Analysis of Financial Statement

The following table presents the financial summary of a major international company. FY10 MY1 FY12 FY13 FY14 GBP m GBP m GBP m GBP Profit before 1,717 8,167 11,366 (EBIT) and taxation BH 700 1,579 Net Interest payable -163 -349 -579 cities -125 Profit for the year -167 484 352 Balance sheets 26 645 Fixed assets 3,510 3,667 4.758 10431 Current asset inves 11,483 bank and in hand ents, cash at 316 218 561 682 Other current assets 558 514 Total marts 613 1.358 1634 4,384 1. 349 5.691 12.250 11,799 Interest bearing debt (long term) -602 -1,053 -1535 -3521 3.707 Other creditors and provisions -1,223 -1,054 -LIGHT -2.377 current) Total liabilities -1.825 -2.107 2607 5-5.900 Net assets 1559 2.242 Losi 6.150 6,984 Shareholders' Funds 2.161 2,006 2.309 5.572 6,165 Equity minority interries 745 819 Capital employed 2.56 2,291 6,350 Cash flow Working capital none ments TI 107 Net cash infore from operating 859 2.292 activities After analysis the analyst made following assertions: The company's efficiency deteriorated The company's liquidity improved The company's solvency deteriorated The company's profitability deteriorated Required: a) Verify analyst claims while supporting your answers with relevant calculations b) Comment on overall financial performance of the company