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%

CSR and Sri Lanka

The study is based on an analysis of the contribution of CSR practices towards community development of the society in Sri Lanka. Thus the problem statement of the study is; what are the CSR practices implemented by companies and how they contribute towards community development of the society in Sri Lanka?

Several objectives were developed as to find out the types of CSR initiatives undertook by the companies in Sri Lanka during the period of 2004-2008, the level of effectiveness, measures taken to assess the progress and contribution towards community development and to recommend effective CSR practices for community development of the society in Sri Lanka. Consequently, the listed companies in the CSE were used as the sampling frame and a sample was derived by using simple random sampling technique in order to address the objectives of the study. 

The study is conducted by analyzing the secondary data from annual reports, newspaper articles, magazine articles, company websites and government publications along with primary data gathered through interviews. Identifying the types of CSR activities which support the community development and assessing the effectiveness of those initiatives in terms of received benefits by the community of Sri Lanka are done in the study. Consequently, the types of measures taken by each company as to assess the progress and contribution towards the intended beneficiaries are identified and effective recommendations are given for the corporate sector of Sri Lanka as to fill the existing gap in CSR in local context. A checklist on community related CSR initiatives is presented as the deliverability of the study. Accordingly, the study leads the corporate sector of Sri Lanka to implement effective and strategic CSR as to achieve community development in the long run.

Medical Waste Management Practices

Waste management has become a challenge for health care sector not only for Sri Lanka but to the whole world. On the other hand managing waste is great important due to its nature since it will have various adverse effects to the environment and humans. Unfortunately there is no permanent solution find so far for the waste management but the ideal solution would be the implementation of national policy with the involment of the government. This needs huge capital requirement where private sector may have less interest on investing with the profit motive. 

The main purpose of the study was to identify the level of waste generation and the management of waste in order to reduce pollution. To achieve the objectives conceptual frame work was developed using the literature. Survey questioner was developed using the designed conceptual frame work to achieve the objectives of the study.

The study was revealed that though government involve and provide solution there should be a positive attitude, awareness and capability or interest on investment disregarding the size of the organization. Awareness should need improvements regarding the changes in waste management and new trends on waste management. Develop positive attitudes and improve knowledge on changes in waste management technology will encourage organizations to invest.