Clothes Company Financial Analysis
Table of Contents
1. INTRODUCTION 2
2. COMPANY AND MARKET OVERVIEW 2
3. FINANCIAL STATEMENTS ANALYSIS OVERVIEW 5
3.1 Revenues 5
3.2 Total operational profits 6
3.3 Current Assets 7
3.4 Long Lived Assets 7
3.5 Dividends 8
4. RATIO ANALYSIS 9
4.1 Liquidity Ratios 9
4.2 Efficiency Ratios 10
4.3 Profitability Ratios 11
4.4 Gearing Ratios 12
5. TREND ANALYSIS 14
6. CONCLUSION 15
Appendix 1: Balance Sheet Horizontal Analysis 16
Appendix 2: Income Statement Horizontal Analysis 17
Appendix 3: Balance Sheet Vertical Analysis 18
Appendix 4: Income Statement Vertical Analysis 19
Appendix 5: List of Ratios 19
Appendix 6: Trend Analysis 2005-2009 19
References 19
INTRODUCTION
In the present report we will analyze the financial position of Forel S.A. as depicted in the company’s financial statements for the accounting period 2008-2009. Our selection of Forel S.A. is based on its dynamic presence in the women clothing industry in Greece. We believe that it would be quite interesting to analyze the financial situation of a local company that despite the current financial turmoil, it continues to maintain its good profitability.
We will begin our report with a brief overview of the company’s key characteristics in comparison with its main competitors. The main body of the report will cover Forel’s financial statements’ horizontal and vertical analysis of the accounts that are worth mentioning, followed by a trend analysis over a five (5) year period. We have selected to analyze the revenues, total operational profits, current assets, long lived assets, non-operational revenues and expenses and the dividends accounts. An analysis of the most important financial ratios will follow, classified and analyzed in respective groups. Consequently, we will comment the liquidity, efficiency, profitability and gearing ratios.
COMPANY AND MARKET OVERVIEW
Greece, a small- to medium-sized textile and clothing producer, has suffered considerably in
1. INTRODUCTION 2
2. COMPANY AND MARKET OVERVIEW 2
3. FINANCIAL STATEMENTS ANALYSIS OVERVIEW 5
3.1 Revenues 5
3.2 Total operational profits 6
3.3 Current Assets 7
3.4 Long Lived Assets 7
3.5 Dividends 8
4. RATIO ANALYSIS 9
4.1 Liquidity Ratios 9
4.2 Efficiency Ratios 10
4.3 Profitability Ratios 11
4.4 Gearing Ratios 12
5. TREND ANALYSIS 14
6. CONCLUSION 15
Appendix 1: Balance Sheet Horizontal Analysis 16
Appendix 2: Income Statement Horizontal Analysis 17
Appendix 3: Balance Sheet Vertical Analysis 18
Appendix 4: Income Statement Vertical Analysis 19
Appendix 5: List of Ratios 19
Appendix 6: Trend Analysis 2005-2009 19
References 19
INTRODUCTION
In the present report we will analyze the financial position of Forel S.A. as depicted in the company’s financial statements for the accounting period 2008-2009. Our selection of Forel S.A. is based on its dynamic presence in the women clothing industry in Greece. We believe that it would be quite interesting to analyze the financial situation of a local company that despite the current financial turmoil, it continues to maintain its good profitability.
We will begin our report with a brief overview of the company’s key characteristics in comparison with its main competitors. The main body of the report will cover Forel’s financial statements’ horizontal and vertical analysis of the accounts that are worth mentioning, followed by a trend analysis over a five (5) year period. We have selected to analyze the revenues, total operational profits, current assets, long lived assets, non-operational revenues and expenses and the dividends accounts. An analysis of the most important financial ratios will follow, classified and analyzed in respective groups. Consequently, we will comment the liquidity, efficiency, profitability and gearing ratios.
COMPANY AND MARKET OVERVIEW
Greece, a small- to medium-sized textile and clothing producer, has suffered considerably in
References: Bill Cost, 2010. Home Page. Available from: www.billcost.gr/ [Accessed 10 April 2011] Forel S.A, 2011 IOBE,2007. Sectoral Study: Textiles and Clothing. Available from: www.iobe.gr/index.asp?a_id=161&news_id=355 [Accessed 10 April 2011] Panagopoulos, G., 2010 Toi&Moi, 2010. Home Page. Available from: www.toi-moi.com/ [Accessed 10 April 2011] -----------------------