Vertical analysis of dmms income statement

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Reference no: EM131595160 , Length: 2000 Words

CASE STUDY - DIETSWELL

1. Describe the evolution of Dietswell SA shareholder ownership structure. What do you think has motivated the changes in shareholder structure of Dietswell during the period studied?

Evolution of Dietswell SA Shareholder Ownership Structure

Motivated changes in shareholder structure of Dietswell during the period studied

2. Run a horizontal analysis of DMM's balance sheet in 2007 and 2006. Compare the changes in accounts, and describe those changes that were beneficial or detrimental to this company.

3. Run a vertical analysis of DMM's income statement in 2007 and 2006. Compare the changes in accounts, and describe those changes that were beneficial or detrimental to this company.

4. Provide financial ratio analysis of DMM in 2007 and 2006. Comment on DMM's liquidity, efficiency and profitability.

5. Re-estimate Dietswell SA revenue in 2012 based on
a. The nominal historical average growth of revenues
b. The real historical average growth of revenues
c. The weighted historical average growths of revenues
d. The proportion of GDP growth to revenue growth
e. Comment on your results relative to €18m estimated by management

6. Amid the 3 options envisaged by Mr. Bourdon and Mr. Flechker, what would be the best option? Include valuation of DMM in your analysis

7. Review your initial group valuation for Dietswell in light of the financial analysis: how would you interpret your initial valuation considering your better understanding of the company from a financial, operational and governance point of view.

Reference no: EM131595160

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