The analyst will use his or her discretion when choosing a particular timeline; however, the session is often based on the investing time horizon under consideration. Comment on Consolidated Income Statement for 2009 to 2013 The revenue of Sass has increased from 3,608,990 thousand HOOK dollars in 2009 to 7,669,798 thousand HOOK dollars in 2013. However, compared with 201 2, the percentage increased in the revenue during 2013 has dropped nearly 1 1%. More importantly, Sass received the lowest profit for the period (19. 7076%) in 201 3 compared with the last three years.The main reason is that the administration cost has increased rapidly in this year so the profit will decrease at the same with the similar revenue. Comment on Consolidated Financial Position for 2009 to 2013 The percentage of total current assets has dropped 16% from 201 3 to 2012.
And the inventories of Sass reduced steadily from 48. 47% in 2013 to 3. 6872% in 2012, it reflected that the inventories management and control are improving. On the other hand, the current liabilities decreased from 59. 78% in 2012 to -1.
98% in 2013. It is because the trade payable and other payable items decreased at the same time.The percentage change of current liabilities is mainly due to the associate and current income tax liabilities. It means that the company has a good financial situation.
3. Vertical Analysis A vertical analysis shows us with the relationships among each component of income statement or financial statement, measured in percentages. According to table b, each item is shown as a percentage of revenue on income statement; each asset is shown as a percentage of total assets and each liability or equity item is shown as a percentage of total liabilities and equity on financial position.As shown in the consolidated income statement over the past five years, Sass generated more revenue year by year which increased from 3,608,990 housing HOOK dollars in 2009 to 7,669,798 thousand HOOK dollars in 2013. Although Sass generated nearly a double of revenue in 2013 comparing with 2009, the cost of sales as a percentage of revenue reduced from 56. 31% to 53.
61 % surprisingly. It shows that Sass puts a great effort on cost management and gains a lot from it. As a result, gross profit as a percentage of revenue increased from 43. 69% in 2009 to 46. 39% in 2013.It would be the good news for both investors and top managers, because they can predict Sass will keep doing well in the future. Comment on Consolidated Statement of Financial Position for 2009 to 2013 The percentage of total current assets to the total assets was around 80% over the five years, because inventory and cash accounting for more than 64% to the total assets-The higher the percentage of current assets to total assets, the higher the liquidity of Sass.
It is because liquidity requires cash and other current assets that the business can quickly convert into cash in order to pay their bills.