5-1: Power BI: Visualizations of Financial Performance
Gerald Henry
Sothern New Hampshire University
MBA 620
Mr. Mannaberg
September 1, 2024
5-1: Power BI: Visualizations of Financial Performance
Assets, Liabilities & Equities
Figure 1: Company A Clustered Column Chart
According to the above clustered column chart for company A, the total liabilities, equity
and total assets stayed the same in 2017 and 2018. However, in 2019 the total liabilities, equity
and assets fell drastically showing that the company may have accumulated some losses or
borrowed money that needs to be paid back. Instead of borrowing, issuing new shares to raise
funds could be a better strategy for avoiding negative shareholder equity (Porter, 2024)
Figure 2: Company B Clustered Column Chart
According to the above-clustered column chart for company B, the total liabilities,
shareholder equity, and total liabilities show a steady decline in all three years. From 2017 and
2018 there was a small decline. However, in 2019 the drop became significant. A steady decline
in total liabilities, shareholders' equity and total assets may show company B may have
accumulated losses over multiple periods or has a significant amount of debt that needs to be
paid off (Porter, 2024).
Revenue & Earnings
Figure 3: Company A Line Chart (Revenue & Earnings)
Figure 4: Company B Line Chart (Revenue & Earnings)
Conclusion
Based on observations, I can conclude that company B has accumulated or kept more debt or
losses than company A. According to the Balance sheet of Company B compared to company A,
company B’s liabilities are significantly higher which has hindered their revenue growth. High
liabilities can affect net income, cash flow and the company's future success. It appears that
company B has high debts and is struggling to repay its debts, which is affecting the company's
overall revenue, and gross profit. Company B has performed poorly compared to company A. It
is safe to conclude that company A is a more suitable choice in terms of the acquisition for our
company.
References
Porter, T. (2024). Negative Shareholder equity: What Does It Mean? Investopedia.
