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Student’s Name Institutional Affiliations Course Name Date HORIZONTAL ANALYSIS OF INCOME STATEMENT HORIZONTAL ANALYSIS OF BALANCE SHEET BOMBAY DYEING AND MANUFACTURING CO. LTD BALANCE SHEET 2016 Increase/ Decrease 2017 Increase/ Decrease 2018 2019 2020 Assets Sh. Sh. Sh. Sh. Sh. Non-Current Assets Land 400 000 -12.5% 350 000 17.14% 410 000 415 000 420 000 Plants and Buildings 100 000 -10% 90 000 20.22% 110 000 115 000 120 000 Property &equipment 43000 -0 02% 40 000 12.5% 45 000 47 000 50 000 Fixture & fittings 49 000 -8.16% 45 000 11.11% 50 000 53 000 55 000 Current Assets 57 000 -8.77% 52 000 8.77% 57 000 59 000 60 000 Stock 17 000 -11.76% 15 000 20% 18 000 20 000 22 000 Marketable Securities 12 000 -16.67% 10 000 30% 13 000 15 000 17 000 Prepaid expenses 12 000 -16.67% 10 000 40% 14 same ratio and in 2020; it is 0.37 which is even better. This show portrays to the creditors that the company is good at paying its debts. The debt-equity ratio is also okay. In 2016 it is 0.25.This increases across the years and in 2020 it is 0.58 which is more than double that of 2016.This is relatively attractive to both investors and creditors. References Jablonsky S. F. & Barky N. P. (1998). The manager's guide to financial statement analysis. New York: John Wiley. Myer J. N. (1969). Financial statement analysis. Englewood Cliffs N.J: Prentice-Hall. Plesničar A. & Zaletel-Kragelj L. (January 01 2010). SWOT analysis. Methods and Tools in Public Health 809-820. Risdon M. S. & Alvarez F. (2002). Financial statement analysis: A practitioner's guide. New York: John Wiley & Sons. SWOT Analysis. (n.d.). London: Datamonitor Plc. Temte A. (2004). Financial statement analysis. La Cross WI: Schweser Study Program. [...]
Order Description:
Analyze a publicly traded company’s financial statements for the prior five years. Include the following items as supplemental schedules to the analysis, prepared as individual worksheets within an Excel spreadsheet: 1.Horizontal analysis of the prior five years’ income statement and balance sheet. 2.Vertical analysis of the prior five years’ income statement and balance sheet. 3.Calculation of at least five significant liquidity ratios for each of the five years analyzed. 4.Calculation of at least five significant profitability ratios for each of the five years analyzed. 5.Calculation of at least five significant long-term debt-paying ratios for each of the five years analyzed. 6.Calculation of at least five significant investor ratios for each of the five years analyzed. Prepare a paper (10-15 pages) that analyzes the financial strengths and weaknesses of the company examined. 1.The analysis should reference significant items found in the income statement, balance sheet, statement of cash flows, horizontal analysis, vertical analysis, and ratio analysis of the company examined. 2.A competitor analysis and comparison to industry averages should be presented. 3.A summary identifying whether the company would be attractive to investors and/or creditors must be included. Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required. You are required to submit this assignment to Turnitin. Refer to the directions in the Student Success Center. Only Word documents can be submitted to Turnitin.
Subject Area: Finance
Document Type: Thesis Statement
