Financial Analysis

Case Study
1981
1 The Liquidity ratios :

* Current ratio = Current assets 13725 2.3

Current Liabilities 5983

* Quick ratio = Current assets - Inv. 7197 1.2

Current Liabilities 5983

The Liquidity ratios shows the ability of the Co. to cover its short term liabilities

2 The Activity ratios :

* Inventory turnover = Cogs 44498 6.8

Inventory 6528

* Receivables turnover = Sales 52888 15.3

Receivables 3457

* Payables turnover = Cogs 44498 27.3

Payables 1629

* Total Assets turnover = Sales 52888 0.6

Total assets 87428

In general the Activity ratios gives a better indication of the Co. situation year on year

3 The Leverage ratio :

* debt to equity ratio = Total debt 50646 1.6

Total Equity 30799

* debt to assets ratio = Total debt 50646 0.6

Total assets 87428

Shows the companies dept capacity and financial resources

4 The Profitability ratios :

* Gross profit margin = Gross profit 8390 16%
Sales 52888

* Net profit margin = NPAT -4201 -8%

Sales 52888

* Return on investments = NPAT -4201 -5%

Total assets 87428

* Return on equity = NPAT -4201 -14%

Comm. Equity 30799
 1982 1983 1984 1985

29579 1.9 39314 2.0 45145 1.8 41583 1.6

15670 19523 25677 25531

19619 1.3 29354 1.5 35185 1.4 31623 1.2

15670 19523 25677 25531

90764 9.1 92137 9.3 92852 9.3 93495 9.4

9960 9960 9960 9960

119510 20.7 120400 20.9 120400 20.9 120400 20.9

5765 5765 5765 5765

90764 26.2 92137 26.6 92852 26.8 93495 27.0

3463 3463 3463 3463

119510 1.2 120400 1.2 120400 1.2 120400 1.3

98833 101768 100699 93757

n year on year

41939 1.0 33232 0.7 25066 0.5 17442 0.3

41224 49013 49957 50784

41939 0.4 33232 0.3 25066 0.2 17442 0.2

98833 101768 100699 93757
 28746 24% 28263 23% 27548 23% 26905 22%
119510 120400 120400 120400

13925 12% 13039 11% 7069 6% 6952 6%

119510 120400 120400 120400

13925 14% 13039 13% 7069 7% 6952 7%

98833 101768 100699 93757

13925 34% 13039 27% 7069 14% 6952 14%

41224 49013 49957 50784
Financial Analysis
Case Study
2002 2003 2004
1 The Liquidity ratios :

* Current ratio = Current assets 580.6 1.6 604.2 2.4 653.4 3.7
Current Liabilities 354.3 256.4 175.2

The Liquidity ratios shows the ability of the Co. to cover its short term liabilities

2 The Activity ratios :

* Total Assets turnover = Sales 247.4 0.2 304.3 0.2 380.5 0.3
Total assets 1280.8 1328.4 1348

In general the Activity ratios gives a better indication of the Co. situation year on year

3 The Leverage ratio :

* debt to equity ratio = Total debt 1280.8 1.5 1328.4 1.3 1348 1.2
Total Equity 867.3 1041 1160.3

Shows the companies dept capacity and financial resources

4 The Profitability ratios :

* Net profit margin = NPAT 74.9 30% 96.3 32% 126.2 33%
Sales 247.4 304.3 380.5

* Return on investments = NPAT 74.9 6% 96.3 7% 126.2 9%

Total assets 1280.8 1328.4 1348

* Return on equity = NPAT 74.9 9% 96.3 9% 126.2 11%

Equity 867.3 1041 1160.3