Question
1) Evaluate the soundness of the companys financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class. 2)
1) Evaluate the soundness of the companys financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.
2) A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
Income Statement | Q4/ 20144 million | Q4/ 2013 million | Deviation | 1-12/2014 million | 1-12/2013 million | Deviation |
Sales Cost of sales | 750,8 -413,0 | 698,3 -396,7 | 7.5% 4.1% | 2,972.0 -1,586.7 | 2,985.3 -1,597.8 | -0.4% -0.7% |
Gross Profit - in % of consolidated sales Royalty and commission income Other operating income and expenses | 337.8 45.0% 5.2 -332.5 | 301.6 4302% 5.7 -306.2 | 12.0% 7.7 8.6% | 1,385.4 46.6% 19.4 -1,276.8 | 1,387.5 46.5% 20.8 -1.216.9 | -0.2% -6.7% 4.9% |
Operating result before special items - in % of consolidated sales Special items | 10.6 1.4% 0.0 | 1.1 0.2% -129.0 | 892.2% -100.0% | 128.0 4.3% 0.0 | 191.4 6.4% -129.0 | -33.1% -100.0% |
Operating result (EBIT) - in % of consolidated sales Financial result / Income from associated companies | 10.6 1.4% -1.0 | -127.9 -83.3% 0.8 | -108.3% -223.5% | 128.0 4.3% -6.2 | 62.5 2.1% -8.7% | 104.9% -28.8% |
Earnings before ---taxes (EBT) - in % of -------------consolidated sales Taxes on income--- - Tax rate------------- Net earnings ------attributable to non-controlling interests | 9.6 1.3% -4.7% 48.6% -9.5 | -127.1 -18.2% 18.6 14.6% -6.7 | -107.5% -125.0% 42.0% | 121.8 4.1% -37.0 30.4% -20.8 | 53.7 1.8% -32.5 60.5% -15.9 | 126.6% 13.7% 30.5% |
Net earnings | -4.6 | -115.2 | -96.0% | 64.1 | 5.3 | 1,103.0% |
Earnings per share () Earnings per share () - diluted | -0,30 -0,30 | -7,71 -7,71 | -96,0% -96,0% | 4,29 4,29 | 0,36 0,36 | 1.103.0% 1.103,1% |
Weighted average shares outstanding Weighted average shares outstanding - diluted | 14,940 14,940 | 14,940 14,941 | 0,0% 0,0% |
Balance Sheet
Balance Sheet | Dec 31,2014 million | Dec 31, 2013 million | Deviation |
Assets | |||
Cash and cash equivalents | 401,5 | 390,1 | 2,9% |
Inventories | 571,5 | 521,3 | 9,6% |
Trade receivables | 449,2 | 423,4 | 6,1% |
Other current assets (Working Capital related) | 202,4 | 167,8 | 20,6% |
Other current assets | 58,0 | 11,6 | 400,9% |
Current Assets | 1.682,5 | 1.514,2 | 11,1% |
Deferred taxes | 178,8 | 164,2 | 8,9% |
Other non-current assets | 688,7 | 630,1 | 9,3% |
Non-current assets | 867,5 | 794,3 | 9,2% |
Total Assets | 2.549,9 | 2.308,5 | 10,5% |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current financial liabilities | 19,8 | 25,1 | -21,1% |
Trade payables | 515,2 | 373,1 | 38,1% |
Other current liabilities (Working Capital related) | 252,1 | 211,1 | 19,4% |
Other current liabilities | 35,5 | 81,6 | -56,5% |
Current liabilities | 822,6 | 690,8 | 19,1% |
Deferred taxes | 54,6 | 50,3 | 8,5% |
Pension provisions | 26,0 | 28,1 | -7,3% |
Other non-current liabilities | 28,4 | 42,1 | -32,5% |
Non-current liabilities | 109,0 | 120,4 | -9,4% |
Shareholders' equity | 1.618,3 | 1.497,3 | 8,1% |
Total Liabilities and Shareholders' equity | 2.549,9 | 2.308,5 | 10,5% |
Please answer both questions. Please do not copy and paste from other questions. Thank you
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