Balance Sheet Analysis

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[pic 1]

Accounts Payable (Current Liabilities) :[pic 2]

According to the Account Payable Ratio :

[pic 3]

We can see that this ratio, is slightly decreasing the first year between 13% and 10% then in 2014 there is a huge gap to 26% before the ratio turns back into a normal year with 13%.

So the main question is what happens in year 2014 concerning the account payable debt.

The first application, in 2014, of new consolidation standards has led the Group to account for its joint ventures, previously consolidated with the proportionate method, now under the equity method.

The operational performance of these joint ventures, as well as its investments in associates are integrally part of the Group’s strategic development objectives and regularly reviewed by the Chairman and Chief Executive Officer.

That’s why, the new methods (equity method) has pretty much decreased the acount payable ratio.

Total Current liabilities:

Whereas the accounts payable ratio has decreased the last 2 years. The total current liabilities ratio has slightly increased from 58% to 61% this period.

It’s explained by a huge increase of interest from Thales to finance its new products. The question is: Is it an increase in production or in the different costs of the products?

The firm spent 2 million € more than in 2014 for its products, it seems too important to be only an increase in cost. By looking at the Cash and Cash Equivalents we could deduce a correlation with the total current liabilities.

Cash and Cash equivalents:

The increase of cash represents the biggest and only true change in the total current assets.

From 2014 to 2015, the cash of the firm has increased by 4% which can imply better sales. Thus, the hypothesis from before is confirmed, the sales have grown during the last year implying more important costs.

Income statement analysis

Income statement in value (K€)

Income Statement

31 déc. 2012

31 déc. 2013

31 déc. 2014

31 déc. 2015

Total revenue

14 158 000,00 €

12 698 000,00 €

12 974 000,00 €

14 063 000,00 €

Cost of Revenue

10 868 000,00 €

9 685 000,00 €

9 792 000,00 €

10 688 000,00 €

Gross Profit

3 290 000,00 €

3 012 000,00 €

3 182 000,00 €

3 375 000,00 €

Operating Expenses

Total Operating Expenses

13 367 000,00 €

11 829 000,00 €

12 061 000,00 €

13 065 000,00 €

Operating Income or Loss

791 000,00 €

869 000,00 €

913 000,00 €

999 000,00 €

Income from Continuing Operations

Earnings Before Interest and Taxes

791 000,00 €

869 000,00 €

913 000,00 €

999 000,00 €

Interest Expense

-56 000,00 €

-27 000,00 €

-20 000,00 €

-16 000,00 €

Income Tax Expense

194 000,00 €

204 000,00 €

214 000,00 €

220 000,00 €

Net Income From Continuing Ops

536 000,00 €

609 000,00 €

762 000,00 €

813 000,00 €

Net Income

Net Income

536 000,00 €

573 000,00 €

714 000,00 €

765 000,00 €

Income statement in percentage

Income Statement

31 déc. 2012

31 déc. 2013

31 déc. 2014

31 déc. 2015

Total revenue

100%

100%

100%

100%

Cost of Revenue

76,8%

76,3%

75,5%

76,0%

Gross Profit

23,2%