Financial Analysis
Term Paper on Financial Performance Evaluation
(For the Partial Fulfillment of financial and managerial accounting Course Code: MBA 514)
Submitted to: A .S.Kannan (assistant professor) Submitted by: Abel Dula
Aynemogn Getachew Mekonen Yimer
School of Business And Economics
Dilla University
Dilla January, 26, 2012
Table of Contents ACKNOWLEDGEMENTS 4 1. Introduction 5 1.1 Back ground of the organization 5 1.2 Objective of the study 7 1.2.1 The general objective 7 1.2.2 Specific objective of the study 7 1.3 Research methodology 8 1.3.1. Source of data 8 1.3.2. Methods of data analysis 8 1.4 Significance of the study 8 1.5 Delimitation of the study 8 1.6 Limitation of the study 9 2. Literature review 9 2.1. An over view of financial Statement 9 2.2 Objective of financial analysis 10 2.2. Tools and Techniques of FPA 11 2.2.1. Horizontal Analysis 11 2.2.2. Vertical analysis 12 2.2.3. Trend Analysis 12 2.2.4. Using Ratios to Make Decisions 12 2.3. Red Flags in Financial Statement Analyses 13 3. DATA presentation and analysis 14 3.1. Horizontal Analysis for the last Two years 14 3.1.1. Interpretation for the analysis of Balance sheet using Horizontal Analysis 17 3.2. Vertical analysis for the last Two years 19 3.3. Trend analysis for the last Five years 25 3.4. Ratio analysis for the last three years 29 3.4.1. Liquidity ratio 29 3.4.2. Activity/efficiency/ ratio 33 3.4.7. Profitability ratio 40 3.4.8. Evaluating Cash Flow Adequacy 45
ACKNOWLEDGEMENTS
We wish to record our sincere gratitude to Prof. A.S. Kannan for assigning us to prepare this term paper. We feel very much honored to get such an opportunity at this stage of our career. The opportunity has given us the chance to Practice our knowledge and gain deeper insight on the financial Statement analysis.
We also extend our genuine appreciation and thanks to
(For the Partial Fulfillment of financial and managerial accounting Course Code: MBA 514)
Submitted to: A .S.Kannan (assistant professor) Submitted by: Abel Dula
Aynemogn Getachew Mekonen Yimer
School of Business And Economics
Dilla University
Dilla January, 26, 2012
Table of Contents ACKNOWLEDGEMENTS 4 1. Introduction 5 1.1 Back ground of the organization 5 1.2 Objective of the study 7 1.2.1 The general objective 7 1.2.2 Specific objective of the study 7 1.3 Research methodology 8 1.3.1. Source of data 8 1.3.2. Methods of data analysis 8 1.4 Significance of the study 8 1.5 Delimitation of the study 8 1.6 Limitation of the study 9 2. Literature review 9 2.1. An over view of financial Statement 9 2.2 Objective of financial analysis 10 2.2. Tools and Techniques of FPA 11 2.2.1. Horizontal Analysis 11 2.2.2. Vertical analysis 12 2.2.3. Trend Analysis 12 2.2.4. Using Ratios to Make Decisions 12 2.3. Red Flags in Financial Statement Analyses 13 3. DATA presentation and analysis 14 3.1. Horizontal Analysis for the last Two years 14 3.1.1. Interpretation for the analysis of Balance sheet using Horizontal Analysis 17 3.2. Vertical analysis for the last Two years 19 3.3. Trend analysis for the last Five years 25 3.4. Ratio analysis for the last three years 29 3.4.1. Liquidity ratio 29 3.4.2. Activity/efficiency/ ratio 33 3.4.7. Profitability ratio 40 3.4.8. Evaluating Cash Flow Adequacy 45
ACKNOWLEDGEMENTS
We wish to record our sincere gratitude to Prof. A.S. Kannan for assigning us to prepare this term paper. We feel very much honored to get such an opportunity at this stage of our career. The opportunity has given us the chance to Practice our knowledge and gain deeper insight on the financial Statement analysis.
We also extend our genuine appreciation and thanks to