Financial Statement Analysis of AstraZeneca

Finance
And
Accounting

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Calculate ratios for profitability, liquidity, efficiency and gearing for the years to 31 December
2019 and 31 December 2018:......................................................................................................3
Analysing performance and position of AstraZeneca based on the above ratios:.......................6
Evaluate AstraZeneca reporting of Deferred Tax with reference to IAS 12 Income Taxes:.......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Analysis of corporation's financial statements is method of evaluating and examining financial
statements of corporation in order to make informed monetary decisions regarding potential
earnings. Such statements comprise statement of income, balance sheet, cash-
flows statement, notes to the reports and statement of movements in capital (Easton and et.al.,
2018). financial statement evaluation is technique or mechanism that includes particular
strategies for determining the risks, results, financial stability and future potential of the
corporation. The study covers different aspects of financial-statement analysis through ratio
analysis of company AstraZeneca plc for year 2018-19 including company’s reporting of
Deferred-tax as per IAS 12.
MAIN BODY
Calculate ratios for profitability, liquidity, efficiency and gearing for the years to 31 December
2019 and 31 December 2018:
(Amounts except ratios are in USD thousand)
Return on Equity
Periods Year
2018
Year
2019
Net Income 2155000 1335000
Shareholder's Equity 1246800
0
13127000
Return on Equity = Net Income / Shareholder's Equity * 100 17.28425 10.16988
Gross Profit
Periods Year
2018
Year
2019
Gross Profit 1715400
0
19463000
Total Sales 2209000
0
24384000
Gross profit Margin = Gross Profit / Total Sales *100 77.65505 79.81873

Operating profit margin
Periods Year
2018
Year
2019
Operating Profit 1510000 1702000
Total Sales 2209000
0
24384000
Operating Profit Margin = Operating Profit / Total Sales * 100 6.835672 6.979987
Asset Turnover Ratio
Periods Year
2018
Year
2019
Sales 2209000
0
24384000
Average total assets 6200250
0
61014000
Asset Turnover Ratio = Total Sales / Average total assets 0.356276 0.399646
Current Ratio
Periods Year
2018
Year
2019
Current Assets 1559100
0
15563000
Current Liabilities 1629200
0
18117000
Current Ratio = Current Assets / Current Liabilities 0.956973 0.859027
Acid Test Ratio
Periods Year
2018
Year
2019
Quick Assets = Current Assets less inventory and prepaid 1266100 11467000