Hasznos

Financial situation analysis I.

Asset structure examination (Fixed assets)

When analyzing a company's financial position based on its annual report (balance sheet,

profit and loss statement), it is not enough to simply state the share of fixed assets as a mere

fact. After all, we can show it with a simple calculation (Fixed assets/ Total assets). We need

to explore the information conveyed by the data. By briefly analyzing the following data, we

can examine the structure of the company's fixed assets:

Analysis of financial situation - asset structure I. year II. year III year IV year V. year

Share of fixed assets 37.8% 39.7% 42.2% 37.5% 34.8%

Share of tangible assets 71.3% 73.0% 71.5% 77.4% 73.7%

Ratio of technical equipment, machinery and veh 22% 45% 26% 18% 12%

Investments, renovations 21.94% 20.85% 33.47% 47.91% 20.61%

Share of invested financial assets 26.5% 24.7% 13.2% 10.1% 10.2%

Source data: Own calculation

Proportion of fixed assets: The above data show us that the company tied up nearly 35-42%

of its assets in fixed assets, which it will utilize in more than a year, and approximately 58-

66% in assets turned over and utilized within a year. Therefore, we can say that the company

is more characterized by flexibility, because it can adapt to changing market conditions more

easily. Also, the greater part of his assets - more than half - remained liquid, which has a

lower yield, thus we can say that he is less inclined to take risks.

Let's look at the asset structure within fixed assets.

Tangible assets: more than two-thirds of all permanent assets are materialized, tangible assets

that directly or indirectly serve the activity.

Technical equipment: directly serves the company's activities. These tools are specifically

related to the given activity and production, so they are tools that a company engaged in

another activity would be more difficult to utilize. Thus, their monetization faces much

greater limitations. Therefore, the company assumes a greater risk if it invests its money in

them. However, they are very useful because you can generate (profit) with them

Investments: you bought a new tangible asset that you have not yet put into operation, i.e.

you have not yet started to generate regular income from its use. In this case, the data show

that the company expanded its inventory in II. year, and after that he capitalized his

purchased tangible assets to a large extent. (It can be, for example, a trial run if you have not

yet obtained all the permits to use the device.) The investment is transferred when all the

permits from the specialized authorities are received by the company.

Blackened financial assets (permanently committed financial investments): its ratio

decreased, so it was able to obtain relatively less long-term returns during the period under

review. E.g. dividends on shares or interest on granted loans or exchange rate gains. This

decrease appears to be unfavorable, it may mean an unfavorable development, but since we

are not currently analyzing its returns, if we want to address this, it must be analyzed together

with other data.