This Power BI executive report aims to provide a closer look at Company A and

Company B's financials over the previous three years to assist in choosing which company

deserves to be pursued to expand our business. I was able to make some charts using Power BI to

examine how Company A and Company B's balance sheets and income statements differed from

one another. The differences and similarities between the two businesses are illustrated in these

charts. We will examine the changes in owner's equity, liabilities, and assets over the last three

years in the first section. The relationship between revenue, gross profit, total expenses, earnings

before tax, net earnings, and taxes will be examined, along with an annual changes review, in the

second section.

After reviewing the balance sheet of Firm A their balance sheet has remained relatively

static over the last three years. The drop from 2018 to 2019 is due to Company A paying off

20,000 dollars of its debt. The changes to their assets and their liability plus owners’ equity can

be seen in the graph below.

 Company A Balance Sheet Chart
120,000

100,000

80,000

60,000

40,000

20,000

-
Total Assets Total Liabilities & Shareholder's Equity

2017 2018 2019

As can be seen below, Company B has also stayed unchanged. Between 2017 and 2018,

Company B's inventory decreased by 1,000, and they used their cash on hand to pay off $10,000

of their debt. Company A's balance sheet shows more retained earnings and less cash than

Company B's, while Company B's balance sheet shows more debt. In contrast to Company A,

which has only $10,000 in debt, Company B has $80,000.

 Company B
126,000
124,000
122,000
120,000
118,000
116,000
114,000
112,000
110,000
108,000
106,000
Total Assets Total Liabilities & Shareholder's Equity

2017 2018 2019

The gross profit, cost of goods sold, and revenue for both businesses were the same in

2017. But because Company B pays much less in rent and salaries, they have higher net

earnings. The first graph below shows how Company A's growth has continued over the past

three years. Company A's cost of goods sold increased significantly in 2018, which hurt net

earnings and caused the company to lose money. 2019 saw a significant recovery that

contributed to an upsurge in net earnings and profit over the preceding two years.

The income statement also demonstrates that, although Company B's total expenses have

varied over the course of the three years and their interest is double that of Company A,

Company A has consistent expenses and pays low interest. While Company A's (first graph) data

indicates that the company has recovered well from a weak 2018, Company B's numbers from

2017 are still lower in the second graph.

 Every company exhibits commendable attributes, as evidenced by their robust balance

sheets and income statements. When paired with their increased revenue and gross profit,

Company A, which has less debt, is currently the stronger business. Transglobal must decide

whether it makes sense to add to Company B's $80,000 debt load even though Company B has

the opportunity to boost its gross profit back to 2017 levels.