Financial Statement Analysis and Cash Flow

This assignment presents financial statements for a company, likely over multiple years. The task involves analyzing these statements to assess various aspects of the company's performance, including profitability, liquidity, and cash flow. Specific areas of focus could include revenue growth, expense management, debt levels, and investment activities. Students will need to use accounting principles and financial ratios to interpret the data and draw conclusions about the company's financial health and future prospects.

Running Head: Financial reports and statements
1
Project Report: Financial reports and statements

Financial reports and statements 2
Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Industry Overview............................................................................................................3
Financial statement analysis.............................................................................................4
Ratio analysis................................................................................................................5
Horizontal analysis.....................................................................................................10
Conclusion......................................................................................................................14
References.......................................................................................................................15
Appendix.........................................................................................................................17

Financial reports and statements 3
Introduction:
This report has been prepared to evaluate and identify the impact of the financial
statement of a company over various aspects and the variables of the company. Financial
statement is the main reports to analyze the performance and the position of the company in
terms of finance. Financial statement analysis is done by the financial analyst, chief financial
officer and the investors of the company to analyze and evaluate the position of the company
so that a better decision could be made. This analysis also assists the companies to evaluate
their market position so that the new diversifications, strategies and policies could be made.
In this report, automotive industry has been taken into the concern. This report has
been prepared over Marshall Motor Holdings plc. For this analysis, firstly an overview study
has been done over the company and the automotive industry. Further, various financial
analysis methods have been used to identify the changes into the financial position of the
company so that it could be evaluated that how the position of the company has been
enhanced.
Company overview:
Marshall Motor holdings plc is operating its business into international market. The
analysis over company depict that the primarily, this company evaluates and performs the
automotive industry’s work. This company is selling and repairing numerous vehicles related
to commercial and passenger’s purpose. Currently, this company has diversified its market
into 25 countries. 103 franchises of this company have contracted with 25 brands of
automotive industry to transport the vehicles into the global market (Home, 2017). This
company has 28 sites to manage and administer the operations and the performance of the
company. Through the analysis over the internal and external factors of the company, it has
been evaluated that the performance of the company has been enhanced and it assist the
company to manage the position of the company in the industry as well as in international
market.
Industry Overview:
Further, the overview study over the industry depict that the automotive industry is
growing up rapidly. The automotive industry share has been enhanced in the economy share.
Through the analysis over automotive industry, it has been found that the global presence of
the automotive industry is enhancing and due to it the performance of the companies which

Financial reports and statements 4
are performing their business under this industry is enhancing rapidly (Schlichting, 2013).
Further, it has been analyzed that the trends of 2017 express that the performance of the
companies in this industry have been enhanced:
(Strategy&, 2017)
The above graph depict that the operating margin of the industry has been enhanced
and depict about the better position of the industry in the market. Further, it has also been
analyzed that the total shareholder return of automotive industry has also been enhanced in
last 55 years. Through the study over an article, it has also been evaluated that the industry is
planning to set a new road map. This analysis depict that the various new changes have taken
place into the position and the performance of the company.
Further, it has also been analyzed that the companies of automotive industry have
planned various new strategies and the vehicles to enhance their market. The manufacturing
and the design of the vehicles are designed by the company in such a manner that the entire
clients of this industry could be satisfied and thus the revenue of the industry could also be
higher (Phillips and Stawarski, 2016). Currently the automobile rate of the international
market has also been enhanced.
Financial statement analysis:
For analyzing the performance of the MARSHALL MOTOR HOLDINGS PLC in a
better way, study has been done over the financial statement of the company. More, it has
also been analyzed that how much changes and what changes have taken place into the
performance and the position of the company. Further, it has also been analyzed that how

Financial reports and statements 5
these changes have impacted the position of the company. Following are the few changes
which have taken place into the position of the company:
Calculation of the increment
2016 2015
Sales 1899405000 1232761000 54.08%
Operating profit 29054000 18246000 59.23%
Earnings 17762000 11721000 51.54%
Dividend payment 3251000 15448000 -78.96%
Market
capitalization 145638000 129884000 12.13%
Operating cash flow 80309000 25493000 215.02%
Capital expenditure 40754000 -2169000
-
1978.93%
Debt increment 85444000 28642000 198.32%
(Palicka, 2011)
The above statement and the table depict that various changes have taken place into
the position and the performance of the company. Through this analysis, it has been evaluated
that how this position have impacted the performance of the company. From the above table,
it has been found that the sales of the company have been enhanced in 2016 from 2015 by
54.08%. Further, it has also been found that the operating profit has also been enhanced with
the increment in the sales. More, the earnings of the company have also been enhanced due to
good increment in the total revenue of the company (Madhura, 2014).
More, it has also been found that the company has reduced the level of the dividend
payment to manage the funds in the organization. This has helped the comapny to raise the
funds through internal sources. More, the cash flow of the company in terms of operating
aspects has also been enhanced by 215.02%. And lastly, the study over capital expenditure
and debt increment depict that the organization has enhanced the funds through debt to
diversify the market and the expenditure of the company has also been enhanced.
Ratio analysis:
Further, the study has been done over the liquidity position; solvency position, debt
position and the profitability position of the organization to identify the changes which have
taken place into the organization of the company. Following are the calculations of the ratio
analysis of the company:
Financial Data

Financial reports and statements 6
Description Marshall Holdings plc ($)
2016 2015 2014
Revenue
1,89,94,05,
000
1,23,27,6
1,000
1,08,58,83,
000
94,05,05,
000
79,44,37,
000
Cost of
goods sold
1,67,89,49,
000
1,08,74,5
2,000
95,97,12,0
00
82,67,07,
000
70,11,53,
000
Gross profit
22,04,56,00
0
14,53,09,
000
12,61,71,0
00
11,37,98,
000
9,32,84,0
00
Operating
profit 2,90,54,000
1,82,46,0
00
1,52,43,00
0
1,25,72,0
00 68,81,000
Net profit 1,77,54,000
1,17,14,0
00 99,36,000 77,32,000 33,05,000
Interest 29,85,000
14,18,00
0 11,40,000 11,95,000 11,66,000
Inventory
38,00,16,00
0
24,06,32,
000
16,30,11,0
00
13,49,58,
000
11,04,77,
000
Current
assets
47,51,72,00
0
30,74,86,
000
23,80,18,0
00
21,43,37,
000
15,73,73,
000
Receivables 8,46,61,000
3,81,93,0
00
7,03,01,00
0
7,49,43,0
00
4,32,84,0
00
Current
liabilities
58,49,14,00
0
28,99,70,
000
25,14,11,0
00
21,28,34,
000
15,53,40,
000
Payables
49,73,40,00
0
21,24,06,
000
22,14,42,0
00
18,25,44,
000
12,86,86,
000
Equity
14,56,38,00
0
12,98,84,
000
6,61,20,00
0
6,06,81,0
00
5,59,46,0
00
Total
liabilities
65,60,14,00
0
32,51,19,
000
28,70,14,0
00
24,72,56,
000
18,72,75,
000
Total assets
80,16,52,00
0
45,50,03,
000
35,31,34,0
00
30,79,37,
000
24,32,21,
000
Number of
employee 2,250
Description Formula Marshall Holdings plc

Financial reports and statements 7
2016 2015 2014 2013 2012
Profitabilit
y
Net margin
Net
profit/reve
nues 0.93% 0.95% 0.92% 0.82% 0.42%
Return on
equity
Net
profit/Equ
ity 12.19% 9.02% 15.03% 12.74% 5.91%
Sales
employee
Sales /
number of
employee 844180
Liquidity
Current ratio
Current
assets/curr
ent
liabilities 0.81 1.06 0.95 1.01 1.01
Acid test
Current
assets-
Inventory/
current
liabilities 0.16 0.23 0.30 0.37 0.30
Efficiency
Receivables
collection
period
Receivabl
es/ Total
sales*365 16.27 11.31 23.63 29.08 19.89
Payables
collection
period
Payables/
Cost of
sales*365 108.12 71.29 84.22 80.60 66.99
Asset
turnover
ratio
Total
sales/
Total
assets 2.37 2.71 3.07 3.05 3.27
Solvency
Debt to
Equity Ratio
Debt/
Equity 4.50 2.50 4.34 4.07 3.35
Debt to
assets
Debt/
Total
assets 0.82 0.71 0.81 0.80 0.77
Interest
cover
EBIT /
interest
expenses 9.73 12.87 13.37 10.52 5.90

Financial reports and statements 8
Gearing
ratio
Long term
liabilities
/ capital
employed 0.22 0.24 0.31 0.37 0.37
Return on
capital
employed
Operating
profit /
total
assets -
current
liabilities 0.41 0.52 0.43 0.37 0.22
(London Stock Exchange, 2017)
The above table depict about the various level of the company. Firstly, the study has
been done over the profitability position of the company. Firstly, net profit margin of the
company has been analyzed and it has been found that the net profit of the company has been
enhanced in 2016 (Kinsky, 2011). It depict that the position of the company is increasing
continuously. More, the return on equity and the sales of the company in comparison of the
employees have also been analyzed and it has been found that the return on equity has been
enhanced by 12.19% in 2016. Further, it has also been found that currently the sales per
employee of the company are 844180 (Krantz, 2016). Through this analysis, it has been
found that the performance and the position of the company have been enhanced and it depict
about the better profitability position of the company (Morningstar, 2017).
The above table depict about the various level of the company. Firstly, the study has
been done over the profitability position of the company. Firstly, net profit margin of the
company has been analyzed and it has been found that the net profit of the company has been
enhanced in 2016 (Kinsky, 2011). It depict that the position of the company is increasing
continuously. More, the return on equity and the sales of the company in comparison of the
employees have also been analyzed and it has been found that the return on equity has been
enhanced by 12.19% in 2016. Further, it has also been found that currently the sales per
employee of the company are 844180 (Home, 2017). Through this analysis, it has been found
that the performance and the position of the company have been enhanced and further it
express about the better profitability position of the company.
Further, the above table depict about the liquidity position of the company. Liquidity
position of a company depict about the debt obligation position of the company and the
position of the company to pay off all the debts (Horngren, 2009). Firstly, current ratio of the
company has been analyzed and it has been found that the current liquidity position of the

Financial reports and statements 9
company has been lowered in 2016. It depict that the position of the company and the
policies of reducing the level of the current assets in comparison of the current liabilities is a
great step. It would help the company to reduce the level of the extra expenditure. The
position of current liquidity position is better according to the industry debt obligation level
(Hopper, Northcott and Scapens, 2007). More, the quick liquidity ratio of the company has
been analyzed and it has been found that the quick position of the company has also been
lowered in 2016 in comparison of last 5years. Through this analysis, it has also been found
that the company is required to manage the level of the current assets except the inventories
of the company. Through this analysis, it has been found that the performance and the
position of the company have been enhanced and it depict about the better liquidity position
of the company, company is just required to enhance the level of the quick assets of the
company (Hansen, Mowen and Guan, 2007).
Further, the above table depict about the efficiency position of the company.
Efficiency position of a company depict about the total cash conversion process of the
company and the position of the company to manage all the operations and current assets and
liabilities in a perfect manner (Garrison, Noreen, Brewer and McGowan, 2010). Firstly,
receivable collection period of the company has been analyzed and it has been found that the
company has reduce the level of the collection period to get the debtors amount quickly. It
depict that the position of the company and the policies of collecting the debt amount has
been changed and it assist the company to manage the better position. It would help the
company to reduce the level of the extra expenditure (Elton, Gruber, Brown and Goetzmann,
2009). The position of cash collection position is better according to the industry and the
obligation of the company. More, the payment payable days of the company has also been
analyzed and it has been found that the total payment days of the company has also been
enhanced in 2016 in comparison of last 5years. Through this analysis, it has also been found
that the company has reduced the payment cycle to enhance the level of the cash in the
business (Hansen, Mowen and Madison, 2010). Through this analysis, it has been found that
the performance and the position of the company have been enhanced and the cash
conversion cycle of the company has also been better.
Lastly, the above table depict about the solvency position of the company. Solvency
position of a company depict about the total capital structure and the debt of the company in
comparison of various other variables of the company (DRURY, 2013). Firstly, debt to equity
ratio of the company has been analyzed and it has been found that the company has enhanced

Financial reports and statements 10
the level of the debt in comparison on the equity to reduce the level of the cost in the
company. It depict that the position of the company and the policies of managing the debt and
equity has been changed but it has impacted over the risk level of the company (Bhimani,
Horngren, Datar and Foster, 2008). Further, the debt to assets level of the company has also
been analyzed and it has been found that the debt level of the company has enhanced in
comparison of total assets in last 5 years. Through this analysis, it has also been found that
the company has managed the debt, equity and total assets level to manage the performance
and the position of the company. Through this analysis, it has been found that the
performance and the position of the company have been enhanced and the company is
required to reduce the level of the debt and equity.
Horizontal analysis:
Further, the financial reports and the statement of the company have been analyzed
through the method of horizontal analysis. In this study, it has been analyzed that how much
changes have taken place into the each year in comparison of last year. Following are the
calculations of the horizontal analysis over income statement and balance sheet of the
company:
MARSHALL MOTOR HOLDINGS PLC (MMH) CashFlowFlag INCOME
STATEMENT
Fiscal year ends in
December.
2016-
12
Cha
nge
s
2015-
12
Cha
nge
s
2014-
12
Cha
nge
s
2013
-12
Cha
nge
s
2012
-12
Revenue
1899
4050
00
54.0
8%
1232
7610
00
13.5
3%
1085
8830
00
15.4
6%
9405
0500
0
18.3
9%
7944
3700
0
Cost of revenue
1678
9490
00
54.3
9%
1087
4520
00
13.3
1%
9597
1200
0
16.0
9%
8267
0700
0
17.9
1%
7011
5300
0
Gross profit
2204
5600
0
51.7
2%
1453
0900
0
15.1
7%
1261
7100
0
10.8
7%
1137
9800
0
21.9
9%
9328
4000
Operating expenses
Sales, General and
administrative
3518
000
141.
79
%
1455
000
-
21.0
5%
1843
000
47.4
4%
1250
000
88.8
2%
6620
00
Other operating
expenses
1878
8400
0
49.5
8%
1256
0800
0
15.1
5%
1090
8500
0
9.11
%
9997
6000
16.6
0%
8574
1000
Total operating
expenses
1914
0200
0
50.6
4%
1270
6300
0
14.5
5%
1109
2800
0
9.58
%
1012
2600
0
17.1
6%
8640
3000

Financial reports and statements 11
Operating income
2905
4000
59.2
3%
1824
6000
19.7
0%
1524
3000
21.2
5%
1257
2000
82.7
1%
6881
000
Interest Expense
2985
000
110.
51
%
1418
000
24.3
9%
1140
000
-
4.60
%
1195
000
2.49
%
1166
000
Other income
(expense)
-
3918
000
167.
44
%
-
1465
000
21.0
7%
-
1210
000
3.95
%
-
1164
000
0.09
%
-
1163
000
Income before income
taxes
2215
1000
44.1
8%
1536
3000
19.1
6%
1289
3000
26.2
4%
1021
3000
124.
36
%
4552
000
Provision for income
taxes
4397
000
20.5
0%
3649
000
23.4
0%
2957
000
19.1
9%
2481
000
98.9
6%
1247
000
Minority interest -8000
14.2
9% -7000
133.
33
% -3000
0.00
%
-
3000
-
40.0
0%
-
5000
Other income -8000
14.2
9% -7000
133.
33
% -3000
0.00
%
-
3000
-
40.0
0%
-
5000
Net income from
continuing operations
1775
4000
51.5
6%
1171
4000
17.8
9%
9936
000
28.5
0%
7732
000
133.
95
%
3305
000
Other 8000
14.2
9% 7000
133.
33
% 3000
0.00
% 3000
-
40.0
0% 5000
Net income
1776
2000
51.5
4%
1172
1000
17.9
3%
9939
000
28.4
9%
7735
000
133.
69
%
3310
000
Net income available
to common
shareholders
1776
2000
51.5
4%
1172
1000
17.9
3%
9939
000
28.4
9%
7735
000
133.
69
%
3310
000
Earnings per share
Basic 0.23
15.0
0% 0.2
53.8
5% 0.13
30.0
0% 0.1
150.
00
% 0.04
Diluted 0.22
15.7
9% 0.19
46.1
5% 0.13
30.0
0% 0.1
150.
00
% 0.04
Weighted average shares
outstanding
Basic
7732
6970
30.1
2%
5942
5171
-
23.0
6%
7723
6263
0.00
%
7723
6263
0.00
%
7723
6263
Diluted
7950
0548
30.2
3%
6104
6875
-
20.9
6%
7723
6263
0.00
%
7723
6263
0.00
%
7723
6263
EBITDA
4936
9000
30.3
7%
3786
8000
8.11
%
3502
8000
9.40
%
3201
8000
30.3
4%
2456
5000
(Ackert and Deaves, 2009)

Financial reports and statements 12
MARSHALL MOTOR HOLDINGS PLC (MMH) CashFlowFlag BALANCE
SHEET
Fiscal year ends in
December.
2016-
12
Cha
nges
2015-
12
Cha
nges
2014-
12
Cha
nges
2013-
12
Chan
ges
2012-
12
Assets
Current assets
Cash
Cash and cash
equivalents
8300
0
-
99.6
6%
2413
0000
1221
.47%
1826
000
3.81
%
1759
000
18.85
%
1480
000
Total cash
8300
0
-
99.6
6%
2413
0000
1221
.47%
1826
000
3.81
%
1759
000
18.85
%
1480
000
Inventories
3800
1600
0
57.9
2%
2406
3200
0
47.6
2%
1630
1100
0
20.7
9%
1349
5800
0
22.16
%
1104
7700
0
Prepaid expenses
1041
2000
129.
79%
4531
000
57.3
3%
2880
000
7.58
%
2677
000
25.56
%
2132
000
Other current assets
8466
1000
121.
67%
3819
3000
-
45.6
7%
7030
1000
-
6.19
%
7494
3000
73.14
%
4328
4000
Total current assets
4751
7200
0
54.5
3%
3074
8600
0
29.1
9%
2380
1800
0
11.0
5%
2143
3700
0
36.20
%
1573
7300
0
Non-current assets
Property, plant and equipment
Land
-
100.
00%
3738
1000
13.2
2%
3301
7000
20.1
9%
2747
0000
5.96
%
2592
4000
Fixtures and
equipment
3512
6000
29.2
5%
2717
7000
5.08
%
2586
3000
-
5.56
%
2738
7000
9.40
%
2503
3000
Other properties
2324
6800
0
112.
76%
1092
6200
0
10.0
5%
9928
1000
7.51
%
9234
3000
5.09
%
8786
8000
Property and
equipment, at cost
2675
9400
0
53.9
5%
1738
2000
0
9.90
%
1581
6100
0
7.45
%
1472
0000
0
6.03
%
1388
2500
0
Accumulated
Depreciation
-
6578
3000
-
1.13
%
-
6653
5000
-
0.88
%
-
6712
4000
2.75
%
-
6533
0000
9.91
%
-
5943
9000
Property, plant and
equipment, net
2018
1100
0
88.1
1%
1072
8500
0
17.8
5%
9103
7000
11.2
0%
8187
0000
3.13
%
7938
6000
Goodwill
1211
9100
0
220.
69%
3779
1000
71.3
5%
2205
5000
130.
05%
9587
000
48.59
%
6452
000
Intangible assets
8420
00
85.8
7%
4530
00
#DI
V/0!
#DI
V/0!
#DIV
/0!

Financial reports and statements 13
Other long-term
assets
2636
000
32.6
0%
1988
000
-
1.78
%
2024
000
-
5.55
%
2143
000
2133
0.00
%
1000
0
Total non-current
assets
3264
8000
0
121.
32%
1475
1700
0
28.1
5%
1151
1600
0
22.9
9%
9360
0000
9.03
%
8584
8000
Total assets
8016
5200
0
76.1
9%
4550
0300
0
28.8
5%
3531
3400
0
14.6
8%
3079
3700
0
26.61
%
2432
2100
0
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt
4705
0000
76.2
2%
2670
0000
-
5.79
%
2834
2000
0.78
%
2812
4000
5.61
%
2662
9000
Capital leases
3068
0000
Accounts payable
4973
4000
0
134.
15%
2124
0600
0
-
4.08
%
2214
4200
0
21.3
1%
1825
4400
0
41.85
%
1286
8600
0
Taxes payable
4602
000
-
3.38
%
4763
000
192.
75%
1627
000
-
24.8
8%
2166
000
8564.
00%
2500
0
Other current
liabilities
5242
000
-
88.6
3%
4610
1000
Total current
liabilities
5849
1400
0
101.
72%
2899
7000
0
15.3
4%
2514
1100
0
18.1
3%
2128
3400
0
37.01
%
1553
4000
0
Non-current liabilities
Long-term debt
7531
000
-
69.4
8%
2467
7000
-
2.09
%
2520
5000
4.98
%
2401
0000
14.48
%
2097
3000
Capital leases
3383
3000
Deferred taxes
liabilities
2080
3000
1003
.61%
1885
000
5.72
%
1783
000
-
5.16
%
1880
000
-
33.87
%
2843
000
Minority interest
2100
0
-
27.5
9%
2900
0
-
19.4
4%
3600
0
-
7.69
%
3900
0
-
7.14
%
4200
0
Other long-term
liabilities
8912
000
4.14
%
8558
000
-
0.24
%
8579
000
1.01
%
8493
000
5.15
%
8077
000
Total non-current
liabilities
7110
0000
102.
28%
3514
9000
-
1.28
%
3560
3000
3.43
%
3442
2000
7.79
%
3193
5000
Total liabilities 6560
1400
101.
78%
3251
1900
13.2
8%
2870
1400
16.0
8%
2472
5600
32.03
%
1872
7500

Financial reports and statements 14
0 0 0 0 0
Stockholders' equity
Common stock
4953
1000
Additional paid-in
capital
1967
2000
0.00
%
1967
2000
Retained earnings
7643
5000
25.7
5%
6078
1000
-
4.84
%
6387
0000
9.31
%
5843
1000
8.82
%
5369
6000
Accumulated other
comprehensive income
-
100.
00%
4943
1000
2096
.93%
2250
000
0.00
%
2250
000
0.00
%
2250
000
Total stockholders'
equity
1456
3800
0
12.1
3%
1298
8400
0
96.4
4%
6612
0000
8.96
%
6068
1000
8.46
%
5594
6000
Total liabilities and
stockholders' equity
8016
5200
0
76.1
9%
4550
0300
0
28.8
5%
3531
3400
0
14.6
8%
3079
3700
0
26.61
%
2432
2100
0
The above study of income statement and balance sheet depict that the various
changes have taken place into the position and the performance of the company. This depicts
that the performance of the company has been better in 2016 in comparison of last 5 years
(Baker and Nofsinger, 2010). Further, it has also been analyzed that few changes could be
done by the company to enhance the level of the profitability position of the company.
Recommendation and Conclusion:
Through the above study, it has been found that the various strategies must be
changed by the company to manage the position and the performance of the company.
though, the performance of the company has been better from last 5 years but still, few
changes should be done by the company to enhance the level of the financial performance of
the company. Company must manage the level of the debt and equity according to the
industry rules. Further, company should also need to manage a better level of the liquid
position so that the risk and return of the company could also be managed.
Through the above analysis over MARSHALL MOTOR HOLDINGS PLC and the
automotive industry, it has been analyzed that the profitability position of the comapny has
been improved and the market share of the company has also been enhanced. Further, it has
been found that the trends of the industry depict that various positive changes would take
place into the performance of the company in future. Further, it has also been analyzed that

Financial reports and statements 15
few changes could be done by the company to enhance the level of the profitability position
of the company.

Financial reports and statements 16
References:
Ackert, L. and Deaves, R. 2009. Behavioral Finance: Psychology, Decision-Making, and
Markets. Cengage Learning.
Baker, H.K. and Nofsinger, J.R. 2010. Behavioral Finance: Investors, Corporations, and
Markets. John Wiley and Sons.
Bhimani, A., Horngren, C. T., Datar, S. M., and Foster, G. 2008. Management and cost
accounting (Vol. 1). Pearson Education.
DRURY, C. M. 2013. Management and cost accounting. Springer.
Elton, E.J., Gruber, M.J., Brown, S.J., and Goetzmann, W.N. 2009. Modern Portfolio Theory
and Investment Analysis. John Wiley and Sons.
Garrison, R. H., Noreen, E. W., Brewer, P. C., and McGowan, A. 2010. Managerial
accounting. Issues in Accounting Education, 25(4), 792-793.
Hansen, D. R., Mowen, M. M., and Madison, T. 2010. Cornerstones of cost
accounting. Issues in Accounting Education, 25(4), 790-791.
Hansen, D., Mowen, M., and Guan, L. 2007. Cost management: accounting and control.
Cengage Learning.
Hopper, T., Northcott, D., and Scapens, R. 2007. Issues in management accounting. Pearson
education.
Horngren, C. T. 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education
India.
Kinsky, R. 2011. Charting Made Simple: A Beginner's Guide to Technical Analysis. John
Wiley and Sons.
Krantz, M. 2016. Fundamental Analysis for Dummies. John Wiley and Sons.
Kurth, S. 2013. Critical Review about Implications of the Efficient Market Hypothesis. GRIN
Verlag.

Financial reports and statements 17
London stock exchange. 2017. Marshall Motor holdings plc. Available From:
http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/
company-summary/GB00BVYB2Q58GBGBXASQ1.html [Accessed 01 Dec 2017].
Madura, J. 2014. Financial Markets and Institutions. Cengage Learning.
Marshall Motor holdings plc. 2017. Home. Available From: http://www.mmhplc.com/
[Accessed 01 Dec 2017].
Morningstar. 2017. Marshall Motor holdings plc. Available From:
http://financials.morningstar.com/ratios/r.html?t=MSLH [Accessed 01 Dec 2017].
Palicka, V.J. 2011. Fusion Analysis: Merging Fundamental and Technical Analysis for Risk-
Adjusted Excess Returns. McGraw Hill Professional.
Phillips, P.P. and Stawarski, C.A. 2016. Data Collection: Planning for and Collecting All
Types of Data. John Wiley and Sons.
Schlichting, T. 2013. Fundamental Analysis, Behavioral Finance and Technical Analysis on
the Stock Market. GRIN Verlag.
Strategy&, 2017. Available From: https://www.strategyand.pwc.com/trend/2017-automotive-
industry-trends [Accessed 01 Dec 2017].

Financial reports and statements 18
Appendix:
MARSHALL MOTOR HOLDINGS PLC (MMH) CashFlowFlag INCOME
STATEMENT
Fiscal year ends in December. 2016-12 2015-12 2014-12 2013-12 2012-12
Revenue
1899405
000
1232761
000
1085883
000
940505
000
794437
000
Cost of revenue
1678949
000
1087452
000
9597120
00
826707
000
701153
000
Gross profit
2204560
00
1453090
00
1261710
00
113798
000
932840
00
Operating expenses
Sales, General and administrative 3518000 1455000 1843000
125000
0 662000
Other operating expenses
1878840
00
1256080
00
1090850
00
999760
00
857410
00
Total operating expenses
1914020
00
1270630
00
1109280
00
101226
000
864030
00
Operating income
2905400
0
1824600
0
1524300
0
125720
00
688100
0
Interest Expense 2985000 1418000 1140000
119500
0
116600
0
Other income (expense)
-
3918000
-
1465000
-
1210000
-
116400
0
-
116300
0
Income before income taxes
2215100
0
1536300
0
1289300
0
102130
00
455200
0
Provision for income taxes 4397000 3649000 2957000
248100
0
124700
0
Minority interest -8000 -7000 -3000 -3000 -5000
Other income -8000 -7000 -3000 -3000 -5000
Net income from continuing
operations
1775400
0
1171400
0 9936000
773200
0
330500
0
Other 8000 7000 3000 3000 5000
Net income
1776200
0
1172100
0 9939000
773500
0
331000
0
Net income available to common
shareholders
1776200
0
1172100
0 9939000
773500
0
331000
0
Earnings per share
Basic 0.23 0.2 0.13 0.1 0.04
Diluted 0.22 0.19 0.13 0.1 0.04
Weighted average shares outstanding
Basic
7732697
0
5942517
1
7723626
3
772362
63
772362
63
Diluted
7950054
8
6104687
5
7723626
3
772362
63
772362
63
EBITDA 4936900 3786800 3502800 320180 245650

Financial reports and statements 19
0 0 0 00 00
MARSHALL MOTOR HOLDINGS PLC (MMH) CashFlowFlag BALANCE SHEET
Fiscal year ends in December. 2016-12 2015-12 2014-12 2013-12 2012-12
Assets
Current assets
Cash
Cash and cash equivalents 83000
2413000
0 1826000 1759000 1480000
Total cash 83000
2413000
0 1826000 1759000 1480000
Inventories
3800160
00
2406320
00
1630110
00
1349580
00
1104770
00
Prepaid expenses
1041200
0 4531000 2880000 2677000 2132000
Other current assets
8466100
0
3819300
0
7030100
0
7494300
0
4328400
0
Total current assets
4751720
00
3074860
00
2380180
00
2143370
00
1573730
00
Non-current assets
Property, plant and equipment
Land
3738100
0
3301700
0
2747000
0
2592400
0
Fixtures and equipment
3512600
0
2717700
0
2586300
0
2738700
0
2503300
0
Other properties
2324680
00
1092620
00
9928100
0
9234300
0
8786800
0
Property and equipment, at cost
2675940
00
1738200
00
1581610
00
1472000
00
1388250
00
Accumulated Depreciation
-
6578300
0
-
6653500
0
-
6712400
0
-
6533000
0
-
5943900
0
Property, plant and equipment,
net
2018110
00
1072850
00
9103700
0
8187000
0
7938600
0
Goodwill
1211910
00
3779100
0
2205500
0 9587000 6452000
Intangible assets 842000 453000
Other long-term assets 2636000 1988000 2024000 2143000 10000
Total non-current assets
3264800
00
1475170
00
1151160
00
9360000
0
8584800
0
Total assets
8016520
00
4550030
00
3531340
00
3079370
00
2432210
00
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt
4705000
0
2670000
0
2834200
0
2812400
0
2662900
0

Financial reports and statements 20
Capital leases
3068000
0
Accounts payable
4973400
00
2124060
00
2214420
00
1825440
00
1286860
00
Taxes payable 4602000 4763000 1627000 2166000 25000
Other current liabilities 5242000
4610100
0
Total current liabilities
5849140
00
2899700
00
2514110
00
2128340
00
1553400
00
Non-current liabilities
Long-term debt 7531000
2467700
0
2520500
0
2401000
0
2097300
0
Capital leases
3383300
0
Deferred taxes liabilities
2080300
0 1885000 1783000 1880000 2843000
Minority interest 21000 29000 36000 39000 42000
Other long-term liabilities 8912000 8558000 8579000 8493000 8077000
Total non-current liabilities
7110000
0
3514900
0
3560300
0
3442200
0
3193500
0
Total liabilities
6560140
00
3251190
00
2870140
00
2472560
00
1872750
00
Stockholders' equity
Common stock
4953100
0
Additional paid-in capital
1967200
0
1967200
0
Retained earnings
7643500
0
6078100
0
6387000
0
5843100
0
5369600
0
Accumulated other comprehensive income
4943100
0 2250000 2250000 2250000
Total stockholders' equity
1456380
00
1298840
00
6612000
0
6068100
0
5594600
0
Total liabilities and stockholders'
equity
8016520
00
4550030
00
3531340
00
3079370
00
2432210
00
MARSHALL MOTOR HOLDINGS PLC (MMH) Statement of CASH FLOW
Fiscal year ends in December. GBP. 2016-12
2015-
12
2014-
12
2013-
12
2012-
12
Cash Flows From Operating Activities
Stock based compensation 1313000 556000
Inventory
-
1481400
0
-
776210
00
-
138160
00
-
562200
0
-
714200
0
Other working capital
5308800
0
699730
00
278480
00
-
187000
116230
00
Other non-cash items
4072200
0
325850
00
296880
00
291980
00
227700
00

Financial reports and statements 21
Net cash provided by operating
activities
8030900
0
254930
00
437200
00
233890
00
272510
00
Cash Flows From Investing Activities
Investments in property, plant, and
equipment
-
6192700
0
-
395730
00
-
330590
00
-
302010
00
-
276480
00
Property, plant, and equipment
reductions
1141800
0
864600
0
838200
0
738500
0
591300
0
Acquisitions, net
-
9135000
0
-
214980
00
-
157880
00
-
182500
0
-
217600
0
Purchases of investments
-
100000
Net cash used for investing activities
-
1418590
00
-
524250
00
-
405650
00
-
246410
00
-
239110
00
Cash Flows From Financing Activities
Long-term debt issued
8544400
0
286420
00
252630
00
285610
00
206890
00
Long-term debt repayment
-
4469000
0
-
308110
00
-
238510
00
-
240300
00
-
208340
00
Common stock issued
668530
00
Cash dividends paid
-
3251000
-
154480
00
-
450000
0
-
300000
0
-
250000
0
Net cash provided by (used for)
financing activities
3750300
0
492360
00
-
308800
0
153100
0
-
264500
0
Net change in cash
-
2404700
0
223040
00 67000 279000 695000
Cash at beginning of period
2413000
0
182600
0
175900
0
148000
0 785000
Cash at end of period 83000
241300
00
182600
0
175900
0
148000
0
Free Cash Flow
Operating cash flow
8030900
0
254930
00
437200
00
233890
00
272510
00
Capital expenditure
-
6192700
0
-
395730
00
-
330590
00
-
302010
00
-
276480
00
Free cash flow
1838200
0
-
140800
00
106610
00
-
681200
0
-
397000
Supplemental schedule of cash flow data