Determine the profitability ratio for Ballard Power System's ratios and give comments. The ratios should comprise of the following
- Profit Margin ratio
- Return on Asset ratio
- Return on Equity
The financial statements of the company are as follows:
BALLARD POWER SYSTEMS INC. Consolidated Statement of Loss and Comprehensive Income (Loss) For the year ended December 31 (Expressed in thousands of U.S. dollars, except per share amounts and number of shares) Note 2019 2018 21 $ $ Revenues: Product and service revenues Cost of product and service revenues Gross margin 106,327 83,732 22,595 96,586 66,912 29,674 26,928 13,212 Operating expenses: Research and product development General and administrative Sales and marketing Other expense Total operating expenses 27,039 14,760 8,068 605 7,915 1,933 23 49,988 50,472 24 Results from operating activities Finance income (loss) and other Finance expense Net finance income (loss) (27,393) 2,851 (1,434) 1,417 (20,798) (449) (503) (952) 24 Loss on sale of assets Equity in loss of investment in joint venture and associates Loss before income taxes 25 12 & 27 (1,995) (11,059) (39,030) (4,049) (1,154) (26,953) 26 Income tax expense Net loss (20) (39,050) (370) (27,323) Other comprehensive income (loss): Items that will not be reclassified to profit or loss: Actuarial gain (loss) on defined benefit plans 18 305 (400) (400) 305 Items that may be reclassified subsequently to profit or loss: Foreign currency translation differences (38) 647 647 Other comprehensive income (loss), net of tax Total comprehensive loss (38) (438) (39,488) $ 952 (26,371) Consolidated Statement of Financial Position (Expressed in thousands of U.S. dollars) Note December 31, 2019 December 31 2018 Assets $ Current assets: Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses and other current assets Total current assets 7 8 147,792 $ 49,316 30,098 2,320 229,526 192,235 38,524 29,311 1,523 261,593 9 10 Non-current assets: Property, plant and equipment Intangible assets Goodwill Investments Other non-current assets Total assets 11 42,836 5,687 40,287 21,647 336 340,319 $ 21.620 8,285 40,287 13,994 321 346,100 12 $ Liabilities and Equity 14 $ 15 Current liabilities: Trade and other payables Deferred revenue Provisions and other current liabilities Current lease liability Total current liabilities 16 17 31,427 $ 20,156 10,488 2,445 64,516 21,154 16,681 9,243 631 47,709 17 17 Non-current liabilities: Non-current lease liability Deferred gain on finance lease liability Provisions and other non-current liabilities Employee future benefits Total liabilities 16 17,306 2,150 1,688 4,396 90,056 5,064 2,566 3,862 4,299 63,500 18 Equity: Share capital Contributed surplus Accumulated deficit 19 19 1,182,660 290,640 (1.223.8501 1,174,889 291,260 (1.184 4001
