Advanced Building Industries Co SJSC

(a) Capital structure and liquidity are characterized by high leverage and tight working capital. The company reports a debt-to-equity ratio of 4.09, indicating significant reliance on debt financing relative to equity. Total liabilities stand at SAR 5.37 billion against total equity of SAR 547.8 million. Long-term debt is SAR 2.24 billion, while cash and equivalents are minimal at SAR 22.6 million, resulting in a negative net cash position. The current ratio is 1.01, suggesting limited short-term liquidity buffer to cover immediate obligations.

(b) Profitability metrics show modest returns on assets but elevated returns on equity due to leverage. Return on equity is 18.44%, which is driven by the high debt-to-equity multiplier rather than operational efficiency alone. Return on assets is 1.71%, indicating low asset turnover or margin efficiency relative to the asset base. Gross profit is SAR 1.11 billion on revenue of SAR 6.20 billion, implying a gross margin of approximately 18%. Operating income is SAR 260.7 million, leading to a net income of SAR 101.0 million.