Financial Analysis of The “Voda Vrnjci” company Uros Granic 353/10

Summary Balance sheet Income statement Liquidity Turnover Leverage Profitability Benchmarking

Balance sheet of “Voda Vrnjci” Name (dinars) 31.12.2011. 31.12.2012 Total Assets 1,584,936,000 1,752,470,000 Fix Assets 1,018,957,000 1,093,586,000 Current Assets 565,979,000 626,407,000 -Inventory 186,913,000 191,002,000 -Account receivable 317,389,000 361,697,000 -Cash 61,677,000 73,708,000 Name (dinars) 31.12.2011. 31.12.2012. Total Liabilities 1,584,936,000 1,752,470,000 Capital 1,067,746,000 1,178,154,000 Liabilities 517,190,000 524,327,000 -Current liabilities 415,305,000 426,756,000

Income Statement Name (dinars) 31.12.2011 31.12.2012 Total Revenue 1,499,764,000 1,738,823,000 -Income sales 1,503,342,000 1,698,995,000 Total costs 1,410,142,000 1,683,240,000 -Material costs 756,032,000 801,771,000 Profit 89,622,000 55,583,000

Liquidity Basic Ratio = 626,407,000/426,756,000 = 1.46:1 ( Current Assets/Current liabilities ) Quick Ratio = 435,405,000/426,756,000 = 1.02:1 (liquid assets/current liabilities) Average daily expenses = 4,358,936 dinars/day Defensive Ratio shows us that company can pay daily expenses from their own assets for 99.8 days. Net current assets = 626,407,000-426,756,000=199,651,000 din (Current Assets – Current liabilities)

Turnover Ratio Accounts receivable turnover Average accounts receivable = 344,893,000 din Net sales = 470,626,000 din ART= Aar/Ns 1.36 : 1 In average needs 268 days for accounts receivable turnover. The Inventory turnover ratio Cost of goods sold = 1,228,369,000 din Average inventory = 188,938,666 din ITR=cogs/ai 6.5 : 1 Net sales provide 45% of total operating funds

Leverage Relation between own and borrowed source - 0.4:1 Relation between long-term debt and own source – 7% Relatio between short-term debt and own source – 36%

Profitability EBIT margin =11.8% Net profit rate = 4.8% Return on assets ( ROA ) = 0.31 % Return on equity ( ROE ) = 2% DuPont analysis SSPS= 7%

Benchmarking 41% 14.9% 5% Indicators “Voda Vrnjci” “Knjaz Milos” Quick ratio 1.02 : 1 0.22 : 1 Acc. receivable turnover 1.36 : 1 0.41 : 1 Leverage (short-term) 36% 41% EBIT margin 11.8% 14.9% ROE 2% 5%