Horizontal analysis of income statement and balance

Reference no: EM13381766

Horizontal Analysis of Income Statement and Balance Sheet

Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Income Statement

Period Ending		Sep 28, 2012	Sep 23, 2011	Sep 24, 2010
Total Revenue		156,508,000	108,249,000	65,225,000
Cost of Revenue		87,846,000	64,431,000	39,541,000

Gross Profit		68,662,000	43,818,000	25,684,000

	Operating Expenses
	Research Development	3,381,000	2,429,000	1,782,000
	Selling General and Administrative	10,040,000	7,599,000	5,517,000
	Non Recurring	-	-	-
	Others	-	-	-

	Total Operating Expenses	-	-	-


Operating Income or Loss		55,241,000	33,790,000	18,385,000

	Income from Continuing Operations
	Total Other Income/Expenses Net	522,000	415,000	155,000
	Earnings Before Interest And Taxes	55,763,000	34,205,000	18,540,000
	Interest Expense	-	-	-
	Income Before Tax	55,763,000	34,205,000	18,540,000
	Income Tax Expense	14,030,000	8,283,000	4,527,000
	Minority Interest	-	-	-

	Net Income From Continuing Ops	41,733,000	25,922,000	14,013,000

	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-


Net Income		41,733,000	25,922,000	14,013,000
Preferred Stock And Other Adjustments		-	-	-

Net Income Applicable To Common Shares		41,733,000	25,922,000	14,013,000

Currency in USD.

Balance Sheet

Period Ending		Sep 29, 2012	Sep 24, 2011	Sep 25, 2010

Assets
Current Assets
	Cash And Cash Equivalents	10,746,000	9,815,000	11,261,000
	Short Term Investments	18,383,000	16,137,000	14,359,000
	Net Receivables	21,275,000	13,731,000	11,560,000
	Inventory	791,000	776,000	1,051,000
	Other Current Assets	6,458,000	4,529,000	3,447,000

Total Current Assets		57,653,000	44,988,000	41,678,000
Long Term Investments		92,122,000	55,618,000	25,391,000
Property Plant and Equipment		15,452,000	7,777,000	4,768,000
Goodwill		1,135,000	896,000	741,000
Intangible Assets		4,224,000	3,536,000	342,000
Accumulated Amortization		-	-	-
Other Assets		5,478,000	3,556,000	2,263,000
Deferred Long Term Asset Charges		-	-	-

Total Assets		176,064,000	116,371,000	75,183,000

Liabilities
Current Liabilities
	Accounts Payable	32,589,000	23,879,000	17,738,000
	Short/Current Long Term Debt	-	-	-
	Other Current Liabilities	5,953,000	4,091,000	2,984,000

Total Current Liabilities		38,542,000	27,970,000	20,722,000
Long Term Debt		-	-	-
Other Liabilities		16,664,000	10,100,000	5,531,000
Deferred Long Term Liability Charges		2,648,000	1,686,000	1,139,000
Minority Interest		-	-	-
Negative Goodwill		-	-	-

Total Liabilities		57,854,000	39,756,000	27,392,000

Stockholders' Equity
Misc Stocks Options Warrants		-	-	-
Redeemable Preferred Stock		-	-	-
Preferred Stock		-	-	-
Common Stock		16,422,000	13,331,000	10,668,000
Retained Earnings		101,289,000	62,841,000	37,169,000
Treasury Stock		-	-	-
Capital Surplus		-	-	-
Other Stockholder Equity		499,000	443,000	(46,000)

Total Stockholder Equity		118,210,000	76,615,000	47,791,000

Net Tangible Assets		112,851,000	72,183,000	46,708,000

Currency in USD.

Cash Flow

Period Ending	Sep 29, 2012	Sep 24, 2011	Sep 25, 2010
Net Income	41,733,000	25,922,000	14,013,000

Operating Activities, Cash Flows Provided By or Used In
Depreciation	3,277,000	1,814,000	1,027,000
Adjustments To Net Income	6,145,000	4,036,000	2,319,000
Changes In Accounts Receivables	(6,965,000)	(1,791,000)	(4,860,000)
Changes In Liabilities	9,843,000	8,664,000	8,302,000
Changes In Inventories	(15,000)	275,000	(596,000)
Changes In Other Operating Activities	(3,162,000)	(1,391,000)	(1,610,000)

Total Cash Flow From Operating Activities	50,856,000	37,529,000	18,595,000

Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	(8,295,000)	(4,260,000)	(2,005,000)
Investments	(38,427,000)	(32,464,000)	(11,075,000)
Other Cash flows from Investing Activities	(1,505,000)	(3,695,000)	(774,000)

Total Cash Flows From Investing Activities	(48,227,000)	(40,419,000)	(13,854,000)

Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	(2,488,000)	-	-
Sale Purchase of Stock	665,000	831,000	912,000
Net Borrowings	-	-	-
Other Cash Flows from Financing Activities	(1,226,000)	(520,000)	(406,000)

Total Cash Flows From Financing Activities	(1,698,000)	1,444,000	1,257,000
Effect Of Exchange Rate Changes	-	-	-

Change In Cash and Cash Equivalents	931,000	(1,446,000)	5,998,000

Currency in USD.

Reference no: EM13381766

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