AB Grigiskes financial statement analysis report
Ekonomikos referatas. Introduction. General information about the company. Balance sheet. Assets. Liabilities. Income statement. Ratio analysis. Liquidity ratios. Working capital ratios. Leverage ratios. Profitability ratios. Operating returns. Working capital ratios. Cash conversation cycle. Dividends forecast. Conclution. References.
Research object: „Grigeo Grigiškės“ AB financial statement analysis.
The aim of the work: to recalculate Grigeo Grigiškės AB company‘s financial statement analysis.
Research tasks: analyse including balance sheet, income statment and ratio analysis. Make comments and conclusions about future company‘s development.
Used currency in company‘s accounts – litas ( LTL ).
Counting Grigeo Grigiškės company‘s balance sheet, was used horizontal analysis, which compares account balances and ratios over different time periods. In this case there is a compare between assets and liabilities of the company, from 2012 december 31 to 2014 december 31. The analysis computes the percentage change in each balance sheet account. Formula used for calculation:
Non-current assets during 2012/2013 increased by 10,2 million LTL with the growth of 7,2% and in during the 2013/2014 non-current assets increased by 41,3 million LTL with the growth of 27%.(table nr 2.) Non-current assets include: property & equipment, investment property, non-current receivables and deffered income tax. The biggest growth was seen in non-current receivable sector, were from 2012 from 278,019 LTL to 2013 to 1,487,305 LTL – it grew up in 2013 to 435% comparing to previous year. In 2014 non-current receivable still increased, but just a half o previous year – in 257%. Also increase was seen in deffered income tax, which grew up to 111% in 2012/2013 and by 74% in the following year. In assets sector just one, but no major decrease happened in investment property, which decreased by 4.3% in 2012/2013 and by more 3% in 2013/2014 years.
Total assets during these 2 years were increasing in Grigeo Grigiškės AB company. During 2012/2013 total calculated assets increased by 12,5% and during 2013/2014 increased by more 24%, which is very good, because a healthy company will continualy grow it‘s assets. (table nr 3).
In the table nr 4, it could be seen how total assets of each year consisted. Each year amount of money was increasing, but the major growth was in 2014, in Construction in progress and prepayments. There from 23 million to 58 million LTL cost increased, the cost grew up to 145%. In 2014 in construction in progress and prepayments sectors were not made any transfers of payments, because of that cost in that sector grew that much. And this sector was the main reason why total assets cost in 2014 grew up to 24% comparing to previous year.
Non-current liabilities data is shown in table nr 6. Bigger changes were seen in non-current borrowings sector, from 2012 to 2013 increased by 76% and next year by 30% more. The most significant changes happend in financial lease oblogations, which covers vehicles, machinery and equimpment within more than five years. Leases are decreasing every year and it brings benefit to company. In the first year liabilities increased in 55% and in a second 25% more, counting from the previous year sum.
Equity. Share capital in Grigeo Grigiškės company was increasing from 2012 to 2013, increase raised to 9,5%. The same amount of cost was kept next year, so the percentage did not changed. Moreover, retained earnings, as profits generated by a company that are not distributed to stockholders (shareholders) as dividends but are either reinvested in the business or kept as a reserve for specific objectives (such as to pay off a debt or purchase a capital asset), were increasing both year. In the first year it increased in a little more than 14% and in the following year increased in additional 20%. This means that the company is working profitable and is not facing any losses in equity sector.(table nr 7.). Generalizing total equity of two years it is clearly seen that company‘s equity is increasing every year. In the first year amount increased from 15% and in the second – 7,3% more.