Complete Financial Analysis-Getinge CompanyRead Instructions on Individual Assignment
Microsoft PowerPoint - Individual assignment.pptx Individual assignment Areas to cover 2021-02-01 2Individual assignment Heading Comments Income statement Common size, comment on development over years, comment on one off items, normalise Balance Sheet Common size, comment on development over years, comment on one off items, normalise. Working capital. Asset turnover Growth Compare over time, break down into divisions, organic and acquired growth Profitability Margins and returns. Compare over years. Compare to peers. Explain development. Adjust for one offs Solvency Development over years. Compare to benchmark. Explain development. Liquidity Development over years. Compare to benchmark. Explain development. ROE‐analysis Use the leverage formula to analyse development over time ROA‐analysis Use the DuPont formula to analyse development over time Cash flow analysis Use cash flow analysis to explain the development of cash over time Conclusion Summarise your conclusions. What has the company done well and what not so well? What is the trend. In which areas do they need to focus Instructions • 10-15 pages (one page per heading) • Powerpoint or Word • Hand in in LISAM • Deadline 10 February (23:59) • 2 Points per heading, i.e. 20 points max – Key ratios and numbers correctly presented = 1 point – Written analysis meaningful and relevant = 1 point • You do not have to do all headings. I.e. if you do 9 headings perfectly well you will get 18 points. 2021-02-01 3Individual assignment Heading Written analysis. Comments on the numbers to the right. 2021-02-01 4Individual assignment Tables, graphs, calculations and numbers Individual Assignment Individual Assignment Financial Analysis – Getinge AB 1 Areas Covered Heading CommentSlide Income Statement Common size, comment on development over years, comment on one off items, normalize 3 Balance Sheet Common size, comment on development over years, comment on one off items, normalize. Working capital. Asset turnover 4-6 Growth Compare over time, break down into divisions, organic and acquired growth7-8 Profitability Margins and returns. Compare over years. Compare to peers. Explain development. Adjust for one offs9 Solvency Development over years. Compare to benchmark. Explain development. 10 Liquidity Development over years. Compare to benchmark. Explain development. 11 ROE-Analysis Use the leverage formula to analyze development over time12 ROA-AnalysisUse the DuPont formula to analyze development over time13 Cash Flow Analysis Use cash flow analysis to explain the development of cash over time14 Conclusion Summarize your conclusions. What has the company done well and what not so well? What is the trend. In which areas do they need to focus15 2021-02-01 2 Individual assignment Income Statement - Step 1: In order to get the correct % of sales, need to convert the figures into actual millions and billions - Step 2: The Net Sales is always the base, so divide every line item to get the % of each of line item - Formula = (amount /amount of net sales) x 100 - Net Sales from ‘18 increased to ‘19 from 24.1B to 26.56B - Having a higher EBT means a higher tax, so there is increased in tax for year 2019 - All expenses from ‘18 were lower compared to the year ’19, meaning 2018 has a larger percentage of income Consolidated Income Statement (in USD)2019% of sales (’19)2018% of sales (’18) Net Sales26.56B100%24.17B100% Cost of Goods Sold15.31B58%14.01B58% Gross Income 11.25B42%13.53B56% SG&A Expense8.34B31%8.09B33% Research & Development Expense688M3%662M3% Other Operating Expense394M1%117M0.48% Operating Income (EBIT)2.52B9%1.95B8% Financial Income / Expense 141M1%2.15B0.01% Income Before Tax (EBT)1.91B7%624M3% Taxes653M2%315M1% Net Income for the year1.22B5%967M4% 2021-02-01 3 Individual assignment Balance Sheet - Assets Consolidated Balance Sheet (in USD)2019% of total assets (’19)2018% of total assets (’18) Assets- Goodwill18.67B-18.09B- Other Tangible Fixed Assets5.61B-6.01B- Tangible Fixed Assets 24.28B-24.1B- Buildings3.26B-3.17B- Plant & Equipment 2.57B-2.53B- Other Long-Term Securities 15M--- Other Long-Term Receivables 32M-80M- Deferred Tax Assets 5.36B-5.06B- Total non-current assets 337M-343M- Inventories 4.69B-4.54B- Accounts Receivables 8.21B2.80%7.99B3.58% Other Receivables 1.87B-1.88B- Liquid 1.25B2.80%1.27B2.94% Total Current Assets 14.49B-14.15B- Total Assets 44.71B3.14%43.35B-0.26% Individual assignment 2021-02-01 4 Balance Sheet – Equity and Liabilities Consolidated Balance Sheet (in USD)2019% of total assets (’19)2018% of total assets (’18) SHAREHOLDER’S EQUITY AND LIABILITIES Share Capital 20.5B45.84%19.2B44.29% Other Capital 136M-136M- Retained Earnings 11.61B-11.04B- Total Shareholders’ Equity20.5B45.84%19.2B44.29% Long-Term Loan Liabilities 7.07B-7.39B- Other Long-Term Liabilities6.49B-7.38B- Provisions for Risks & Charges 5.87B-5.3B- Deferred Tax Liabilities 1.14B-1.17B- Other Long-Term Provisions 277M-322M- Total Long-Term Liabilities 23.74B-23.7B- Short-Term Loan Liabilities 2.63B-3.45B- Accounts Payable 2B6.80%1.87B-7.75% Current Tax Liabilities 237M199M Current Liabilities 3.48B3.44B Other Current Liabilities 4.68B4.49B Accrued Payroll1.2B1.05B Total Current Liabilities 9.86B10.01B TOTAL SHAREHOLDERS’ EQUITY AND LIABILTIES 44.71B45.84%43.35B44.29% Individual assignment 2021-02-01 5 Balance Sheet – Working Capital and Asset Turnover Getinge AB20162017201820192020 Capital employed/invested Financial Debt291M181M189M197M- Working Capital 473M531M530M572M- Capital Employed Turnover rates Individual assignment 2021-02-01 6 Growth I - Acquired Growth Individual assignment 2021-02-01 7 Growth II – Organic Growth Individual assignment 2021-02-01 8 Profitability Individual assignment 2021-02-01 9 Solvency Individual assignment 2021-02-01 10 Liquidity Individual assignment 2021-02-01 11 ROE – Analysis Individual assignment 2021-02-01 12 ROA – Analysis Individual assignment 2021-02-01 13 Cash Flow Analysis Individual assignment 2021-02-01 14 Conclusion Individual assignment 2021-02-01 15