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Horizontal
The analysis has shown that in past four years company had performed
exceptionally well. The performance can be seen from many indicators been
analyzed in the horizontal analysis.
One of the key indicators of better performance is the increase in sales of the
company as compare to 2010. The sales have increased by 13%, 40% & 50%
as compared to that of 2010.
Reasons; The increase in number of sales is because of the quality
improvement in cement products. Lafarge increased its product base .The flood
in 2010 also increase the sales in the coming years as people needed to
rehabilitate themselves.
Company from over past many years is utilizing efficient ways to produce its
product that helped them reduce the COGS for the company. Though the trend is
increasing but it is increasing in comparatively low rate then the sales hence
increasing the overall gross profit of the company over past few years.
The finance cost also shown a rapid decrease over the past four years. The reason
for such decline is the ability of the company to pay off its debts from 2011 till date.
vertical analysis
In vertical analysis it can be seen clearly that the company increase in the net sales
had an impact on the overall performance of the company. The Cost of sales were
more than 85% of the sales in 2010 but it has decrease significantly from that figure
to approx. 69%. Another major decrease of 50% in finance cost can be seen from
the analysis where the company had reduced it percentage contribution from
14.25% to 6.47% of sales. This resulted from the fact that company is trying to
pay off its debt across these periods and are now relying more on equity. As the
operating profit increases it also increases the tax percentages of the company.