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Horizontal Analysis Ratio

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Financial Analysis Horizontal Analysis of Income Statement Revenue 2014 2013 2012 2011 Sales revenue 206% 194% 181% 100% Less cost of goods sold 221% 209% 200% 100% Gross profit 165% 151% 128% 100% Expenses Operating Expenses Admin expenses 155% 139% 120% 100% Selling and distribution expenses 151% 142% 127% 100% Total 153% 141% 123% 100% Operating Profit 175% 161% 132% 100% Non Operational Expenses Financial expenses 263% 187% 135% 100% Net Income Before Taxes 175% 161% 132% 100% Income tax expense 198% 186% 174% 100% Net Income 172% 159% 129% 100% Horizontal analysis focuses on trends and changes in financial statement items over time. Along with the dollar amounts presented in the financial statements, horizontal analysis can help a financial statement user to see relative changes over time and identify positive or perhaps troubling trends. Base year for this analysis is taken as 2011. The table shows that the sales revenue and cost of goods sold increased over the years. And so did the gross profit of the company. All the expenses, admin and selling increased over the years.But the increase in cost of goods sold was greater than the increase in the sales revenues. This shows that the company is incurring higher raw material cost. Moreover, financial expense over the year also rose. …show more content…

Horizontal Analysis of Balance Sheet Assets 2014 2013 2012 2011 Current Assets Stocks and stores 136% 144% 151% 100% Accounts Receivable 219% 516% 192% 100% Advances and prepayments 14% 90% 67% 100% Bank 278% 138% 44% 100% Cash 0% 0% 222% 100% Total Current Assets 136% 168% 130%

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