Vertical/Common size Analysis

In the common size analysis, the entries in the same year have been converted to a common size for better understanding. In the income statement, we can see that majority of their revenue comes from gaming activities which is about 90.14% of their total revenue, hospitality revenue is 4.34% and Racetrack, lease and other revenues is 5.52%. Total expenses have been increased but revenue does not increase simultaneously. Hence loss occurred in 2020.

In the balance sheet, it can be observed that 17.38% of the total assets belong to the current assets, mainly contributing to accounts receivable, and the rest is belonging to capital assets. On the liabilities side, only 7.34% remains with the current liabilities. The accounts receivables being the majority may not be exactly an asset if not maintained properly.

Horizontal/Percentage Change Analysis

During the horizontal analysis, the growth or decline of entries of the financial statements is measured. In the case of the income statement, the total revenue of the company has been growing but the growth was fast in 2017 to 2019. But in 2020 the growth has been reduced very much. The expense of the company was also growing, but in 2020, it was declining which is a good thing to occur.

In the balance sheet, the assets and liabilities have been growing in the same pattern, in which assets and liabilities increased chronologically. As to note the accounts receivables have been growing on an increasing curve each year which needs to be monitored. The cash flow from the operating activities has been on a increasing during 2016 and 2018 but was declined in 2019 to 2020. The cash flow from the investing activities has been on a decline curve. Finally, the cash at the end of the year was on growth during 2017 and 2018 but declined greatly in 2019 to 2020.

Question: Please summarize the vertical analysis & horizontal analysis. Also Based on the vertical analysis & Horizontal analysis please comment the company's condition.