Analysis of Financial Performance of Tadawul Company

Abstract

This study examines the financial performance of Tadawul Company from 2020 upto 2023, focusing on profitability, leverage, and growth ratios. Utilizing data from the company’s financial statements, the research employs financial ratio analysis to assess key ‏‏, including gross profit margin, net profit margin, return on assets, debt-to-equity ratio, debt-to-assets ratio, and revenue and asset growth rates. Findings reveal significant volatility in profitability, with the net profit margin rising to 50.42% by 2023, despite earlier fluctuations. Leverage ratios surged in 2022, reflecting increased debt reliance, while growth ratios indicate robust revenue and asset expansion in 2021–2022, followed by a slowdown in 2023. These trends highlight Tadawul’s dynamic financial health, exposing both strengths and vulnerabilities. The study underscores the need for strategic management to sustain profitability and ensure financial stability, offering valuable insights for stakeholders in Saudi Arabia’s evolving economic landscape.