Evaluating Performance and Benchmarking

ACL267
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IncomeStatementVerticalAnalysis

Income Statement Vertical Analysis
Company 1 Company 2
2018 2017 2018 2017
Revenue
Total Revenue 100% 100% 100% 100%
Cost of Revenue 67.28% 67.37% 71.41% 71.11%
Gross Profit 32.72% 32.63% 28.59% 28.89%
Operating Expenses
Selling General and Administrative 18.23% 18.62% 17.77% 17.78%
Total Operating Expenses 85.51% 85.99% 89.18% 88.88%
Operating Income or Loss 14.49% 14.01% 10.82% 11.12%
Income from Contunuing Operations
Total Other Income/ Expenses Net -0.05% -0.13% -0.12% -0.36%
Earnings Before Inerest and Taxes 14.49% 14.01% 10.82% 11.12%
Interest Expense -0.13% -0.15% -0.02% -0.18%
Income Before Tax 14.44% 13.88% 10.71% 10.75%
Income Tax Expense 4.80% 5.20% 2.86% 3.48%
Net Income 9.64% 8.69% 7.85% 7.27%

IncomeStatementHorizontalAnalys

Income Statement Horizontal Analysis
Company 1 Company 2
2018 2017 $Change %Change 2018 2017 $Change %Change
Revenue
Total Revenue 14,134,732 12,866,757 1,267,975 9.85% 38,972,934 35,864,664 3,108,270 8.67%
Cost of Revenue 9,510,238 8,668,505 841,733 9.71% 27,831,177 25,502,167 2,329,010 9.13%
Gross Profit 4,624,494 4,198,252 426,242 10.15% 11,141,757 10,362,497 779,260 7.52%
Operating Expenses
Selling General and Administrative 2,576,098 2,395,608 180,490 7.53% 6,923,564 6,375,071 548,493 8.60%
Total Operating Expenses 12,086,396 11,064,113 1,022,223 9.24% 34,754,741 31,877,238 2,877,503 9.03%
Operating Income or Loss 2,048,396 1,802,644 245,752 13.63% 4,218,193 3,987,426 230,767 5.79%
Income From Continuing Operations
Total Other Income/ Expenses Net -7,676 -16,488 8,812 53.44% -44,982 -130,838 85,856 65.62%
Earnings Before Interest and Taxes 2,048,396 1,802,644 245,752 13.63% 4,218,193 3,987,426 230,767 5.79%
Interest Expense -18,847 -19,569 722 3.69% -8,860 -64,295 55,435 86.22%
Income Before Tax 2,040,720 1,786,156 254,564 14.25% 4,173,211 3,856,588 316,623 8.21%
Income Tax Expense 677,967 668,502 9,465 1.42% 1,113,413 1,248,640 135,227 -10.83%
Net Income 1,362,753 1,117,654 245,099 21.93% 3,059,798 2,607,948 451,850 17.33%

BalanceSheetVerticalAnalysis

Balance Sheet Vertical Analysis
Company 1 Company 2
2018 2017 2018 2017
Current Assets
Cash and Cash Equivalents 22.55% 20.94% 21.15% 19.62%
Short Term Investments 0.01% 3.60%
Net Receivables 1.54% 1.42% 6.00% 2.33%
Inventory 28.96% 28.49% 31.96% 29.79%
Other Current Assets 0.21% 0.26% 0.09%
Total Current Assets 55.07% 52.98% 59.12% 60.36%
Long Term Investments 0.01% 0.02%
Property Plant and Equipment 41.64% 43.85% 36.68% 35.61%
Goodwill 0.68% 0.71%
Intangible Assets 1.03%
Other Assets 3.28% 3.14% 3.52% 2.29%
Deferred Long Term Asset Charges 0.05%
Total Assests 100% 100% 100% 100%
Current Liabilities
Accounts Payable 39.65% 39.89% 28.50% 27.93%
Short/Current Long Term Debt 3.18%
Other Current Liabilities 0.37% 0.96% 16.04%
Total Current Liabilities 72.08% 68.42% 59.62% 57.53%
Long Term Debt 11.67% 15.48% 24.08% 25.04%
Other Liabilities 16.25% 16.10% 16.30% 14.95%
Total Liabilities 100% 100% 100% 100%
Stockholder's Equity
Preferred Stock
Common Stock 0.12% 0.14% 100% 12.20%
Retained Earnings 67.93% 65.54% 96.38%
Treasury Stock -10.44% -9.93% -8.58%
Capital Surplus 42.38% 44.24%
Other Stockholder Equity -8.85%
Total Stockholder Equity 100% 100% 100% 100%
Net Tangiable Assets 100% 100% 98.07% 95.24%

BalanceSheetHorizontalAnalysis

Balance Sheet Horizontal Analysis
Company 1 Company 2
2018 2017 $ Change % Change 2018 2017 $ Change % Change
Current Assets
Cash and Cash Equivalents 1,290,294 1,111,599 178,695 16.08% 3,030,200 2,758,477 271,753 9.85%
Short Term Investments 512 512 506,165 -506,165 -100%
Net Receivables 87,868 75,154 12,714 16.92% 860,000 327,166 532,834 162.86%
Inventory 1,641,735 1,512,866 128,849 8.52% 4,579,000 4,187,243 391,757 9.36%
Other Current Assets 11,847 13,642 -1,795 -13.16% 12,217 -12,217 -100%
Toatl Current Assets 3,151,157 2,813,049 338,108 12.02% 8,469,200 8,485,727 -16,527 -0.19%
Long Term Investments 712 1,288 -576 -44.72%
Property Plant and Equipment 2,328,464 2,328,048 54,416 2.34% 5,255,200 5,006,053 249,147 4.98%
Goodwill 97,600 100,069 -2,469 -2.47%
Intangible Assets 144,900 -144,900 -100%
Other Assets 187,718 166,966 20,752 12.43% 504,000 321,266 183,734 56.88%
Deferred Long Term Asset Charges 6,558 -6558 -100%
Total Assets 5,722,051 5,309,351 412,700 7.77% 14,326,000 14,058,015 267,985 1.91%
Current Liabilities
Accounts Payable 1,059,844 1,021,735 38,109 3.73% 2,644,100 2,488,373 155,727 6.26%
Short/ Current Long Term Debt 84,973 84,973
Other Current Liabilities 9,902 24,559 -14,657 -59.68% 1,429,136 -1,429,136 -100%
Total Current Liabilities 1,926,402 1,752,506 173,896 9.92% 5,531,300 5,125,537 405,763 7.92%
Long Term Debt 311,994 396,493 -84,499 -21.31% 2,233,600 2,230,607 2,993 0.13%
Other Liabilities 434,347 412,335 22,012 5.34% 1,512,500 1,331,645 180,855 13.58%
Total Liabilities 2,672,743 2,561,334 111,409 4.35% 9,277,400 8,909,706 367,694 4.13%
StockHolder's Equity
Preferred Stock
Common Stock 3,796 3,919 -123 -3.14% 5,048,600 628,009 4,420,591 703.91%
Retained Earnings 2,071,400 1,801,138 270,262 15.01% 4,962,159 -4,962,159 -100%
Treasury Stock -318,252 -272,755 -45,497 16.68% -441,859 441,859 -100%
Captial Surplus 1,292,391 1,215,806 76,585 6.30%
Other Stockholder Equity -441,859 441,859 -100%
Total Stockholder Equity 3,049,308 2,748,017 301,291 10.96% 5,048,600 5,148,309 -99,709 -1.94%
Net Tangible Assets 3,049,308 2,748,017 301,291 10.96% 4,951,000 4,903,340 47,660 0.97%