ABC Company is the regional sales dealer/distributor of XYZ Company., which is a big tyre producer - It was established in 2009 as a partnership of two brothers - XYZ Company is the only supplier of tyre products for the ABC Company. - ABC Ltd. has two types of sales channel : Retail (to end-consumers through its retail shop B2C) and Commercial (to several companies in different sectors - B2B sales) - Payment terms to XYZ AS. is 60 days for retail and 75 days for commercial purchases. Average sales term of ABC Ltd. for its own B2B sales is 90 days.

1) Analyze the ABC Company. financials and write a brief financial evaluation.

2) Write a possible commercial scenario of your estimation, supporting your financial evaluation : What may have occured ? What might be the reasons of current financial situation ?

ABC Financial
	31.12.2013	31.12.2014	31.12.2015	%YtY change	%YtY change
Total Assets	2.983	4.506	8.476	51%	88%
Currents Assets	2.534	3.906	7.470	54%	91%
Trade receivables	1.502	1.423	3.864	-5%	172%
Inventories	1.013	2.342	3.427	131%	46%
Fixed Assets	449	600	906	34%	51%
Short-term liabilities	2.122	2.698	6.975	27%	159%
Trade payables	1.484	1.991	5.531	34%	178%
Bank Loans	587	600	1.599	2%	167%
Long-term liabilities	518	1.440	995	178%	-31%
Trade Payables	-	-	-
Bank Loans	316	1.180	954	273%	-19%
Equity	342	369	406	8%	10%
Gross Revenue	4.788	5.344	6.198	12%	16%
Operational cost	164	312	899	90%	188%
Financial Cost	365	440	377	21%	-14%
profit/loss	32	34	37	6%	9%

	31.12.2014	31.12.2015
Current ratio	1,45	1,07
Quick ratio	0,58	0,58
Inventory turnover	2,28	1,77
Daily Sales Outstanding	95,88	229,43
Profit Margin on Sales	0,01	0,01