Hello,

I need help with the analysis of the financial statements. Thanks in advance

TGM511: Global Financial Accounting In your job as a financial analyst, you have been given the financial statements to evaluate. The financial statements are from a company that is not US-based, and so the format is a bit different than what a typical US-based organization would have. Using the analytical toolkit, your job is to evaluate the operational and financial health of this company and discuss your findings. Your discussion should not be a recitation of the data results, for example: \"Gross Profit in 2014 was 27.9%.\" That tells me nothing more than what I can see (hopefully) on the income statement analysis. Your discussion should indicate where and why you think the company is doing well, and where and why you think the company is not doing very well or might have particular challenges. To repeat, don't just report data, although data is important. For example, if you find that A/R days increase from 10 to 15 to 30 (not real numbers from this dataset) - reportote that outcome but discuss why this would be a potential problem for the firm. You should not discuss all data outcomes, only the ones that match your discussion of where the firm is doing well and where the firm is facing problems or challenges. Rules 1. The exam is open book/open note - use any resources at your disposal. 2. Your exam submission should be one document only (3 - 5 pages of text, plus exhibits) that incorporates the financial analysis with the written analysis. Incom tatem eS ent (in thousandsof Euros) Net Sales Cost of Sales Gross Profit Selling and Expenses Administrative Expenses Other Income (Expense) Operating Profit (Loss) Financial Income Financial Expenses Exchange Differences* Share in Profits from Associates Financial Assets Reclassified** Profit (Loss) Before Income Tax Income Tax Expense Profit from Continuing Operations Profit (Loss) from Discontinued Operations Profit (Loss) Profit (Loss) Attributable to: Owners of the Company Non-Controlling Interests Profit (Loss) 2014 2013 2012 6,284,653 (4,529,275) 1,755,378 5,818,297 (4,224,270) 1,594,027 4,473,717 (3,254,369) 1,219,348 (818,136) (350,294) (21,380) 565,568 36,904 (216,629) (81,272) (4,227) (256,861) 43,483 (24,121) 19,362 (474) 18,888 (720,189) (298,405) 67,860 643,293 59,103 (150,804) (85,679) (1,496) (72,202) 392,215 (125,071) 267,144 63,489 330,633 (495,350) (242,706) 7,366 488,658 12,003 (45,235) 26,329 (636) (21,128) 459,991 (149,771) 310,220 41,170 351,390 19,362 (474) 18,888 267,144 63,489 330,633 352,222 (832) 351,390 * Refers to foreign currency translation effects **Refers to unrealized gains/(losses) on marketable securities B alanceS heet (in thousandsof Euros) Assets Current Assets Cash and Cash Equivalents Other Financial Assets Trade Accounts Receivable, Net Other Accounts Receivable, Net Account Receivables from Related Parties Advances to Suppliers Inventories Deferred Tax Other non financial assets Assets classified as held for sale Total C urrentAssets 2014 122,382 31,094 981,982 281,184 157 45,538 987,529 108,705 157,891 23,047 2,739,509 2013 92,938 4,740 954,232 207,365 425 35,531 790,248 61,967 12,112 9,559 2,169,117 2012 496,070 746,555 120,348 426 649 38,414 754,328 27,103 35,871 9,473 2,229,237 Other Financial Assets Investments in associates Other Account Receivables Property, Plant and Equipments, Net Intangible Assets, Net Deferred Tax Goodwill Total Non-C urrentAss ets Total Assets 327,575 22,836 17,515 2,062,404 591,904 95,027 926,510 4,043,771 6,783,280 251,359 29,205 21,375 1,876,942 487,864 89,067 759,121 3,514,933 5,684,050 196,865 35,471 637 1,326,827 102,435 34,224 352,968 2,049,427 4,278,664 L iabilitiesandS hareholders' Equity Current Liabilities Other Financial Liabilities Trade Account Payables Other Account Payables Account Payables to Related Parties Provisions Current Income Tax Provision for Employee Benefits Total C urrentL iabilities 1,125,240 1,005,915 105,152 2,179 15,200 10,370 81,370 2,345,426 292,175 685,223 114,871 5,151 14,117 2,593 95,326 1,209,456 581,086 531,729 40,261 992 8,869 8,726 94,653 1,266,316 Other Financial Liabilities Other Account Payables Deferred Income Tax Liabilities Provisions Provision for Employee Benefits Total Non-C urrentL iabilities Total L iabilities 1,814,782 98,212 362,944 3,006 6,475 2,285,419 4,630,845 1,762,184 126,597 368,431 8,265 7,403 2,272,880 3,482,336 747,667 150,119 5,679 903,465 2,169,781 Shareholders' Equity Share Capital Investment Shares Reserves Retained Earnings Other Shareholders' Equity Reserves 847,192 7,388 169,438 1,052,934 62,093 847,192 7,388 160,903 1,146,756 30,645 847,192 7,388 129,342 1,029,995 88,206 Equity Attributable to Owners of the Firm Non-Controlling Interests Total S hareholders' Equity Total L iabilitiesandS hareholders' Equity 2,139,045 13,390 2,152,435 6,783,280 2,192,884 8,830 2,201,714 5,684,050 2,102,123 6,760 2,108,883 4,278,664 Cons olidatedS tatem entof C hF as lows DirectMethod , (in thousandsof Euros) 2014 CAS L HF OWF OM OPER R ATINGAC TIVITIES Sales of Goods and Services Offered Other Operating Collections Suppliers of Goods and Services Paid Salaries Paid Income Taxes Paid Other Operating Payments Net C ash(Us edin)GeneratedbyOperatingActivities CAS L HF OWF OM INVES R TMENTAC TIVITIES Sale of Financial Instruments (Debt or Equity) to other Entities Sale of Properties, Plant and Equipment Sale of Intangible Assets Interests and Returns Received Dividends Received Net Cash Outflow on Acquisition of Subsidiaries Purchase of Properties, Plant and Equipment Purchase of Intangible Assets Other Cash Payments from Investment Activities Net C ash(Us edin)GeneratedbyInves entActivities tm CAS L HF OWSF OM F R INANC INGAC TIVITIES Short Term and Long Term Loans Short Term & Long Term Loan Amortizations Interests and Returns Dividends Other Cash Payments from Financing Activities Net C ash(Us edin)GeneratedbyF inancingActivities Increase (Decrease) Net Cash Flow , before Exchange Rate Changes Effects of Exchange Rate Changes on the Balance of Cash Held in Foreign Currencies Increas e(Decrease)NetCashF low, afterexchang eratechang es Cashandcashequivalentsat thebeg inningof theyear Cashandcashequivalentsat theendof theyear 6,261,347 248,829 (5,116,766) (570,802) (85,565) (348,083) 388,960 2013 2013 5,617,244 5,120,799 218,098 5,601 (4,641,590) (4,054,957) (551,074) (437,319) (170,555) (181,241) (186,298) (249,545) 285,825 203,338 0 9,315 0 5,512 2,892 (300,650) (323,464) (1,681) 20,227 (587,849) 10,302 47,176 83,878 12,057 3,558 (589,053) (368,691) (4,794) 224 (805,343) 0 129,663 0 8,610 3,393 (207,356) (243,791) (685) 9,502 (300,664) 2,689,612 (2,144,948) (208,692) (102,550) 0 233,422 2,780,081 (2,436,201) (121,326) (102,550) (3,740) 116,264 836,033 (126,912) (53,641) (162,370) 0 493,110 34,533 (403,254) 395,784 (5,089) 29,444 92,938 122,382 122 (403,132) 496,070 92,938 (1,532) 394,252 101,818 496,070 Note: The \"Direct Method\" approach to a Cash Flow statement changes only the format of the Operating Activities section of the statement, but the end result of the section is the same as the Indirect method. Do not re-do the Ste of Cash Flows - just use the data reported in the statement above for your analysis