Dimo Company PLC

Vertical Analysis

Vertical analysis states financial statements in a comparable common-size format (percentage form). One of the advantages of common-size analysis is that it can used for intercompany comparison of enterprises with different sizes because all items are express as a percentage of some common number.

Vertical Analysis for Balance Sheet

	2016	2015	2014	2013	2012		2016	2015	2014	2013	2012
	Rs. \000	Rs. \000	Rs. \000	Rs. \000	Rs. \000
Assets
Non - Current Assets
Property, plant and equipment	7,951,099	8,005,699	6,750,935	5,523,513	4,620,754		41.30%	41.58%	35.06%	28.69%	24.00%
Lease rentals paid in advance	24,526	26,731	28,936	31,141	35,551		0.13%	0.14%	0.15%	0.16%	0.18%
Intangible assets	14,293	24,750	35,723	2,136	3,079		0.07%	0.13%	0.19%	0.01%	0.02%
Investments in subsidiaries	23,350	23,350	20,645	11,145	11,145		0.12%	0.12%	0.11%	0.06%	0.06%
Financial assets-available-for-sale	7,156	6,690	4,801	5,054	3,663		0.04%	0.03%	0.02%	0.03%	0.02%
Deferred tax assets	-	-	115,756	107,280	60,711		-	-	0.60%	0.56%	0.32%
Total non-current assets	8,020,424	8,087,220	6,956,796	5,680,269	4,734,903		41.66%	42.00%	36.13%	29.50%	24.59%
Current Assets
Inventories	7,326,211	4,596,100	4,755,944	4,055,558	8,075,867		38.05%	23.87%	24.70%	21.06%	41.95%
Trade and other receivables	3,092,234	3,451,804	2,099,995	1,654,001	1,585,934		16.06%	17.93%	10.91%	8.59%	8.24%
Other current assets	596,502	739,714	391,852	178,086	230,763		3.10%	3.84%	2.04%	0.92%	1.20%
Current tax asset	-	3,301	107,913	102,176	-		-	0.02%	0.56%	0.53%	-
Amounts due from subsidiaries	53,714	18,951	56,468	-	98,617		0.28%	0.10%	0.29%	-	0.51%
Cash and cash equivalents	164,243	186,676	1,033,806	615,156	178,996		0.85%	0.97%	5.37%	3.20%	0.93%
Total current assets	11,232,904	8,996,546	8,445,978	6,604,977	10,071,560		58.34%	46.73%	43.87%	34.31%	52.31%
Total assets	19,253,328	17,083,766	15,402,774	12,285,246	14,806,463		100.00%	88.73%	80.00%	63.81%	76.90%
Equity and Liabilities
Equity
Stated capital	425,297	425,297	425,297	425,297	425,297		2.21%	2.21%	2.21%	2.21%	2.21%
Other components of equity	2,839,341	2,838,875	2,014,752	2,014,752	2,014,752		14.75%	14.74%	10.46%	10.46%	10.46%
Revenue reserves	5,869,788	5,323,841	4,875,315	4,701,223	4,616,945		30.49%	27.65%	25.32%	24.42%	23.98%
Total equity attributable to the equity
holders of the Company	9,134,426	8,588,013	7,315,364	7,141,272	7,056,994		47.44%	44.61%	38.00%	37.09%	36.65%
Non-Current Liabilities
Long-term borrowings	907,030	1,175,330	1,499,763	540,243	770,203		4.71%	6.10%	7.79%	2.81%	4.00%
Employee benefits	468,525	390,664	332,521	273,471	216,824		2.43%	2.03%	1.73%	1.42%	1.13%
Deferred tax liabilities	182,161	124,860	144,688	92,679	87,963		0.95%	0.65%	0.75%	0.48%	0.46%
Deferred income	158,313	123,584	57,691	77,311	147,809		0.82%	0.64%	0.30%	0.40%	0.77%
Total non-current liabilities	1,716,029	1,814,438	2,034,663	983,704	1,222,799		8.91%	9.42%	10.57%	5.11%	6.35%
Current Liabilities
Trade payables	1,565,629	1,882,388	1,129,614	792,718	1,446,635		8.13%	9.78%	5.87%	4.12%	7.51%
Other current liabilities	888,778	660,219	400,473	462,254	675,801		4.62%	3.43%	2.08%	2.40%	3.51%
Current portion of long-term borrowings	394,960	421,780	1,499,763	540,243	229,960		2.05%	2.19%	7.79%	2.81%	1.19%
Current tax liability	23,004	-	333,080	229,960	105,032		0.12%	-	1.73%	1.19%	0.55%
Short-term borrowings	5,147,647	3,620,807	3,964,245	2,518,226	3,970,625		26.74%	18.81%	20.59%	13.08%	20.62%
Amounts due to subsidiaries	382,855	96,121	225,335	157,112	98,617		1.99%	0.50%	1.17%	0.82%	0.51%
Total current liabilities	8,402,873	6,681,315	6,052,747	4,160,270	6,526,670		43.64%	34.70%	31.44%	21.61%	33.90%
Total liabilities	10,118,902	8,495,753	8,087,410	5,143,974	7,749,469		52.56%	44.13%	42.01%	26.72%	40.25%
Total equity and liabilities	19,253,328	17,083,766	15,402,774	12,285,246	14,806,463		100.00%	88.73%	80.00%	63.81%	76.90%
Net assets per share	1,029.06	967.51	824.13	804.63	-		0.01%	0.01%	0.00%	0.00%	-

Figure 29: Vertically Analyze Balance Sheet - (2011 -2015)

Based on above calculations, it indicates that the company has increased its liabilities and assets during the. However, the increase of assets and liabilities are not significant.

Vertical Analysis for Income Statement

	2016	2015	2014	2013	2012		2016	2015	2014	2013	2012
	Rs. \000	Rs. \000	Rs. \000	Rs. \000	Rs. \000
Revenue	35,403,232	26,179,115	19,185,246	26,496,949	38,877,422		100.00%	100.00%	100.00%	100.00%	100.00%
Sales taxes	(208,378)	(218,412)	(180,872)	(216,789)	(305,139)		-0.59%	-0.83%	-0.94%	-0.82%	-0.78%
Net revenue	35,194,854	25,960,703	19,004,374	26,280,160	38,572,283		99.41%	99.17%	99.06%	99.18%	99.22%
Cost of sales	(29,408,729)	(21,417,468)	(15,226,149)	(22,519,305)	(31,758,534)		-83.07%	-81.81%	-79.36%	-84.99%	-81.69%
Gross profit	5,786,125	4,543,235	3,778,225	3,760,855	6,813,749		16.34%	17.35%	19.69%	14.19%	17.53%
Other operating income	103,147	63,480	69,722	35,427	(23,915)		0.29%	0.24%	0.36%	0.13%	-0.06%
Distribution expenses	(994,715)	(561,206)	(506,403)	(475,939)	(641,599)		-2.81%	-2.14%	-2.64%	-1.80%	-1.65%
Administrative expenses	(3,529,057)	(2,986,459)	(2,658,182)	(2,599,142)	(2,335,213)		-9.97%	-11.41%	-13.86%	-9.81%	-6.01%
Operating profit	1,365,500	1,059,050	683,362	721,201	3,813,022		3.86%	4.05%	3.56%	2.72%	9.81%
Finance income	194,578	106,730	70,617	241,178	179,653		0.55%	0.41%	0.37%	0.91%	0.46%
Finance costs	(468,036)	(415,462)	(423,990)	(630,798)	(447,553)		-1.32%	-1.59%	-2.21%	-2.38%	-1.15%
Net finance costs	(273,458)	(308,732)	(353,373)	(389,620)	(267,900)		-0.77%	-1.18%	-1.84%	-1.47%	-0.69%
Profit before tax	1,092,042	750,318	329,989	331,581	3,545,122		3.08%	2.87%	1.72%	1.25%	9.12%
Income tax expense	(352,319)	(203,757)	(50,070)	20,243	(971,221)		-1.00%	-0.78%	-0.26%	0.08%	-2.50%
Profit for the year	739,723	546,561	279,919	351,824	2,573,901		2.09%	2.09%	1.46%	1.33%	6.62%

Figure 30: Vertically Analyze Income Statement - (2011 -2015)

Considering above calculations, it is clear that the net profit and net income has not increased or decreased compared to based year 2012. Company is in natural situation and it has not increased it profitability during last five years.