Income Statement

For Year Ending Dec 31 2006 2007 2008 2009

Sales € 2,430 € 3,888 € 10,887 € 38,103
COGS € 1,580 € 2,527 € 7,403 € 27,815
Gross Profit € 850 € 1,361 € 3,484 € 10,288

Depreciation expense € 100 € 54 € 138 € 557

Other operation expense € 340 € 622 € 1,742 € 6,859
Operating Income € 410 € 685 € 1,604 € 2,872

Interest Expense € 150 € 36 € 163 € 653

Income Before Income Tax Expense € 260 € 649 € 1,441 € 2,219

Income Tax Before tax Expense € 65 € 162 € 360 € 555

Net Income € 195 € 487 € 1,081 € 1,664

Balance Sheet
DEC 31.. 2006 2007 2008 2009
Current Assets
Cash € 200 € 320 € 896 € 3,136
Receivables € 199 € 427 € 1,640 € 7,830
Inventory € 195 € 415 € 1,217 € 4,953
Total Current Assets € 594 € 1,162 € 3,753 € 15,919

Property & Equipment (at cost) € 608 € 1,023 € 3,110 € 13,608

Accumulated depreciation € (100) € (154) € (292) € (849)
Total Assets € 1,102 € 2,031 € 6,571 € 28,678

Current Liabilities
Accounts Payable € 50 € 75 € 674 € 3,458
Short-term Loans Payable € 201 € 282 € 1,895 € 9,743
Total Current Liabilities € 251 € 357 € 2,569 € 13,201

Long-term Debt € 100 € 321 € 1,600 € 6,000

Total Liabilities € 351 € 678 € 4,169 € 19,201

Stockholder's Equity
Paid-in capital € 656 € 1,021 € 1,789 € 8,000
Retained Earnings € 95 € 332 € 613 € 1,477
Total Stockholder's Equity € 751 € 1,353 € 2,402 € 9,477

Total Liabilities & Equity € 1,102.00 € 2,031.00 € 6,571.00 € 28,678.00

Balance 0 0 0 0
 Statement of Retained Earnings
For Year Ending Dec 31 2006 2007 2008 2009
Retained Earnings (beginning of yr) € - € 95 € 332 € 613
plus Net Income € 195 € 487 € 1,081 € 1,664
less Dividends € 100 € 250 € 800 € 800
Retained Earnings (end of yr) € 95 € 332 € 613 € 1,477

Product Information By Business Line Exhibit 3

For Year Ending Dec 31 2006 2007 2008 2009
Sales
Petrol € 1,458 € 2,411 € 7,295 € 28,197
Food, Snacks & Drinks € 972 € 1,477 € 3,592 € 9,906
Total € 2,430 € 3,888 € 10,887 € 38,103

Cost of Sales
Petrol € 1,050 € 1,760 € 5,325 € 21,147
Food, Snacks & Drinks € 530 € 767 € 2,078 € 6,668
Total € 1,580 € 2,527 € 7,403 € 27,815

Inventory
Petrol € 101 € 178 € 554 € 2,317
Food, Snacks & Drinks € 94 € 237 € 663 € 2,636
Total € 195 € 415 € 1,217 € 4,953

Benchmarking Competitors Exhibit 4

For Year Ending Dec 31 Zip AG Schnell AG SparPetrol AG
Days Receivable 35 32 40
Days Inventory 42 39 35
Days Payable 31 35 27
Gross Profit Percentage 28.0% 26.0% 30.0%
Return on Sales 8.0% 10.0% 6.0%
Return on Invested Capital 12.5% 14.0% 11.0%
Return on Assets 9.0% 12.0% 10.0%
Return on Equity 23.0% 19.0% 22.0%

Exchange Rates Between Swiss Fracs & Euros Exhibit 5

Currency Analysis 2006 2007 2008 2009
Average Exchange Rate 2.50 2.21 2.00 1.51

Petrol Retail Stations During 2006 to 2009 Exhibit 1

For Year Ending Dec 31 2006 2007 2008 2009
Germany
Stuttgart 2 2 5 10
Karlsruhe 0 1 2 5
Heidelberg 0 0 1 3
Freiberg 0 0 0 1
Heilbronn 0 0 0 0
Switzerland
Basel 2 2 3 5
Total Stations AT YEAR END 4 5 11 24
Station Growth Rate 0.0% 25.0% 120.0% 118.2%

Total Retail Square Meters (in thousands) 3 5 15 60

Number of Employees 4 7 23 88
Price per liter of petrol € 1.40 € 1.50 € 1.55 € 1.60
 Common Size
2006 2007 2008
Sales 100% 100% 100%
COGS 65% 65% 68%
Gross Profit 35% 35% 32%

Depreciation expense 4% 1% 1%
Other operation expense 14% 16% 16%
Operating Income 17% 18% 15%

Interest Expense 6% 1% 1%

Income Before Income Tax Expense 11% 17% 13%

Income Tax Before tax Expense 3% 4% 3%

Net Income 8% 13% 10%

Common Size
DEC 31.. 2006 2007 2008
Current Assets
Cash 18% 16% 14%
Receivables 18% 21% 25%
Inventory 18% 20% 19%
Total Current Assets 54% 57% 57%

Property & Equipment (at cost) 55% 50% 47%

Accumulated depreciation 9% 8% 4%
Total Assets 100% 100% 100%

Current Liabilities (Percentage of Total Liabilities Only)

Accounts Payable 14% 11% 16%
Short-term Loans Payable 57% 42% 45%
Total Current Liabilities 72% 53% 62%

Long-term Debt 28% 47% 38%

Total Liabilities 100% 100% 100%

Stockholder's Equity (Percentage of Total Equity Only)

Paid-in capital 87% 75% 74%
Retained Earnings 13% 25% 26%
Total Stockholder's Equity 100% 100% 100%

Total Liabilities & Equity 200% 200% 200%

Balance 0 0 0
 Common Size
For Year Ending Dec 31 2006 2007 2008
Retained Earnings (beginning of yr) #DIV/0! 100% 100%
plus Net Income #DIV/0! 513% 326%
less Dividends #DIV/0! 263% 241%
Retained Earnings (end of yr) #DIV/0! 349% 185%
 2009
100%
73% 68%
27% 32%

1% 2%
18% 16%
8% 14%

2% 3%

6% 12%
1% 3%

4% 9%

2009

11%
27%
17%
56%

47%
3% → 16% 15% 9% 6%
100%
Percentage of Total LIABILITIES & EQUITY
Liabilities Only) Current Liabilities
18% Accounts Payable 7% 6% 8% 9%
51% Short-term Loans Payable 29% 21% 23% 25%
69% Total Current Liabilities 2% 1% 1% 2%

31% Long-term Debt 14% 24% 19% 16%

100% Total Liabilities 50% 50% 50% 50%

al Equity Only) Stockholder's Equity

84% Paid-in capital 44% 38% 37% 42%
16% Retained Earnings 6% 12% 13% 8%
100% Total Stockholder's Equity 50% 50% 50% 50%

200% Total Liabilities & Equity 100% 100% 100% 100%

0 0 0 0 0
2009 2006 2007 2008 2009
100% 0% 29% 54% 42%
271% 205% 147% 176% 113%
131% 105% 75% 131% 54%
241% 100% 100% 100% 100%
Concepts Definition / Notes Increase

You extended credit, longer

time for customers to pay,
Money owed to the company your so good but you dont get
by its debtors. Alam mo na your cash easily.
Accounts Receivable yan Negative Effect in cash

Purchase or produce
Note: Cost of goods not sold is additional inventory, probably
going to be recorded as lower COGS
Inventory inventory in Balance sheet Negative Effect in Cash
Pay more in advance for rent,
Future expenses that have taxes and insurance
Prepaid been paid in advance Negative effect in cash

Buy more goods or services as

credit, Pay vendors later,
Money owed by a company to extend trade credit
Accounts Payable its creditors. Utaaaang Positive Effect on Cash

Take a longer to pay

Accured Payables
Any entry on the assets side
Any entry on liability side
Any entry on the Equity side
expenses recognized in the
books before it is paid for.
Typically periodic, high
probability that they will be
collected
Recorded at historical costs
employees, tax authorities or
others to whom debts
accumulate. Example are
payments at the start of next
year. You incrued na your work
sa december, pero bayad next
year pa. Dupang!
Positive Effect on Cash
Negative effect on cash
Positive Effect on Cash
Positive Effect on Cash

High current assets over

Current assets & Current Liabilities
Should be funded by the
current liabilities,
current liabilities means that:
1. you can expand your
business
2. high working capital
3. wrong strategy - you have a
lot of long term debt! Paying
or using current assets to pay
for long term loans may not
be good because of the
penalties.

Will affect A/R, inventory,

revenue is recognized when
sale takes place, whether
nakuha mo cash or hindi
Revenue Sales (accrual) more customers haha

"Cash income" = add

Net income depreciation to net income You are being more efficient
Profits earned during the
period are reinvested in the Well, high income is the driver
Retained earnings company, here
Financial Ratios
Liquidity
Working Capital
Current Ratio
Quick (Acid - Test) Ratio
Operating Cash flow
Activity
Accounts Receivable Turnover
Average Collection Period (ACP)
Inventory Turnover
Inventory Conversion Period (ICP)
Accounts Payable Turnover
Measures the ability of the firm to pay its current
Comparing the current debt
owed with the current assets Current ratio
Since it is uncertain that you
can sell your inventory quickly,
remove inventory (& prepaid)
in the equation
Compares company's ability to
earn cash with current debt
Measure management's performance in certain fu
Note: activity ratios vary significantly depending on the
mesures how efficient your
system is
essentially, you are financing
your customers purchases if
average number of days you increase ACP, probably
between the date a credit sale due to sales factor, CRM etc
is made and the money is high ACP - late mong
received from the customer makukuha cash mo
ratio showing how many times
a company has sold and
replaced inventory during a
period Higher must be better, since
Performance will depend on you are more efficiently
the target and the industry managing your inventory
How many days will you be
able to convert your inventory Either 1) cannot sell inventory,
to sales inefficient way of inventory
Inventory is affected by COGS management
or Sales. Higher sales, higher 2) explicit buffering of
inventory required, inventory
The company is paying off
suppliers at a faster rate, could
indicate financial condition of
the firm,

Average Payment Period (APP)
How many days will you pay
your supplier
Swerte mo, pumayag si
supplier na habaan pa iyong
pagbayad mo ng utang, can
strain relationship with your
client

efficiency with which assets

are used to generate sales
Note: be wary, some other
industries like retail have high
asset turnover, doesn't mean they produced more sales, or
that they have high income decreased assets at the same
Asset Turnover also!!! (retail = high COGS) sales.

Leverage Focus on the company's debt committments and capital struc

Increases profit potential, but

increased risk of failure to
meet the required interest /
Debt Ratio principal payments
indicator of the level of
Equity Ratio leverage used bycompany
Debt-Equity Ratio

Times interest earned ratio

Operating cash flows to fixed charge ratio

Profitability
Gross Profit Percentage
Net Profit Percentage (Return on Sales)
shows efficiency of the plant,
how much net income on the Either we raise the sales or we
sales that you had cut down the expenses, Mas
accumulated mataas mas efficient!

shows ability of the firm to

use its assets to generate
profits. Different to sa Asset
Return on Assets turnover ratio

shows income earned on

Return on Equity (Dupont Formula) owners investment Mas mataas balik sa owner
Earnings per Share

Cash Conversion Cycle

What to watch for?

Sales vs Net income
Long term debt maturities - and other
financial notes! operating cash vs fixed
Coverage ratios? payment
Decrease Formula

You collect amount owed

by the customers, less
credit, you get your cash
easily!
Positive effect in cash

Liquidate some or all of

inventory, probably
higher COGS/Sales
Positive effect in cash
Pay less in advance for
rent, taxes, insurance
Positive effect in cash

Buy less goods or

services on credit, pay
vendors sooner
Negative Effect on Cash

Make more frequent

payment to employees,
tax authorities, at kung
sinumang
pinagkakautangan mo.
Baet!
Negative Effect on Cash
Positive Effect on Cash
Negative effect on cash
Negative effect on cash

Lower current assents

over current liabilities
means that:
1. negative working
capital, you don't have
sufficient liquidity to
fund your assets

less customers, ano pa

ba nag dadrive ng sales
pababa? Wala na no
inefficient, higher
expenses, whether COGS
or operating expenses
Profits were paid to the
Owners,
ility of the firm to pay its current debt.
Current assets - Current liabilities

Current assets / current liabilities

(Cash + marketable securities +

accounts receivable) / Current
liabilities

Cash flow from operating

activities / Current liabilities

ment's performance in certain functions

ary significantly depending on the industry.

Better deal, you can

easily get your cash but
can ravage relationship
with customers (mainam
pag di mo sila sinanay) Acounts receivable / (sales / 365) Ave sales per day

Sales / inventory or COGS /

inventory - what? Bat dalwa?

Lower inventory - good,

nakakabenta ka, will be
bad if you cannot
support growth of your
sales (unless it is your
strategy) COGS / (Inventory / 365)

Taking longer to pay off

its suppliers Cogs / average accounts payable
 Usually, there are
discounts offered for you
to decrease your APP.
Will have problems in
liquidity if APP is shorter
than ACP and ICP Payables / (COGS/365) Ave COGS per day

net sales / Average assets

t committments and capital structure ng company

Total debt / equity

Total equity / Total assets

Total liability / Total assets
Earnings before int exp / interest
expense

Cash flow from operating

activities + interest payments +
income tax / (interest + loan
principal + capital lease)

Gross profit / sales

Problem with expenses,

etc Net income / sales

Net income / total assets

Leverage
Factor
mas mababa balik sa Profit Asset (asset
owner Net income / total equity margin Turnover /equity) OR
Net profit / average # of shares
Return on assets / (1 - Debt
Ratio)
 2006 2007 2008 2009
Liquidity
Working Capital 343 805 1184 2718
Current Ratio 1.692308 1.71386431 0.900216 0.829071
Quick (Acid - Test) Ratio 1.589641 2.09243697 0.987155 0.830695

Activity
Accounts Receivable Turnover 12.4217252 10.53411 8.047096
Average Collection Period (ACP) 29.3840021 34.64935 45.35798
Inventory Turnover 8.2852459 9.072304 9.016207
Inventory Conversion Period (ICP) 44.0542145 40.23234 40.48265
Accounts Payable Turnover 40.432 19.76769 13.46321
Average Payment Period (APP) 9.02750297 18.46447 27.11091
CCC 86.48905 110.861786 148.2175 185.3785
 2006 2007 2008 2009
Leverage
Debt Ratio 0.318512 0.333826 0.634454 0.669538
Equity Ratio 0.681488 0.666174 0.365546 0.330462
Debt-Equity Ratio 0.467377 0.501109 1.735637 2.026063

Profitability
Gross Profit Percentage 35% 35% 32% 27%
Net Profit Percentage (Return on Sales) 8% 13% 10% 4%
Return on Assets 18% 24% 16% 6%
Return on Equity (Dupont Formula) 26% 36% 45% 18%
Earnings per Share
Income statement
(In thousand of euros)
For the year ending Dec 31 2006 2007 2008
Sales 2430 3888 10887
COGS -1580 -2527 -7403
Gross Profit 850 1361 3484
Depreciation Expense 100 54 138
Other operating expense 340 622 1742
Operating income 410 685 1604
Interest expense 150 36 163
Income before tax expense 260 649 1441
Income tax expense 65 162 360
Net income 195 487 1081

Statement of Retained Earnings

(In thousand of euros)
For the year ending Dec 31 2006 2007 2008
Retained Earnings-beginning of the year 0 95 332
plus net income 195 487 1081
less dividends -100 -250 -800
Retained Earnings-end of the year 95 332 613

Balance Sheet 2006 2007 2008

(In thousand of euros)
December 31,
Current Assets
Cash 200 320 896
Receivables 199 427 1640
Inventory 195 415 1217
Total Current Assets 594 1162 3753

Property and equipment (a 608 1023 3110

Accumulated depreciatio -100 -154 -292
Total Assets 1102 2031 6571

Current Liabilities
Accounts Payable 50 75 674
Short-terms loan payable 201 282 1895
Total Current Liabilities 251 357 2569

Long-term debt 100 321 1600

Total Liabilities 351 678 4169

Stockholder's Equity
 Paid-in capital 656 1021 1789
Retained earnigs 95 332 613
Total Stockholder's Equity 751 1353 2402
Total liabilities and stockholder's equity 1102 2031 6571

Cash flow statement 2007 2008

(In thousand euros)
12/31/
Net Income 487 1081
Operating activities
Accounts Receivables -228 -1213
Inventory -220 -802
Accounts Payable 25 599
Depreciation expense 54 138
Total changes in
operating assets and
liabilities -369 -1278
Cash flow from operations 118 -197

Investing activities
Property and equipment -415 -2087
Cash flow from investing -415 -2087

Financing Activities
Short-term loan payable 81 1613
Long-term borrowing 221 1279
Dividends -250 -800
Paid-in capital 365 768
Cash flow from financing 417 2860

Net cash 120 576

Source of Funds
Net Income 487 1081
Accounts Payable 25 599
Depreciation 54 138
Short-term loan payable 81 1613
Long-term borrowing 221 1279
Paid-in capital 365 768
TOTAL 1233 5478
Uses of funds
Accounts Receivable 228 1213
Inventory 220 802
Net cash 120 576
Property and equipment 415 2087
Dividends 250 800
TOTAL 1233 5478
 Growth Rate Change
2009 2010 2007 2008 2009 2007
38103 47628.75 60% 180% 250% 1458
-27815 -32387.55 60% 193% 276% -947
10288 15241.2 60% 156% 195% 511
557 568.14 -46% 156% 304% -46
6859 7819.26 83% 180% 294% 282
2872 6853.8 67% 134% 79% 275
653 672.59 -76% 353% 301% -114
2219 6181.21 150% 122% 54% 389
555 1545.3025 149% 122% 54% 97
1664 4635.9075 150% 122% 54% 292

2009
613 95
1664 292
-800 -150
1477 237

2009

3136 120
7830 228
4953 220
15919 568

13608 415
-849 -54
28678 929

3458 25
9743 81
13201 106

6000 221
19201 327
 8000 365
1477 237
9477 602
28678 929

2009

1664

-6190
-3736
2784
557

-6585
-4921

-10498
-10498

7848
4400
-800
6211
17659

2240

1664
2784
557
7848
4400
6211
23464
 6190
3736
2240
10498
800
23464
 2008 2009
6999 27216
-4876 -20412
2123 6804
84 419
1120 5117
919 1268
127 490
792 778
198 195
594 583

237 281
594 583
-550 0
281 864

576 2240
1213 6190
802 3736
2591 12166

2087 10498
-138 -557
4540 22107

599 2784
1613 7848
2212 10632

1279 4400
3491 15032
 768 6211
281 864
1049 7075
4540 22107