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    Horizontal Analysis: Balance Sheet

    Uploaded by

    Nubairah Mushtaq
    The document provides horizontal and vertical analysis of the balance sheet and income statement for 2010 and 2009. Some key points from the analysis: - Total assets increased 45.71% from 2010 to 2009, driven mainly by increases in non-current assets (+25.98%) and current assets (+56.66%). - Total liabilities increased 75.74% from 2010 to 2009 mainly due to a 145.04% rise in short term borrowings. - Sales increased 19.45% while costs rose 20.17%, reducing the gross profit growth to 17.78%. - Profit after taxation declined 37.93% from 2009 to 2010 as expenses grew faster than revenues.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    Horizontal Analysis: Balance Sheet

    Uploaded by

    Nubairah Mushtaq
    53 views9 pages
    The document provides horizontal and vertical analysis of the balance sheet and income statement for 2010 and 2009. Some key points from the analysis: - Total assets increased 45.71% from 2010 to 2009, driven mainly by increases in non-current assets (+25.98%) and current assets (+56.66%). - Total liabilities increased 75.74% from 2010 to 2009 mainly due to a 145.04% rise in short term borrowings. - Sales increased 19.45% while costs rose 20.17%, reducing the gross profit growth to 17.78%. - Profit after taxation declined 37.93% from 2009 to 2010 as expenses grew faster than revenues.

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    Original Title

    Horizontal Analysis

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    The document provides horizontal and vertical analysis of the balance sheet and income statement for 2010 and 2009. Some key points from the analysis: - Total assets increased 45.71% from 2010 to 2009, driven mainly by increases in non-current assets (+25.98%) and current assets (+56.66%). - Total liabilities increased 75.74% from 2010 to 2009 mainly due to a 145.04% rise in short term borrowings. - Sales increased 19.45% while costs rose 20.17%, reducing the gross profit growth to 17.78%. - Profit after taxation declined 37.93% from 2009 to 2010 as expenses grew faster than revenues.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    53 views9 pages

    Horizontal Analysis: Balance Sheet

    Uploaded by

    Nubairah Mushtaq
    The document provides horizontal and vertical analysis of the balance sheet and income statement for 2010 and 2009. Some key points from the analysis: - Total assets increased 45.71% from 2010 to 2009, driven mainly by increases in non-current assets (+25.98%) and current assets (+56.66%). - Total liabilities increased 75.74% from 2010 to 2009 mainly due to a 145.04% rise in short term borrowings. - Sales increased 19.45% while costs rose 20.17%, reducing the gross profit growth to 17.78%. - Profit after taxation declined 37.93% from 2009 to 2010 as expenses grew faster than revenues.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 9

    HORIZONTAL ANALYSIS

    BALANCE SHEET

    ASSETS 2010 2009


    NON-CURRENT ASSETS
    Property 794771 614004 29.44
    Intangibles 25688 35668 -27.98
    Long Term Deposits 4509 5163 -12.66
    824968 654835 25.98
    CURRENT ASSETS
    Stores, spare parts and loose tools 5360 5432 -1.32
    Stock in trade 1502232 846977 77.36
    Trade Debts 253050 274556 -7.83
    Advances 43867 29044 51.03
    Trade deposits and prepayments 10118 6660 51.92
    Other receivables 20664 2632 685.10
    Cash and bank balances 14101 15205 -7.26
    1849392 1180506 56.66
    2674360 1835341 45.71
    SHARE CAPITAL AND RESERVES
    Issued ,subscribed and paid-up capital 414427 331542 24.99
    Unappropriated profit 327518 323844 1.13
    741945 655386 13.20
    NON-CURRENT LIABILITIES
    Long term financing 20000 60000 -66.66
    Liabilities against assets subject to finance lease 2260 13700 -83.50
    Deferred tax 72621 59999 21.03
    Retirement benefits obligations 10707 6780 57.92
    105588 140479 -24.83
    CURRENT LIABILITIES
    Trade and other payables 530063 460626 15.07
    Accrued interest/mark-up 28319 17764 59.41
    Short term borrowings 1189769 485536 145.04
    Current maturity of:
    Long term financing 40000 40000 0
    Liabilities against assets subject to finance lease 10238 12510 -18.16
    Taxation-Provision less payments 12407 8397 47.75
    Due to the government 16031 14643 9.47
    1826827 1039476 75.74
    2674360 1835341 45.71
    HORIZONTAL ANALYSIS

    INCOME STATEMENT

    2010 2009
    Sales 4489946 3758706 19.45
    Cost of Sales (3163199) (2632255) 20.17
    Gross Profit 1326747 1126451 17.78
    Distribution Cost (909818) (665664) 36.67
    Administrative Expenses (164303) (149802) 9.68
    Other Operating Expenses (17295) (20448) -15.41
    Other Operating Income 23214 17006 36.50
    Operating Profit 258545 307543 -15.93
    Finance Cost (99364) (86841) 14.42
    Profit Before Taxation 159818 220702 -27.58
    Taxation (72622) (81241) -10.06
    Profit After Taxation 86559 139461 -37.93
    Other Comprehensive Income - -
    Total Comprehensive Income 86559 139461 -37.93
    VERTICAL ANALYSIS
    BALANCE SHEET

    ASSETS 2010 2009


    NON-CURRENT ASSETS
    Property 794771 29.71 614004 33.45
    Intangibles 25688 0.96 35668 1.94
    Long Term Deposits 4509 0.16 5163 0.28
    824968 30.84 654835 35.67
    CURRENT ASSETS
    Stores, spare parts and loose tools 5360 0.200 5432 0.295
    Stock in trade 1502232 56.17 846977 46.14
    Trade Debts 253050 9.46 274556 14.95
    Advances 43867 1.64 29044 1.58
    Trade deposits and prepayments 10118 0.37 6660 0.36
    Other receivables 20664 0.77 2632 0.14
    Cash and bank balances 14101 0.52 15205 0.82
    1849392 69.15 1180506 64.32
    2674360 0 1835341 68.62
    SHARE CAPITAL AND RESERVES
    Issued ,subscribed and paid-up capital 414427 15.49 331542 18.06
    Unappropriated profit 327518 12.24 323844 17.64
    741945 27.74 655386 35.70
    NON-CURRENT LIABILITIES
    Long term financing 20000 0.74 60000 3.26
    Liabilities against assets subject to finance lease 2260 0.08 13700 0.74
    Deferred tax 72621 2.71 59999 3.26
    Retirement benefits obligations 10707 0.40 6780 0.36
    105588 3.94 140479 7.65
    CURRENT LIABILITIES
    Trade and other payables 530063 19.82 460626 17.22
    Accrued interest/mark-up 28319 1.05 17764 0.96
    Short term borrowings 1189769 44.48 485536 26.45
    Current maturity of:
    Long term financing 40000 1.49 40000 2.17
    Liabilities against assets subject to finance lease 10238 0.38 12510 0.68
    Taxation-Provision less payments 12407 0.46 8397 0.45
    Due to the government 16031 0.59 14643 0.79
    1826827 68.30 1039476 38.86
    2674360 0 1835341 68.62
    VERTICAL ANALYSIS
    INCOME STATEMENT
    2010 2009
    Sales 4489946 5187.1 3758706 2695.5
    Cost of Sales (3163199) 3654.3 (2632255) 1887.4
    Gross Profit 1326747 1532.7 1126451 807.7
    Distribution Cost (909818) 1051.09 (665664) 477.31
    Administrative Expenses (164303) 189.8 (149802) 107.4
    Other Operating Expenses (17295) 19.98 (20448) 14.66
    Other Operating Income 23214 26.81 17006 12.19
    Operating Profit 258545 298.16 307543 220.5
    Finance Cost (99364) 114.7 (86841) 62.26
    Profit Before Taxation 159818 183.8 220702 158.2
    Taxation (72622) 83.89 (81241) 58.25
    Profit After Taxation 86559 0 139461 0
    Other Comprehensive Income - -
    Total Comprehensive Income 86559 0 139461 0
    RATIOS
    CALCULATION

    Current Asset
    1. Current Ratio =
    Current Liabilities

    1849392 1180506
    =
    1826826
    = 1039476

    =1.01:1 = 1.14:1

    Cash+ Marketable Securities+ Net Recievables


    2. Acid Test Ratio= Current Liabilities

    14101+10118 +20664 15205+ 2632+ 6660


    =
    1826827
    = 1039476

    = 0.02:1 = 0.023:1

    Net Credit Sales


    3. Recievables Turnover Ratio = Average Net Recievables

    Beginning+ Ending
    Average Net Recievables = 2

    ( 20664+10118 )+(6660+2632) ( 6660+2632 )+(2333+1199)


    = 2
    = 2

    = 20,037 = 6,412
    Net Credit Sales
    Recievables Turnover Ratio = Average Ne t Recievables

    4489946 3758706
    = 20037 = 6412

    = 224.08:1 = 586.19:1
    Receivable Turnover Ratio
    4. Days Receivable Outstanding = 365

    224.08 586.19
    = 365 = 365

    = 0.61:1 = 1.606:1
    Cost of Sale
    5. Inventory Turnover Rate = Average Inventory

    =2.69:1 =3.29:1
    Inventory Turnover
    6. Days Inventory Turnover Rate= 365

    2.69 3.29
    = 365 = 365

    =0.73 = 0.91

    PROFITABILITY RATIO
    Net Income
    1. Profit Margin on Sales = Net Sales

    86559 139461
    = 4489946 = 3758706

    = 0.019:1 =0.037:1
    Net Sales
    2. Asset Turnover Ratio= Average Assets

    4489946 3758706
    = 2299850.5 = 1829215.5

    = 1.95:1 =2.05:1
    Net Income
    3. Return on Assets = Average Assets

    86559 139461
    = 2299850.5 = 1829215.5

    =0.037:1 = 0.076

    4. Return on Common Stockholder’s Equity=


    Net Income
    Average Common Stockholde r ' s Equity

    Average Common Stockholder’s Equity=


    Beggining Share Capital+ Ending Share Capital
    2

    741945+ 655386 655386+515925


    2 =698665.5 2 = 585655.5

    Return on Common Stockholder’s Equity=


    Net Income
    Average Common Stockholde r ' s Equity

    86559 139461
    698665.5
    = 0.12:1 585655.5
    =0.24:1

    Net Income
    5. Earnings Per Share = Weighted Average Common SharesOutstanding
    86559 139461
    = 41443 41443

    = 2.09 =3.37
    market price per share of common stock
    6. Price Earnings Ratio= earning per share

    62.84
    = 2.09 = 30.06
    Cash Dividend
    7. Payout Ratio = Net Income

    15 205
    = 86559 = 139461

    = 0.017:1 = 0.014:1

    SOLVENCY RATIO

    Total Debts
    1. Debt To Total Assets Ratio = Total Assets
    1826827 1039476
    = 2674360 = 1835341

    = 0.68:1 =0.56:1

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