Table Format for Computation of Financial Statement Analysis using various tools

FINANCIAL MANAGEMENT Prof. Rakhi R. Shrivastava

Various tools Of Analysis

Comparative Statements Common Size Statement Ratio Analysis
Liquidity Analysis through Ratios Working Capital or Activity or Turnover Analysis through Ratios Solvency and Capital Structure Analysis through Ratios Profitability Analysis through Ratios

Cash Flow Statement Analysis

1. Comparative Size Statement (Computation Table)

Like the following, compute % for each item from both the final statements:
Particul ars First Y ear (Rs. In Lakh) Second Year (Rs. In Lakh) Absolute Increase( +)/ Decrease (-) Computation of % (Absolute +/SYAbsolute Figure(Col 4) x100 100 FirstYearAbsolute Figure(Col 3)

Percentage increase or Decrease (+/-)

Col 1

3
150 4.12 145.88

4
164 3.26 160.74

5
+14 .86 +14.88

6
164 x100 100 150 = 9.33
160.74 x100 100 145.88 = 10.18 3.26 x100 100 4.12 = 0.79

7 +9.33 -0.79 +10.18

1.

Sales Less: Sales Returns

2. Net Sales

2. Common Size Statement (Computation Table)

Like the following, compute % for each item from both the final statements
Formula item wise % Calculation % Calculation for for previous Current Year Year 100
106.60 x100 145.88 = 66.84

Net Sales 1. Cost of Sales

100
106.60 x100 160.74 = 66.32

Gorss Pr ofit x100 NetSales

2. Gross Profit

Gorss Pr ofit x100 NetSales

48.38 x100 145.88 = 33.16

54.14 x100 160.74 = 33.68

3. Trend Analysis Statement (Computation Table)

Like the following, compute % for each item from both the final statements
Year & Items 2002 Base Year(1) 2003 (2) 2004 (3) 2005 (4) 2006 (5) 2007 (6)

Col 1

Amt

TP

Amt

TP

Amt

T P

Amt

TP

Amt

TP

Amt

TP

1.

Sales

2.

4. Ratio Analysis (Computation Table)

Like the following, compute % for each item from both the final statements Computation of Capital Structure/Solvency Ratios for G&T Ltd .
Name and Formula of ratio Computation for 2005-06 Figure Computation for 2006-07 Figure Computation for 2007-08 figure

Debt-Equity Ratio
D / ERatio = LongtermDebt NetWorth

0.55 1858.96 = 25.98 + 3343.15 = 0.55

1453.54 = 27.48 + 4612.69 = 0.31

0.31

2077.66 56.65 + 5711.78 = 0.36 =

0.36

Debt to Asset Ratio

DebttoAssetRatio = LongtermDebt NetAssets

The summarized assets and liabilities of G&T Ltd for three consecutive financial years ending March 2007 are as follows:
Liabilities Net Worth Paid up equity Capital (Net of Forfeited Capital Reserves and Surplus Long Term Borrowings Defrred Tax Liabilities Total Liabilities Assets Gross Fixed assets Less: Depreciation Net Fixed Assets Investments Deferred Tax Assets Current Assets Loans and Advances Cash &Bank Balance Inventories Receivables Loans &Advances Less: Current Liabilities Net Current Assets Deferred Revenue Expenditure Total Assets Rs. 5-Mar 25.98 3343.15 1858.96 218.48 5446.57 2100.89 1014.76 1086.13 969.97 123.95 828.02 2261.26 5201.56 495.53 8786.37 5559.74 3226.63 39.89 5446.57 583.23 2210.27 6110.82 522.88 9427.2 6913.68 2513.52 21.98 6303.5 In Crore 6-Mar 27.48 4612.69 1453.54 209.79 6303.5 2582.13 974.44 1607.69 2027.8 132.51 7-Mar 56.65 5711.78 2077.66 204.88 8050.97 3340.59 1112.83 2227.76 3106.6 164.69 1094.43 3001.14 7220.99 565.94 11882.5 9340.42 2542.08 9.84 8050.97

The Summary of Income Statements for the three consecutive financial years of G&T stood as follows: Particulars 2004-05 2005-06 2006-07 Income 13748.26 15198.63 18041.13 Expenditure 12446.81 13886.47 16037.68 Profit before Tax 1301.45 1312.16 2003.45 Tax 455.51 492.06 751.29 Profit After Tax 845.94 820.1 1252.16 Depreciation (included in the expenditure above 93.25 115.98 171.45 Interest 139.42 109.02 155.82 Loan Payment 50.05 125.25 112.6

 Compute Capital Structure ratios of G&T Ltd. From the information given in last two slides.

Summerised Financial Statements of Matrix Ltd for two consecutive years are given below. Analyse the firm's performance using the turnover ratios Summerised Income Statement of Matrix Ltd as on 31st March 2009 Rs. In Lakh Previous Current Particulars Year Year Sales 150 146 Less: Sales Returns 4.12 3.26 Net Sales 145.88 160.74 Cost of Sales 97.5 106.74 Gross Profit 48.38 54.14 Administrative Overheads 3.46 3.14 Selling and Distribution Overheads 4.61 4.15 Interest and Non operating Expenses 0.168 0.19 Operating Income 40.14 46.65 Other Incomes 2.34 3.12 Profit Before Tax (PBT) 42.48 49.77 Tax 14.86 17.42 Profit After Tax (PAT) 27.61 32.35

Summerised Balance Sheet of Matrix Ltd as on 31st March 2009 Rs. In Lakh Previou Current Particulars s Year Year Assets Cash and Bank Balance 1.05 1.1 Marketable Securities 4.75 5.25 Sundry Debtors 6.45 7.25 Stock 8.75 10.45 Prepaid Expenses 1.25 2.5 Current Assets 22.25 26.55 Net Fixed Assets 83.5 98.2 Total Assets 105.75 124.75 Liabilities and Owners Equity Sundry Creditors 8.75 9.25 Notes Payable 7 10.5 Long term Debt 15 30 Equity 75 75 Total Liabilities and Shreholders' Funds 105.75 124.75