Analysis of Financial Statements: case study of Printing Express - Assignment Example

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Analysis of Financial Statements: case study of Printing Express

The report presents an evaluation of the working capital management by the Printing Express Company and presents recommendations in this regard. Considering the horizontal analysis of the company from year 2002 to year 2006, it can be seen that the sales revenue of the company increased considerably in the year 2005 as compared to year2006. The increase in sales revenue lead to an increase in the cost of sales, however, the increase in sales is greater than the increase in cost of sales resulting in a net increase in the gross profits for the company in year 2006. Moving further, it is observed that the total expenses experienced a significant drop regardless and increase of revenue. At the end, the considerable point to note is that the operating income of the company increased by more than 5% on average for the years, and after accounting for the interest and taxation expenses the increase recorded from year 2006 to year 2006 in the net earnings of the company amounted to more than 2.9%. This increase is evident from the lowering down of interest expenses due to a decrease to 8.98% from 48.34% in 2002 in the total long term obligations of the company. On the other hand, the current liabilities of the company increased, which is understandable on the basis that increase in sales volume have increased the amounts payable to suppliers. The equity portion of the balance sheet does show a significant variation in years, there is a decrease of retained earnings and common equity. ...
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This paper presents the financial analysis of Printing Express for the last five years. The analysis comprises of horizontal analysis, vertical analysis, trend analysis and working capital analysis for the financial statements of the company for the last three financial years. …
Author : fayesporer

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