Financial Analysis Report
This report is a comprehensive review of a selected public companys financial performance and position. The objective of this report is to assess the companys financial strength, stability, liquidity, and profitability. The report will overview and provide detail on key information such as the balance sheet, income and cash flow statements, as well as other important financial information.
Company Information
The company reviewed in this report is XYZ Company. XYZ is an international conglomerate focused on producing and marketing consumer goods, with operations primarily in the United States, Europe, and Asia. XYZ has a diverse product portfolio including products ranging from food and beverage to health care and automotive parts.
Balance Sheet
The current balance sheet for the company is expressed in millions of dollars (USD). Total assets for the company stand at $8.9 billion. Current assets total $6.5 billion, which are comprised mainly of cash and cash equivalents ($2.7 billion) and marketable securities ($1.9 billion). Long-term assets are valued at $2.4 billion and include property, plant and equipment, intangible assets and investments.
Total liabilities amount to $7.1 billion. Current liabilities, which total $3.8 billion, are comprised mainly of short-term debt ($1.4 billion) and accounts payable ($1.3 billion). Long-term debt stands at $3.2 billion, which includes long-term debt that is due in the next 12 months. The company’s total equity amounts to $1.8 billion. The company has a positive net worth of $1.8 billion.
Income Statement
XYZ had total sales of $8.0 billion in the most recently reported fiscal year. Cost of goods sold totaled $3.7 billion, leaving gross profits of $4.3 billion. Operating expenses were $2.7 billion, resulting in earnings before interest and taxes (EBIT) of $1.6 billion. Interest expense was $100 million, resulting in earnings before taxes (EBT) of $1.5 billion. Income taxes amount to $470 million leaving net income of $1.0 billion.
Cash Flow Statement
The company had an operating cash flow of $1.7 billion in the reported period. Cash from investing activities was negative $1.0 billion, which is attributable to the sale of investments and the purchase of property and equipment throughout the period. Financing activities provided the remaining cash with sales of stock and long-term debt totaling $342 million in the same period.
Analysis
XYZ is a financially sound company with strong liquidity and profitability. Its balance sheet is healthy with total assets nearly equal to total liabilities, resulting in a positive net worth. The company is also producing consistent earnings and manageable levels of interest expense to service its debt. As a result, XYZ has been able to sustain solid cash flows which have enabled it to continue to invest in growth opportunities.
Conclusion
In conclusion, XYZ is a financially sound organization with good liquidity, well managed debt and consistent profitability. The company has a positive net worth and solid cash flows which indicate its long-term financial health. The company is well positioned to remain financially successful in the foreseeable future.
