Oman Agriculture Development Company SAOG is a member of OMZEST Group and is based in Oman. The company is located at Sohar, where it has an 800-hectare farm. The company mainly deals in the production of dairy products. Other products of the company are vegetables, juices, and beverages. It also ventures into the trading of various products, training, services, and construction. The brand names of its different products are Sohar, Sunfarms, Moo Cow, Nakhal, Nizwa, and Sun Up. A comparative chart for the last four years can be seen in ‘Appendix 1’. After a careful study of the figures, it is clear that in terms of profitability, the year 2008 (with a ratio of 0.02) was the best for the company and the year 2009 (with a ratio of -0.60) was the worst. In 2007 and 2010, the ratios were 0.00 and -0.27 respectively. Even the sales were highest in 2008. Return on the assets is an important factor for any company. In 2008, the ratio was 0.02, whereas, in 2009, it was -0.32. In ‘Appendix 2’ we can see the ‘Sales’ and ‘Net Income graphs. Although the year 2008 has been the most beneficial for the company, yet in comparison to the year 2009, the company has managed to improve the figures in 2010. There has been an increase of 39.19% in sales and the net income has also increased. In terms of ‘Market-to-book Ratio’ also 2010 has been better. Even the ‘Profit Margin Ratio’ has risen from -0.60 to -0.27. But the year 2009 has been good for the company in terms of its ability to cover up fixed interest charges with the current earnings. The ‘Times Interest Earned’ ratio in 2009 is the highest i.e. 8.54. But in 2010, it decreased by 65.33%, to 2.96. The ‘Total Debt Ratio’ has increased from 1.05 in 2009, to 1.24in 2010. The ‘Receivable Turnover Ratio’ has also increased from 5.08 in 2009 to 5.33 in 2010 i.e. an increase of 4.92%. So we can conclude that in comparison to the year 2009, 2010 has been a better financial year for the company. Ratio Analysis Ratio analysis is done to evaluate the performance of the company as compared to the previous years. It also sets the standards of performance in the future. Such analysis also helps the company management in identifying the areas where improvement is required and also the most promising areas. Investors and stockbrokers can assess the creditworthiness of the company by going through the ratios. Professor Harvey B. Lermack wrote, “The performance of a firm can be assessed by computing key ratios and analyzing: (a) How is the firm performing relative to the industry? (b) How is the firm performing relative to the leading firms in their industry? (c) How does the current year’s performance compare to the previous year(s)? (d) What are the variables driving the key ratios?…….” (Lermack, 2003). But there are certain limitations also to such an analysis. It is difficult to decide which ratios are favorable at times and which are unfavorable. Since the ratios are based on past performance, the future projections cannot be perfect. This is because the ratios are not stable. Further, the ratios are based on the financial statements which in turn are based on the costs and not the value. As such, financial statements don’t include values such as management expertise. Comparison between the ratios of interna