Exide Financial Analysis

FINANCIAL MANAGEMENT

ASSIGNMENT

Analysis Of Financial Statement

Organization EXIDE

Submitted by:

M. Romaan Qamar (1046101)

MBA-Day(A)

Submitted to:

Mr. Imran Qamar

1. HORIZONTAL ANALYSIS

Horizontal Analysis of Balance Sheet:

Balance Sheet | 2011In thousand | 2010In thousand | Horizontal Analysis |

Cash | 567,426 | 286,206 | 98% |

Short Term Investments | 317,367 | 203,098 | 56% |

Accounts Receivable | 36,358 | 19,563 | 86% |

Inventory | 1,856,140 | 1,457,671 | 27% |

Current Assets | 2,959,417 | 2,107,704 | 40% |

Long Term Investments | 1,051,084 | 796,908 | 32% |

Net Fixed Assets | 1,027,910 | 776,542 | 32% |

Total Assets | 4,010,501 | 2,904,612 | 38% |

Current Liabilities | 2,366,350 | 1,710,480 | 38% |

Total Liabilities | 2,412,097 | 1,754,611 | 37% |

Total Stockholders' Equity | 1,148,488 | 900,499 | 28% |

Note: values in the table are taken directly from annual report of Exide of 2011.

Comments:

Increase in cash holding increases by 98% between 2011 and 2010. The reason behind this increase is increase in the cheques in hand, cash in hand and current account amount. Cheque in hand amount increase by 102% and current account increase by 97% and cash in hand increased by 45%. The short term investment increases by 56%. Account receivable increase by 86%. Inventory increase by 27%. The company is very stable with respect to asset to liabilities. Company is increasing its asset at sustainable pace. Thought company current assets are increasing which does not show a company internal position but its fixed assets are increasing as compared to total liabilities.

Horizontal Analysis of Profit and Loss Statement:

Income Statement | 2011In thousand | 2010In thousand | Horizontal Analysis |

Revenue | 7,711,452 | 6,189,135 | 25% |

Cost of Goods Sold | -6,643,630 | -5,413,928 | 23% |

Interest...