C. W. MACKIE PLC Financial Statement Analysis

C. W. MACKIE PLC

Financial Statement Analysis

 1.    Introduction

C.W. Mackie Group is a leading conglomerate counting over 100 years of operations in Sri Lanka. Respected as a solid, reliable organization over many generations, we have diversified over the years welcoming state-of-the-art technology and R&D.

They are engaged in export trading of natural rubber and desiccated coconut; manufacture/export of rubber-based products; manufacture/wholesale distribution of branded consumer products; import/wholesale distribution of sugar; and import/sale of welding equipment, light engineering products, refrigeration and air conditioning components and marine paints/protective coatings.

Main Businesses

·         FMCG

·         Marine Paints

·         Sugar trading

·         Industrial products

2.    Financial Analysis

Document was prepared in order to analyze financial state of the company within the period of 2013 to 2017. The analysis has been done under Horizontal Analysis, Vertical Analysis and Ratio Analysis.

 3.    Vertical Analysis

3.1.           Income statement analysis

As a proportion of revenue

Item
	2017	2016	2015
Revenue	8,162,754	7,202,047	6,671,012
Cost of Goods Sold on revenue	85.72%	85.07%	85.41%
Gross Profit on revenue	14.20%	14.93%	14.59%
Selling General & Administrative on revenue	10.95%	10.79%	10.82%
Interest on revenue	0.70%	0.35%	0.56%
Earnings Before Tax (EBT) on revenue	4.63%	5.98%	4.92%
Tax on revenue	1.38%	1.66%	1.37%
Net earnings on revenue	3.33%	4.38%	3.44%

3.2.           Balance sheet analysis

As a percentage of Total Assets

	2017	2016	2015	2014	2013
Non-current assets
Property, plant and equipment	11%	8%	10%	10%	12%
Investment property	1%	1%	1%	2%	2%
Intangible assets	0%	1%	-
Investments in subsidiaries	17%	15%	21%	20%	18%
Total non-current assets	28%	24%	33%	31%	31%
Inventories	21%	20%	19%	17%	17%
Trade and other receivables	50%	49%	46%	50%	45%
Cash and cash equivalents	1%	2%	2%	1%	2%
Total current assets	72%	76%	67%	69%	69%
Total equity	60%	57%	64%	57%	61%
Total non-current liabilities	2%	1%	2%	2%	2%
Trade and other payables	14%	19%	15%	15%	12%
Bank overdrafts	3%	1%	1%	3%	3%
Total current liabilities	38%	42%	34%	41%	37%
Total Liabilities	40%	43%	36%	43%	39%

4.    Horizontal Analysis (Trend Analysis)

2015 has been taken as the Base year

4.1.           Income Statement

	2017	2016	2014	2013
Revenue	22%	15%	8%	6%
Cost of Goods Sold	23%	14%	-6%	-6%
Gross Profit	20%	20%	-8%	-16%
Selling General & Administrative	24%	21%	-6%	-18%
Interest	54%	-42%	18%	135%
Earnings Before Tax (EBT)	15%	31%	-5%	-4%