How do you think the company has been performing over the past five years? Has there been an improvement or deterioration in the firm’s fortunes? What is driving the changing performance? Write a report, outlining your analysis and findings. (40 marks)

You are tasked with analysing the last two years of accounts of a global mining firm. A simplified statement of financial position and statement of profit and loss are provided below.
Period Ending Yr-0 Yr-1 Yr-2 Yr-3 Total revenue 7,931 6,579 8,204 6,502 Cost of revenue 5,787 5,136 5,318 3,840 Gross profit 2,144 1,443 2,886 2,662 Depreciation 321 182 201 412 Other expenses 100 134 115 247 EBIT 1,723 1,127 2,570 2,003 Interest 1,135 957 1,272 1,009 EBT 588 170 1,298 994 Tax 153 44 337 258 Net income 435 126 961 736 Statement of Financial Position (£ millions)
Period Ending Yr-0 Yr-1 Yr-2 Yr-3 Assets Current assets Cash and cash equivalents 390 381 458 1,585 Short-term investments 6,849 4,547 4,608 578 Net receivables 693 533 1,025 932 Inventory 1,261 909 1,299 880 Other current assets 200 250 86 74 Total current assets 9,393 6,620 7,476 4,049 Property, plant and equipment 10,201 10,920 10,300 10,350 Goodwill 21 23 28 40 Total non-current assets 10,222 10,943 10,328 10,390 Total assets 19,615 17,563 17,804 14,439 Statement of Financial Position (£ millions)
Period Ending Yr-0 Yr-1 Yr-2 Yr-3 Liabilities Current liabilities Accounts payable 1,715 1,190 975 620 Short/current long-term debt 8,945 5,836 3,656 1,727 Other current liabilities 111 169 303 655 Total current liabilities 10,771 7,195 4,934 3,002 Long-term debt 7,161 3,816 1,557 1,478 Total liabilities 17,932 11,011 6,491 4,480 Shareholders’ equity Total shareholders’ equity 1,683 6,552 11,313 9,959 Equity plus liabilities 19,615 17,563 17,804 14,439