Suppose you have Alpha’s Income Statement and Balance Sheet for two consecutive years. Based on this
information, you need to calculate certain financial ratios.
Income statement | ||
In USD million | 2019 | 2020 |
Revenue | 4,077 | 4,560 |
Cost of sales | 2,710 | 3,059 |
Gross profit | 1,367 | 1,501 |
Marketing expenses | 396 | 437 |
Administrative costs | 280 | 302 |
Sale and distribution costs | 197 | 223 |
Operating profit (EBIT) | 494 | 539 |
Interest expense | 140 | 185 |
Earnings before tax (EBT) | 354 | 354 |
Tax expense | 16 | 18 |
Net income | 338 | 336 |
Balance sheet | ||
In USD million | 2019 | 2020 |
Non-current assets | ||
Fixed assets | 2,005 | 2,020 |
Intangible assets | 1,800 | 1,904 |
Current assets | ||
Inventory | 409 | 482 |
Trade receivables | 730 | 863 |
Cash and cash equivalents | 496 | 588 |
Marketable securities | 400 | 398 |
Total assets | 5,840 | 6,255 |
Long term liabilities | ||
Long-term bank loan | 152 | 178 |
Current liabilities | ||
Payables to employees | 580 | 621 |
Short-term bank loan | 750 | 803 |
Trade payables | 286 | 298 |
Accruals | 401 | 493 |
Total liabilities | 2,169 | 2,393 |
Share capital | 300 | 300 |
Retained earnings | 3,371 | 3,562 |
Total equity | 3,671 | 3,862 |
Total equity & liabilities | 5,840 | 6,255 |
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