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    FM Group 10

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    Anju tp
    The document shows financial statements for a company from 2015 to 2019, including income statements and balance sheets. Revenue grew 5.5% annually while net profit declined over time. The company's debt increased substantially in 2017 while profitability metrics like return on assets and return on equity decreased, indicating weaker operating performance in recent years.

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    FM Group 10

    Uploaded by

    Anju tp
    11 views5 pages
    The document shows financial statements for a company from 2015 to 2019, including income statements and balance sheets. Revenue grew 5.5% annually while net profit declined over time. The company's debt increased substantially in 2017 while profitability metrics like return on assets and return on equity decreased, indicating weaker operating performance in recent years.

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    © © All Rights Reserved

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    The document shows financial statements for a company from 2015 to 2019, including income statements and balance sheets. Revenue grew 5.5% annually while net profit declined over time. The company's debt increased substantially in 2017 while profitability metrics like return on assets and return on equity decreased, indicating weaker operating performance in recent years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    11 views5 pages

    FM Group 10

    Uploaded by

    Anju tp
    The document shows financial statements for a company from 2015 to 2019, including income statements and balance sheets. Revenue grew 5.5% annually while net profit declined over time. The company's debt increased substantially in 2017 while profitability metrics like return on assets and return on equity decreased, indicating weaker operating performance in recent years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Exhibit 1

    Financial Statements (in millions of US dollars)

    2015 2016 2017 2018 2019


    Revenue 190.5 185.6 209.8 248.3 271.8
    Cost of Goods Sold 136.9 135.8 156.8 189.3 212.1
    Gross Profit 53.6 49.8 53.0 59.0 59.7
    Selling and General Expenses 18.8 28.8 38.3 47.5 47.0
    Operating Profit 34.8 21.0 14.7 11.5 12.7
    Net Interest Expense 0.9 0.5 7.0 6.1 5.6
    Pretax Profit 33.9 20.5 7.7 5.4 7.1
    Taxes 7.8 5.0 1.9 1.4 1.7
    Net Profit 26.1 15.6 5.9 4.0 5.4

    Cash and Cash Equivalents 10.5 9.8 10.5 10.4 8.5


    Accounts Receivable 10.0 9.7 10.1 13.8 15.0
    Inventory 6.7 7.7 8.4 10.9 12.0
    Other Current Assets 3.6 3.2 4.6 6.9 7.7
    Current Assets 30.8 30.4 33.6 42.0 43.2
    Net Property, Plant, and Equipment 92.0 89.9 264.4 275.5 289.0
    Other Fixed Assets 47.1 47.6 48.9 46.6 49.7
    Total Assets 169.9 167.9 346.9 364.1 381.9

    Accounts Payable 12.2 13.4 15.4 14.4 12.3


    Wages Payable 12.4 14.4 13.8 13.7 15.0
    Other Payables 8.1 7.8 5.6 6.6 8.3
    Current Liabilities 32.7 35.6 34.8 34.7 35.6
    Debt 29.5 9.1 183.0 196.3 207.8
    Shareholders’ Equity 107.7 123.3 129.1 133.1 138.5
    Total Liabilities and Shareholders’ Equity 169.9 167.9 346.9 364.1 381.9
    Growth and Returns
    Revenue Growth
    Return on Assets
    Return on Net Assets
    Return on Equity

    Margins
    Gross Margin
    SG&A Percentage
    Operating Margin
    Net Profit Margin

    Asset Efficiency
    Asset Turnover
    PPE Turnover
    NWC Turnover
    AR Days (DSO)
    Inv Days (DIO)
    AP Days (DPO)

    Leverage
    Debt / Total Capital

    Summary Accounts (in millions of US dollars)


    NOPAT (t = 25%)
    Net Working Capital
    Net Assets
    Note: NOPAT is net operating profit after tax; SG&A is selling, general, and administrative expenses; PP&E
    accounts receivable; Inv is inventory; COGS is cost of goods sold; AP is accounts payable; DSO is days sales
    outstanding.
    Net Fixed asset
    Net Fixed asset= Total asset Purchase Price+capital improvement) - (accumulated depreciation
    2015 2016 2017 2018 2019

    [percentage change in revenue] 5.50%


    [net profit / total assets] 0.15362 0.092615 0.016864 0.010959 0.014192
    [NOPAT / net assets] 0.190233 0.119048 0.035325 0.026184 0.027505
    [net profit / shareholders’ equity] 0.24234 0.126166 0.045314 0.02998 0.039131

    [gross profit / revenue] 0.281365 0.268319 0.252622 0.237616 0.219647


    [SG&A expenditures / revenue] 0.098688 0.155172 0.182555 0.191301 0.172921
    [operating profit / revenue] 0.182677 0.113147 0.070067 0.046315 0.046726
    [net profit / revenue] 0.137008 0.083782 0.027884 0.016069 0.019941

    [revenue / total assets] 1.121248 1.10542 0.604785 0.681956 0.711705


    [revenue / net PP&E] 2.070652 2.064516 0.793495 0.90127 0.940484
    [revenue / net working capital] -100.2632 -35.69231 -174.8333 34.0137 35.76316
    [accounts receivable / revenue × 365] 19.1601 19.07597 17.5715 20.28594 20.14349
    [inventory / COGS × 365] 17.8634 20.69588 19.55357 21.0169 20.65064
    [accounts payable / COGS × 365] 32.52739 36.0162 35.84821 27.76545 21.1669

    [debt / (debt + shareholders’ equity)] 0.215015 0.068405 0.586351 0.595962 0.600029

    [operating profit × (1 − tax rate)] 26.1 15.75 11.025 8.625 9.525


    [current assets − current liabilities] -1.9 -5.2 -1.2 7.3 7.6
    [net working capital + net fixed assets] 137.2 132.3 312.1 329.4 346.3
    x; SG&A is selling, general, and administrative expenses; PP&E is net property, plant, and equipment; NWC is net working capital; AR is
    is cost of goods sold; AP is accounts payable; DSO is days sales outstanding; DIO is days inventory outstanding; and DPO is day payables

    139.1 137.5 313.3 322.1 338.7


    Price+capital improvement) - (accumulated depreciation+Fixed Asset Laibilities)
    1) Is the business healthy? Why or why not?

    2) Comment on the operating performance.

    3) Analyze the performance using DuPont analysis. (RoA &


    RoE decomposition)

    4) What would you recommend to improve the


    performance?

    et working capital; AR is
    and DPO is day payables
    Name Roll No.
    Prathiba P Nair 48
    Sandra Vinod 49
    Sheetal AV 54
    Sudani Sai Himavanth 51
    TP Anju 52

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