1

Wimm-Bill-Dann Foods VERTICAL ANALYSIS (In thousands of U.S. dollars)

2007 (%)
2008 (%)
ASSETS
1. Non-current assets
Property, plant and equipment, net
437 320
54,9
459 527
Intangible assets, net
5 027
0,6
7 078
Goodwill
26 291
3,3
32 008
Net investment in direct financing leases
non-current portion
3 895
0,5
3 072
Long-term investments
2 417
0,3
138
Deferred tax assetnon-current portion
7 001
0,9
5 554
Other non-current assets
5 506
0,7
6 153
Net investment in direct financing leases
2 109
0,3
2 335
Other current assets
7 145
0,9
8 915
TOTAL non-current assets
496 711
62,4
524 780
2. Current assets
Cash and cash equivalents
23 791
3,0
93 103
Short-term bank deposits
32 164
Trade accounts and notes receivable
62 210
7,8
59 968
Inventories
102 039
12,8
130 597
Taxes receivable
85 578
10,7
61 480
Advances Paid
19 494
2,4
9 715
Deffered tax asset
6 265
0,8
8 750
TOTAL Current Assets
299 377
37,6
395 777
TOTAL ASSETS
796 088
100,0
920 557
EQUITY AND LIABILITIES
3. Equity
Common stock
29 908
3,8
29 908
Share pemium account
164 132
20,6
164 132
Currency translation adjustment
43 905
5,5
29 766
Retained earnings
132 971
16,7
163 237
Minority interest
17 327
2,2
24 619
Deffered taxes - long-term portion
10 268
1,3
15 636
TOTAL Equity
398 511
50,1
427298,0
4. Non-current liabilities
0,0
Long-term loans
7 120
0,9
1 824
Long-term notes payable
201 709
25,3
254 230
Other long-term payables
39 294
4,9
26 893
TOTAL Non-Current Liabilities
248 123
31,2
282 947
5. Current liabilities
0,0
Trade accounts payable
62 400
7,8
65 780
Advances received
3 492
0,4
5 291
Short-term loans
17 554
2,2
19 554
Long-term loans, current portion
936
0,1
3 823
Notes payable
0,0
49 794
Taxes payable
13 281
1,7
13 406
Payroll related accruals
9 604
1,2
11 200
Government grants - long-term portion
5 156
0,6
3 219
Other accruals
2 350
0,3
2 717
Government grants - current portion
2 329
0,3
2 174
Interest accruals
2 737
0,3
3 154
Other current payables
29 615
3,7
30 200
TOTAL Current Liabilities
149 454
18,8
210 312
TOTAL LIABILITIES
397 577
49,9
493 259

10,1
3,5
6,5
14,2
6,7
1,1
1,0
43,0
100,0
3,2
17,8
3,2
17,7
2,7
1,7
46,4
0,0
0,2
27,6
2,9
30,7
0,0
7,1
0,6
2,1
0,4
5,4
1,5
1,2
0,3
0,3
0,2
0,3
3,3
22,8
53,6

2
TOTAL EQUITY AND LIABILITIES

796 088

100,0

920 557

100,0

Wimm-Bill-Dann Foods HORIZONTAL ANALYSIS (Thsd USD)

2007
ASSETS
1. Non-current assets
Property, plant and equipment, net
Intangible assets, net
Goodwill
Net investment in direct financing leases
non-current portion
Long-term investments
Deferred tax assetnon-current portion
Other non-current assets
Net investment in direct financing leases
Other current assets
TOTAL Non-Current Assets
2. Current assets
Cash and cash equivalents
Short-term bank deposits
Trade accounts and notes receivable
Inventories
Taxes receivable
Advances Paid
Deffered tax asset
TOTAL Current Assets
TOTAL ASSETS
EQUITY AND LIABILITIES
3. Equity
Common stock
Share pemium account
Cuency translation adjustment
Retained earnings
Minority interest
Deffered taxes - long-term portion
TOTAL Equity
4. Non-current liabilities
Long-term loans
Long-term notes payable
Other long-term payables
TOTAL Non-Current Liabilities
5. Current liabilities
Trade accounts payable
Advances received
Short-term loans
Long-term loans, current portion
Notes payable
Taxes payable
Payroll related accruals
Government grants - long-term portion
Other accruals
Government grants - current portion
Interest accruals
Other current payables

2008

437 320
5 027
26 291

100,0
100,0
100,0

459 527
7 078
32 008

3 895
2 417
7 001
5 506
2 109
7 145
496 711

100,0
100,0
100,0
100,0
100,0
100,0
100,0

3 072
138
5 554
6 153
2 335
8 915
524 780

23 791
62 210
102 039
85 578
19 494
6 265
299 377
796 088

100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0

93 103
32 164
59 968
130 597
61 480
9 715
8 750
395 777
920 557

391,3
96,4
128,0
71,8
49,8
139,7
132,2
115,6

29 908
164 132
43 905
132 971
17 327
10 268
398 511

100,0
100,0
100,0
100,0
100,0
100,0
100,0

29 908
164 132
29 766
163 237
24 619
15 636
427 298

100,0
100,0
67,8
122,8
142,1
152,3
107,2

7 120
201 709
39 294
248 123

100,0
100,0
100,0
100,0

1 824
254 230
26 893
282 947

25,6
126,0
68,4
114,0

62 400
3 492
17 554
936
13 281
9 604
5 156
2 350
2 329
2 737
29 615

100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0

65 780
5 291
19 554
3 823
49 794
13 406
11 200
3 219
2 717
2 174
3 154
30 200

105,4
151,5
111,4
408,4
100,9
116,6
62,4
115,6
93,3
115,2
102,0

3
TOTAL Current Liabilities
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES

149 454
397 577
796 088

100,0
100,0
100,0

210 312
493 259
920 557

140,7
124,1
115,6

4
VODAFONE COMPANY
In Millions of GBP
ASSETS
Current assets:
Cash & Equivalents
Short Term Investments
Accounts Receivables Net
Total Inventory
Prepaid Expenses
Non-current assets:
Property/Plant/Equipment
Goodwill Net
Intangibles Net
Long Term Investments
Other Long Term Assets
Total Assets

2008

2009

451
1 309
4 121
417
2 426

811
4 316
4 622
412
2 868

17 802
51 336
18 995
29 912
501
127 270

22 319
53 958
20 980
41 775
638
152 699

2 985
8 164
418

3 178
9 020
69

Current Port, of LT Debt/Capital Leases

Other Current liabilities
Long-term liabilities:
Long Term Debt
Capital Lease Obligations
Deferred Income Tax
Minority Interest
Other Liabilities Total
Total Liabilities
Equity:
Common Stock Total
Additional Paid-In Capital

4 485
5 921

9 592
6 088

22 775
60
5 109
-1 572
882
49 227

32 147
6 642
-1 385
1 186
66 537

4 182
143 085

4 153
143 247

Retained Earnings (Accumulated Deficit)

Treasury Stock - Common
Other Equity Total
Total Equity

-71 926
-7 856
10 558
78 043

-73 719
-8 036
20 517
86 162

Total Liabilities & Shareholders' Equity

127 270

152 699

LIABILITIES & EQUITY

Short-term liabilities:
Accounts Payable
Accrued Expenses
Notes Payable/Short Term Debt

VODAFONE COMPANY

2008
Assets
Cash
Accounts receivable
Inventory
Non-current assets
Total

1 760
4 121
417
67 210
73 508

Equity & Liabilities

Accounts payable
Short-term debt
Long-term debt
Equity
Total

11 149
10 824
23 717
27 818
73 508

2009

Calculations of Working Capital Sufficiency and Liquidity Ratios

A (mln.USD)
ASSETS:
Cash
Accounts
receivable
Inventory
Non-current
assets
Total

B (mln.EUR)

C (mln.USD)

D (mln.GBP)

E (mln.USD)

F (mln.GBP)

G (mln.USD)

2007
15 731

2008
48 187

2007
11 753

2008
6 820

2007
7 767

2008
5 492

2007
713

2008
683

2007
401

2008
724

2007
7 561

2008
1 760

2007
34 500

2008
32 007

414 896
12 897

400 018
13 674

11 356
2 876

9 545
2 533

2 840
33 685

3 642
35 159

654
76

586
112

2 077
2 279

2 288
2 492

3 105
288

4 121
417

36 450
11 089

24 702
11 646

352 159
795 683

335 890
797 769

11 614
37 599

20 684
39 582

107 295
151 587

119 221
163 514

9 941
113 84

9 911
11 292

10 875
15 632

10 583
16 087

58 096
69 050

67 210
73 508

160 043
242 082

159 697
228 052

EQUITY & LIABILITIES:

Accounts Payable
21 338
Short-term debt
198 200
Long-term debt
319 013
Equity
257 132
Total
795 683

20 819
197 035
330 067
249 848
797 769

7 074
5 291
1 090
24 144
37 599

5 225
8 639
4 452
21 266
39 582

28 484
23 664
37 866
61 573
151 587

30 344
28 134
40 428
64 608
163 514

723
2 902
2 929
4 830
11 384

648
2 844
2 751
5 049
11 292

1 730
1 273
3 147
9 482
15 632

1 483
1 295
3 064
10 245
16 087

8 774
10 172
17 798
32 306
69 050

11 149
10 824
23 717
27 818
73 508

29 239
29 073
7 183
176 587
242 082

21 190
27 910
7 025
171 927
228 052

WC narrow
WC trad
WC broad

-95 027
223 986
422 186

-86 042
244 025
441 060

12 530
13 620
18 911

582
5 034
13 673

-5 111
-2 182
720

-4 862
-2 111
733

-1 393
1 754
3 027

-338
2 726
4 021

-25
790
-7 992
2 180

16 544
23 727
52 800

12 230
19 255
47 165

-107924

-99716

9 654

-1 951

-5 187

-4 974

-3 672

-2 830

-26
078

5 455

584

211089
409289

230351
427386

10 744
16 035

2 501
11 140

-2 258
644

-2 223
621

-525
748

234
1 529

-8 280
1 892

12 638
41 711

7 609
35 519

0,071655
1,961515
2,020261

0,221189
2,057364
2,120131

0,950505
1,868904
2,101496

0,491922
1,180395
1,363099

0,19669
0,377103
0,398069

0,19559
0,363402
0,395475

0,133533
0,825175
1,584083

0,260619
1,084233
1,981281

0,591645
1,216731
1,406897

0,651874
1,154969
1,392159

Sufficiency of WC
Narrow definition
Traditional
definition
Broad definition
Liquidity ratio
Cash ratio
Quick ratio
Current ratio

7
DATA FOR FINANCIAL CYCLE CALCULATIONS
Balance Sheet Averages (in mln of EUR)

Cash
Accounts
Receivable
Inventory
Non-current
Assets
Total:
Accounts Payable
Short-Term Debt
Long-Term Debt
Equity
Total:

A
B
C
D
31 959
9 287
6 630

698

563

4 661

G
33 254

407 457
13 286

10 451
2 705

3 241
34 422

620
94

2 183
2 386

3 613
353

30 576
11 368

344 025
796 726

16 149 113 258

38 591 157 551

9 926
11 338

10 729
15 860

109 818
118 444

159 870
235 067

21 079
197 618
324 540
253 490
796 726

6 150 29 414
6 965 25 899
2 771 39 147
22 705 63 091
38 591 157 551

686
2 873
2 840
4 940
11 338

1 607
1 284
3 106
9 864
15 860

5 880
14 580
20 317
77 668
118 444

25 215
28 492
7 104
174 257
235 067

Aggregated Income Statement

Revenue
182 515
50 710
(109 981 (33 337
COGS
)
)
Expenses
(10 731) (5 664)
Net income
17 410
3 988
Calculation of Purchases
COGS+Expenses
120 712
Inventory change
777
Total Purhases
121 489

378 476
(286 350
)
(70 174)
12 731

39 001
-343
38 658

8 758
(6 244)
(937)
712

356 524
1 474
357 998

23 754
(19 723
)
(625)
2 112

35 478
477 359
(21 890
) (321 867)
(6 389) (57 592)
6 660
45 220

7 181
36
7 217

20 348
213
20 561

28 279
129
28 408

379 459
557
380 016

Financial Cycle Calculation

A
1. Inventory
Turnover
1.1 Days in
Inventory
2. Accounts
receivable
Turnover
2.1 Days in AR
3. Accounts
payable
Turnover
3.1 Days in AP
1.1 + Operating
2.1 Cycle
1.1+2.1 Financial
3.1 Cycle

14,42

10,36

8,53

33,38

25,31

35,24

42,79

10,93

4,85
75,22

116,78
3,13

10,88
33,54

15,61
23,38

6,29
58,06

12,17
29,99

12,80
28,52

15,07
24,22

100,53

38,37

76,33

34,31

42,47

8,38

47,81

10,10

JSC AvtoVAZ
BALANCE SHEET
ASSETS
Non-current assets
Inventory
Accounts receivable
Short-term financial investments
Cash
BALANCE
EQUITY & LIABILITIES
Equity
Long-term debt
Short-term debt
Accounts payable
BALANCE

01.01.06
39 819
9 202
13 467
5 820
696
69 004

01.01.07
50 832
11 687
8 515
5 581
741
77 356

01.01.08
68 605
12 778
8 908
3 298
592
94 181

01.01.09
69 232
21 347
6 526
2 855
695
100 655

17 292
25 369
5 257
21 086
69 004

23 972
25 193
4 531
23 660
77 356

45 540
21 736
4 286
22 619
94 181

46 744
22 158
9 638
22 115
100 655

2006
66 931
(55 448)
11 483
(1 637)
9 846
3
(275)
17
(7 398)
2 193
(526)
1 667

2007
91 783
(74 830)
16 953
(1 971)
14 982
41
(776)
15
(2 285)
11 977
(2 874)
9 103

2008
92 270
(79 986)
12 284
(2 440)
9 844
13
(874)
32
(6 210)
2 805
(673)
2 132

INCOME STATEMENT
Sales revenue
Cost of goods sold
Gross profit
General, administrative, and marketing expenses
Operating profit
Interest income
Interest expense
Other operating income
Other gains and losses
Earnings before taxes
Profit tax
Net income

9
Table 1
ROTA
Average total assets (T)
EBI
Net income NI
Interest expense i
Profit tax rate t
Adjusted interest - i'
EBI
ROTA
Table 2
Assets
Net assets (NA)

2006
73 180

Table 4
Assets
Net operating assets
(NOA = A)
Balance
Equity & Liabilities
Equity (E)
Net financial obligations (NFO = D)
Balance

2008

1 667
275
0,24
209
1 876
2,56%

01.01.06
47 918

RONA
Average net assets (N)
EBI
ROTA
Table 3
Assets
Operating assets (OA)
Financial assets (FA)
Balance
Equity & Liabilities
Equity (E)
Financial obligations (FO)
Operating obligations (OO)
Balance

2007

01.01.07
53 696
2000
50 807
1 876
3,69%

01.01.06
63 184
5 820
69 004

01.01.07
71 775
5 581
77 356

17 292
30 626
21 086
69 004

23 972
29 724
23 660
77 356

01.01.06

01.01.07

42 098
42 098

48 115
48 115

17 292
24 806
42 098

23 972
24 143
48 115

01.01.08

2001

01.01.08

01.01.08

01.01.09

2002

01.01.09

01.01.09

Table 5
2006
Interest income
Interest expense
Net interest

2007
3
275
272

2008

10
Table 6
RNOA
Average net operating assets (N)
EBI
Net income
Net interest
Profit tax rate
Adjusted interest - i'
EBI
RNOA
Table 7
ROA
ROTA
RONA
RNOA

2006
45 107

2007

2008

2007

2008

1 667
272
0,24
207
1 873
4,15%

2006
2,56%
3,69%
4,15%

11
THE MAIN FINANCIAL DRIVERS AND FINANCIAL LEVARAGE
Table 8
2006
1.
1.1.
1.2.
1.3.
2.
2.1.
2.2.
2.3.

Data
Average net operating assets
Earnings before interest
Sales
Calculations
Return on net operating assets
Operating profit margin
Assets turnover

2007

NOA
EBI
S

45 107
1 873
66 931

RNOA
OPM
ATO

4,15%
2,8%
1,48

Table 10
ROE
Equity (E)
Net income (NI)
ROE

2006
17 292
1 667
9,64%

2007
23 972
9 103
37,9%

2008

2008
45 540
2 132
4,68%

Table 11
1.
2.
3.

Adjusted interest expense i*(1-t)

Average Debt (average net financial
obligations)
Cost of Debt

2006
207

2007
559

2008
654

D
COD

24 475
0,84%

23 434
2,38%

25 833
2,5%

2007
58 190
34 756
23 434

2008
71 975
46 142
25 833

2007

2008

Table 12
1.
2.
3.

Average assets
Average equity
Average debt

2006
45 107
20 632
24 475

1.
2.

Return on equity
Return on net operating assets
Financial leverage:
Spread (RNOA-COD)
Debt/Equity ratio
Level of financial leverage effect

ROE
RNOA

2006
9,64%
4,15%

3.
4.
5.

D/E

3,31%
1,19
3,94%

12
CASE TOY COMPANY
Company manufactures toys and souvenirs. It was founded 5 years ago buy John Smith. John
is a talented researcher in the field, he has several patents on the toys and souvenirs he created.
The company which was founded in a small room now has become a well developing company.
There are 400 employees working, from 2006 there is a personal human resource department, IT
department, etc. In 2007 there was made property, plant & equipment renovation. John decided
to concentrate the strategy of the company on sales increase by stimulation of employees
(bonuses, % from sales) and by entering new markets. The demand on the companys finished
goods is really high. It helps the company to have high prices on the products, but some nonlegal imitations have appeared on the market.
Personnel: John uses the strategy of happy corporate family. Key managers are
employees who started within the company from the very beginning.
John thinks about IPO, but he has come to a conclusion that his company is quite small,
and the market will not be able to evaluate his company fairly. So he decided to finance his
company by reinvestment of retained earnings and obtaining new loans from banks.
Task:
Make a short, but clear report on financial situation of the company for the owner in 2006-2007.
Show the main problems of the company by calculating the needed ratios.
Try to explain the ways of solving the problems.
Income Statement
Revenue
COGS
Profit margin
Marketing and sales
expenses
General and
administrative
expenses
Operating profit
Interest expenses
EBT
Tax
Net Income

2005
10 000
(5 000)
5 000
(1 000)

2006
16 000
(8 800)
7 200
(2 720)

2007
25 600
(14 592)
11 008
(5 120)

(800)

(1 200)

(1 400)

3 200
(500)
2 700
(540)
2 160

3 280
(500)
2 780
(556)
2 224

4 488
(750)
3 738
(748)
2 990

13
Balance Sheet (data at the end of the year)
2005
Assets
Non-current assets
5 000
Current assets:
959
Inventory
1 644
Accounts
receivable
514
Cash
Total current assets
3 116
Total assets
8 116
Equity & Liabilities
Equity
Retained earnings
Total equity
Liabilities
Long-term loans
Short-term liabilities
Short-term
loans
Accounts
payable
Total short-term
liabilities
Total liabilities and
equity

2006

2007

5 500

8 000

1 929
2 849

3 598
4 910

531
5 309
10 809

506
9 013
17 013

500
2 000
2 500

500
4 224
4 724

500
7 214
7 714

4 000

4 000

5 000

1 000

1 000

2 500

616

1 085

1 799

1 616

2 085

4 299

8 116

10 809

17 013

14
CASE YUKOS.
At the beginning of 1999 the market of common shares of oil company Yukos was almost
illiquid: the ask price was about 0,68 RUR for a share, a bid price was about 14,45 RUR for a
share. As the spread between ask and bid prices was so huge, there was not registered a single
transaction of shares of this company in January-February of 1999.
Task: calculate the fundamental value of share price of oil company Yukos as for the
beginning of 1999 and make conclusion about over- (under) evaluation of this company on the
base of two scenarios.
Scenario 1. Investors could forecast the increase of oil prices at the end of 1999 2000 years and
the residual income of Yukos respectively in 1999 2001. In this scenario we assume that the
residual income of Yukos from the year 2002 will be at the same level (no growth rate).
Scenario 2. Investors could forecast net income of Yukos only in 1999, and then assumed that
in 2000-2001 the annual growth rate of net income will be 25%, from the year 2002 residual
income will be at the level of 2001.
For both scenarios assume that ke equals 60%, the amount of common shares is 2 237 mln. The
balance value of equity on 01.01.1999 is 9861 mln.RUR.
The data on real net income of the company is presented in the table:
1999 year
31 115

2000 year
111 300

2001 year
104 660