BNL STORES STATEMENT OF CASH FLOWS

(for the year ended January 31)

(in '000s) ( All amounts in $)

2008
Cash flow from operating activities
Net income (loss) after taxes
Adjustment for:
Amortization of property,plant & equipment
Changes in:
Account receivable
Inventories
Prepaid Expense
Account Payable
Corporate income taxes payable
Deferred corporate income taxes
Net cash flow from Operating activities
Cash flow from investing activities
(Increase) decrease in property,plant & equipment
Proceeds from sale of (acquisition of) other assets
Net cash from investing activities
Cash flow from Financing activities
Proceeds from (repayment of) notes payable
Proceeds from (repayment of) Long-term Debt
Proceeds from (repayment of) other liabilities
Proceeds from issuing (repurchase of) share capital
Dividends Paid
Net cash from (used in) financing activities
Net increase (decrease) in cash and cash equivale

Opening balance, cash and cash equivalents

Closing balance, cash and cash equivalents

256,195
81,387
337,582
(443,060)
(683,811)
(8,610)
(75,220)
110,466
15,336
(1,084,899)
(747,317)
(177,982)
(21,791)
(199,773)
1,032,547
(11,933)
(3,784)
(54,593)
(143,343)
818,894
(128,196)
337,990
209,794

ASH FLOWS
ary 31)

2009

2010

73,916

(1,415,678)

89,903
163,819

90,744
(1,324,934)

5,607
(346,485)
(4,414)
3,158
(240,954)
18,462
(564,626)
(400,807)

738,234
293,439
4,800
164,943
(565,303)
(99,320)
536,793
(788,141)

(154,747)
(59,590)
(214,337)

(97,171)
(37,378)
(134,549)

427,567
421,730
(3,376)
14,184
(143,207)
716,898
101,754
209,794
311,548

996,002
192,972
(13,648)
6,007
(30,218)
1,151,115
228,425
311,548
539,973

BNL FINANCIAL RATIO ANALYSIS

Ratio
Net profit Margin

Comments:
Return on Equity

Comments:

Return on Asset

Comments:

Day receivables

Formula
Gross Profit
Sales

Calculation
3,547,560
11,176,830

2008
=

31.74%

Calculation
3,870,214
12,568,581

2009
=

30.79%

BNL net profit margin is continuously decreasing from 2008 to 2010 due to the fact of increasing cost and n
significant change in sales.
Net income
Total Equity

256,195
2,266,811

11.30%

73,916
221,704

33.34%

Stockholder expect to earn on their money, and ROE shows that how well they are doing. But we can see th
trend from 11.30% to 33.34%, which shows that the company has effectively used the money of stockholde
operations, but in 2010 the ratio is negative i.e. -183.42%. The negative ratio tells that the company has su
huge loss on the stockholders investment which can be due to management ineffeicency or lack of account
policies
Net Income
Total Asset

256,195
7,530,533

3.40%

73,916
8,102,013

0.91%

Assets are a contributing factor towards the income of the company. We can see the decreasing trend of RO
is due to the increasing debt. Increasing debt means that the company has to pay more interest which caus
net income to fall. In 2010, the company has negative net income due to high cost & and high interest expe
Receivables
(Annual Sales/365)

3,689,622
30,621.45

120.49

3,684,015
34,434.47

106.99

Comments:

Ratio
Inventory Turnover

Comments:

Total Asset Turnover

Comments:

Current Ratio

Comments:

There is a decreasing trend in DSO which means that the company is getting efficient in collecting payment
customers. This improvement can help them in generation of funds more quickly which can help them to re
bank loans etc.
Formula
Sales
Inventories

Calculation
11,176,830
2,708,834

2008
=

4.13

Calculation
12,568,581
3,055,319

2009
=

4.11

There is no such significant change in the inventory turnover ratio over the time period. BNL inventory is st
and then restocked approximately 4 times per year which suggest that they are holding too much inventory
compared to sales.
Sales
Total Assets

11,176,830
7,530,533

1.48

12,568,581
8,102,013

1.55

We can see that the ratio is increasing over the period. We can see the trend of increased sales in 2009 as
to total asset; and decreased asset in 2010. This is due to fact that DSO is decreasing, meaning company is
in collecting its account receivables; inventory turnover has increased to some extent which means the com
holding less inventories; and prepaid expense has also decreased in 2010 whicn contributed an increase in
Current Asset
Current Liability

6,653,323
4,292,203

1.55

7,100,369
4,481,974

1.58

Current ratio shows that how well the operations from current asset can pay off the current liabilities of the
can see an irrergular change in ratio, over the time period. From 2008 to 2009 the current ratio has increase
is due to the increased current asset and decreased liabilities. Similarly, from 2009 to 2010 we can see the
decreased which means that the current liabilities has increased as compared to the current asset. Current
not reliable as it does not exhibit the true picture of current assets, for which quick ratio is used.

Ratio
Quick Ratio

Comments:

Debt to Equity Ratio

Comments:

Formula

Calculation

Current Asset Inventory - Prepaid

Expense
Current Liability

3,899,416
4,292,203

2008
=

0.91

Calculation

3,995,563
4,481,974

2009
=

0.89

As previously we saw an increasing trend, of current ratio, from 2008 to 2009 but quick ratio reflects the tru
of the firm dependance on increased inventories and prepaid expense. However, in 2010 inventories and pr
expense has decreased but the current liabilities have increased due to account payable and Short-term no
payable.
Total Debt
Total Equity

5,263,722
2,266,811

2.32

5,890,309
2,211,704

2.66

The D/E ratio is increasing over the time period because the firm's debt has increased as compared to total
Due to high debt BNL is paying more interest which has decreased the Profit margin over the time period; a
negative net income in 2010. A significant change of equity in 2010 also tells us that the company has a lot
retained earnings due to which the loss was off-set and there is not much share capital in the company. This
that the company have a high chance of bankruptcy as well, unless it tries to imporve the operations.

Calculation
3,138,618
11,974,768

2010
=

26.21%

he fact of increasing cost and no as such

(1,415,678)
771,815

= -183.42%

ey are doing. But we can see the rising

y used the money of stockholders in the
o tells that the company has suffered a
ineffeicency or lack of accounting

(1,415,678)
7,337,770

-19.29%

see the decreasing trend of ROA which

o pay more interest which causes the
h cost & and high interest expense.
2,945,781
32,807.58

89.79

efficient in collecting payment from

ckly which can help them to reduce

Calculation
11,974,768
2,761,880

2010
=

4.34

time period. BNL inventory is stocked

are holding too much inventory as

11,974,768
7,337,770

1.63

of increased sales in 2009 as compared

ecreasing, meaning company is efficent
me extent which means the company is
hicn contributed an increase in ratio.
6,292,321
5,077,616

1.24

off the current liabilities of the firm. We

09 the current ratio has increased which
m 2009 to 2010 we can see the ratio has
d to the current asset. Current ratio is
quick ratio is used.

Calculation

3,485,754
5,077,616

2010
=

0.69

9 but quick ratio reflects the true picture

ever, in 2010 inventories and prepaid
unt payable and Short-term notes

6,565,955
771,815

8.51

ncreased as compared to total Equity.

margin over the time period; as seen a
s us that the company has a lot of
are capital in the company. This means
o imporve the operations.