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ASSIGNMENT TOPIC

Financial Statements Analysis


Credit Assignment
By

Govinda Kumar

Credit Assignment for BBA-17 (introduction to business finance)


presented to (sir mohib)
SBBU School of Business
SHAHEED BENAZIR BHUTTO UNIVERSITY, SB

Methods of Financial Statement Analysis


1. Horizontal Analysis
2. Vertical Analysis
3. Common-Size Statements
4. Trend Percentages

HORIZENTAL ANALYSIS ON INCOME STATEMEN


ENGRO FOOD
INCOME STATEMENT
Discription 2011 2012 2013

Net sale 29,859,228 40,168,919 37,890,688


Cost og good sold 23,230,446 29,848,301 29,747,587
Gross profit 34,926,132 10,320,618 8,101,245
Distribution and Marketing Expens 3,716,489 4,709,275 4,692,502
Administrative expenses 504,722 740,690 1,041,254
Other operating expenses 208,902 429,763 103,770
Other income 213,133 382,402 304,854

Operating Profit 2,411,801 4,823,292 304,854


Other expenses 596,328
Finance cost 1,049,141 902,503 784,904
Profit Befor Taxation 1,362,660 3,920,789 494,355
Taxation 471,687 1,325,616 296,820
Profit For the year 890,237 2,595,173 210,960
Earning per share-Basic and diluted 0.22 3.43 0.28

HORIZENTAL ALANYSIS ON BALANCE SHEET

BALANCE SHEET
ASSETS 2011 2012 2013

Non Current Assets


Property, plant 9,615,426 10,958,079 14,509,608
Biological Assets 496,809 668,445 716,456
Intangible Assets 133,598 104,569 603,719
Long-term Deposit 24,212 81,862 93,132
Compensation Balance 883,018 168,865

Total Non Current Assets 10,270,045 12,675,983 16,091,789


Current Assets
Store Tools 571,812 675,807 739,671
Stock in Trade 2,637,816 3,494,805 3,199,390
Trade Debt 87,121 149,074 245,767
Advance Payments 266,093 261,790 186,745
Other Receivables 1,160,126 1,440,167 2,359,162
Compensation Expense 1,443 334,714 136,152
Taxes 25,767 636,530
Investments 1,294,000 2,706,750 170,000
Cash 350,728 422,006 575,036
Total Current Assets 6,369,139 9,512,702 8,248,521
Total Assets 16,639,184 22,188,685 25,694,714

LIABILITIES AND EQUITITY

Liabilities 2011 2012 2013


Equitity
Share capital 7,517,889 7,616,776 7,665,961
Issued capital 1,234 865,354
Share premium 722,182 810,280 407,180
Hedging resource -18,178 16,761 -9,581
Accumulate loss -964,951 -1,610,222 -34,839
Other resource -628,780
Total Equity 7,236,942 10,054,237 10,760,569
Non Current Liabilities
Long-term finance 5,610,000 6,023,070 7,126,994
Finance lease 2,589
Taxation 306,090 1,625,520 1,538,538
Pension share 1,870
Deferred income 1,625,520 9,410
Total Non Current
Liability 5,922,549 7,692,980 8,674,987
Current Liabilities
Long-term finance 465,000 1,685,823 1,032,008
Obligation lease finance
2,590 2,584
Trade payable 2,334,506 2,358,793 3,405,175
Dividend 27,966 229,312
Accrued
interest long term 368,152 302,273 229,312
Accrued
interest short term 20,229 6,568 10,337
Short-term
finance 252,250 85,389 213,405
Total Current
Liability 3,479,693 4,441,432 4,904,754
Total Liability 16,639,184 22,188,685 24,340,310

VERTICAL ANALYSIS ON INCOME STALEMENT


ENGRO FOOD
INCOME STATEMENT
Discription 2011 2012 2013

Net sale 29,859,228 40,168,919 37,890,688


Cost og good sold 23,230,446 29,848,301 29,747,587
Gross profit 34,926,132 10,320,618 8,101,245
Distribution and Marketing Expens 3,716,489 4,709,275 4,692,502
Administrative expenses 504,722 740,690 1,041,254
Other operating expenses 208,902 429,763 103,770
Other income 213,133 382,402 304,854

Operating Profit 2,411,801 4,823,292 304,854


Other expenses 596,328
Finance cost 1,049,141 902,503 784,904
Profit Befor Taxation 1,362,660 3,920,789 494,355
Taxation 471,687 1,325,616 296,820
Profit For the year 890,237 2,595,173 210,960
Earning per share-Basic and diluted 0.22 3.43 0.28

NOW VERTICAL ANALYSIS ON BALANCE SHEET


ENGRO FOOD
BALANCE SHEET
ASSETS 2011 2012 2013
Non Current Assets
Property, plant 9,615,426 10,958,079 14,509,608
Biological Assets 496,809 668,445 716,456
Intangible Assets 133,598 104,569 603,719
Long-term Deposit 24,212 81,862 93,132
Compensation Balance 883,018 168,865

Total Non Current Assets 10,270,045 12,675,983 16,091,789


Current Assets
Store Tools 571,812 675,807 739,671
Stock in Trade 2,637,816 3,494,805 3,199,390
Trade Debt 87,121 149,074 245,767
Advance Payments 266,093 261,790 186,745
Other Receivables 1,160,126 1,440,167 2,359,162
Compensation Expense 1,443 334,714 136,152
Taxes 25,767 636,530
Investments 1,294,000 2,706,750 170,000
Cash 350,728 422,006 575,036
Total Current Assets 6,369,139 9,512,702 8,248,521
Total Assets 16,639,184 22,188,685 25,694,714

LIABILITIES AND EQUITITY


Liabilities 2011 2012 2013
Equitity
Share capital 7,517,889 7,616,776 7,665,961
Issued capital 1,234 865,354
Share premium 722,182 810,280 407,180
Hedging resource -18,178 16,761 -9,581
Accumulate loss -964,951 -1,610,222 -34,839
Other resource -628,780
Total Equity 7,236,942 10,054,237 10,760,569
Non Current Liabilities
Long-term finance 5,610,000 6,023,070 7,126,994
Finance lease 2,589
Taxation 306,090 1,625,520 1,538,538
Pension share 1,870
Deferred income 1,625,520 9,410
Total Non Current
Liability 5,922,549 7,692,980 8,674,987
Current Liabilities
Long-term finance 465,000 1,685,823 1,032,008
Obligation lease finance
2,590 2,584
Trade payable 2,334,506 2,358,793 3,405,175
Dividend 27,966 229,312
Accrued
interest long term 368,152 302,273 229,312
Accrued
interest short term 20,229 6,568 10,337
Short-term
finance 252,250 85,389 213,405
Total Current
Liability 3,479,693 4,441,432 4,904,754
Total Liability 16,639,184 22,188,685 24,340,310
COMMON SIZE STATEMENT OF INCOME STATEMENT

VERTICAL ANNALYSE IN PERCENT YEAR WI


Discription 2011 2012 2013

Net sale
Cost og good sold 78% 74% 79%
Gross profit 117% 26% 21%
Distribution and Marketing Expens 12% 12% 12%
Administrative expenses 2% 2% 3%
Other operating expenses 1% 1% 0%
Other income 1% 1% 1%
Operating Profit 8% 12% 1%
Other expenses 2%
Finance cost 4% 2% 2%
Profit Befor Taxation 5% 10% 1%
Taxation 2% 3% 1%
Profit For the year 3% 6% 1%
Earning per share-Basic and diluted 0.22% 3.43% 0.28%

COMMON SIZE STATEMENT OF BALANCE SHEET


ASSETS

ASSETS 2011 2012 2013


Non Current Assets
Property, plant 58% 49% 56%
Biological Assets 3% 3% 3%
Intangible Assets 1% 0% 2%
Long-term Deposit 0% 0% 0%
Compensation Balance 4% 1%

Total Non Current Assets 62% 57% 63%


Current Assets
Store Tools 3% 3% 3%
Stock in Trade 16% 16% 12%
Trade Debt 1% 1% 1%
Advance Payments 2% 1% 1%
Other Receivables 7% 6% 9%

Compensation Expense 0% 2% 1%
Taxes 0% 2%
Investments 8% 12% 1%

Cash 2% 2% 2%
Total Current Assets 38 43% 32%
Total Assets 16639184 22188685% 25694714

Trend Percentage of Inco

120%

100%

80%

60%

40%

20%

0%

-20%
2011 Moving average (2011) Moving average (2011)
2013 Moving average (2013) 2014
0%

-20%
2011 Moving average (2011) Moving average (2011)
2013 Moving average (2013) 2014

ASSETS

ASSETS 2011 2012 2013


Non Current Assets
Property, plant 58% 49% 56%
Biological Assets 3% 3% 3%
Intangible Assets 1% 0% 2%
Long-term Deposit 0% 0% 0%
Compensation Balance 4% 1%
Total Non Current Assets 62% 57% 63%
Store Tools 3% 3% 3%
Stock in Trade 16% 16% 12%
Trade Debt 1% 1% 1%
Advance Payments 2% 1% 1%
Other Receivables 7% 6% 9%

Compensation Expense 0% 2% 1%
Taxes 0% 2%

Investments 8% 12% 1%
Cash 2% 2% 2%
Total Current Assets 38% 43% 32%

Total Assets 16639184 22,188,685 25694714


2011 Trend line percent of balance
Moving average (2011)
2012 (ASSETS)

70%

60%

50%

40%

30%

20%

10%

0%
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2011 Moving average (2011)


2012
2013
Moving average (2012)
Moving average (2013)
Trendl
2014 Moving average (2014)
(
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
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MENT TOPIC
tements Analysis
Assignment

nda Kumar

n to business finance)
d to (sir mohib)
ool of Business
BHUTTO UNIVERSITY, SBA

E STATEMENT
change in # change in percent % change in #
change in %
2012-2011 In 2012 in 2013-20 in 2013
2014

43,027,377 10,309,691 35% 8,031,460 27%


34,926,132 6,617,855 28% 6,517,141 28%
8,143,101 -24,605,514 -70% -26,824,887 -77%
5,063,279 992,786 27% 976,013 26%
1,282,240 235,968 47% 536,532 106%
188,729 220,861 106% -105,132 -50%
324,301 169,269 79% 91,721 43%
0 #DIV/0! 0 #DIV/0!
2,327,587 2,411,491 100% -2,106,947 -87%
881,456 0 #DIV/0! 596,328 #DIV/0!
1,236,904 -146,638 -14% -264,237 -25%
507,780 2,558,129 188% -868,305 -64%
394,476 853,929 181% -174,867 -37%
888,831 1,704,936 192% -679,277 -76%
1.16 3 1459% 0 27%

LANCE SHEET change in # change in % change in # change in %


2014 2012-2011 in 2012 2013-2011 in 2013

15,021,519 1,342,653 14% 4,894,182 51%


858,680 171,636 35% 219,647 44%
112,208 -29,029 -22% 470,121 352%
109,174 57,650 238% 68,920 285%
112,581 883,018 #DIV/0! 168,865 #DIV/0!
0 #DIV/0! 0 #DIV/0!
16,214,162 2,405,938 23% 5,821,744 57%
0 #DIV/0! 0 #DIV/0!
788,141 103,995 18% 167,859 29%
3,697,787 856,989 32% 561,574 21%
95,662 61,953 71% 158,646 182%
113,501 -4,303 -2% -79,348 -30%
2,865,697 280,041 24% 1,199,036 103%
90,430 333,271 23096% 134,709 9335%
1,637,018 25,767 #DIV/0! 636,530 #DIV/0!
1,412,750 109% -1,124,000 -87%
197,106 71,278 20% 224,308 64%
9,485,552 3,143,563 49% 1,879,382 30%
24,340,310 5,549,501 33% 9,055,530 54%

change in # change in % chang in #change in


2012-2011 in 2012 2013-2011 in 2013
2014

7,665,961 98,887 1% 148,072 2%


865,354 1,234 #DIV/0! 865,354 #DIV/0!
399,740 88,098 12% -315,002 -44%
-35,715 34,939 -192% 8,597 -47%
-645,271 67% 930,112 -96%
-35,715 0 #DIV/0! -628,780 #DIV/0!
11,577,787 2,817,295 39% 3,523,627 49%
#VALUE! #VALUE! #VALUE! #VALUE!
5,476,993 413,070 7% 1,516,994 27%
-2,589 -100% -2,589 -100%
1,185,717 1,319,430 431% 1,232,448 403%
-1,870 -100% -1,870 -100%
2,516 1,625,520 #DIV/0! 9,410 #DIV/0!

6,665,226 1,770,431 30% 2,752,438 46%


#VALUE! #VALUE! #VALUE! #VALUE!
1,605,597 1,220,823 263% 567,008 122%

-6 0% -2,590 -100%
3,222,697 24,287 1% 1,070,669 46%
41,397 -27,966 -100% 201,346 720%

194,028 -65,879 -18% -138,840 -38%

61,092 -13,661 -68% -9,892 -49%

2,331,893 -166,861 -66% -38,845 -15%

7,456,701 961,739 28% 1,425,061 41%


25,699,714 5,549,501 33% 7,701,126 46%

LEMENT
VERTICAL ANNALYSE IN PERCENT YEAR WISE
2014 2011 2012 2013 2014

43,027,377
34,926,132 78% 74% 79% 81%
8,143,101 117% 26% 21% 19%
5,063,279 12% 12% 12% 12%
1,282,240 2% 2% 3% 3%
188,729 1% 1% 0% 0%
324,301 1% 1% 1% 1%

2,327,587 8% 12% 1% 5%
881,456 2% 2%
1,236,904 4% 2% 2% 3%
507,780 5% 10% 1% 1%
394,476 2% 3% 1% 1%
888,831 3% 6% 1% 2%
1.16 0.22 3.43 0.28 1.16

E SHEET VERTICAL ANALYSIS OF BALANCESHEET


GRO FOOD
LANCE SHEET VERTICAL ANNALYSE IN PERCENT YEAR WISE
2014 2011 2012 2013 2014

15,021,519 58% 49% 56% 62%


858,680 3% 3% 3% 4%
112,208 1% 0% 2% 0%
109,174 0% 0% 0% 0%
112,581 4% 1% 0%

16,214,162 62% 57% 63% 67%

788,141 3% 3% 3% 3%
3,697,787 16% 16% 12% 15%
95,662 1% 1% 1% 0%
113,501 2% 1% 1% 0%
2,865,697 7% 6% 9% 12%
90,430 0% 2% 1% 0%
1,637,018 0% 2% 7%
8% 12% 1% 0%
197,106 2% 2% 2% 1%
9,485,552 38% 43% 32% 39%
24,340,310 16,639,184 22,188,685 25,694,714 24,340,310

VERTICAL ANALYSIS OF BALANCESHEET


VERTICAL ANNALYSE IN PERCENT YEAR WISE
2014 2011 2012 2013 2014

7,665,961 45% 34% 31% 30%


865,354 0% 4% 3%
399,740 4% 4% 2% 2%
-35,715 0% 0% 0% 0%
-6% -7% 0%
-35,715 -3% 0%
11,577,787 43% 45% 44% 45%

5,476,993 34% 27% 29% 21%


0%
1,185,717 2% 7% 6% 5%
0%
2,516 7% 0% 0%

6,665,226 36% 35% 36% 26%

1,605,597 3% 8% 4% 6%

0% 0%
3,222,697 14% 11% 14% 13%
41,397 0% 1% 0%

194,028 2% 1% 1% 1%

61,092 0% 0% 0% 0%

2,331,893 2% 0% 1% 9%

7,456,701 21% 20% 20% 29%


25,699,714 16,639,184 22,188,685 24,340,310 25,699,714
E STATEMENT

YSE IN PERCENT YEAR WISE


2014

81%
12%
12%
3%
0%
1%
5%
2%
3%
1%
1%
2%
1.16%

CE SHEET

LIABILITIES AND EQUITITY


2014 2011 2012
Equitity
62% Share capital 45% 34%
4% Issued capital 0%
0% Share premium 4% 4%
0% Hedging resource 0% 0%
0% Accumulate loss 6% 7%
Other resource
67% Total Equity 43% 45%
Non Current Liabilities
3% Long-term fnance 34% 27%
15% Finance lease 0%
0% Taxation 2% 7%
0% Pension share 0%
12% Deferred income 7%
Total Non Current
0% Liability 36% 35%
7% Current Liabilities
0% Long-term fnance 3% 8%
Obligation lease fnance
1% 0% 0%
39% Trade payable 14% 11%
24340310% Dividend 0%
Accrued
interest long term 2% 1%
Accrued
interest short term 0% 0%
Short-term
fnance 2% 0%
Total Current
Liability 21% 20%
Total Liability 16,639,184 22,188,685

ntage of Income Statement

Moving average (2011) 2012 Moving average (2012)


2014 Moving average (2014)
Moving average (2011) 2012 Moving average (2012)
2014 Moving average (2014)

LIABILITIES AND EQUITITY


2014 2011 2012 2013
Share capital 45% 34% 31%
62% Issued capital 0% 4%
4% Share premium 4% 4% 2%
0% Hedging resource 0% 0% 0%
0% Accumulate loss 6% 7% 0%
0% Other resource 3%
67% Total Equity 43% 45% 44%
3% Long-term fnance 34% 27% 29%
15% Finance lease 0%
0% Taxation 2% 7% 6%
0% Pension share 0%
12% Deferred income 7% 0%
Total Non Current
0% Liability 36% 35% 36%
7% Long-term fnance 3% 8% 4%

Obligation lease
fnance
0% 0% 0%
1% Trade payable 14% 11% 14%
39% Dividend 0% 1%
Accrued
24,340,310 interest long term 2% 1% 1%

Accrued
interest short term 0% 0% 0%
Short-term
fnance 2% 0% 1%
Total Current
Liability 21% 20% 20%
t of balance sheet
ETS)

t ts es
eb en bl se xe
s ts s h ets
D m a en Ta en Ca As
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Trendline percent of balance sheet


(Liabilities and Equitity)

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Ob
change in #change in %
in 2014-2011in 2014

13,168,149 44%
11,695,686 50%
-26,783,031 -77%
1,346,790 36%
777,518 154%
-20,173 -10%
111,168 52%
0 #DIV/0!
-84,214 -3%
881,456 #DIV/0!
187,763 18%
-854,880 -63%
-77,211 -16%
-1,406 0%
1 427%

change in # change in %
2014-2011 in 2014

5,406,093 56%
361,871 73%
-21,390 -16%
84,962 351%
112,581 #DIV/0!
0 #DIV/0!
5,944,117 58%
0 #DIV/0!
216,329 38%
1,059,971 40%
8,541 10%
-152,592 -57%
1,705,571 147%
88,987 6167%
1,637,018 #DIV/0!
-1,294,000 -100%
-153,622 -44%
3,116,413 49%
7,701,126 46%

change in # change in %
2014-2011 in 2014

148,072 2%
865,354 #DIV/0!
-322,442 -45%
-17,537 96%
964,951 -100%
-35,715 #DIV/0!
4,340,845 60%
#VALUE! #VALUE!
-133,007 -2%
-2,589 -100%
879,627 287%
-1,870 -100%
2,516 #DIV/0!

742,677 13%
#VALUE! #VALUE!
1,140,597 245%

-2,590 -100%
888,191 38%
13,431 48%

-174,124 -47%

40,863 202%

2,079,643 824%

3,977,008 114%
9,060,530 54%
LANCESHEET
D EQUITITY
2013 2014

31% 30%
4% 3%
2% 2%
0% 0%
0%
3% 0%
44% 45%

29% 21%
6% 5%

0% 0%

36% 26%

4% 6%

14% 13%
1% 0%

1% 1%

0% 0%

1% 9%

20% 29%
24,340,310 25,699,714
2014
30%
3%
2%
0%

0%
45%
21%

5%

0%

26%
6%

13%
0%

1%

0%

9%

29%
et

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