Description
A-Financial statement analysis. B- project risk analysis. Please follow the assignment paper attached and the requirements
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Explanation & Answer
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Income statament
2013
2600
-1560
1040
730
310
-50
260
-105
155
2014
3500
-2350
1150
800
350
-50
300
-125
175
2015
2750
-1620
1130
602
528
-35
493
-130
363
2016
3600
-2160
1440
875
565
-15
550
-145
405
2017
3840
-2250
1590
905
685
0
685
-165
520
2013
Assets
Non-current assets
Property, plant and Equipment 1265
1265
Current assets
Inventories
250
Trade Receivables
105
Cash at bank
380
Total assets
2000
2014
2015
2016
2017
1525
1525
1575
1575
1900
1900
1860
1860
400
145
115
2185
475
150
200
2400
400
225
350
2875
500
325
1125
3810
620
480
1100
620
580
1200
740
650
1390
1200
725
1925
1500
875
2375
500
500
300
150
0
300
100
400
375
110
485
450
260
710
375
425
800
400
210
610
2000
2185
2400
2875
2985
Sale revenue
Cost of sales
Gross profit
Operating expenses
Operating profit
Interest payable
Profit before taxation
Taxation
Profit for the year
Equity and Liabilities
Equity
Share capital
Retained earnings
Non-current liabilities
Borrowings -9% Loan Notes
Current Liabilities
Trade payables
Other Payables
Total Equity and Liabilities
a. Common size and indexed statement for income statement and financial position statement
Common size income statemet
Sale revenue
Cost of sales
Gross profit
Operating expenses
Operating profit
Interest payable
Profit before taxation
Taxation
Profit for the year
2013
100%
-60%
40%
28%
12%
-2%
10%
-4%
6%
2014
100%
-67%
33%
23%
10%
-1%
9%
-4%
5%
2015
100%
-59%
41%
22%
19%
-1%
18%
-5%
13%
2016
100%
-60%
40%
24%
16%
0%
15%
-4%
11%
2017
100%
-59%
41%
24%
18%
0%
18%
-4%
14%
Common Size Financial position statement
2013
2014
2015
2016
2017
70%
70%
66%
66%
66%
66%
49%
49%
18%
7%
5%
100%
20%
6%
8%
100%
14%
8%
12%
100%
13%
9%
30%
100%
31%
24%
55%
28%
27%
55%
31%
27%
58%
42%
25%
67%
50%
29%
80%
25%
0%
15%
5%
20%
23%
0%
17%
5%
22%
13%
0%
19%
11%
30%
5%
0%
13%
15%
28%
0%
0%
13%
7%
20%
100%
100%
100%
100%
100%
2013
40.0%
11.9%
2014
32.9%
10.0%
2015
41.1%
19.2%
2016
40.0%
15.7%
2017
41.4%
17.8%
Assets
Non-current assets
Property, plant and Equipment 63%
63%
Current assets
Inventories
13%
Trade Receivables
5%
Cash at bank
19%
Total assets
100%
Equity and Liabilities
Equity
Share capital
Retained earnings
Non-current liabilities
Borrowings -9% Loan Notes
Current Liabilities
Trade payables
Other Payables
Total Equity and Liabilities
b. Financial ratios
Profitability ratios
Gross profit margin
Operatinn profit margin
45.0%
40.0%
35.0%
Net profit margin
6.0%
Return on capital employed 24.5%
5.0%
23.0%
13.2%
33.5%
11.3%
29.7%
13.5%
36.8%
35.0%
30.0%
25.0%
20.0%
15.0%
Efficiency ratios
2013
2014
Inventory holding period
50.48
Settlement period for trade receivables 13.04
Settlement period for trade payables
52.42
2015
98.57
19.58
92.94
2016
73.93
19.01
69.70
2017
73.00
26.14
62.86
2015
1.16
0.49
2016
1.22
0.72
2017
3.20
2.38
10.0%
5.0%
0.0%
2012
Liquidity ratios
Current ratio
Acid-test ratio
2013
1.84
1.21
2014
1.36
0.54
3.00
2.50
Solvency ratio
Gearing ratio
Interest cover
3.50
2013
39.53%
6.20
2014
32.79%
7.00
2015
19.05%
15.09
2016
2017
7.89%
0.00%
37.67 #DIV/0!
2.00
1.50
1.00
0.50
2012
Index Income statemement
2013
Sale revenue
Cost of sales
Gross profit
Operating expenses
Operating profit
Interest payable
Profit before taxation
Taxation
Profit for the year
2014
35%
51%
11%
10%
13%
0%
15%
19%
13%
2015
-21%
-31%
-2%
-25%
51%
-30%
64%
4%
107%
2016
31%
33%
27%
45%
7%
-57%
12%
12%
12%
2017
7%
4%
10%
3%
21%
-100%
25%
14%
28%
Indexed financial position sta...