The following table shows the summary balance sheet of a company for the years 2022 & 2021
Question:
The following table shows the summary balance sheet of a company for the years 2022 & 2021 (Amounts are in €). Perform a horizontal analysis of the balance sheets for the year 2022 with a base year in 2021.
ASSETS | 2022 | 2021 |
Total current assets | 239.530 | 191.484 |
Total fixed assets | 1.062.058 | 1.024.227 |
Total Assets | 1.301.588 | 1.215.711 |
LIABILITIES AND EQUITY | ||
Total current liabilities | 323.447 | 301.724 |
Total long-term liabilities | 500.223 | 415.337 |
Total Liabilities | 823.670 | 717.061 |
Total Liabilities and Equity | 1.301.588 | 1.215.711 |
B) Perform a vertical analysis (common size) of the results (amounts in euros) of the company for the years 2022 and 2021.
2022 | 2021 | |
Sales revenue | 395.178 | 433.164 |
Operating expenses | (387.179) | (372.240) |
Profit from the sale of rights | 23.649 | 6.991 |
Operating Profit | 31.648 | 67.915 |
Financial expenses | (35.419) | (27.668) |
Financial income | 204 | 256 |
Net financial expenses | (35.215) | (27.412) |
(Loss)/Profit from continuing operations before tax | (3.567) | 40.503 |
Credit (debit) taxes | 2.672 | (16.668) |
Net profit (loss) for the year | (895) | 23.835 |
C) Calculate the following ratios for the years 2022 and 2021, if you know that the company's outstanding shares are 160.000 (rounded to the 2nd decimal place).
i. General liquidity
ii. Asset turnover
iii. Operating profit margin
iv. Net working capital (amount)
v. Net profit margin
vi. Return on equity
vii. Liabilities to Equity
viii. Equity to total funds
xi. Earnings per share
D) Make a concise (25 lines) but critical assessment of the course of the finances of the company based on the year-on-year analysis of the ratios.
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams