Financial Statement Analysis

Amardeep Singh
(+91) 9711071834
amardeep_singh@hotmail.com
The next 3 worksheets include historical financial statements of a company.
Analyse all financial statements and comment on -
1) Profitability
2) Liquidity
3) Solvency and leverage
4) Working capital management
P&L
Profit and Loss Account
(Unless otherwise specified, all financials are in USD Mn) 2010 2011 2012

Revenues
Personal Care 60 78 96
Pet Nutrition 211 240 278
Others 131 168 204
Total 402 486 578

Operating Costs
Raw Material Cost 128 163 184
Employee Cost 51 58 72
Power Cost 2 2 3
Packaging Cost 9 10 12
Advertisement Cost 20 41 42
Commission 20 24 29
Maintenace Cost 1 1 1
Insurance Premium 2 2 2
Total Operating Costs 233 302 345

EBITDA 169 184 233

Depreciation 100 100 105
EBIT 69 84 128
Interest expense 60 59 56
PBT 9 25 72
Taxes 3 8 22
PAT 6 18 51
2013 2014 2015 2016 2017 2018 2019

123 152 175 199 229 265 305

307 331 368 410 457 509 567
234 265 278 294 317 343 375
664 748 821 903 1,004 1,117 1,247

205 232 260 292 329 371 418

86 94 94 104 115 127 140
4 4 4 5 5 6 7
14 16 17 18 20 22 25
44 46 82 99 120 145 175
33 37 41 54 60 78 87
1 1 1 1 1 1 1
2 2 2 2 2 2 2
389 432 502 576 654 753 854

274 315 320 327 350 364 393

110 110 160 170 170 170 170
164 205 160 157 180 194 223
53 50 47 44 41 38 35
112 156 113 113 140 156 188
34 47 34 34 42 47 56
78 109 79 79 98 109 132
BS
Balance Sheet
(Unless otherwise specified, all financials are in USD Mn) 2010 2011 2012
Sources of Funds

Liabilities

Current Liabilities & Provisions

Provisions for Employees fund 10 6 8
Advances from customers 5 8 12
Commission payable 4 4 10
Accounts payable 18 20 27
Total Current Liabilities & Provisions 36 38 57

Non Current Liabilities

Secured Loans 200 190 180
Unsecured Loans 300 285 270
Total Non Current Liabilities 500 475 450

Shareholders Equity
Paid-up Capital 550 550 550
Retained Earnings 6 24 74
Total Shareholders' Equity 556 574 624

Total Liabilities & Shareholders' Equity 1,092 1,087 1,131

Usage of Funds

Current Assets
Cash & Cash Equivalent 77 111 191
Inventory 36 60 65
Account Receivables 33 52 55
Loans & Advances 10 14 15
Total Current Assets 155 237 326

Non Current Assets

Gross Block 1,000 1,000 1,050
Accumulated depreciation 100 200 305
Net Block 900 800 745

Investments 37 50 60

Total Assets 1,092 1,087 1,131

- - -
 2013 2014 2015 2016 2017 2018 2019

9 9 9 11 12 14 14
4 7 7 7 7 7 7
6 6 8 10 9 16 12
24 27 34 31 42 34 51
43 49 58 60 70 70 84

170 160 150 140 130 120 110

255 240 225 210 195 180 165
425 400 375 350 325 300 275

550 550 550 550 550 550 550

153 262 341 420 518 628 759
703 812 891 970 1,068 1,178 1,309

1,170 1,261 1,324 1,380 1,463 1,548 1,669

256 448 134 249 451 708 945

69 72 92 92 106 117 135
60 51 61 62 92 92 113
20 16 16 16 16 16 16
405 586 303 420 665 933 1,209

1,100 1,100 1,600 1,700 1,700 1,700 1,700

415 525 685 855 1,025 1,195 1,365
685 575 915 845 675 505 335

80 100 106 115 123 110 125

1,170 1,261 1,324 1,380 1,463 1,548 1,669

- - - - - - -
CFS
Cash Flow Statement
(Unless otherwise specified, all financials are in USD Mn) 2010 2011 2012

Cashflow from Operating Activities

PAT 18 51
Add: Depreciation 100 105
Add: Interest Expense 59 56

Net Change in Working Capital

Add: Increase in Provisions for Employees fund (4) 2
Add: Increase in Advances from customers 3 4
Add: Increase in Commission payable 0 6
Add: Increase in Accounts payable 2 7
Less: Increase in Inventory (24) (5)
Less: Increase in Account Receivables (19) (3)
Less: Increase in Loans & Advances (4) (1)
Net Change in Working Capital (45) 10

Cashflow from Operations 131 221

Cashflow from Investment Activities

Less: Capex - (50)
Less: Increase in Investments (13) (10)
Cashflow from Investment Activities (13) (60)

Cashflow from Financing Activities

Add: New Equity Raised - -
Add/ Less: Debt Raised / (Repaid) (25) (25)
Less: Dividends Paid - -
Less: Interest Expense (59) (56)
Cashflow from Financing Activities (84) (81)

Net Cashflow 34 81

Cash Balance
Opening Balance 77 111
Net Cashflow 34 81
Closing Balance 77 111 191
2013 2014 2015 2016 2017 2018 2019

78 109 79 79 98 109 132

110 110 160 170 170 170 170
53 50 47 44 41 38 35

1 1 - 2 0 2 0
(8) 3 - - - - -
(4) - 2 3 (1) 7 (4)
(3) 3 7 (3) 11 (8) 17
(4) (3) (20) 0 (14) (11) (17)
(5) 9 (10) (1) (29) (0) (21)
(5) 4 - - - - -
(29) 17 (22) 1 (33) (11) (24)

212 286 264 293 275 306 312

(50) - (500) (100) - - -

(20) (20) (6) (9) (8) 13 (15)
(70) (20) (506) (109) (8) 13 (15)

- - - - - - -
(25) (25) (25) (25) (25) (25) (25)
- - - - - - -
(53) (50) (47) (44) (41) (38) (35)
(78) (75) (72) (69) (66) (63) (60)

65 191 (314) 116 202 257 237

191 256 448 134 249 451 708

65 191 (314) 116 202 257 237
256 448 134 249 451 708 945