Professional Documents
Culture Documents
1
2
3
4
5
6
7
8
9
10
11
Total
Assets
Cash and cash equivalents
Accounts receivable net of allowances for doubtful accounts of $704 and $454
Prepaid expenses
Other current assets
Property, Plant and Equipment Net
Goodwill
Licenses
Customer Lists and Relationships Net
Other Intangible Assets Net
Investments in Equity Affiliates
Other Assets
Dec15
5.121
16.532
1.072
13.267
124.450
104.568
93.093
18.208
9.409
1.606
15.346
402.672
Dec14
8.603
14.527
831
9.645
112.898
69.692
60.824
812
5.327
250
13.425
2187.941
Dec15
234,417
61,800
Dec14
224,655
57,427
Conclusion
In the Reporting year AT&T faced significant declines:
1) Prepaid expenses decreased by 37,71%
2) Customer Lists and Relationships Net decreased by 32,59%
3) Investments in Equity Affiliates decreased by 11,03%
The essential part of assets (in case of horizontal analysis) is:
1) Property, Plant and Equipment Net which is 30,91%
2) Goodwill which is 25,97%
3) Licenses which is 23,12%
As a whole the structure of the assets of AT&T has changed significantly
Number
1
2
Assets
3
4
5
6
7
8
9
10
11
12
13
Total
Goodwill
Investments in associates and joint ventures
Non-current non-financial assets
Non-current financial assets
Deferred tax assets
Inventory
Current non-financial assets
Prepaid income taxes
Trade and other receivables
Other current financial assets
Cash and cash equivalents
33,909
47,885
2,894
4,102
832
8,684
6,649
2,641
21,156
26,973
17,449
469,391
32,292
34,944
2,053
2,863
782
6,484
5,161
3,713
16,260
48,887
22,223
457,744
Conclusion
In the Reporting year Megafon did not face significant declines, however, the following indicators decreased:
Other current financial assets decreased by 4,93%
The essential part of assets (in case of horizontal analysis) is:
1) Property and equipment which is 49,94%
2) Intangible assets, other than goodwill which is 13,17%
3) Investments in associates and joint ventures which is 10,20%
As a whole, the strucure of the assets of Megafon has not declined in 2015 significantly.
Comparison conlusion:
The structure of Megafon unlike AT&T did not change sharply in 2015. The main assets in both companies are: PPE, Goodwill.
2015
2014
35.992
33.606
47.816
37.282
0.7527187552 0.9014001395
CA are not sufficient to cover the amount of company's ST Liabilities for 2015, 2014
CA 2015 < CA 2014 => was worsen by 0,15
Cash and Cash Equivalents
Short-term investments
Accounts recievable NET
Total Current Liabilities
Quick Ratio = (Cash+ ST Inv+ Net AR)/CL
5.121
8.603
16.532
14.527
47.816
37.282
0.4528400535 0.6204066305
The company is not able to cover its ST liabilities with Cash, ST investments and Net AR
QR 2014 < QR 2015 => was worsen by 0,17
Cash and Cash Equivalents
Short-term investments
Total current liabilities
5.121
8.603
47.816
37.282
0.1070980425 0.2307547878
The business is not be able to pay all its CL in immediate ST in 2014, 2015
CR 2015 < CR 2014 - by 0,12 and the company is not able to cover its CL with Cash and ST investments
Conclusion
As for the "AT&T", it can ve observed that this company is not able to cover its short term liabilities with its current assets. It results in
Both companies suffer liquidity problems. This could be due to the pecularities of the industry.
Operating revenue
AR
A/R turnover = Revenue/ Av. AR
Days to Collect A/R = 365/ AR Turnov.
2015
146801
7636
5
2014
132447
6056
68
The AR turned over 5 times during the year, which means that the average collection period was 68 days
Revenue
Assets
Average assets
Assets Turnover= Revenue/ Av. Assets
146,801
132,447
402672
296834
349,753.00
289,128.50
0.42
0.46
It means that the company generated 0,42$ in revenue for every $1 of assets.
Assets Turnover (days)
870
COGS
Inventory
Av. Inventory
Inventory turnover = COGS/ Av. Invent
Conclusion
In conclusion it is possible to state that AT&T is using its resources more efficient than Megafon.
797
Assets turnover is lower in AT&T rather than in Megafon, but still the indicator for both of the Companies is rather low, but it can be ex
We can not make an objective comparison coclusion about the time to sell the inventory.
Profitability Ratios
Net Income
Av. Equity
ROE= Net income/Av. Equity
2015
13687
33370
0.4101588253
2014
6736
2015
13687
105838
0.1293202819
2014
6736
2015
24785
146801
0.1688339998
2014
12212
132447
0.0922029189
2015
2014
Net Income
Av. Assets
ROA= Net income/ Av. Assets
The company generaed 0,12$ on 1$ held in assets
Operating income
Revenue(Net sales)
Profit margin( )= OI/Rev
The company was able to generate more profit than in 2014, as there was a increase in revenue
Gross Profit
Revenue
Gross profit pecent( )= Gross profit/Revenue= Revenue - COGS/ Revenue
The overall profitability pf Megafon is better, howether AT&T is able to generate more profit from its equity
Solvency ratios
Total liabilities
Total equity
Debt-to-equity ratio= Total liabilities/Total equity
AT&T
2015
2014
279032
206564
123640
90270
2.2568100938 2.2882906835
Considering DEBT-TO-EQUTY-RATIO, MEGAFON Company is less risky to creditors and investors than AT&T Company. Bu
Total liabilities
Total assets
Debt ratio= Total liabilitie/Total assets
Assets= Equty+Liabilities
Total equity
Total Assets
Equity ratio= Total equty/Total assets
2015
2014
279032
206564
296834
0.6929510867 0.6958906325
402672
2015
2104
123640
90270
402672
296834
0.3070489133 0.3041093675
Both companies are insolvent, i.e. they are not able to pay their liabilities. Howether, in Megafon the indicators are slig
Deviation
-3.482
2.005
-829.928
3.622
11.552
34.876
32.269
-793.792
4.082
-248.394
1.921
-1785.269
Dec15
1.27
4.11
0.27
3.29
30.91
25.97
23.12
4.52
2.34
0.40
3.81
100
Dec14
0.39
0.66
37.98
0.44
5.16
3.19
2.78
37.11
0.24
11.43
0.61
100
Deviation
0.88
3.44
-37.71
2.85
25.75
22.78
20.34
-32.59
2.09
-11.03
3.20
0
Deviation
9,762
4373
Dec15 Dec14
49.94 49.08
13.17 12.55
Deviation
0.86
0.62
PE, Goodwill.
1617
12941
841
1239
50
2200
1488
-1072
4896
-21914
-4774
11647
7.22 7.05
10.20 7.63
0.62 0.45
0.87 0.63
0.18 0.17
1.85 1.42
1.42 1.13
0.56 0.81
4.51 3.55
5.75 10.68
3.72 4.85
100.00 100.00
0.17
2.57
0.17
0.25
0.01
0.43
0.29
-0.25
0.95
-4.93
-1.14
0.00
2015
2014
83,552
102,728
116,568
116,080
0.7167661794 0.8849758787
CA are not sufficient to cover the amount of company's ST Liabilities for 2015, 2014
CA 2015 < CA 2014 => was worsen by 0,15
Cash and Cash Equivalents
17,449
22,223
Short-term investments
0
0
Accounts recievable NET
21,156
16,260
Total Current Liabilities
116,568
116,080
Quick Ratio = (Cash+ ST Inv+ Net AR 0.3311800837 0.3315213646
The company is not able to cover its ST liabilities with Cash, ST investments and Net AR
QR 2014 ~ QR 2015
Cash and Cash Equivalents
Short-term investments
17,449
0
22,223
0
116,568
116,080
Cash Ratio = (Cash + ST investments 0.1496894517 0.1914455548
Total current liabilities
The business is not be able to pay all its CL in immediate ST in 2014, 2015
CR 2015 < CR 2014 - by 0,04 and the company is not able to cover its CL with Cash and ST investmen
h its current assets. It results into serious propblems with the liquidity. All the indicators are not sufficient, this illustrates the non-succesful existance of th
2013
Operating revenue
AR
A/R turnover = Revenue/ Av. AR
Days to Collect A/R = 365/ AR Turnov.
2015
313,383
21,156
4
87
2014
314,795
16,260
5
2013
297,229
12,493
12
67
31
The AR turned over 4 times during the year, which means that the average collection period was 87 da
281423
140,711.50
-
Revenue
313,383
Assets
469,391
Average assets
463,567.50
Assets Turnover= Revenue/ Av. Asset
0.68
314,795
457,744
444,989.00
0.71
297,229
432,234
It means that the company generated 0,62$ in revenue for every $1 of assets.
Assets Turnover (days)
COGS
Inventory
Av. Inventory
Inventory turnover = COGS/ Av. Inven
540
139896
8684
7584
18
516
139887
6484
19.787270544
In this case company's inventory is sold 18 times per year. It means, that 20 days are need
Net Income
Av. Equity
ROE= Net income/Av. Equity
2015
39216
-10082
-3.8897044237
2014
37000
The company generated 3,4 RUB of loss from 1RUB of shareholders equity
Net Income
Av. Assets
ROA= Net income/ Av. Assets
2015
39216
12187
3.2178550915
2014
37000
Operating income
Revenue(Net sales)
Profit margin(
2015
150479
313483
0.4800228402
2014
154976
314795
0.4923076923
The company was able to generate less profit than in 2014, as there was a decrease in revenue
Gross Profit
Revenue
Gross profit pecent( )=
The company gets 0,55 RUB from selling 1 RUB of goods
2015
173,487
313483
0.55
2014
174,908
314795
0.56
2014
Total liabilities
321640
299911
Total equity
147751
157833
Debt-to-equity ratio= Total liabilities 2.1769057401 1.9001793034
tors than AT&T Company. But still the ratio in both companies in higher than 1.
2015
2014
Total liabilities
321640
299911
Total assets
457744
469391
Debt ratio= Total liabilitie/Total asset 0.6852283065 0.6551937327
Assets= Equty+Liabilities
2015
2104
Total equity
147751
157833
Total Assets
469391
457744
Equity ratio= Total equty/Total assets 0.3147716935 0.3448062673
It means that 69% of Assets are
financed by Liabilities and 31% by
equity in 2015.
For 2014 the percentsges are 66%
and 34% respectively.
015, 2014
s and Net AR