What's new

Need help regarding bal.sheet analysis

PaklovesTurkiye

SENIOR MEMBER
Joined
Dec 1, 2015
Messages
7,448
Reaction score
10
Country
Pakistan
Location
Pakistan
Hello guys, i need help regarding analysis of Balance sheet (vertical analysis and horizontal analysis), please elaborate in detail how so far company is comparatively in 2014 and 2015. Good/progressing or suffering loss, what does it mean/imply by decreasing non current liabilities? company profitable or not? what does it mean if 78% of finances are covered by equity (like in this case)? Step by step elaboration of both analysis will be very helpful.......THANKS.

file:///C:/Users/4STAR~1/AppData/Local/Temp/Rar$EXa0.650/Horizontal%20Analysis%20BL.html

file:///C:/Users/4STAR~1/AppData/Local/Temp/Rar$EXa0.258/VERTICAL%20ANALYSIS%20Balance%20Sheet.html

These files are invalid.......scroll down for data observation....
 
Last edited:
.
Instead of asking others why not ask your teacher ? & if this is an assignment then asking others to solve this problem for you is very unethical. try solving it on your own, that way you will actually learn something ( Which is the point here) , if someone does it for you than what is the point for you to go to College/University ?

Also it's not called Balance sheet anymore, it is "Statement of Financial Positions".


Also How is this a Social Issue ? at best this thread belongs to members club. @HRK @WAJsal
 
.
Instead of asking others why not ask your teacher ? & if this is an assignment then asking others to solve this problem for you is very unethical. try solving it on your own, that way you will actually learn something ( Which is the point here) , if someone does it for you than what is the point for you to go to College/University ?

Also it's not called Balance sheet anymore, it is "Statement of Financial Positions".


Also How is this a Social Issue ? at best this thread belongs to members club. @HRK @WAJsal
BBA wale abhi tak ise Balace sheet he khete hain.
 
.
Instead of asking others why not ask your teacher ? & if this is an assignment then asking others to solve this problem for you is very unethical. try solving it on your own, that way you will actually learn something ( Which is the point here) , if someone does it for you than what is the point for you to go to College/University ?

Also it's not called Balance sheet anymore, it is "Statement of Financial Positions".


Also How is this a Social Issue ? at best this thread belongs to members club. @HRK @WAJsal

Ok....Well, i am learning....i have a presentation on Saturday, i have to present it, so, i just thought .......:-)....I know it is called Statement of Financial positions but balance sheet gets pronounced easily, (takes less time) so thats why i called it.

If i were not intended to learn, i would have not asked detailed elaboration, i like to learn concepts. not just ratta fication.
I m going to post it on members club.
Thanks
 
.
Hello guys, i need help regarding analysis of Balance sheet (vertical analysis and horizontal analysis), please elaborate in detail how so far company is comparatively in 2014 and 2015. Good/progressing or suffering loss, what does it mean/imply by decreasing non current liabilities? company profitable or not? what does it mean if 78% of finances are covered by equity (like in this case)? Step by step elaboration of both analysis will be very helpful.......THANKS.

file:///C:/Users/4STAR~1/AppData/Local/Temp/Rar$EXa0.650/Horizontal%20Analysis%20BL.html

file:///C:/Users/4STAR~1/AppData/Local/Temp/Rar$EXa0.258/VERTICAL%20ANALYSIS%20Balance%20Sheet.html

If you're analyzing profitability of a company, look at Income statement instead.
 
. .
This is all I see, lol

upload_2016-4-21_15-47-50.png
 
. . .
Can you upload properly or paste so we can analyse it.

Is this helpful ?

Capture.PNG


Capture 1.PNG


@Jlaw.....Is this data helpful ?

Additional information

Equity grew from prior year primarily due to profit for the year, partially offset by final and interim dividends during the year

Deferred tax liability arising due to accelerated tax depreciation allowance, deferred tax asset arising in respect of provisions

Trade and other payables have increased over prior year mainly because of increased bills payable liability at year end due to timing difference

Property, plant and equipment have witnessed significant increase during the current year due to strategic investments in production facilities and infrastructure to support growing scale of business

The increase in current assets mainly owes to higher cash and bank balances generated from operations during the year.

Anyone if can help?
 
.
try soem other forum related to Accounting etc..I am sure, they are there
like for programming language C++, forum "C++ for u"
 
.
Good/progressing or suffering loss, what does it mean/imply by decreasing non current liabilities? company profitable or not? what does it mean if 78% of finances are covered by equity (like in this case)? Step by step elaboration of both analysis will be very helpful.......THANKS.


Anything that your company data here proves is that your company is run by idiots. Fire its CEO and every key management personnel ASAP, who in his right senses keeps equity employed in current assets? The only positive sign here is that this company has a very good liquidity.
 
. .
who in his right senses keeps equity employed in current assets?

How do you reach to that conclusion? Ok...what i percieved is that you're saying that 78% equity (long term finances) is mostly involved in obtaining current assets? Right? So, its a bad sign? why?

As a teacher of accounting, i would suggest you to study the book The business Accounting 1 by brankwood
Accounting for decision making by meigs and meigs
and refer the website
accountingcoach

But what is your comment on the data, that i pasted above? Is this company going good?

@Zibago @Sandman

@Talwar e Pakistan
 
.
How do you reach to that conclusion? Ok...what i percieved is that you're saying that 78% equity (long term finances) is mostly involved in obtaining current assets? Right? So, its a bad sign? why?



But what is your comment on the data, that i pasted above? Is this company going good?

The above comment by @User is spot on.
The resources are wasted by holding them in cash for too large amount.
The ridiculously higher current ratio.....which means idle cash and bank balances...
the current assets are normally 1.5 greater than current liabilities...but it depends on the nature of business and specific macro level factors.
but the things are ugly in balance sheet.
it looks some raw figures put up to balance both sides.
 
.

Latest posts

Pakistan Affairs Latest Posts

Back
Top Bottom