Question: The Agfa-Gevaert group develops, produces and distributes an extensive range of analog and digital imaging systems and IT solutions, mainly for the printing industry and
The Agfa-Gevaert group develops, produces and distributes an extensive range of analog and digital imaging systems and IT solutions, mainly for the printing industry and the healthcare sector, as well as for specific industrial applications.
Agfa's headquarters and parent company are located in Mortsel, Belgium. The group's operational activities are divided in three independent business groups, Agfa Graphics, Agfa HealthCare and Agfa Specialty Products.
Agfa-Gevaert has production facilities around the world, with the largest production and research centers in Belgium, the United States, Canada, Germany, France, Italy and China. Agfa is commercially active worldwide through wholly owned sales organizations in more than 40 countries.
The consolidated financial statements have been prepared in accordance with IFRS issued by the IASB, as adopted by the European Union up to December 31, 2011. When you open the Agfa Annual Report for 2011, you find on page 7 the following 'Key figures':
For intangible assets and property, plant and equipment
Current assets minus current liabilities
Required
As a long-term current investor in Agfa Gevaert reviewing your portfolio, you want to have a quick impression of the financial situation and activity of the group to decide on the possible position you will take on this investment. On the basis of the 'Key figures', prepare a synthetic (and, by definition, simplified) purposeful financial statement analysis of the group over the period. Because your time is constrained, you can compute a few additional ratios but must limit their number. Explain what additional information each of the ratios adds to the knowledge of the investor.
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We compute some additional ratios 2011 2010 2009 2008 2007 Return on sales 23 35 03 55 13 or Return ... View full answer
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