to 9,15%, according to that we can conclude that company started to gain momentum in it’s operations, gain profit, and unwind. One of the reasons of growth by the way of profit ratios, is the debt increase by 14% in 2010 (Capitalization Ratio increased from 60% to 74%). Despite for 2011 year Sales were increased almost twice as it were in 2010, Profit Margin in 2011 increased in about four times as it was in the previous year due to the company development and expand, it reflected good results in company activities. Return on Asset and Equity also increased which showed good progress in company work. ROE grew to 29% from 9% which shows 20% increase in return on it’s equity for 2011 year. Now, lets evaluate company’s performance for the last years: At over 384%, the increase in ROI and ROA between 2010 and 2011 is remarkable and shows that Zhaikmunai Company increased its sales while increasing the utilization of its assets used to generate these sales. And to achieve these results, the sales, operating income and average total assets had to all increase proportionately. In the short term, this would be a good trend, but if it continues, it could be a sign that Zhaikmunai Company is not keeping a big investment in assets, because not that as the denominator in this ROI calculation, a low asset figure can be used to help drive up the overall result. Meaning that if this trend continues, it may be an indication of increased operations rather than improvement in asset efficiency. DuPont Analysis of JSC KMK Munai: |2011 |2010 |2009 | |Net Profit Margin (Net Income ? Sales) |8,5% |4,1% |8,6% | |Total Asset Turnover (Sales ? Total Assets) |0,36 |0,41 |0,51 | |Equity Multiplier (Average Assets ? Average Equity) |3,11 |2,26 |1,94 | |Return on Equity (ROE) = Net Profit Margin*Total Asset Turnover*Equity Multiplier |9,6% |3,8% |8,5% | |Return on Investment (ROI) |3,1% |1,7% |4,4% | |Return on Assets (ROA) = NI/TA |2,9% |1,2% |5,7% | Analysis: From this table we can conclude that 2010 year was unsuccessful in comparison to 2009 and 2011 years for JSC KMK Munai company. Net Profit Margin had dropped mainly because of Net Income. For 2011 For 2010 For 2009 |665 836,0 |244 332,0 |505 400,0 | Net Income had dropped and that reflected on all returns coefficients such as ROE, ROI, ROA too. However if we will analyze ROA, not only NI influenced on it. For 2011 For 2010 For 2009 |Assets |23 104 453,0 |20 007 643,0 |8 798 664,0 | Assets were increased almost in 2. 28 times from 2009 to 2010 year. It’s a huge number and a great step for that company to success. So, we can conclude that JSC KMK Munai is developing very fast, it’s really easy to see how the company is expanding on the market. After growth in 2010, sales in 2011 increased by 31% which brought more NI and increased returns: ROI, ROA and ROE. Comparison of DU Pont analysis between Zhaikmunai LLP and JSC KMK Munai: As we know JSC KMK Munai is much greater company than Zhaikmunai, and despite it’s ROE for 2011 is lesser than Zhaikmunai 9,6% and 29%, KMK Munai has much greater profits. The smaller the company, it’s much easier to increase such profit ratios than for a bigger company with great amount of assets, cause more assets company have, lesser return will be reflected in such ratios like ROE, ROA, ROI. Also JSC KMK Munai is much more stable company in that business. For 2009 year KMK Munai has positive healthy ratio’s coefficients, however Zhaikmunai LLP has only losses and all it’s profit ratios and return ratios are negative. 3) Working Capital Policies Evaluation Zhaikmunai Company’s Working Capital Ratios: |Ratios |2011 |2010 |2009 | |CA/TA |0. 082 |0. 103 |0. 177 | |CA/Sales |0. 36 |0. 628 |1. 522 | |CL/TA |0. 087 |0. 072 |0. 069 | |Current Ratio |0. 941 |1. 426 |2. 551 | |Acid Quick Ratio |0. 806 |1. 355 |2. 501 | |Inventory days |74. 84 |38. 214 |28. 82 | |Trade Receivable days |15. 336 |3. 35 |43. 655 | |Inventory turnover |4. 77 |9. 551 |12. 665 | Analysis of Working Capital ratios: At 2011 year according to Current Ratio and CA/TA, also Quick ratio, Zhaikmunai chosen Aggressive working capital policy and working capital finance policy, because Current ratio 1;0. 941 and CA/TA=0. 082 which seems too small. Also we can see how the company is going from Conservative-Moderate to more Aggressive working capital policy with each year (CR for 2009=2. 551, for 2010=1. 426, then for 2011 its 0. 941). Usually with aggressive policy company is trying to get high returns with a high risk, the Aggressive working capital policy sees the company keep a really low amount of current assets. â€Å"The idea of it is to collect payment on time, leaving no debtors and invest that amount in the business. And pay the creditors as late as possible. It is a high risk arrangement though, because, should your creditor come asking for money, and for some reason, you don’t have enough money to pay them off, you might end up having to sell a costly asset to pay off your debt to them. A current ratio of 2 and an acid test of 1. 0 are considered adequate liquidity (Marshall, 2002). Zhaikmunai Company’s Acid Test numbers for 2010 and 2011 were 1. 355 and 0. 806, and its Current Ratio numbers for 2010 and 2011 were 1. 426 and 0. 941. Each sets of these ratio figures indicate that Sample Company could possibility have some difficulties in meeting its financial obligations, so these numbers will be important to watch closely in the future. Working Capital Ratios of JSC KMK Munai |Ratios |2011 |2010 |2009 | |CA/TA |0,12 |0,20 |0,34 | |CA/Sales |0,37 |0,68 |0,51 | |CL/TA |0,42 |0,45 |0,22 |Inventory-number of days |37,20 |21,89 |20,62 | |Acid test (Quick) ratio |0,22 |0,41 |1,40 | |Current ratio |0,30 |0,45 |1,58 | |Inventory Turnover |9,81 |16,67 |17,70 | |Asset Turnover |0,36 |0,41 |0,67 | |Receivable Turnover |50691,82 |1,61 |12,22 | |Receivable Turnover in Days (RTD) |0,01 |226,14 |29,86 | Analysis: At 2011 year according to Current Ratio and CA/TA, also Quick ratio, JSC KMK Munai chosen Aggressive working capital policy and working capital finance policy, because Current ratio 1;0. 3 and CA/TA=0. 12. Also we can see how the company is going from Conservative-Moderate to more Aggressive working capital policy with each year (CR for 2009=1. 58, for 2010=0. 45, then for 2011 its 0. 3). Usually with aggressive policy company is trying to get high returns with a high risk, the Aggressive working capital policy sees the company keep a really low amount of current assets. â€Å"The idea of it is to collect payment on time, leaving no debtors and invest that amount in the business. And pay the creditors as late as possible. It is a high risk arrangement though, because, should your creditor come asking for money, and for some reason, you don’t have enough money to pay them off, you might end up having to sell a costly asset to pay off your debt to them. † A current ratio of 2 and an acid test of 1. 0 are considered adequate liquidity (Marshall, 2002). JSC KMK Munai Company’s Acid Test numbers for 2010 and 2011 were 0. 41 and 0. 22, and its Current Ratio numbers for 2010 and 2011 were 0. 45 and 0. 3. Each sets of these ratio figures indicate that Sample Company could possibility have some difficulties in meeting its financial obligations, so these numbers will be important to watch closely in the future. Comparison: Both companies are using aggressive working capital policy in 2011 and aggressive working capital finance policy. Also both of them were using moderate/conservative working capital policy in 2009 year. However Zhaikmunai has much lesser risk to have some difficulties with meeting its financial obligations, cause it’s Current ratio for 2011 is 0,941 which is very near to 1, where JSC KMK Munai has 0,30 Current Ratio and risk in the short term is much higher. 4) Assessment of Capital Structure: Zhaiykmunai LLP: Capital Structure (in thousands of us dollars): |2011 |2010 |2009 | |Cash Cash Equivalents |47,537 |84,697 |132,344 | |Total Long term Debt |746,590 |739,103 |591,407 | |Preferred Stock |0 |0 |0 | |Minority interest |0 |0 |0 | |Total Stockholder’ s equity |225,849 |165,094 |252,846 | |Total Capitalization |1,019,976 |988,894 |976,597 | Capitalization Ratio for 2009: Long term Debt/TC=60,5%; Capitalization Ratio for 2010: Long term Debt/TC=74,7%; Capitalization Ratio for 2011: Long term Debt/TC=746,590/1,019,976=0. 732=73. 2%; Analysis: From the 2009 year Capitalization Ratio has increased from 60,5% to 73,2%, which indicates that Long term debt has increased in greater proportion than total capitalization including Stockholders equity, which represents risk to the company cause it has too much debts, however the company is not large in this sphere of business, and in order to develop more faster it needs to borrow. Also in 2009 year that company had some losses and in order to change the situation it made borrowings in 2010. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion. It assumes that management can earn more on borrowed funds than it pays interest  expense and fees on these funds. However successful this formula may seem, it does require a company to maintain a solid record of complying with its various borrowing commitments. A long term debt to capitalization ratio for 2011 year which is 73,2% indicates that the business has 73,2% debts from total capitalization. We can conclude that Zhaikmunai LLP is a developing small company, and it had some major problems in 2009 when it had losses and it tries to solve the situation and expand in the market in a much faster way by borrowing funds. Also we can say that 73,2% of capitalization ratio is a great coefficient, and it can lead to some financial debt problems in the future. High long term debt to capitalization ratio would indicate the financial weakness of the firm and the debt would most likely increase the risk of the company. JSC KMK Munai: Capital Structure (in thousands of us dollars): |2011 |2010 |2009 | |Cash Equivalents |866,111 |1,694,115 |1,122,935 | |Total Debt |4,854,022 |4,538,304 |1,261,919 | |Preferred Stock |0 |0 |0 | |Minority interest |0 |0 |0 | |Total Stockholder’s equity |7,272,732 |6,998,413 |6,144,477 | |Total Capitalizatio n |12,992,865 |13,230,832 |8,529,331 | Capitalization Ratio for 2009: Long term Debt/TC=1,261,919/8,529,331=0. 148=14. 8%; Capitalization Ratio for 2010: Long term Debt/TC=4,538,304/13,230,832=0. 343=34. 3%; Capitalization Ratio for 2011: Long term Debt/TC=4,854,022/12,992,865=0. 374=37. 4%; Analysis: The high Capitalization ratio means that the finance of the company mainly comes from the debt which can be quite risky and is sometimes a reason for  bankruptcy. The higher ratio percentage shows how weak the company is financially. Similarly, a decrease in the long term debt to capitalization ratio would mean that there is an increase in the stock holder’s equity. Through the period from 2009 to 2011 we see how Capitalization Ratio was increasing from 14. 8% to 37. 4%. It means that the risk of financial debt problems is rising. However long term debt to capitalization ratio for 2011 year is much smaller than 1. 0 (0,374) which indicates that the business has less debts than capital which is a good thing for a business as it can’t lead to lots of financial problems. JSC KMK Munai has good and healthy Capitalization Ratio, which reflects that risk of debt payments is not substantial, and also we can conclude that this is a large company, because it usually appears that an indicator on either side of 35% is fairly typical for larger companies. Comparison: The examples of Zhaikmunai LLP and JSC KMK Munai will illustrate this important perspective for investors. As of FY 2011, Zhaikmunai had a capitalization ratio of 73,2%, and JSC KMK had 37,4%. It is difficult to generalize on what a proper capitalization ratio should be, but, on average, it appears that an indicator on either side of 35% is fairly typical for larger companies. Obviously, JSC KMK Munai low leverage is a significant balance sheet strength considering its ongoing struggle with product liability claims. Also Zhaikmunai LLP has very risky and not desirable Capitalization Ratio for investors of 73,2%, which shows that the risk of this company to bankruptcy is more significant than JSC KMK Munai for investors, because Zhaikmunai’s operations are created mostly on long term debts. 5) Assessment of Dividend Policies Zhaiykmunai LLC: There were no dividend payments through 2009-2011 years. Dividend payout ratio=0; KMK Munai Company: Dividends of 1,199, 971 thousand tenge were declared on April 30, 2008. Shareholders agreed to offset a portion of dividends payable net of withholding tax against related party receivables. No such offset occurred in 2009, 2010 and 2011. So, the dividend payout ratio of KMK Munai is also equal to 0. 6) Break-even point for 2011: We are taking COGS as total variable costs and General and Adminstrative expenses as total fixed costs in order to evaluate Break even point of these two companies: |Zhaiykmunai LLC |JSC KMK Munai | |(In US dollars) |(In tenge) | |Sales = 300,835 (S) |Sales = 7,806,540 (S) | |COGS=70,805 (VC) |COGS=1,915,342 (VC) | |General and Administrative expenses=18,874 (FC) |General and Administrative expenses=1,421,214 (FC) | |Break-Even Point = FC/(1-VC/S) | |VC/S=70,805/300,835=0. 35 |VC/S=1,915,342/7,806,540=0. 245 | |1-0. 235=0. 765 |1-0. 245=0. 755 | |BEP=18,874/0. 765=24,672 |BEP=1,421,214/0. 755=1,882,403 | |300,835/24,672=1219% of break even during the period; |7,806,540/1,882,403=414. 7% of break even during the period; | Break-even point for 2010: Zhaiykmunai LLC |JSC KMK Munai | |(In US dollars) |(In tenge) | |Sales = 178,159 (S) |Sales = 5,960,293 (S) | |COGS=53,861 (VC) |COGS=1,425,377 (VC) | |General and Administrative expenses=15,481 (FC) |General and Administrative expe nses=1,900,539 (FC) | |Break-Even Point = FC/(1-VC/S) | |VC/S=53,861/178,159=0. 02 |VC/S=1,425,377/5,960,293=0. 239 | |1-0. 302=0. 698 |1-0. 239=0. 761 | |BEP=15,481/0. 698=22,179 |BEP=1,900,539/0. 761=2,497,423 | |178,159/22,179=803% of break even during the period; |5,960,293/2,497,423=238. 7% of break even during the period; | Break-even point for 2009: Zhaiykmunai LLC |JSC KMK Munai | |(In US dollars) |(In tenge) | |Sales = 116,033 (S) |Sales = 5,865,138 (S) | |COGS=44,035 (VC) |COGS=2,207,135 (VC) | |General and Administrative expenses=16,182 (FC) |General and Administrative expenses=938,303 (FC) | |Break-Even Point = FC/(1-VC/S) | |VC/S=44,035/116,033=0. 379 |VC/S=0. 376 | |1-0. 379=0. 1 |1-0. 376=0. 624 | |BEP=16,182/0. 61=26,528 |BEP=938,303/0. 624=1,503,691 | |116,033/26,528=437% of break even during the period; |5,865,138/1,503,691=390% of break even during the period; | Break-even point of 24,672 in 2011 year of Zhaikmunai company is telling us that if sales will be lower than 24,672 the company may have some losses. In other cases it’s the same. Actually according to DOL – degree of leverage that will be described more precisely in the next part, we can tell that the higher the sales of these two companies the higher the profit will be, cause it has coefficient higher than 1 for 2009-2011 years for Zhaikmunai LLP as well as for JSC KMK Munai companies. Appendix A – Financial Statements from 2009 to 2011 [pic] [pic] [pic] [pic] |Translated Financial Statements of JSC KMK Munai for 2010 and 2011 | | | | | | |JSC KMK Munai | | | | |Statement of Financial Position | | | |As at December 31, 2010 and 2011 | | | | |In thousands of Tenge |2011 |2010 |2009 | |ASSETS | | | | |Non – current assets | | | | |Intagible assets |994584 |830444 |69282 | |Property, plant, and equipment |17664781 |13538143 |5380736 | |Cash, limited in its use |123089 | | | |Other non-current assets |1264169 |1491592 |322658 | |Deferred tax assets |161057 |104821 |33881 | |Total non-current assets |20207680 |15965000 |5806557 | |Curren t assets | | | | |Inventories |795640 |357440 |331374 | |Trade receivables |154 |643150 |479881 | |Due from related parties | | | | |Advances paid |187817 |136938 |135941 | |Prepayment for corporate income tax |375143 |6275 |49 | |Excess profit tax recoverable | |3900 |541071 | Other current assets |458468 |1125388 |380371 | |Bank deposits |200000 |61997 |485 | |Cash and cash equivalents |866111 |1694115 |1122935 | |Total current assets |2883333 |4029203 |2992107 | |Assets of disposal group classified as held for sale |13440 |13440 | | |TOTAL ASSETS |23104453 |20007643 |8798664 | |Equity | | | | |Charter capital |1500000 |1500000 |1500000 | |Treasury shares |-195437 |-195437 |-195437 | |Retained earnings |5968169 |5693850 |4839914 | |Total equity |7272732 |6998413 |6144477 | |Liabilities | | | | |Non-current lialibilities | | | | |Provisions |1504083 |1079826 | | |Abandonment and site restoration liabilities | | |756355 | |Interest-bearing loans |4708305 |2955108 | | |T otal non-current liabilities |6212388 |4034934 |756355 | |Current liabilities | | | |Short-term financial obigations |4854022 |4538304 |1261919 | |Trade payables |4137233 |3692778 |130377 | |Corporate Income tax payable | | |32811 | |Other taxes payables |514856 |562029 |371449 | |other provisions |54930 |103565 | | |Other current liabilities |58292 |77620 |101276 | |Total current liabilities |9619333 |8974296 |1897832 | |Total liabilities |15831721 |13009230 |2654187 | |TOTAL SHAREHOLDER’S EQUITY AND LIABILITIES |23104453 |20007643 |8798664 | |JSC KMK Munai | | | |Statements of Comprehensive Income | | | |For the year ended December 31, 2010 2011 | | | |In thousands of Tenge |2011 |2010 | |Revenue from sale of crude oil |7806540 |5960293 | |Cost of sales |-1915342 |-1425377 | |Gross profit |5891198 |4534916 | | | | | |Dry hole expense | | | Geological and geophysical expenses |-80784 |-60674 | |General and administrative expenses |-1421214 |-1513145 | |Selling exp enses |-2739129 |-1659149 | |Loss on disposal of property, plant and equipment |-16180 |-6262 | |Gain on disposal of North Karpovskiy | | | |Other operating (income)/loss |2588 |-5574 | |Profit from operating activities |1636479 |1290112 | | | | | |Finance income | | | |Finance cost |-486661 |-188540 | |Foreign exchange loss |-95303 |-34343 | |Profit before income tax |1054515 |1067229 | | | | | |Income tax expense |-388679 |-431380 | |Excess profit tax benefit/(expenses) | | | |Profit for the year from continuing operations |665836 |635849 | | | | | |Loss from discontinued operations, net of tax | | | |Net profit for the year |665836 |635849 | |Other comprehensive income | | |Total comprehensive income for the year |665836 |635849 | |Earnings per share | | | |Basic and diluted earnings per share (thousands of Tenge per share) |510 |487 | |Earnings per share for continuing operations | | | |Basic and diluted earnings per share (thousands of Tenge per share) | |487 | [pic ] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Appendix B – DuPont Analysis Working Capital Ratios DuPont Analysis of JSC KMK Munai | | | |Financial Statement Data (in thousands of tenge) |2011 |2010 |2009 | |Sales |7 806 540,0 |5 960 293,0 |5 865 138,0 | |EBIT |1 054 515,0 |675 712,0 |383 532,0 | |Interest Expense (Non-0perating) 0,0 |0,0 |0,0 | |Tax Expense |388 679,0 |431 380,0 |198 660,0 | |Net Income (Income for Primary EPS) |665 836,0 |244 332,0 |505 400,0 | |Assets |23 104 453,0 |20 007 643,0 |8 798 664,0 | |Equity |7 272 732,0 |6 998 413,0 |6 144 477,0 | | | | | | |Three-Step DuPont Model: | | | | | | | | | |Net Profit Margin (Net Income ? Sales) |8,5% |4,1% |8,6% | |Total Asset Turnover (Sales ? Total Assets) |0,36 |0,41 |0,51 | |Equity Multiplier (Average Assets ? Average Equity) |3,02 |2,19 |1,94 | |Return on Equity (ROE) |9,3% |3,7% |8,5% | |Return on Investment (ROI) |3,1% |1,7% |4,4% | |Return on Assets (ROA) |2,9% |1,2% |5,7% | | | | | | |Five-Step DuPont Model: | | | | | | | | | |Pre-Interest Pretax Margin (EBIT ? Sales) |13,5% |11,3% |6,5% | |Asset Turnover (Sales ? Average Assets) |0,36 |0,41 |0,51 | |Interest Burden [(EBIT – Interest Expense) ? EBIT] |100,0% |100,0% |100,0% | |Tax Efficiency [1 – (Tax Expense ? EBIT – Interest Expense))] |63,1% |36,2% |48,2% | |Equity Multiplier (Average Assets ? Average Equity) |3,02 |2,19 |1,94 | |Return on Equity |9,3% |3,7% |3,1% | | | | | | |Source: Financial Statements of JSC KMK Munai for 2009, 2010 and 2011 from KASE | | Working Capital Ratios: JSC KMK Munai | | | | | | | | | |Financial Statement Data (in thousands of tenge) |2011 |2010 |2009 | |Sales |7 806 540,0 |5 960 293,0 |5 865 138,0 | |Total Assets |23 104 453,0 |20 007 643,0 |8 798 664,0 | |Total Liabilities |15 831 721,0 |13 009 230,0 |2 654 187,0 | |Current Assets |2 883 333,0 |4 029 203,0 |2 992 107,0 | |Current Liabilities |9 619 333,0 |8 974 296,0 |1 897 832,0 | |Inventory |795 640,0 |357 440,0 |331 374,0 | |Trade Receivables |154,0 |3 692 778,0 479 881,0 | | | | | | |Working Capital Policies Evaluation of JSC KMK Munai | | | | | | | | |CA/TA |0,12 |0,20 |0,34 | |CA/Sales |0,37 |0,68 |0,51 | |CL/TA |0,42 |0,45 |0,22 | |Inventory-number of days |37,20 |21,89 |20,62 | |Acid test (Quick) ratio |0,22 |0,41 |1,40 | |Current ratio |0,30 |0,45 |1,58 | |Inventory Turnover |9,81 |16,67 |17,70 | |Asset Turnover |0,36 |0,41 |0,67 | |Receivable Turnover |50691,82 |1,61 |12,22 | |Receivale Turnover in Days (RTD) |0,01 |226,14 |29,86 | | | | | | |Source: Financial Statements of JSC KMK Munai for 2009, 2010 and 2011 from KASE | References 1) Course Power Point slides 2) http://www. billslater. com/uop/Course_work/ACC_529_Ratio_Analysis_Assignment—William_Slater. htm 3) How to cite Financial Analysis Report, Essay examples