1. INTRODUCTION 2
2. COMPANY AND MARKET OVERVIEW 2
3. FINANCIAL STATEMENTS ANALYSIS OVERVIEW 5
3.1 Revenues 5
3.2 Total operational profits 6
3.3 Current Assets 7
3.4 Long Lived Assets 7
3.5 Dividends 8
4. RATIO ANALYSIS 9
4.1 Liquidity Ratios 9
4.2 Efficiency Ratios 10
4.3 Profitability Ratios 11
4.4 Gearing Ratios 12
5. TREND ANALYSIS 14
6. CONCLUSION 15
Appendix 1: Balance Sheet Horizontal Analysis 16
Appendix 2: Income Statement Horizontal Analysis 17
Appendix 3: Balance Sheet Vertical Analysis 18
Appendix 4: Income Statement Vertical Analysis 19
Appendix 5: List of Ratios 19
Appendix 6: Trend Analysis 2005-2009 19
In the present report we will analyze the …show more content…
FINANCIAL STATEMENTS ANALYSIS OVERVIEW
By analyzing Forel’s financial statements we are able to evaluate the company’s past performance as well as its current financial position.
In this part, we will proceed with the horizontal and vertical analysis of Forel’s income statement and balance sheet over a two year period (i.e. 2008-2009) as well as the trend analysis over a five year (i.e.2005-2009) accounting period.
The horizontal analysis is a line-by-line comparison of all accounts year over year, providing us with valuable information about the accounts that experienced a material change, whereas vertical analysis of the accounts helps us identify the most important accounts for the company. Forel’s vertical analysis over the income statement is made in respect to the net sales; whereas the vertical analysis over the balance sheet is made for the assets in respect to total assets and for equity and liabilities in respect to total liabilities.
For the purposes of our assignment, we will focus on the revenues, total operation profits, current assets, long lived assets and the dividends accounts.
Revenues is one of the most crucial accounts because it is indication of the company’s market share, it determines the profits from the operational activities and the prospects of the company.
|REVENUES ACCOUNT BALANCE CHANGE