Financial Statement Analysis Essay Example | Topics and Well Written Essays - 1250 words - 1

Financial Statement Analysis - Essay ExampleThe companys revenue was up and down during period. A clearer house painting of these changes is provided in the charts labelled suppose 1.The information in Figure 1 shows that Dixon sell experience higher levels of turnover in nominal terms than shoes Retail during the five year period. The trend was alike up to 2012. However, bag Retails revenue continued to reject in 2013 while Dixon Retails Revenue increased. When the figures are adjusted for inflation the picture is somewhat different. (See Table 2 in the Appendix.) Figure 2 illustrates the trend for both companies in real terms.The information in Figure 2 shows similar trends for both companies for both companies over the first four years a slight decline in revenue in real terms between 2009 and 2010 a significant decline between 2010 and 2011 and a moderate decline and increase between 2012 and 2013 for business firm Retail and Dixon Retail respectively.A companies make u p of sales is the cost of raw materials and other costs necessary to get the goods to the customer. The common size cost of sales for Home Retail group shows a continuous increase from 65.69% of turnover in 2009 to 68.37 in 2013. This is an indication of rising costs of goods without a similar increase in price. The information for Dixon Retail was somewhat different as the common size cost of sales ranged from 92.48% to 94.86%. These two percentages were recorded in 2012 and 2013 respectively. Figure 3 shows the information for both companies.Figure 3 shows a bar graph of common size costs. The graph shows that the common size costs for Home Retail showed an upward trend while that for Dixon Retail remained fairly stable with an obvious slight decline in 2010.A companys vulgar profit represents the difference between its sales revenue (turnover) and its cost of sales. The gross profit as a percentage of sales was much higher for Home Retail above 30% than for