Financial_Analysis

The Income Statement analysis of the company S.C. TEVI SRL for years 2006,2007,2008 A company's income statement is a record of its earnings or losses for a given period. It shows all of the money a company earned (revenues) and all of the money a company spent (expenses) during this period. It also accounts for the effects of some basic accounting principles such as depreciation. The income statement is important for investors because it's the basic measuring stick of profitability. A company with little or no income has little or no money to pass on to its investors in the form of dividends. If a company continues to record losses for a sustained period, it could go bankrupt. In such a case, both bond and stock investors could lose some or all of their investment. On the other hand, a company that realizes large profits will have more money to pass on to its investors. Net profit of the company for year 2006=18.829.434 Net profit of the company for year 2007=16.632.605 Net profit of the company for year 2008=6.926.196 Earning before tax=net profit +income tax Earning before tax for year 2006=18.829.434+3.695.726=22.525.160 Earning before tax for year 2007=16.632.605+3.448.542=20.081.147 Earning before tax for year 2008=6.926.196+2.519.183=9.445.379 Earning before interest and taxes=earning before tax+interest Earning before interest and taxes for year 2006=22.525.160+1.651.950=24.177.110 Earning before interest and taxes for year 2007=20.081.147+13.738.394=33.819.541 Earning before interest and taxes for year 2008=9.445.379+24.122.334=33.567.713 Earning before interest,taxes,depreciation and amortisation=EBIT+amortisation EBITDA for year 2006=24.177.110+6.537.101=30.714.211 EBITDA for year 2007=33.819.541+9.723.019=43.542.560 EBITDA for year 2008=33.567.713+13.791.080=47.358.793 Gross Profit on Sales Gross profit on sales (also called gross margin) is the difference between all the revenue the company earns and the sales of its products minus the cost of what it took to produce them. Gross Profit on Sales = income from sales of merchandise - Cost of merchandise Gross profit on sales for year 2006 = 86.076.652-56.432.838=29.643.814 Gross profit on sales for year 2007=97.957.897-59.817.106=38.140.791 Gross profit on sales for year 2008=109.572.834-64.388.965=45.183.869 Value added=gross profit on sales+income from sales of finished goods-raw material expenses VA for year 2006=29.643.814+95.313.697-74.169.960=50.787.551 VA for year 2007=38.140.791+157.710.432-118.469.724=77.381.499 VA for year 2008=45.572.834+178.381.229-133.289.289=90.664.774 EBE=VA+subsidies-salaries-taxes EBE for year 2006=50.787.551+0-13.876.596-685.215=36.225.740 EBE for year 2007=77.381.499+0-24.665.315-1.144.080=51.572.104 EBE for year 2008=90.664.774+0-28.174.119-1.565.850=60.924.805 Operating result=EBE-depreciation OR for year 2006=36.225.740-6.537.101=29.688.639 OR for year 2007=51.572.104-9.723.019=41.849.085 OR for year 2008=60.924.805-13.791.080=47.133.725 Current result=OR+financial profit/loss Current result for year 2006=29.688.639+1.935.652=31.624.291 Current result for year 2007=41.849.085+9.907.849=51.756.934 Current result for year 2008=47.133.725+10.795.000=57.928.725 Gross profit=CR+extraordinary profit/loss Gross profit for year 2006=31.624.291+0=31.624.291 Gross profit for year 2007=51.756.934+0=51.756.934 Gross profit for year2008=57.928.725+0=57.928.725