Analysis of Balance Sheet and Profit and Loss Account
Analysis of balance sheet and profit and loss account
The whole industry that we have developed considers three companies. Confidence, Lafarge surma and the other one is Heidelberg cement. Considering the four year balance sheet and income statement we have got the account for the whole industry. In the horizontal and vertical analysis of the balance sheet we can get the picture of the overall industry. The company Heidelberg cement is increasing its Current Asset account not in terms of receivables and inventories but in terms of prepayment of taxes and cash balances. Confidence cement was initially holding a negative balance in terms of raw materials which eventually left out with negative balance with the packaging and other related accounts. Therefore as the balance was shifting positively with the cash and marketable security it make the company to prepay the taxes, advances and put deposit on the bank. Lafarge surma has a huge investment in the property and plant. They have also a contribution to other subsidiary company while the company has deferred tax. The industry has the same picture as the company individually. The overall industry is booming in terms of their asset account which can be reflected in the liability account where both of the companies have made significant improvements in acquiring property, plant and equipment. Heidelberg is showing a better picture in their liability management than the confidence cement. Heidelberg has drastically decreased its long term liability providing more pressure in the short term liability. As the industry is moving in the same direction confidence cement has also the affect of the industry which made them to shift pressure to the short term financing. This picture for the Lafarge surma is totally different. It is moving on the opposite direction as the industry moves.
Sales are booming in the industry because of the real state business in our country is booming. As the price of the product of the
The whole industry that we have developed considers three companies. Confidence, Lafarge surma and the other one is Heidelberg cement. Considering the four year balance sheet and income statement we have got the account for the whole industry. In the horizontal and vertical analysis of the balance sheet we can get the picture of the overall industry. The company Heidelberg cement is increasing its Current Asset account not in terms of receivables and inventories but in terms of prepayment of taxes and cash balances. Confidence cement was initially holding a negative balance in terms of raw materials which eventually left out with negative balance with the packaging and other related accounts. Therefore as the balance was shifting positively with the cash and marketable security it make the company to prepay the taxes, advances and put deposit on the bank. Lafarge surma has a huge investment in the property and plant. They have also a contribution to other subsidiary company while the company has deferred tax. The industry has the same picture as the company individually. The overall industry is booming in terms of their asset account which can be reflected in the liability account where both of the companies have made significant improvements in acquiring property, plant and equipment. Heidelberg is showing a better picture in their liability management than the confidence cement. Heidelberg has drastically decreased its long term liability providing more pressure in the short term liability. As the industry is moving in the same direction confidence cement has also the affect of the industry which made them to shift pressure to the short term financing. This picture for the Lafarge surma is totally different. It is moving on the opposite direction as the industry moves.
Sales are booming in the industry because of the real state business in our country is booming. As the price of the product of the