Question: Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0)

Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0) parameters as mentioned in the table below. Based on the value's, you have calculated the Year 1 ratios and growth rates (05 Marks)

Particulars Year 0 Year 1
Growth rate in Sales revunes (y-o-y) N/A 4%
Gross Profit Margin 33% 34%
SG& A expenses/ Saled revenue 25% 25%
Depreciation Net PPEt-1 10% 10%
Net working Capital Turnover 5 5.5
Net PPE turnover 2 2.5
Corporate Tax rate 25% 25%

Net working Capital: Sales revenue/Net Working Capital , Net PPE Turnover: Sales revenue/Net PPE, Depreciation/Net PPE : Depreciation/ Beginning Period Net PPE.

Sales revenue for X Co. at Year 0 = $180 million. The growth rate of 4% at Year 1 denotes growth from year0 to year1 for sale revenue. There is no debt and interest payments. Beginning period Net PPE for Year 0 is $ 80 Million. Project Sales revenue, Net profit, Gross Profit, EBITDA, Net PPE and Net working capital values for Year 1.

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