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Report on Impact of the Financial Statement of a Company

   

Added on  2020-04-13

21 Pages4181 Words84 Views
Running Head: Financial reports and statements 1Project Report: Financial reports and statements

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

Financial reports and statements 3Introduction: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 4are 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 takenplace 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 5these 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 20162015Sales1899405000123276100054.08%Operating profit290540001824600059.23%Earnings177620001172100051.54%Dividend payment 325100015448000-78.96%Market capitalization14563800012988400012.13%Operating cash flow8030900025493000215.02%Capital expenditure40754000-2169000-1978.93%Debt increment 8544400028642000198.32%(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 evaluatedthat 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 togood 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 6DescriptionMarshall Holdings plc ($)201620152014Revenue1,89,94,05,000 1,23,27,61,000 1,08,58,83,000 94,05,05,000 79,44,37,000 Cost of goods sold1,67,89,49,000 1,08,74,52,000 95,97,12,000 82,67,07,000 70,11,53,000 Gross profit22,04,56,000 14,53,09,000 12,61,71,000 11,37,98,000 9,32,84,000 Operating profit2,90,54,0001,82,46,000 1,52,43,000 1,25,72,000 68,81,000 Net profit1,77,54,0001,17,14,000 99,36,000 77,32,00033,05,000 Interest29,85,000 14,18,000 11,40,000 11,95,00011,66,000 Inventory38,00,16,000 24,06,32,000 16,30,11,000 13,49,58,000 11,04,77,000 Current assets47,51,72,000 30,74,86,000 23,80,18,000 21,43,37,000 15,73,73,000 Receivables 8,46,61,0003,81,93,000 7,03,01,000 7,49,43,000 4,32,84,000 Current liabilities58,49,14,000 28,99,70,000 25,14,11,000 21,28,34,000 15,53,40,000 Payables49,73,40,000 21,24,06,000 22,14,42,000 18,25,44,000 12,86,86,000 Equity14,56,38,000 12,98,84,000 6,61,20,000 6,06,81,000 5,59,46,000 Total liabilities65,60,14,000 32,51,19,000 28,70,14,000 24,72,56,000 18,72,75,000 Total assets80,16,52,000 45,50,03,000 35,31,34,000 30,79,37,000 24,32,21,000 Number of employee2,250 DescriptionFormulaMarshall Holdings plc

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