...INTRODUCTION | 7 | 4. | STATEMENT ANALYSIS | 8-9 | 5. | RATIO ANALYSIS * FINANCIAL RATIOS * PROFITABILITY RATIOS * TURNOVER RATIOS | 10-1112-1617-20 | 6. | TABLE OF RATIOS | 21 | 7. | CONCLUSION | 22 | 8. | REFERENCES | 23-24 | 9. | APPENDIX | 25-26 | 10. | WORKING NOTES | 27-30 | 11. | NOTES | 31 | ABSTRACT The title of our project is HCL infosystem ltd. The purpose of this assignment is to compare the financial position of HCL between two years 2010 and 2011 by calculating different ratios from a given balance sheet and make a comparative analysis between these two years by comparing with the ideal ratio. Ratio analysis provides us an overview of the company’s financial position in both short term and long term. The ratio analysis, comparative balance sheet and common size balance sheet are gives an accurate picture of company’s position. As financial ratio analysis is a useful technique to measure, compare, and evaluate the financial condition and performance of a company and by calculating these ratios it can help us to answer if the company is business profitable and if it is able to pay its bills and to find how the business is financed and also the company’s financial performance of 2011 compared to 2010. To summarize in short in this assignment we are going to study and calculate different ratios of HCL INFOSYSTEM LTD’s balance sheet and profit & loss account of 2010 and 2011 and make a comparative analysis of these two years and to conclude...
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...Balance Sheet ExampleYour Balance Sheet Example is a quick view of the financial state of your business at a specific time period. | It outlines the Assets, Liability and Equity of your business. Your balance sheet should list your current assets such as the cash, accounts receivable, supplies, land, buildings and any other assets your business have.It should also list your Liabilities and Equities. Your liabilities should list things such as your accounts payables. Your equity should list things such as your capital. When you prepare your Balance Sheet you will need to list your assets down on one side and then you will list your liabilities on the other side.Assets are things your business has ownership of. Liabilities are the debts your business owes on. You need to make a note of what your business assets are and what your business liabilities are. Then you need to write them down. You need to balance your balance sheet.Balance Sheet Video | Download Our Financial Statement E-book that include sample;Income StatementsBalance Sheet StatementsCash Flow StatementsBalance Sheet Example Help...Balance Sheet Example Your Balance Sheet Example is a quick view of the financial state of your business at a specific time period. Balance Sheet Template Your Balance Sheet Template is a printable Template that shows you the basics to doing a Balance Sheet for your business.Sample Balance Sheet A Sample Balance Sheet will help you write a Balance Sheet for your business. It...
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...transcript of the video presentation for this topic. More downloads and videos are available at http://www.kgaction.com/financial-statement-analysis The Kaplan Group Commercial Collection Agency Superior Results Since 1991! www.kgaction.com! 805-541-2639 More Videos and downloads at © The Kaplan Group! http://www.kgaction.com/financial-statement-analysis © The Kaplan Group! The Kaplan Group | Introduction to The Income Statement Hi. This is Dean Kaplan. The Kaplan Group is a commercial collection agency specializing in debt collection of large business to business claims. CREDIT MANAGER SEMINARS This video series introducing you to financial statement analysis is based on the dozens of training seminars I have given to credit industry groups organized by Dun & Bradstreet, the National Association of Credit Management and Riemer Reporting Services. It is applicable to anyone wanting to learn about this topic, although on occasion I will highlight information from the perspective of credit management. 3 FINANCIAL STATEMENTS Cash Flow Statement For the Year Ended December 31, 2011 (000s) Cash Flows From Operating Activities Net Income 397 Depreciation and amortization 318 Unrealized gain on marketable securities Decrease (increase) in deferred taxes (12) Balance Sheet (44) As of December 31, 2011 (000s) Net increase (decrease) in receivables, inventories, prepaids, payables Total Cash Flows...
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...Convert WRDS OUTPUT Building a Financial Statement Analysis and Valuation Spreadsheet Income Statement-66 This case starts with raw financial statements and then a) develops standardized financial statements, b) constructs a statement of cash flows, c) builds all the key ratios, d) links forecast inputs to future financial statements, and e) builds discounted cash flow and residual income valuation models based on the forecasts. The result is a simplified version of eVal4, the spreadsheet model that is provided with “Equity Valuation and Analysis” by Russell Lundholm and Richard Sloan, but one that you should completely understand (because you built it yourself!). To save you some time, many of the cells are completed; you only need to finish the blue-shaded ones. There are five parts to this case, corresponding to the five tasks listed above. The case requires two files: Building eVal4.xls and General Mills 10-K.pdf. Part A: Standardized Financial Statements The financial statements filed with the SEC are not standardized, meaning that the company is free to report and label line items however they please (within obvious limits). For this reason, there is an intermediary business that takes the filed financial statements and sorts the line items into a predetermined set of accounts. We will explore this important part of the reporting process in this part of the case. 1) Find the “as reported” financial statements in General Mills’s 10-K filing (in the...
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...FINANCIAL MANAGEMENT Financial Statement Analysis The process of determining financial strengths and weaknesses of a firm by establishing strategic relationship between the items of the balance sheet, profit and loss account and other operative data. Financial Statement Analysis Metcalf and Titard:It is a process of evaluating the relationship between component parts of a financial statement to obtain a better under standing of a firm’s position and performance. Financial Statement Analysis Purpose:To diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. Types of Financial Analysis On the basis of: The materials used. The modus operandi of analysis – i.e., the method of operation followed in the analysis. Types of Financial Analysis On the basis of materials used: External analysis. Internal analysis. Types of Financial Analysis On the basis of materials used: External analysis. • This analysis is done by outsiders who do not have access to the detailed internal accounting records of the business firm. (Investors, creditors, government agencies, credit agencies and general public.) Types of Financial Analysis On the basis of materials used: Internal analysis. • This analysis is conducted by persons who have access to the internal accounting records of a business firm. (Executives and employees of the organization and government agencies which have statutory powers...
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...A REPORT ON BALANCE SHEET ANALYSIS OF LANKA BANGLA FINANCE LIMITED AND INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED Date of submission: 8th November 2015 Submitted to Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Submitted by SL | Name | BBA ID | Remarks | 1 | Sifat sadia | 17-003 | | 2 | Barna Paul | 17-047 | | 3 | Maghla Hossain | 17-061 | | 4 | Saima Sultana | 17-069 | | 5 | Nawsina Arif | 17-085 | | Date of Submission: 8th November 2015 Department of Finance University of Dhaka Letter of Transmittal November 8, 2015 Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Subject: Submission of Report on “Balance Sheet Analysis of LankaBangla Finance Limited and International Finance Investment and Commerce Bank Limited”. Dear Madam, It gives us enormous pleasure to submit the report on Balance Sheet Analysis of Bank and NBFI as per the Advisor’s instruction. We expect this report to be informative as well as comprehensive as per requirement. Working with such a topic was an inspiring experience for us. We believe that the knowledge and the experience we gathered will facilitate us a lot in our future career life. With our limited knowledge, we have tried our level best to prepare the report worthwhile. Your acceptance and appreciation would surely inspire us. For any further explanations about the report, we will be gladly available to clarify the ins and outs. Sincerely, Sifat Sadia...
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...Introduction The cash-flow analysis is the study of your business’ cash inflows and outflows. The Beasley Custom Picture Frame Company will tell about the components that one would need to be able to create a cash-flow analysis report. We will also explain the advantages and the disadvantages of the cash-flow statement. From there we will go on to explain the different benefits of a cash flow statement and any problems that could arise if the cash-flow statement is not conducted in a timely manner. Lastly, The Beasley Custom Picture Frame Company will provide our cash-flow statement for our third year of operation. Components “To prepare a cash-flow statement, you need three things: a starting balance sheet, an ending balance sheet and an income statement for the time in between.” (Statements of Cash Flow & Analysis of Ratios, paragraph 2, page 49) To go into further detail, the “cash-flow analysis involves examing the components of your business that affect the cash flow, such as accounts receivable, inventory, accounts payable, and credit terms.” (Ward, 2011, paragraph 3) The Beasley Custom Picture Frame Company’s starting balance sheet is the first balance sheet we have for our business, since it is just a new business. Therefore, our ending balance sheet that is needed for the cash-flow statement will include our second year in business and the estimated third year account balances. For the income statement component of the cash-flow analysis, we will also use the second...
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...How Financial Assessments Help Organizations Managerial Analysis Abstract Financial assessment provides management with the ability to make critical business decisions for their organization; this involves examining existing data to gain insight on the current and future condition of their organization through the balance sheet, income statement. In the book, What Every Manager Should Know about Financial Analysis, Alan Donahue states “The inability to understand and deal with financial data is a severe handicap in the corporate world”, which seems fitting to mention as I discuss in this paper the significance in doing a financial assessment and some of the necessary tools that are needed in order to do a financial assessment. Basic Concept of Financial Analysis for Organizations and its Importance Financial analysis is an assessment of an organization that will determine the organization’s risk and profitability through reported financial information; the two main sources for retrieving such information are the balance sheet and income statement. The balance sheet also provides a wealth of information that enables the organization to determine its stability, vitality, and profitability through utilizing ratios. Ratios can determine the overall performance of the company through such things called liquidity, leverage and profitability. Balance Sheet The balance sheet outlines the the financial and physical resources that a company has avaliable...
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...Drivers of Industry Financial Structure In order to facilitate our analysis we divided the companies into services, retail and R&D. The first step was to divide the balances between the ones that had a value for R&D/Sales and the ones that didn’t. So we have balance sheets A, F, G and J and the companies that require R&D are the Developer of Prepackaged Software, the On-line Retailer, the Pharmaceutical Company and the Manufacturer of Electronic Communications Equipment. Now we have six remaining balance sheets and six companies. We divided these remaining companies into services and retail. Companies in the service business usually have low inventories so we have balance sheets C, D and I and the Major Passenger Airline, the International Hotel Chain and the Temporary Staffing Agency. The remaining companies are the Warehouse Club for Food and General Merchandise, the Supermarket Grocery Retailer and the Manufacturer and Marketer of Consumer Products and these industries are characterized by high receivables, high inventories and high inventory turnover so, we can conclude that the corresponding balance sheets are B, E and H. We will now perform more in-depth analysis in order to match each company to each balance sheet. R&D Companies On-Line Retailer In order to specify what balance sheet corresponds to the On-line Retailer we must first define some of the characteristics of On-line Retailers. On-line Retailers require some R&D (9,7%) exactly because they are on-line...
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...Financial Statements Analysis - An Introduction MODULE - 6A Analysis of Financial Statements 27 FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION You have already learnt about the preparation of financial statements i.e. Balance Sheet and Trading and Profit and Loss Account in the module titled ‘Financial Statements of Profit and Not for Profit Organisations’. After preparation of the financial statements, one may be interested in analysing the financial statements with the help of different tools such as comparative statement, common size statement, ratio analysis, trend analysis, fund flow analysis, cash flow analysis, etc. In this process a meaningful relationship is established between two or more accounting figures for comparision. In this lesson you will learn about analysing the financial statements by using comparative statement, common size statement and trend analysis. Notes OBJECTIVES After studying this lesson, you will be able to : explain the meaning, need and purpose of financial statement analysis; identify the parties interested in analysis of financial statements; explain the various techniques and tools of analysis of financial statements. 27.1 FINANCIAL STATEMENTS ANALYSIS (MEANING, PURPOSE AND PARTIES INTERESTED) We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared...
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...Chapter 1 1. What is finance * Finance is the study of the flow of money * Borrowing and lending * Financial institutions-the middle man * Financial instruments and markets 2. Fields and jobs in finance * Money and capital market * Markets and institutions that provide short and long term capital: investment banks, banks, mutual funds, insurance companies, stockbrokers * Regulators: Fed, SEC (security and exchange commission) * Investments * Security analysis * Portfolio management * Market analysis * Financial management (corporate finance) 3. Forms of business organization * Sole proprietorship * Advantages: * Ease of formation * Subject to (受制于) few(很少) regulators * No corporate income taxes * Disadvantages: * Limited life * Unlimited liability * Difficult to raise capital * Partnership * Has roughly the same advantages and disadvantages as a sole proprietorship * Corporation * Advantages: * Unlimited life * Limited liability: why? * Fairness and efficiency * Ease of raising capital * Easy transfer of ownership * Capitalize future earnings into stock value today * Disadvantages (why corporation): * Double taxation * Cost of set-up and report filing * Profit sharing 4. Responsibility of financial staff * Investment and financing decisions * Forecasting and planning * Transactions in the financial markets ...
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...ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 Under the guidance of Prof. D.P.TRIPATHY DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 National Institute of Technology Rourkela CERTIFICATE This is to certify that the thesis entitled “ANALYSIS AND INTERPRETATION FINANCIAL STATEMENTS: CASE STUDIES” submitted by Sri Sudip Das, Roll No: 10605038 in partial fulfillment of the requirements for the award of Bachelor of Technology degree in Mining Engineering at the National Institute of Technology, Rourkela (Deemed University) is an authentic work carried out by him under my supervision and guidance. To the best of my knowledge, the matter embodied in the thesis has not been submitted to any other University/Institute for the award of any Degree or Diploma. Date: (Prof. D.P. TRIPATHY) Dept. of Mining Engineering National Institute of Technology Rourkela-769008 ACKNOWLEDGEMENT I wish to express my deep sense of gratitude and indebtedness...
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...ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 Under the guidance of Prof. D.P.TRIPATHY DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 National Institute of Technology Rourkela CERTIFICATE This is to certify that the thesis entitled “ANALYSIS AND INTERPRETATION FINANCIAL STATEMENTS: CASE STUDIES” submitted by Sri Sudip Das, Roll No: 10605038 in partial fulfillment of the requirements for the award of Bachelor of Technology degree in Mining Engineering at the National Institute of Technology, Rourkela (Deemed University) is an authentic work carried out by him under my supervision and guidance. To the best of my knowledge, the matter embodied in the thesis has not been submitted to any other University/Institute for the award of any Degree or Diploma. Date: (Prof. D.P. TRIPATHY) Dept. of Mining Engineering National Institute of Technology Rourkela-769008 ACKNOWLEDGEMENT I wish to express my deep sense of gratitude and indebtedness to Dr. D.P.Tripathy, Department of...
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...operations during the period b. Statement of Owners Equity iii. Changes in owners equity during a time period iv. Increases from Net Income v. Decreases from Withdrawals and Net Loss c. Balance Sheet vi. “Statement of financial position” vii. Lists all Assets, liabilities, and owns viii. As of a specific date + d. Statement of cash flows ix. Cash receipts and cash payments 2. Describe how changes to a company’s revenue and expenses affect their Income Statement and Balance Sheet. Revenues & Expenses on the income statement affect the Net Income, by increase whith revenue and decreasing with expenses. All of which effect the Owners Equity on the balance sheet. 3. How do changes in the Income Statement and Balance Sheet data affect a Statement of Cash Flows? Revenues in the form of payment receipts and expenses in the form of payments are both reflected on the cash flow statement from operating activities which are derived from the P&L. Cash flows from investing activities are which increase or decrease the cash flow come from the balance sheet. 4. Explain how you can evaluate the financial condition of a firm by reviewing the Balance Sheet. To discover the total entities assets, liabilities, and owners equity. By using the current ratio (total assets/ total liabilities) which shows the financial health of a company by determining how quickly, if at all, a company can...
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...1. EXECUTIVE SUMMARY Financial analysis is the starting point for making plans, before using any sophisticated forecasting and planning procedures. Understanding the past is a prerequisite for anticipating the future. Financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Financial analysis can be undertaken by management of the firm, or by parties outside the firm, viz. owners, creditors, investors and others. The nature of analysis will differ depending on the purpose of the analyst. 1. Investors: Who invested their money in the firm’s shares, are most concerned about the firm’s earnings. They more confidence in those firm’s that show steady growth in earnings. As such, they concentrate on the analysis of the firm’s present and future profitability. They are also interested in the firm’s financial structure to that extent influence the firm’s earning ability and risk. 2. Trade creditors and financial institution: they are interested in firm’s ability to meet their claims over a very short period of time. Their analysis will, therefore, confine to the evolution of the firms liquidity position. And the financial institutions are interested in the financial statements of the borrowing concern to ascertain its short- term as well as long-term solvency and also it profitability. 3. Suppliers: On the other hand, are concerned...
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